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Using Metrics to Reduce Discrimination Eve Sprunt Eve Sprunt and Associates
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Using metrics to reduce discrimination. The old adage is that you get what you measure. Money is the ultimate metric. If you want to monitor how women and under-represented minorities are doing in an organization, the best way to compare status is on how they rank in terms of compensation. Just as companies that issue publicly held stock annually report certain financial results, such companies should also annually report financial metrics on female and under-represented minorities in their workforce.
Transcript of Sprunt aberdeen atw presentation template v2
Using Metrics to Reduce Discrimination
Eve SpruntEve Sprunt and Associates
Importance of Metrics
“You can’t manage what you don’t measure.” - old business adage
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Often attributed to Peter F. Drucker or W. Edwards Deming
Metrics Matter“Human beings adjust behavior based on the metrics they’re held against. Anything you measure will impel a person to optimize his score on that metric. What you measure is what you’ll get. Period.”
Dan Ariely, a professor of psychology and behavioral economics at Duke UniversityAriely, Dan, 2010, You Are What You Measure, Harvard Business Review, http://hbr.org/2010/06/column-you-are-what-you-measure/ar/1
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Metrics Inside and Out
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• Money is the ultimate metric
• Must be able to see and compare metrics
• It is not who you hire – it is who you retain
• Motivate with metrics – inside and out
Women Lag Behind
Study led by Michael T. French, Professor of Health Economics at the University of Miami that was published in 2014 in the Eastern Economic Journalhttp://www.as.miami.edu/news/news-archive/your-high-school-gpa-could-affect-your-income.html and http://EconPapers.repec.org/RePEc:mia:wpaper:2010-26
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High school grade point average is significantly higher for women, but men have significantly higher annual earnings
The Leaky Talent Pipeline“Women now make up more than half of the incoming classes in the top U.S. universities, but still only a small fraction of CEOs, board directors, and government leaders. This data makes it clear that while we’re now getting women into the game in equal numbers, we are not yet getting them through to the top.”
“We’ve identified three critical pivot points where we’re losing women on the way to the C-suite: • The launch• The child rearing years• The transition to senior leadership”
Sally Blount, Dean of Kellogg School of Management6
July 16, 2014 http://www.fastcompany.com/3032946/strong-female-lead/why-the-first-years-of-college-are-crucial-for-women-aiming-for-the-c-sui
Metrics Design• Simple• Transparent• Easy to compare between
organizations• Collected on a regular interval• Monitor suspected problem areas• Accountability
• To top management• To employees• To stockholders• To the public
7We need monetary metrics inside and out
Schlumberger HR Benchmark Survey
Schlumberger Business Consulting Data for 2013 HR benchmark based on 2012
• Female gender diversity data only• 6 National Oil Companies (NOC’s)
including• Asia• Middle East• South America
• 6 International Oil Companies (IOC’s)• 8 Independents
• Worldwide• 25% of companies from the US
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Schlumberger HR Benchmark Data
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• 2013 benchmark is based on 2012 data• Percentages computed for NOCs, IOCs and independents based on %
of each company weighted by relative importance of its population
Schlumberger HR Annual Benchmarks
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BP’s Website Data - Women
11http://www.bp.com/en/global/corporate/sustainability/our-people-and-values/diversity-and-inclusion.html
• Good start but insufficient information
• Titles are ambiguous
• Need monetary metrics, not titles
• What % of all employees are in each category?
BP’s Website Data - Men
• Insufficient information to be meaningful
• What % of employees are in each category?
• No progress for UK and US racial minorities
12http://www.bp.com/en/global/corporate/sustainability/our-people-and-values/diversity-and-inclusion.html
Metrics Context
• Organization’s definition of who is included in the “under-represented minority” group
• Location of headquarters of group for which
metrics are being reported
• Number of employees in the group covered by the metrics
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Proposed Annual Metrics
Percentage of Women
Under-represented Minorities (Male and Female Separately)
Entry Level Professionals
Top 50% employees by compensation
Top 25% employees by compensation
Top 10% employees by compensation
Top 2% employees by compensation
Board of Directors
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Why Percent Compensation?
• Allows easy & consistent comparison between organizations by members of potential talent pool
• More granularity for identification and elimination of “choke points”• Increased understanding of attrition of mid-career women
• Work-life integration challenges• Career frustration
• Level beyond which women and minorities struggle to advance
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Survey of Companies - Minorities
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Entry Level Top 50% Top 25% Top 10% Top 2% Board0
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Under-Represented Minorities
Max Average Min
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Note: No average shown if not all companies reported for that level of compensation.
Survey of Companies - Women
17Includes 2 IOCs, 2 IOC subsidiaries, 1 NOC, 2 US IndependentsNot all companies reported data above top 50% by compensation
Entry Level Top 50% Top 25% Top 10% Top 2% Board0
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Comparison with SLB Benchmark Data for Average Female Employee
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SLB – Average of global populationNew Survey – Top 50 percent of population by compensationIncludes 2 IOCs, 2 IOC subsidiaries, 1 NOC, 2 US Independents
Max SLB avg IOCs SLB avg Ind SLB avg NOC Average Min0
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Comparison SLB 2013 Benchmark and New Survey - Average Employee
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Comparison of SLB Benchmark Data for Female Managers with Top 10%
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Includes 2 IOCs, 1 IOC subsidiary, 1 NOC, 2 US IndependentsDifficult to compare compensation of managerial titles between employers
Max SLB avg IOCs SLB avg Ind SLB avg NOC Average Min0
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Female Managers or top 10% by Compensation
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Conclusions
• Inside and outside, metrics matter• Public disclosure of clear metrics on an
annual basis provides strong motivation to eliminate discrimination
• Monetary metrics can enhance attraction and retention
• Measure our way to equality 20
If you would like to assist in collecting clear metrics on an annual basis that are available to the general public, please contact me –
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Acknowledgements / Thank You / Questions
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