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To Improve DEI, Choose Culture ADD Over Culture FIT

As I wrote in my last article, building a culture of diversity, equity and inclusion (DEI) begins with leaders.

Leaders need to create an environment where ALL employees, regardless of their gender, race, ethnicity, religion, nationality, disability, sexual orientation, etc. feel welcome, valued, and included. An environment where ALL employees have opportunities for advancement and where ALL employees are treated equitably in matters of compensation, development, and benefits.

Equity and inclusion don’t just happen on their own. They need to be intentionally woven into HR strategies, policies, procedures, and leadership expectations. DEI shouldn’t be focused just in the hiring practice. It needs to continue throughout the employee experience. The commitment to DEI needs to be talked about at new hire orientation and reinforced at team meetings and at all hands meetings.

A recent Fast Company article – 5 Things You Probably Haven’t Thought of That Will Help You Be More Inclusive – provides some additional ways for companies to become more inclusive. Two of their tips stood out to me.

Focus on culture ADD not culture FIT. Too many workplaces are focused on hiring for culture fit. This framing is exclusionary and biased, especially when it comes to hiring for leadership roles. If your organization is made up of white men, then you’re consciously or unconsciously going to pattern match for a ‘culture fit.’”

As you do your workforce planning, think about hiring for people who aren’t already represented by race, gender, age, educational background, languages spoken – people who will add to your culture.

Cultivate cultural humility, not cultural competency. The difference is that cultural competency means learning about other cultures while retaining the idea that your culture is dominant. This approach assumes that the non-dominant culture’s way of doing things is often exasperating or exotic—a quirk to accommodate, not something to respect or learn from. Cultivating cultural humility means recognizing that you do not know everything about another’s culture, and that there may be a lot to learn from it.

The most inclusive companies evaluate their practices on a regular basis, collaborate with employees at all levels on how they can improve, and monitor their progress. They celebrate and reward those who add to the culture and recognize leaders who see potential in employees who may be different than the established norm.

If you need help improving diversity, equity and inclusion in your organization, please reach out to me at michelle@connecttohr.com.

Diversity, Equity, and Inclusion – How to Lead the Way

Numerous studies have shown that a diverse workforce can have a positive effect on the bottom line. But building and maintaining that workforce is more than just hiring people of color and from different backgrounds. Unless you follow through with equity and inclusion once they’re on board, your commitment to diversity is just lip service.

So how do you create a culture of diversity, equity, and inclusion? It needs to be a concerted effort – starting at the leadership and systems level – that considers all activities – hiring, promoting, communications, company gatherings, development, team assignments, terminations, etc. – through a lens of diversity, equity, and inclusion.

Here are some tips.

Regularly confirm your commitment to diversity and inclusion by ensuring that teams, projects, promotions, development, and other opportunities are open to the broader definition of diverse individuals – gender, ethnicity, points of view, sexual orientation, etc.

Encourage conversation to promote understanding. Consider organizing group conversations of diverse employees where participants share their different perspectives and experiences. Hearing personal stories about the impact of exclusion can be powerful in creating empathy and understanding.

Build awareness around microaggressions. Often, seemingly innocuous statements or questions can make others feel uncomfortable. “Where are you from originally?” “Wow! You are so well-spoken.” “You’re strong for a girl.” Statements and questions that subtly imply assumptions based on gender or race do not promote inclusion.

Implement a mentoring program. Match peers one-on-one or in mentoring circles to provide a safe place to talk about challenges. Or consider creating affinity groups. A workplace affinity group is a group of employees with similar backgrounds, characteristics, or life experiences, such as: women, people of color, or Veterans. The purpose of an affinity group is to provide diverse populations within an organization the opportunity to share ideas and experiences.

Learn more about the small steps you can take every day to implement a culture where everyone feels valued, heard, and included in this podcast from my amazing colleague, Lisa Duerre, CEO of RLD Group.

Building a culture of diversity and inclusion takes time and effort. It’s about changing mindsets and creating an environment that allows all to feel welcome and to thrive. It begins with you, as the leader, leading the way.

If you need help incorporating diversity, equity and inclusion into your culture, please contact me at michelle@connecttohr.com.

Hiring for Diversity Isn’t Enough

Back in 2014 the hi-tech industry made a public goal to increase diversity in their workforces. CEOs pledged millions to the cause, diversity recruitment programs emerged, and companies shared annual reports to show their progress.

To date, however, little real progress has been made. While the number of Blacks and Latinos recruited and hired in hi-tech has increased slightly (a couple of percentage points at most) the efforts to create and maintain a truly diverse workforce seem to stop there.

Take Google, for example, which is now the subject of a lawsuit claiming that it treats Black workers unfairly by “steering them into lower-level and lower-paid jobs and subjecting them to a hostile work environment if they speak out.”

The person who filed the lawsuit, a recruiter who was hired in 2014 to set up a diversity program, claims that she noticed a pattern of discrimination as qualified Black employees and other people of color were paid less and passed over for promotions. She says she was fired from her job after speaking out about it. Other former employees have made similar complaints since the lawsuit, which is seeking class action status, was filed.

This is an important lesson for business leaders. Diversity in hiring is not enough. It may look great on a report, but unless you do more it’s just for show. To create and maintain a diverse workforce you also have to practice equity and inclusion in all of your people practices – compensation, opportunities for promotion, learning and development and so forth.

Without taking those next steps to embrace and practice Diversity AND Equity AND Inclusion (DEI) you are just checking a box and not making a difference.

Next time we’ll talk about how you can increase equity and inclusion in your organization.

Diversity and Inclusion – How to Walk the Talk

As I shared in my last article, there are plenty of statistics that indicate the positive effect a diverse workforce can have on business results. Now the question is, how do you get there? It needs to be more than just saying you practice diversity. Or that you make sure you tick the EEO boxes in your hiring and firing practices. It needs to be a concerted effort – headed by leadership – to create a culture that considers all activities – communication, recruiting, hiring, promoting, company gatherings, team assignments, terminations, etc. – through a lens of diversity and inclusion.

You need to walk the talk. Here are some tips for doing that.

Demonstrate your commitment to diversity through the images on your website and in recruiting collateral. Be sure they are actual images of your workforce and not stock images.

Review job posting language through the lens of diversity and inclusion. Words matter. Terms such as “rockstar, “ninja” or “guru” may discourage some perfectly qualified people from applying. Use gender neutral language. Sometimes it’s as simple as changing “manage” to “develop.” A recent KQED article noted that “if you say manage a team, the applicants are primarily male. If you say develop a team, it tends to be female. And when you say lead a team, it tends to be neutral.”

Emphasize the impact of the role. Studies show that men will apply for jobs when they meet only 60% of the requirements, whereas women don’t feel confident to apply unless they meet 100% of the requirements. Consider only including the must-have requirements (versus adding all of the nice-to-haves) and focusing more on the impact the candidate would make in the position.

Confirm your commitment to diversity and inclusion on a regular basis by ensuring that teams, projects, promotions and other opportunities are open to the broader definition of diverse individuals – gender, ethnicity, points of view, sexual orientation, etc.

Encourage conversation to promote understanding. Consider organizing group conversations of diverse employees where participants share their different perspectives and experiences.

If you need help in incorporating diversity into your hiring practices and/or culture, please contact me at michelle@connecttohr.com.

New Laws on Harassment, Wage and Hour Violations

In my work with organizations I have two focus areas – Executive Coaching and HR Consulting. Keeping clients abreast of new and changing legislation in the dynamic world of California labor law falls into the HR Consulting bucket, but is also important for the executives I coach.

Here’s an update on some key legislation affecting employers in 2019.

New Restrictions on Sexual Harassment Settlement Agreements

Two recently enacted laws will make it more difficult for employers to resolve workplace sexual harassment and discrimination disputes.

The Code of Civil Procedure Section 1001 prohibits settlement agreements that bar the disclosure of facts related to claims filed for:

Sexual assault
Sexual harassment
Workplace harassment or discrimination based on sex
Failure to prevent harassment or discrimination based on sex
Retaliation against a person for reporting harassment or discrimination based on sex

The law allows the identity of the claimant, and any facts that could lead to the discovery of that identity, to remain confidential if requested by the claimant. Employers are still allowed to enter into settlement agreements that prohibit the disclosure of the settlement amount.

Another new law, SB 1300, amends California’s Fair Employment and Housing Act (FEHA) by placing additional limits on settlement agreements. Employers are now prohibited from requiring an employee, as a condition of employment or in exchange for a bonus or raise, to sign a non-disparagement agreement that prevents the employee from disclosing information about unlawful acts in the workplace. The law also adopts a lower standard for liability, as such:

A plaintiff does not need to prove that tangible productivity has declined as a result of the harassment.
A single incident of harassing behavior may be enough to create a hostile work environment. Proof of a pattern of harassing behavior in the past is no longer required.
Harassing behavior is not acceptable based on historical norms, or industry or company custom.

As an employer you should review your harassment policies to ensure that they align with the recent changes in law. Also, take complaints seriously! Remember to always investigate claims using qualified, impartial investigators, and take corrective action. Create a culture that makes it very clear to leaders and employees that harassment of any kind will not be tolerated.

California has expanded mandatory anti-harassment training to smaller employers

Employers with at least five employees must conduct mandatory sexual harassment training by the end of this year to comply with SB 1343, passed in 2018. SB 1343 requires that training of both supervisors and non-supervisors be completed by January 1, 2020. Training for supervisors must be at least two hours, and training for non-supervisors must be at least one hour. Training must be repeated at least every two years. Remember to keep records of training received by employees and supervisors.

Managers may be personally liable for wage and hour violations

According to a recent decision by a California appellate court (Atempa v. Pedrazzani), an owner, officer or managing agent of a corporate employer can be held personally liable for civil penalties for unpaid wages or overtime.

The plaintiff in this case worked at a restaurant owned by Pama, Inc. He sued the company for unpaid overtime, meal period and rest break violations. When Pama, Inc. filed for bankruptcy, the plaintiff successfully pursued recovery from the restaurant owner, Paolo Pedrazzani.

What this means for you as an employer is that you need to be sure that you and your managers consistently follow wage and hour rules. Even unintentionally failing to comply with the law can create personal liability.

Other legal decisions of note

Caldera v. Department of Corrections and Rehabilitation. The plaintiff in this case sued for harassment on the basis of disability after being taunted by his coworkers about his stuttering over a period of two years. The employer argued that the company had an informal, “joking” culture and that the behavior was not severe. The plaintiff won a $500,000 settlement.

This goes back to what I said earlier about creating a culture that is non-tolerant of harassment in any form. Again, the threshold for harassment has been lowered and a pattern of behavior is no longer necessary to prove harassment. If one of your employees is offended by harassing conduct you face potential liability even if the majority of employees are not bothered by the behavior. Again, take complaints seriously and investigate claims right away.

Hurley v. Department of Parks and Recreation. In this case a manager had disclosed private information about a subordinate to a non-manager, violating the plaintiff’s right to privacy. This decision points up the fact that managers should only disclose information about subordinates on a need-to-know basis and never to non-managers. The manager in this case maintained a “drop file” on the plaintiff, containing work performance as well as private information. Private information about employees should only be stored in files maintained by human resources with proper confidentiality protections.

Important updates on the use of arbitration agreements in CA

Epic Systems v. Lewis. In this case the U.S. Supreme Court ruled that the National Labor Relations Act (NLRA) does not prevent employers from making mandatory arbitration agreements a condition of employment, even with a provision waiving the employee’s right to a class action claim.

Along these same lines, two other opinions favored employers with regard to arbitration agreements.

In Sonic Calabasas Al, Inc. v. Moreno, the court ruled that an employer may require an employee to resolve wage disputes through binding arbitration. In Iskanian v. CLS Transportation Los Angeles, LLC, the court rule that an employer may require an employee to pursue claims as an individual and not as part of a class action suit. If you have not implemented mandatory arbitration agreements, I suggest you seek legal advice about the pros and cons of implementing an agreement for your organization.

If you would like more information about any of these legal updates and how they apply to your organization, please contact me for a consultation. Michelle@connecttohr.com.

For These Companies, Giving is a Year-Round Event

As I discussed in my last blog, consumers and job candidates are increasingly looking to do business with and/or work for companies that demonstrate they care about their communities. Do they give back? How do they treat their employees, customers, suppliers and partners? What are the company values and are they adhered to?

For many, these factors are key in their decision process. Companies that are socially responsible have a better public image – with consumers and in the media; have more engaged employees, are able to recruit higher quality talent; and are better able to attract and retain investors. In fact, 55% of consumers say they are willing to pay more for products from socially responsible companies. And, according to a study by Cone Communications, 62% of Millennials would be willing to take a pay cut to work for a socially responsible company.

Here are some examples of companies that practice giving and social responsibility year-round.

Kendra Scott. Kendra Scott grew her jewelry company from a $500 home project to a billion-dollar fashion brand, all the while keeping philanthropy as one of her core values. The company’s annual impact includes more than $4.5 million in monetary donations, $10 million in in-kind contributions, 2,000 employee volunteer hours and more than 10,000 philanthropic partnerships.

cuddle + kind. cuddle+ kind is a family-run business that sells handmade knitted dolls. For every doll sold, the company gives 10 meals to children in need. Not only that, each doll is handcrafted by women artisans in Peru, providing them with a sustainable, fair trade income.

TOMS Shoes. TOMS’ social responsibility model started with them giving a pair of shoes to someone in need for every pair of shoes sold. TOMS’ giveback model has since expanded to include coffee (providing water where needed), bags, eyewear and apparel. “With every product you purchase, TOMS will help a person in need. One for One®.”

Glassybaby. Glassbaby provides glassblower artisans the opportunity to continue their craft, and donates 10% of every glassbaby to the Glassbaby White Light Fund to help people, animals, and the planet. Glassbaby gives back almost $2 million annually. Glassbaby employs more than 80 glassblowers at their locations in Seattle and Berkeley.

As you think about your organization’s plans and strategies for next year, give some thought to how you can create and maintain a culture of giving.

“We make a living by what we get. We make a life by what we give.” – Winston Churchill

Creating a Culture of Giving and Kindness

This is the time of year when many organizations and their employees open their checkbooks and contribute their time to help those in need. There are multiple opportunities to volunteer and streamlined processes to donate during this traditional season of giving.

But here’s the thing: Need isn’t seasonal. It’s an equal opportunity to give, all 12 months of the year.

I’d like to suggest that instead of focusing all your organizational and employee giving efforts just in the months of November and December, you instead create a culture of giving all year round.

How do you do that? Here are some ideas.

At the beginning of the year, select a charity to support through donations and/or volunteering for the year; encourage employees to make individual donations to the charity selected
Ask employees to recommend charities to support and then select a different one each month or quarter to contribute to
Set a company fundraising goal for a particular cause and ask employees to help you reach it
Match employee individual donations
Give employees a set number of hours per year that they can use to volunteer
Have a team competition to see who can raise the most money for a cause or charity

Many people make their buying decisions and their job decisions based on a company’s reputation for giving back. This means that in addition to a giving culture helping those in need, it also provides many intrinsic benefits for your company and your employees.

Consumers want to buy from you
Job candidates want to work for you
Employees feel good working for a company that cares

Another thing about a giving culture is that giving is usually a demonstration of kindness. And it’s clear that in our current divided and often mean environment we can all use a lot more kindness. To those in need and among ourselves.

Leaders, it starts with you. Set the example by treating your individual employees, your team, your customers, your vendors, your job candidates, everyone, for that matter, with kindness. Lead with the question, “How can I help you?” instead of “How will this transaction help me?” Encourage employees to be proactive in helping each other and recognize those who consistently demonstrate that spirit.

Just think about it. Giving and kindness within the organization and giving and kindness to others. What a wonderful world it would be.

A Culture of Empathy Starts at the Top

Research shows that companies who demonstrate they care – about their employees, about their customers, about their community – significantly outperform their less-caring peers. People want to work there. Customers want to buy there. And they all want to tell their friends.

So what’s the magic formula? Building personal connections and developing strong and enduring relationships. When leaders connect with their employees by showing empathy, listening to them, recognizing the value they provide to the organization, and providing growth opportunities, those employees are more likely to care about their work, their customers and the business.

One example of a company that understands the importance of building connections is Zappos. They provide 24/7 customer service – by phone. Zappos encourages phone calls because they enable in-depth conversations with customers and a better opportunity to create personal connections. A June 2017 Forbes article described Zappos’ model this way: “When that one call comes in, Zappos will do anything to make sure it’s an engaging and personable experience for the customer, in the hope that a single great phone interaction will serve as a proxy in the customer’s mind for the overall personality of this company.”

Making personal connections and building relationships have traditionally been relegated to the “soft” side of business skills. But as described in a recent article in Chief Learning Officer Magazine, there’s “hard” science evidence indicating that “our brains are wired to be social” and that we can leverage that information to learn how to create personal connections and build lasting relationships.

According to the article, KPMG partnered with the head of the Wharton Neuroscience Initiative at the University of Pennsylvania to evaluate the strength of their relationships with clients and within the organization. One of the outcomes was “an instructional program on applying practical insights from neuroscience to build trusted relationships.”

Some of those insights were:

Initiating a relationship. The brain seeks social cues – “the real-time behaviors that display connection.” When you first meet someone, make eye contact. Smile, and pay close attention to them. Listen. “Failing to look and listen reduces information flow into the social brain, limiting the potential for building connections, establishing trust and working together.”

Engaging emotionally. Don’t jump into a business conversation. Engage in a conversation to get to know the other person better. Adapt your communication style to theirs – for example, if they’re soft spoken and you tend to be loud, lower you voice. Build rapport by finding things in common.

Engaging cognitively. This is where empathy plays a big part. Ask about and listen to their perspective. Try to see things from their vantage point. “Activating perspective-taking engages the social brain, which enhances your ability to develop understanding, and helps to achieve common goals.”

A culture that fosters strong, trusting relationships – both internally and externally – begins at the top.

As the old adage says, “If you take care of your people, your people will take care of the business.”

Improve Company Performance Through Diversity and Inclusion

There has been much discussion recently about the disparity in pay and opportunity for women and minorities across a variety of industries. And although Silicon Valley companies have created many initiatives over the years to close the gap, the gap in hi-tech remains. But here’s the thing. Those companies who have successfully increased diversity and inclusion – especially at the senior management level – are significantly outperforming those who haven’t.

According to a recent McKinsey & Company report, companies that ranked in the top quartile on executive-level gender diversity outperformed their less diverse peers by 21%. Companies with the most ethnically diverse executive teams outperformed their peers by 33%. Conversely, the report showed that the least diverse companies underperformed their industry peers by 29%. Clearly there’s a correlation between diversity and the bottom line.

In addition to improving financial performance, proactively creating a culture of diversity and inclusion improves employee engagement and helps attract new talent. Companies that embrace differences and provide opportunities for all are far more attractive and motivating workplaces. This is important for leaders to remember, especially now that we’re in an environment where there’s competition for talent.

Although the McKinsey report looked at diversity primarily through the lens of gender and ethnicity, I think it’s important to consider a broader definition. All too often leaders fall into the trap of hiring someone very much like them – similar personality, similar background, similar way of approaching a problem or decision. Yet there is so much to be learned and gained from building a team and organization that includes a variety of personalities, backgrounds, and approaches. When different viewpoints and approaches are brought to the table it spurs innovation, which contributes to the organization’s competitive edge.

Creating a culture of diversity and inclusion can also help attract customers. Today’s consumers have myriad choices, and many are looking to do business with companies that demonstrate they care by providing opportunities, development and advancement for all.

Next time we’ll talk about some things you can do to promote diversity and inclusion in your culture and hiring practices.

Let’s Normalize Kindness

It’s been so heartwarming to see the outpouring of kindness and generosity from neighbors near and far in the wake of the fire disasters in the North Bay. There’s something about disasters that makes people set aside their differences and come together in the spirit of compassion for their fellow human beings.

Why can’t we always be this way? How can we change the bad behavior that is increasingly becoming normalized in the workplace, and normalize kindness instead?

Leaders, it starts with you. Set the example by treating your individual employees, your team, your customers, your vendors, your job candidates, everyone, for that matter, with kindness. Express your feedback – even when negative – in a positive, constructive way. The command and control style of leadership, although we see it in the news every day, should be a thing of the past.

Remember that the number one reason employees leave is because of their boss. With an improved job market, good talent has plenty of options. Don’t lose that talent by normalizing bad behavior. Be kind.

Encourage your employees to be kind by rewarding people for helping others and demonstrating kindness. The seasoned employee who makes an extra effort to help a new employee feel welcome and get acclimated. The leader who inspires his/her team to volunteer for community service. The employee who goes above and beyond to help a customer have a good experience. The leader who consistently models positive behavior in word and deed.

Caution employees not to get caught up in the rumor mill, and to seek the truth, in person, before making assumptions about a situation. All too often conflicts get blown out of proportion because too many people are brought into the loop via emails that are over-copied and over-shared. Remember, emails are one-way communication and you have no control over where that email goes once you send it. Create an environment where employees know that the first step in a conflict is to try to resolve it face to face with the other person, and if that doesn’t work then to involve you, as their leader.

These sayings are old, but definitely apply today: “If you don’t have something nice to say, don’t say anything,” and, “Words, once they are printed have a life of their own.”

Let’s all try to be kinder, EVERY day.

“No act of kindness is ever wasted.” – Aesop