by Andrés T. Tapia –
(This article was originally published on my LinkedIn page: https://www.linkedin.com/today/author/18562142)
In the last post, we finished talking about the second of three strategies corporations can use to seize the opportunities offered by the growing Latin talent pools. In this post, we’ll cover the third and final strategy.
Strategy 3: Marry marketing psychographics to multidimensional demographics
A telltale sign that there is lack of clarity about how to best reach Latino talent and consumers is that many are confused by just the most basic terminology: is it Hispanic or Latino?
The very fact that these terms are often used interchangeably in the media, but have meaningful although not-so-simple-to-explain differences in their origins and who uses them and how, is telling in itself.
But which term to use is only the tip of the iceberg. When we say Latino or Hispanic are we referring to the first-, second-, third-, or fourth generation Latino? The Boomer, Xer, or Millennial Latino? The English-, Spanish-, or Spanglish-dominant Hispanic? The Peruvian immigrant or the Honduran American born in Wichita? Or any of the other hyphenated Latinos coming from 27 different national heritages? This is the demographic part.
Then, as marketers well know, there is a psychographic part—the drivers that influence consumers’ purchasing decisions. Do they buy for comfort? For adventure? For status? For being on the cutting edge?
Latinos, like members of any other group, also have psychological drivers unique to the individual. Marketers have been able to group these individual psychological drivers to segment consumers. So even within the same demographic group they can go after segments such as hipsters, rebels, or security seekers. These are the psychographics.
The next step is to marry demographics with psychographics to create the most targeted approaches to attract talent and consumers. In other words, knowing the multidimensionality of demographic characteristics of Latinos is exceptionally important, but it is not enough without also layering in the various psychographic profiles.
This then gets us to the motivations of Latinos as it relates to cultural identity. How much do they or do they not want to identify with their ethnic roots versus how much do they want to embrace mainstream American culture as the core of who they are. Are they assimilationists? Are they Upwardly Mobile Aspirants? Are they Nationalistic in their ethnic country of origin pride?
The psychographic profiles that people will take are unpredictable to discern for individuals. But patterns do emerge. And now we can combine appealing to the demographic of the Millennial Puerto Rican to the psychographic or those who are Assimilationists or Nationalistic for example.
When the media zeros in on the undocumented (11 million) and the marketers on the Spanish speakers (34 million that is inclusive of the undocumented numbers), they are looking at important segments within the Latino umbrella but not the whole.
For example, they most often overlook the 26 million English-dominant Latino Millennials who paradoxically also tend to identify with the heritage of their parents’ country of origin (Colombian, Costa Rican, Argentinian, etc.) according to Pew Hispanic Research.
Marisela, my daughter, is a case in point. I think back just a few years ago, tiara perched on her jet-black hair, looking radiant and happy, surrounded by her friends and family. It was her quinceañera—her fifteenth birthday—a rite of passage in the Latino culture where a girl becomes a young woman. Mom, a European-American, and Papi, proud…and torn. Our daughter was coming of age and this joyous celebration with 200 people, a live salsa band, and a Peruvian food buffet, also marked one major milestone in Marisela’s passage toward independence and growing into her own identity.
So Marisela talks about being Peruvian American even though she was born and raised in the United States. She embraced becoming bilingual and multicultural as her friendships include young people who are Jewish, European-American, Black, and Latino. She spent extended time in Peru, where she found love and ended up marrying a Peruvian.
While Millennial Latinos are shaping their own Latino identities so are those in the older generations in the rapidly changing demographic landscape.
This was the lively topic of conversation at dinner in Boston’s North End, at the outdoor patio of Ristorante Fiore, an Italian restaurant on Hanover Street, after a successful diversity conference. A group of us Latinos sat, sipping our wine or espressos, began debating the role of accented English as it related to Latino identity in the workplace. Why is it that having a French or British accent is seen as a plus, but having a Spanish accent a drawback? And because of this, should Latinos who speak English with a Spanish accent work at reducing their accent? As the alcohol and caffeine took its effect, the conversation around how we sound dipped into a discussion about identity and success when one is in the minority.
The answers are not easy, the implications uncomfortable. Here we are a table of Latinos from different countries, different migration stories, different choices. What path should each of us take? I described facing ridicule and teasing at best, discrimination at worst due to my heavily-accented English during visits to the United States when I was young. This experience motivated me to work on my accent when I came to back to the United States to attend college.
As I did, the change in responses to my words clearly shifted toward more positive reactions as I calibrated my inflections, pitches, and tones. From that point on, it was as clear as the Peruvian brandy pisco that many English-dominant European-Americans heavily weighed their assessment of the value of words by the density of the accent of Spanish-dominant speakers.
But others around the table at Ristorante Fiore have made a different choice, equally valid. For them, how they sound, including their accented English, is part of their Latino identity. It is a marker of who they are culturally in the same way that Martinez, Ochoa, Jimenez, and Castillo are name markers of a Latino identity that is so paramount that even when offered a choice through different circumstances of a more Anglicized name, they don’t take it up. While others do.
We pick our cultural identity spots. ‘Este es quien soy’. ‘This is who I am’. Increasingly, for more Latinos, particularly Latino Millennials, the assimilation survival tactics of their parents are not as necessary or desirable.
Instead, our choices of how to let our Latino selves show up in American society are as diverse as the various peoples that make up the Latino/Hispanic fabric “en los United States de America.”
Promising future For Latinos—and the companies who hire them
I hope you have enjoyed and taken some good takeaways from this series. It takes two to tango. If Latinopalooza and corporate America can learn to dance together, the benefits of the reverberations of this multicultural choreography will be felt in the workforce and marketplace for a long time to come.
Reaching Latinos: Become self-aware of how corporate cultures are and are not attractive to Latino talent
By Andrés T. Tapia –
(This article was originally published on my LinkedIn page: https://www.linkedin.com/today/author/18562142)
In the last post, we started talking about the second of three strategies corporations can use to seize the opportunities offered by the growing Latin talent pools. In this post we’ll cover two more points that support this strategy. If you missed any of the previous posts in this series, click here.
How cultural assumptions get embedded in talent systems
So what is actually happening in today’s businesses? Let’s look at just one current talent management philosophy commonly adopted among highly successful and knowledgeable human resources professionals that may inadvertently have an exclusionary impact on Latino talent: “Everyone owns their career progression.”
This talent development philosophy gets operationalized through mechanisms such as career maps, online universities with “developmental maps” that employees can read, follow, and fill out as they chart their own course. Then there are conversations for them to initiate: How did I do? How will I be rewarded? What do I need to do next? It all then gets codified in the performance and development review.
This has worked quite well for many and this is not inherently a bad or good thing. It’s actually a good thing—if your workforce is homogeneously reflective of this particular worldview.
But too many have been left behind through this approach, which via unconscious bias gets codified right into the talent system and for different cultural preference reasons. Latinos are among the groups that are negatively affected disproportionately by this approach. The problem emerges with a lack of awareness of the cultural bias in this seemingly “fair” approach to development and advancement. It is premised on an individualistic, internal control, sequential, task-oriented worldview.
Latinos face additional differences with corporate America’s (European-American) archetypical worldview. When choosing between employers, many Latinos prefer companies that show cultural competency and sensitivity toward people like themselves. They value opportunities to network, grow professionally, give back to the community, and achieve work life balance. Interculturalist, Brenda Machado Koller, describes a Latino sensitive workplace as one that promotes “familia and simpatía,” one that is family-like and warm and friendly. Such an environment can be leveraged to promote greater loyalty, trust, and engagement.
With such disparate views of how to get things done, it should come as no surprise that Latinos have made very few inroads into leadership positions in corporate America.
Navigating a new worldview
When companies wake up to these differences and obstacles in their current efforts to attract Latinos, it can quickly become an exercise in futility. Conversely, organizations with the courage to truly assess where culture change is necessary and then make the changes will be well-positioned to win the Talent War by attracting their unfair greater share of Latino talent.
Yet, even as I plant a cultural flag of difference for the sake of Latino identity where corporate America needs our differences, I also plant another flag regarding European American and other cultures within the corporation: we need theirs.
With this stance, those of us who share archetypical Latino worldview also need to choose to learn the skills and ways of a linear, sequential, task-oriented, European-American-dominant culture—not only to better understand, and by that get along better, but also to add more tools to our professional toolkits.
I can thank both my Latino worldview and the exposure I’ve had to the European-American worldview through colleagues, with their individualistic task-oriented, internal-control approaches. As I adapted it has made me a better and more effective professional because I have diversified my skills toolkit.
Conversely, many colleagues have told me that they have come to more greatly value the times when a more improvisational, communal, and holistic approach has led to different and, at times, better results than had we followed the directives of a more structured worldview.
But note the phrase “adapted to it.” The line in the sand for many multicultural Latinos is right here. One can adapt without losing one’s cultural identity. “Assimilation,” on the other hand, is where the loss happens—which is to give up those things that have made us unique, to bury them alive, and to only operate within the confines, rules, and expectations of the majority culture we are in.
But what has to stop is the expectation that the full responsibility of adaption is on Latinos. We must have reciprocal adaptation or else, game over.
by Andrés T. Tapia –
(This article was originally published on my LinkedIn page: https://www.linkedin.com/today/author/0_2GLbzz5IxAOAl4u7o72q9a?trk=prof-sm)
In my previous post, I mentioned three strategies corporations can use to seize the opportunities offered by the growing Latin talent pools. We’ll begin by discussing the first strategy in more depth.
Strategy 1: Understand and embrace the multidimensional diversity within the Latino community
First, we need to understand Latino diversity.
Though grouped together as Latinos or Hispanics, there are many layers of diversity within this population. Some are the same layers that every group faces, with their own unique twist, including:
Generational—For predominantly English speaking Latino Millennials, only 16 percent of them see themselves as white compared to twice as many older Latinos. They are less likely to have assimilated than their first-generation parents, who—as they faced discrimination due to their limited or accented English—chose not to teach their kids Spanish.
Plus you can add the dynamics of the creative tension among the generational diversity of Boomers, Gen Xers, Millennials, and Gen Z also shows up in Latino communities.
Language—There are Latinos who are Spanish English or Spanglish dominant. Seven in 10 young Hispanics report they regularly blend English and Spanish into a Spanglish hybrid.
Identity—Many Latinos straddle the fusion of more than two identities. Millennial Latinos are more likely to be in mixed ethnic and racial backgrounds and they self- identify with the blended identities of “Blaxican,” “Mexipino,” or “China-Latina” and more. These young Latinos epitomize the new Latino-American multidimensional identity.
History in the USA—Latinos in the USA can be recent immigrants or be fourth or fifth generation. Latinos in the USA can either be economic or political refugees. Or be ancestors of families that were of that part of Mexico annexed by the United States in the Spanish American war.
Country of origin—Latinos come from 27 different nationalities with a wide range of races and ethnicities. Spanish speaking Blacks come from the Caribbean, Colombia, Perú, Panama, and other countries. Millions of those characterized as Latinos come from indigenous backgrounds from Tierra del Fuego in the farthest southern reaches of Latin America to the Rio Grande border with the US.
Given all this variety, Latino identity cuts across a wide spectrum of choices, so individual Latinos face complex choices of how much of it to embrace. This cultural identity spectrum can go from the fiercely nationalistic to the fully assimilated into mainstream U.S. culture.
Next, embrace this diverse multidimensionality of Latinos in talent and marketplace penetration.
We need to differentiate among the various Latino talent pools and segmented markets. There is no one Latino market in the same way there is no one Latino talent force; therefore, we must be wary of jumping to conclusions about your talent attraction materials. In order to have effective strategies for sourcing, attracting, hiring, engaging, advancing as well as selling to Latino talent, we must differentiate and define whether we are targeting the first, second, third, or fourth-generation Latinos. The Boomer, Xer, or Millennial Latino, The English-, Spanish-, or Spanglish-dominant Latino.
Be crossculturally agile. Ensure you don’t inadvertently use slang, cultural references, and pictures that are meaningful to say, Puerto Ricans, when you are trying to reach those who are mostly Mexican.
Don’t be paralyzed by fears of offending. By feeling you have to guess what the identity choices are of Latino talent or consumers. Watch, study, observe. And then, when necessary, which will be often, ask.
Be Latino diversity savvy by grasping the vast diversity among what often gets lumped under the simplistic umbrella of “Latinos.” Learn this and shape your talent attraction and marketplace penetration strategies accordingly. Just by doing this you will go a long way in enhancing your attractiveness to this highly desired talent pool.
My next post will zero in on “Strategy 2: Become Self Aware of how Corporate Cultures Are and Are Not Attractive to Latino Talent.” Stay tuned.
by Andrés T. Tapia –
(This article was originally published on my LinkedIn page: https://www.linkedin.com/today/author/18562142)
In my last post, I shared a teaser with some head turning statistics on Latinos that I was launching in this series. So let’s get started.
Consider this. The United States continues to be in the midst of a Latino population explosion. In the first decade of the 21st century, Latinos grew at three times the growth rate of the rest of the population—becoming the largest ethnic minority group. This has accounted for half of the overall United States population growth. At this rate, it is estimated that one in four U.S. nationals will be Latinos by 2025 and one-third by 2050. By 2060, the U.S. Hispanic population is estimated to reach 128.8 million.
So, what does this mean for businesses? There’s a largely untapped pool of talent available, who can bring ideas, connections, and information that will help to grow the Latino market as well your business. To seize the many opportunities offered by the growing Latino talent pools, corporations must heed three key principles:
- Understand the multidimensional diversity within the Latino community.
- Become self-aware of how corporate cultures are and are not attractive to Latino talent.
- Marry marketing psychographics to multidimensional demographics.
In this blog series, I will explore each of these principles with facts, strategies, and practical tactics. I invite you to comment along the way.
Latinopalooza is a multi-stage, multi-ethnic, multi-age phenomenon that is already having great impact in the marketplace, political landscapes, and talent.
Organizations that don’t anticipate the implications of #Latinpalooza will miss out in many ways. Here are some facts you need to know:
- Latinos are projected to be one-third of the U.S. population by 2050 with Latinos today already accounting for 21 percent of the Millennial number. This is not a niche market; it is the market.
- Twenty-five million eligible Latino voters nationwide and over six million in places like California. This is not a side constituency; it is the margin of victory.
- Sixty-nine percent of Latinos are currently going to college, the largest percentage of any ethnic group including whites. This is not just a student body ratio; it is the future workforce.
In this series of posts, #Latinopalooza, we will share strategies corporations can start doing now to capitalize on as Latinos become one of the biggest societal and talent stories in 2016.
Power-cito, my Spanglish word for power-with-a-lowercase-p, is the Achilles heel of the surging Latino narrative. Despite our supersized growth, we have too much evidence that our power in many areas of society does not match our numbers.
As we joyfully celebrate and share our Latino roots during this year’s Hispanic Heritage Month, let’s also challenge ourselves to step it up and make our presence known and felt. Because when it comes to executive and senior leadership positions, political representation, and a marketplace that knows and meets our needs, we are not yet fully accounted for.
In leadership, according to the Hispanic Association on Corporate Responsibility, among the 1,200 executive and director positions available in its 2009 Corporate Inclusion Index, Hispanics held only 61 of those positions. That’s 7.9 percent. In 2013 it went down to 7.3 percent. Additionally, only 18 percent of Latinos work in management, professional, or similarly related positions.
Politically, we Latinos do not vote in numbers that the size of our population would suggest. In Arizona, for example, Latinos make up about 31 percent of the state’s population. Two-thirds (67 percent) of this population is native born, with a median age of 25 and a 57 percent home-ownership rate. These are the indicators of a potentially influential, voting-eligible population. Yet, many Latinos believe recent Arizona immigration legislation is detrimental to their community.
In the marketplace, there are still too few choices for products and services that cater to the needs, wants, and aspirations of the broad diversity within the Latino community — from the Spanish-dominant first generation Latino immigrant to the fourth generation Spanglish professional to the affluent MBA on the executive track.
The headwinds are both external as well as within ourselves. We must be vigilant about any discrimination and rally our allies in squelching it. A 2013 Harris Interactive poll found that over 75 percent of Latinos feel people with their background are discriminated against in the form of not being hired or promoted for a job and being called names or insulted.
But we ourselves also get in our own way as we seek to rise to the top. For example, many of the highly energized Latino advocacy organizations have a reputation for not being collaborative, and instead being highly competitive with one another. National origins and territoriality get in the way. A zero-sum game mindset feeds this.
We therefore have a splintering of advocacy groups — many doing insightful, passionate, committed work, but not in a coordinated, scalable way. But this splintering is what contributes to Latinos not displaying strength commensurate with our numbers.
It’s Up To Us
But it’s time we stop looking to others to hand us the power. We need to, and can, rise up to meet it. For us as individuals, it depends on our own ability and willingness to speak up for ourselves and being able to take the more calculated risks required of leaders. And collectively it’s about finding ways to minimize the differences within our own Latino ranks and being able to leverage the many things we have in common to advocate more effectively for what we need and want.
Here’s what we can stand on. Fifty-five million Latinos, and growing, are out there shopping, traveling, banking, studying, raising families. The Latino purchasing power of $1.4 trillion in 2014, the fastest growing in the United States, is greater than the economies of 11 nations, including Mexico, the Netherlands, Switzerland, Sweden, and Indonesia.
And as companies struggle with growth, Latinos offer a marketer’s dream target audience — young, growing, and underserved. With one-third under the age of 18 and 25 percent in their 20s and 30s, the majority of Latinos are near the peak of their spending years.
As we become homeowners, we are driving growth in the household goods industry at a time when other groups are cutting back on these purchases. The familia focus leads to purchasing for the here and now. Latinos over-index compared to other groups in the purchase of toys, BBQ grills, furniture, and eating out. This is consumerism driven by a worldview of many Latinos that what matters most is hoy (today), for who knows what mañana (tomorrow) will bring.
Even with the high unemployment tied to the Great Recession, Latinos account for 13 percent of the workforce and have a participation rate of roughly 68 percent. This is a higher workforce participation rate than among whites, African-Americans or Asians. From a numbers perspective, companies unsuccessful at sourcing, attracting, and engaging this talent pool will see their talent pipeline shrivel up.
Hispanics are tasting the fruits of entrepreneurship as well. According to a 2013 Geoscape study, Hispanic-owned business have grown to over 3 million, a 40 percent increase between 2007 and 2013, outpacing the growth rate for any other demographic group. They generated over $468 billon in revenues.
In addition, Latinos made a key difference in how the 2008 and 2012 presidential elections went. And with now both major parties deeply disappointing Latinos in one way or another, we are in a position to be more demanding about what it will take to win our votes.
So here we are. According to Pew Hispanic Research, Latinos are twenty-one percent of the millennial population. This is the precursor to all Latinos expected to be one-third of the U.S. by 2050. Latino is not a niche market, it is the market. Twenty-five million eligible voters nationwide, and over 6 million in places like California is not a side constituency, it is the margin of victory. Sixty-nine percent of Latinos going to college, the largest percentage of any ethnic group including whites, is not just a student body ratio, it is the future workforce.
We have the numbers behind us, as well as our optimism, our energy, and our ambitions. But we have to stop waiting for others to make the way for us. Se hace el camino al andar, you make your path as you walk it. Let’s stop playing it safe and instead take the necessary steps to be seen as the future powerbrokers of how things are going to be.
We have a full month to reflect on this. From there, time to take action.
by Andrés T. Tapia –
In my work as president of Diversity Best Practices, I travel around the country a lot—meeting with members, consulting, giving speeches. While my engagements often take me to the usual big cities—New York City; Boston; Washington, D.C.; San Francisco—increasingly my work is pulling me to second-tier towns. Like most people, I had preconceived ideas about our country’s smaller cities—slower paced, homogeneous, lacking in resources and amenities. To my surprise, there is a fervent movement around diversity and inclusion in these secondary cities that I believe is evolving into a national trend.
From Pittsburgh to Columbus to Omaha to Grand Rapids to Milwaukee to Indianapolis to Minneapolis, cities that people have typically assumed lack diversity are more diverse than people think. In fact, the percentage of racial minorities in Pittsburgh; Columbus, Ohio; and Milwaukee surpasses that of New York City. And Grand Rapids and Milwaukee come close to rivaling the Big Apple in terms of the percentage of Latinos.
What’s more, because many of these cities are experiencing economic growth the imperative of diversity is growing right along with their rising economic indicators. Omaha has the lowest unemployment rate in the country, Columbus one of the fastest economic growth rates, and Pittsburgh is the poster child of a city making the pivot from an industrial economy based on steel to the new economy of finance, healthcare, and technology.
In their growing dynamism, companies in these second tier cities are awakening to a realization that not only do they need to leverage the diverse talent pool already in the city; they need to bring in more talent from outside to keep their economic growth momentum. This means attracting more diversity—racial/ethnic, immigrant, LGBT—to cities that on first blush may not be seem to be magnets for big-city types from groups that historically may not have felt welcome.
It’s this legacy perception that they lack the diversity and amenities found in major metropolitan areas that poses a fundamental challenge to these second-tier cities. If they don’t overcome it, their economic growth may stall out due to lack of talent.
So companies in these markets are working together to get their diversity story out. I have been with passionate diversity leaders in Milwaukee, Columbus, Omaha, and Cincinnati, where they have banded together through city-wide diversity councils where big and medium-sized companies (even competing organizations) are addressing their common diversity challenges. They’re also partnering with their local Chambers of Commerce and city development organizations to make their cities more attractive. Because when it comes to attractive city life its not just about seeking tolerance; it’s also about finding a place to do my hair, find my spices, boogey to my music. So these diversity leaders are helping their cities with the following three-prong communications effort.
- Spread the word about the economic opportunities as the nation as whole struggles with a sluggish recovery. These cities are home for some of the largest companies in the nation, many of them in the FORTUNE 100. Mutual of Omaha, Union Pacific, and ConAgra in Omaha; Cardinal Health, Abercrombie & Fitch, Nationwide, Limited Brands, Huntington Bank in Columbus, Ohio; Fifth Third, Macy’s, Procter & Gamble, Kroger in Cincinnati; 3M, Target, Cargill, Best Buy, General Mills in Minneapolis; PNC, Humana, US Steel, Heinz in Pittsburgh; MillerCoors, Manpower, Rockwell, and Harley Davidson, Johnson Controls, Northwestern Mutual in Milwaukee. And then there’s the largest employer in the world in the middle of Bentonville, Ark. Wal-Mart is so much of a force in its headquarter town that some of its vendors have set up large facilities in the southern town specifically to serve the big box retailer—supersizing the retailer’s already outsized economic influence on the town.
- With economic strength comes the benefit of increased tax revenues. Increased revenues have fueled a civic renaissance providing residents and visitors alike with a very cosmopolitan experience. In Omaha’s Market Square, the small-town quaintness of horse-drawn carriages meandering down cobblestone roads meets a metropolitan menu of sushi, Indian, French, and Latin fusion restaurants representing a savory selection of international cuisine typically reserved for the big city. Pittsburgh has transformed from a soot-producing steel town to a clean, landscaped happening urban hub. Cleveland’s Historic Warehouse District with its potted flower lined sidewalk cafes is reminiscent of European scenes. Milwaukee’s shuttered factories have been reborn as funky lofts for artists and restaurants and night clubs for hip professionals. Cincinnati’s historic riverfront on the Ohio River offers a large urban park experience that can be topped off in the evening with a cabernet sauvignon and a prime rib cooked medium rare.
- Confront and cast off the legacy that these cities are not welcoming to racial and ethnic minorities and other underrepresented groups. A Cincinnati study found that despite the city’s growing diversity, a majority of its residents feel that still more diversity is needed and that they still fall short of providing a truly inclusive and welcoming spirit to outsiders. Cincinnati’s findings likely represent the feelings of those in many of our country’s second-tier cities and these cities know their work is not done.
These systematic, city-wide approaches already in action are the key to achieving greater diversity in these smaller cities. The next step involves metropolitan-wide collaborations with local businesses—grocery stores, beauty salons, barbershops and more—in an effort to truly meet the needs for lifestyle amenities that potential residents seek when contemplating a new home. The effort is a win-win for all involved—these cities and their residents and the companies located there. For an influx of greater diversity will mean a growing population with needs for all kinds of mainstream and exotic goods and services.
This trend is still evolving. Keep your eyes open. There’s an emerging diversity story here, in a second-tier city near you.
Many people of color feel that they can’t share their true selves in the workplace. They lead dual lives – one at work and one everywhere else. This is happening even as business leaders say they value diversity and multicultural fluency. Check out the piece on the Harvard Business Review Blog Network that talks about the latest study by the Center for Talent Innovation. Let me know what you think.
Globalization Boomerang: Making the U.S. a Destination for Offshored Jobs – and What It Could Mean for Diversity
by Andrés T. Tapia –
Sending American jobs overseas has lost its cachet. Not only for sociopolitical reasons but also for economic ones.
The case for offshoring and outsourcing jobs overseas has weakened as an increasing number of U.S. manufacturers are choosing to look stateside for labor, a move that creates jobs and helps boosts the U.S. economy. So says Time in “The Economy’s New Rules: Go Glocal” (August 20, 2012). In fact, the Boston Consulting Group estimates that within five years, as many as 3 million high-skilled, high-demand manufacturing jobs could come back to the United States.
But the ability of American government and business to tend to the diverse talent pipeline – particularly of Latinos and Blacks – will be critical in the U.S. economy being able to seize the full benefits of the convergence of forces that could bring more jobs back to the USA. But before taking up this gauntlet, a look at what’s driving American companies to bring jobs back home:
- Labor costs rising in China, India, Mexico, and other countries. The Chinese to U.S. wage ratio, for example, is projected to jump from 3 percent in 2000 to 17 percent by 2015. This is due both to accelerating wage increases in the emerging markets and slowing wage raises in the U.S. Also higher rates of corruption in the emerging markets compared to the U.S. drive up costs and risks. According to Transparency International, the BRIC countries are two to three times more corrupt in the business world.
- Increasing number of manufacturing and construction jobs require a higher level of education. High tech manufacturing is requiring higher education from workers to run the robots on the assembly line. Even welders must now have in-house training or a community-college certification, not just a high school education to meet job requirements. By 2018, 63 percent of U.S. jobs will require post secondary training. U.S. workers in some blue-collar sectors have a technological edge that companies are rediscovering.
- Rising energy costs means distance for shipping goods to the largest market, the United States, matters. Do the math. How many barrels of oil (not to mention carbon footprint units) does it take to ship that car from the Far East to the North American continent? GE has punched in the numbers and the result has led to GE shifting production of appliances from Mexico and China to Louisville, Ky. Many other companies of all sizes are reviewing the cost of transportation. Along with GE, firms like Seesmart (a small manufacturer of lighting products), Master Lock, and Caterpillar are finding the balance sheet weighing more heavily towards domestic production.
- Automation means factories with fewer people – which then lowers the labor cost equation that has been leading companies to offshore. “Labor is a relatively small component” of costs, said GE’s Chief Executive Jeff Immelt, in a recent Reuters.com article. “That’s different today than it was 10 years ago.” GE just opened a new plant in Schenectady, N.Y. because of labor’s decreasing share of manufacturers’ costs. This, of course, cuts both ways in that it reduces the total number of jobs overall, but it nevertheless slows down the number that get shipped overseas because it’s more cost effective to simply keep them in the United States.
- Companies want to bring jobs and operations closer to where their customers are. That emerging “locally grown” movement that has found its way to supermarket carts and restaurant tabletops is seeping into manufacturing. Mitch Free, who runs MFG.com, one of the world’s largest online marketplaces for the manufacturing industry, said in the previously mentioned Time article, “It’s all about regionalization and localization rather than globalization.” He noted that consumers are now demanding that things be newer, faster, and better so shortening the life cycle helps accomplish this. Citizens’ desire to slow down global warming also plays a part.
These trends are not just influencing American companies to bring jobs back home; they also are cajoling European and Asian companies to open up more plants in the United States. Airbus, the airplane manufacturer that is a symbol of European manufacturing pride, is opening up a plant in Montgomery, Ala. In making the announcement, its CEO, Fabric Brégier, cited “a more competitive labor and growth climate in the U.S.” Companies like Nissan, Toyota, and Volkswagen have been pumping up the local economies of cities around the nation by opening or expanding plants.
Back to the U.S.-based companies. There also seems to be an awakening on the part of some CEOs about how they are, in effect, eating their own young by having aggressively moved so many jobs overseas. When American businesses shift millions of jobs from home to outside, the domestic consumer market gets decimated. The result? Stifled business growth that causes economic blowback for these very companies.
Diversity and Inclusion’s Role
Now is the time to include American workers in any globalization strategies and efforts. In the past five years, we had moved from a U.S.-and-“rest of the world” paradigm to an emerging-“rest of the world”-and-declining-U.S. paradigm. Now it’s time to reframe it all to a “the world”-where-the-U.S.-is-a-region paradigm.
I engage this topic fully aware that as diversity and inclusion practitioners we are also tasked with ensuring a truly global approach to the work where we are caring for the inclusion and engagement of traditionally marginalized groups wherever our companies operate in the world. Zeus knows, we are still in diapers when it comes to truly being global in our mindset and knowledge about current social, cultural, economic, and political dynamics across the world’s timezones.
Nevertheless, in using this global mindset where the United States is not the center but one of various global regions, one of the marginalization issues we must address in the U.S. region is persistent high unemployment and the income disparities it deepens. In addition, the global economy’s vitality that is raising millions out of poverty still requires a vibrant U.S. economy with a positive outlook.
Now to respond to the gauntlet. As the offshoring tide begins to turn, diversity and inclusion must play a key role in capitalizing on ensuring these jobs fully come back.
On the diversity front, one dizzying risk is the uncertainty that there will be enough skilled workers for these positions. If we are not graduating half of our demographically booming Latino and Black kids from high school then it could kill the re-shoring of many of these jobs.
Business must urgently collaborate with government and not-for-profits to do everything possible much earlier in the education pipeline so that our students are getting and completing the education they need for contemporary jobs that are in demand.
We face a wrenching irony that at the moment of getting a shifting tide of jobs back that the skilled talent needed will not be there in a moment of still high unemployment.
On the inclusion front, what an opportunity to capitalize on a key competitive differentiator of American culture – creativity and innovation. Not only is this a hallmark of the American character, it’s the very thing we diversity and inclusion practitioners insist is the most compelling argument for inclusion – and this is that greater diversity leads to greater variety and richness of perspectives, that when energized and unleashed through an inclusive culture, leads to even greater creativity and innovation.
Diversity and inclusion practitioners have an important role to play in getting this word out – and in bringing U.S. jobs back in.
by Andrés T. Tapia –
Companies are missing opportunities to connect with the rapidly growing and influential Latino population. Check out my article on DiversityExecutive.com, Latino Growth Signals Need for Change, to read my perspective on this pressing matter. Also, be sure to read the article’s sidebar, The Problems of Power and Identity, where I delve a bit deeper on the topic.
Pop culture has a way of both reinforcing traditional cultural mores and also of mainstreaming outlier messages and attitudes. And particularly in the era of diversity and inclusion, Barbie has unexpectantly played a cultural changing role in this way.
For more than 50 years, Barbie, that mainstream America icon has enchanted or annoyed girls and women of all ages. It could be that Barbie’s pop culture stature has been a mirror of the ever changing mainstream society’s views of what it means to be a young woman. After decades of traditional beauty queen obsessions with shopping and looking great, she started crossing gender role lines as an astronaut, a pilot, and a Nascar driver among 120 other occupations. As times changed, so have her friends who’ve become more multicultural: African American (Christie), Hispanic (Teresa) and Asian (Dana).
And now, to both the horror and delight of millions, we have Tattoo Barbie. The recently released tattoo Barbie is providing new fodder for debate. Women, both for and against tattoos, have weighed in on this latest Barbie version.
The negative comments surface on a cyclical basis every time Barbie pushes the envelope. Some concerns are about whether she contributes to young girls’ and women’s insecurities about their body image. Do her impossible body dimensions encourage eating disorders and low self-esteem? Is she an appropriate role model for what adults want girls to think and believe? So while Mattel blew it when a version of talking Barbie said, “Math class is tough” Tattoo Barbie is hip and tough while still maintaining that ability to connect with the mainstream. And that very ability to normalize the cultural edge is precisely where her power for influencing and changing cultural interpretations lies.
While many may still cringe at Barbie’s materialism and impossible figure, Mattel has helped manstream diversity that has been scary or mysterious for many. She becomes a channel to try out new ways of being a girl and young woman. Now a group of Barbie fans is petitioning Mattel to create a bald Barbie. This is to help girls still feel pretty even though they’ve lost their hair because of chemotherapy treatments for cancer. The bald Barbie Facebook page has been “liked” by nearly 150,000 visitors as the momentum continues to grow.
Another group has taken a more do-it-yourself approach. African American women in Ohio have taken donated Barbies and restyled their hair to reflect a more natural hairstyle for black girls. Fro-lific, a Columbus, Ohio group of women committed to natural hair, admits that Mattel offers various African American versions of Barbie and her friends. Still, Fro-lific members maintain that most black Barbies have hair that seems more chemically straightened than a reflection of the typical texture of black girls’ hair. They donated the “naturalized” Barbies to a local girls’ organization during the Christmas holiday.
Whether sporting “tats,” going bald, or naturally “tressed,” whether she’s a bride or a Nascar driver, Barbie can play a role in influencing a change in cultural attitudes toward difference.
by Andrés T. Tapia —
With more than a month into the New Year, now is a good time to check how we’re doing with our 2012 resolutions. Earlier, Diversity Best Practices offered some practical suggestions of things you could do to increase your impact this year.
This is also a good moment to re-examine common topics, challenges, and opportunities in a fresh way. At Diversity Best Practices, we’re committed to disseminating details about best practices, but we also strive to be at the forefront of new thinking.
What’s the new thinking in 2012 that has implications for diversity? Three things come to mind.
It’s a Multidimensional World
In today’s global, multiracial, multigenerational workforce some of the classic ways of thinking about diversity feel too limiting. With affinity groups, mentoring programs, and career fairs organized in unidimensional ways (women or Latino or Black or Asian or Gay) how do we effectively address the growing reality that people can be all of the above?
We need to challenge ourselves to think about diversity in multidimensional ways. If you missed last year’s insight paper published on this very topic make sure to check it out. The take aways included that in the past decade the number of multiracial people in United States has tripled and the Millennial generation has grown up in an era of greater tolerance, which means there is going to be an acceleration of multicultural relationships. What’s more, globalization is bringing together people from different cultures and nations, which is leading to new types of bonds that transcend traditional diversity dimensions.
The conversations around race, for example, sound and feel very different among white Baby Boomers (who tend to have grown up in more homogeneous environments and didn’t encounter diversity until they went to college) than among Millennial whites (who grew up in multicultural communities and in a growing number of cases were in the minority).
It’s imperative we have a better handle on the implications of the intersections between race, gender, sexual orientation, and disability to just mention a few. Is there a place for the gay African American or the Latino with a disability or the Asian who is a military veteran? This creates seemingly vexing new challenges in the workplace, particularly for employee resource groups. How do you accommodate this growing multidimensional reality? Many ERGs are not equipped to address this. Now is a great time to look at your team and discuss strategies.
Global is the New Local
We also need to shift how we think about global work. Instead of viewing it as an expansion of one’s domestic efforts, today’s global business culture necessitates that companies start globally to be successful. How do you do this? Instead of treating your global work as an add on, a global mindset needs to be in place when you develop your initial strategy. In effect, your entire approach becomes global, with your U.S. headquarters becoming one of your many global regions.
This has implications for developing strategy, action plans, staffing, stakeholder analysis, and communications strategy. Even for those who are only U.S.-based, globalization is already affecting your support functions, competitive landscape, and future expansion plans. This is about the place where you stand, your punto de partida, your starting point. How much are you thinking of global as your punto de partida?
It’s Not Just About People
More and more Fortune 1000 companies are seeing that diversity is not just a talent issue. It’s actually a huge marketplace issue. The multicultural population represents a $3 trillion market. And it’s a market that is growing, as these populations enter the job market, go to school, have their first home, insurance policies, self-paid vacations. These groups will be driving consumption. In my work as president of Diversity Best Practices and in consulting, the opportunity here is bastante grande, very big. This is where executives get highly engaged when we can help them see the direct line of sight from diversity to revenue and growth.
One example of a company capitalizing on this trend: At a Walgreens in Highland Park—a Chicago community comprised of Jewish, Anglo, and Latino residents—the ice cream freezer is not stocked with Häagen-Dazs, Ben & Jerry’s, or Breyers, but rather La Michoacana, a Mexican ice cream provider. The brand is not well known in the United States at all, but it’s definitely recognizable to those who grew up in Mexico. The decision to feature that brand of ice cream at the impulse buying check out area is a money-making nod to the fast-growing Latino demographic in the neighborhood.
When you see something like that it means things are starting to go mainstream. How much is your diversity strategy riding that wave? How much are you lending your voice and perspective to harness the power of diversity to really win in the marketplace?
The War Is On
The talent war is going to heat up. Be on the look out. It cooled down during the recession, but the diversity of that highly desirable talent hasn’t decreased. With the economy gradually improving, competition for that diverse talent is increasing. Great talent will be available because people are ready to look for new opportunities. Just recently I was talking with the CDO at one of our financial member companies and he commented about all the great talent he has come across recently and, in contrast to last year, this wasn’t very good talent who happened to have been laid off, but very good talent currently employed at very good companies looking to make a move to enhance their careers.
To be at the forefront of doing vital work, keeping and reviewing these new ways of thinking as beacons of thinking will be essential for a successful, prosperous, and breakthrough year.
by Andrés T. Tapia –
What the excuses are defending is the lack of diversity on corporate boards. Unfortunately, we’ll probably hear these excuses even more as explanations to Janell Ross’ article in the Huffington Post where she reports that “white men’s already dominant control of the boards that oversee the nation’s largest corporations widened during the last six years,” according to a new report issued by the Alliance for Board Diversity.
For the Fortune 100 between 2004 and 2010, white men gained 32 board seats while African American men lost 42. According to the report, there are nearly 900 companies in the Fortune 1000 that do not have a single Hispanic board member, and of the Fortune 100 only half have a Latino board member. This growing homogeneity is occurring at the same time as the Hispanic population is exploding and the country grows even more diverse. Such an increase in white male representation defies not only common sense but also business sense.
As diversity and inclusion (D&I) champions understand, but the reluctant CEOs and board members in this report don’t seem to realize, the business and financial benefits of diversity can intensify an organization’s competitiveness, innovation, and connection to customers. Just look at these stunning findings on gender diversity on boards:
A 2007 Catalyst study examining corporate finances between 2001 and 2004–a period of boom and bust–found that companies with women on their boards outperformed those without women in several key ways. Among the study’s findings: Fortune 500 companies that ranked in the top 25 percent for female board member inclusion produced on average a 53 percent better return on equity, a 42 percent difference in profits, and a 66 percent difference in return on invested capital when compared to companies with the least gender-diverse boards.
So the low diversity on boards not only causes dismay from an inclusion perspective, but companies with little board diversity make themselves vulnerable to blind spots to threats plus they may be limited in seizing economic opportunities.
Perhaps a key issue concerning board diversity, according to Lissa L. Broome, a professor at University of North Carolina School of Law who researches the issues of diversity on boards, is the tendency for key players to ignore or at least avoid talking about difference. Such hesitancy represents the underlying issue in the Inclusion Paradox, which provides ways to lean into and make the most of that discomfort.
If we don’t find ways to do this, our companies will be forfeiting a major trump card in high stakes global competitiveness.