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Whitepaper

CreateaMore

Diverse,Inclusive,

andEquitable

Workplacewith

Workday

WorkdayValueManagement

Thispaperhighlightswhyorganizationsvalueinclusion,

belonging,andequityandhowtheuniquecapabilitiesin

Workdayhelporganizationsdriveoutcomesandachievetheirgoalsmorequicklyandeffectively.

TheWorkdayPerspectiveonInclusion,

Belonging,andEquity

AtWorkday,webelievethatrealchangeisneededtoguaranteeequityforeveryone,andwebelievethatwecansupportthischangeintwoways:

1BybeingaleaderinhowweValueInclusion,Belonging,andEquity(VIBE?)forallinourownworkplaceandcommunities

2ByempoweringourcustomerstocreateamoreequitableandinclusiveworkplacewithWorkdayCloudPlatform

Organizationsvalueinclusion,belonging,andequityforavarietyofreasons.

Workdaydoessobecausemakingtheworldofworkandbusinessbetterfor

everyone,andempoweringotherstodothesame,issimplytherightthingtodo.And,weknowthatengagedemployeeswithdiverseproblem-solvingskillshelpusbuildinnovativesoftwareanddeliverabettercustomerexperience.

FosteringaCultureofDiversity,Inclusion,

Belonging,andEquityIsGoodforSociety

andGoodforBusiness

Thereareavarietyofreasonswhyorganizationsareprioritizingdiversity,

inclusion,belonging,andequity,includingmoralimperatives,betterbusinessoutcomes,andattractingandretainingtalent.

MoralImperative

Givingallemployeesandcandidatesaccessandopportunitytoworkunderequitableconditionsisamoralimperative.Manyorganizationsprioritize

employeesalongsideintegrity,profitability,andinnovationintheircorporatevalues.Servingstakeholdersbeyondshareholdersandfosteringacultureofdiversity,inclusion,belonging,andequityisbuiltintothemissionofmany

organizations.2AsWorkdayCo-CEOAneelBhusrirecentlycommented,“Companiesneedtohaveasoul.”3

BetterBusinessOutcomes

AccentureandBCGhavebothdeterminedthatdiverseandequitablecompaniestendtoinnovatemorequickly,thusoutperformingothercompanies.4-5AccordingtoAccenture,an“innovationmind-setisgreatestinmostequalcultures.

Employees’innovationmind-set—theirwillingnessandabilitytoinnovate—issixtimeshigherinthemost-equalculturesthanintheleast-equalones.”6

Webelieveasupportiveand

inclusiveworkplace,whereeveryonefeelsvaluedandincluded,isthekeytogreatproducts,happycustomers,andanenduringcompany.

CarinTaylor,ChiefDiversityOfficer,

Workday1

CreateaMoreDiverse,Inclusive,andEquitableWorkplacewithWorkday|2

Throughaseriesofexperiments,HarvardBusinessReview(HBR)foundthat

employeeswhofeelagreatersenseofbelongingworkharderandaremuch

morewillingtorecommendtheircompanytoothers.Ontheotherhand,

employeeswhodonotfeelasthoughtheybelonggivelessefforttotheteam

overtimeanddragdownmoraleandproductivity.HBRalsoreportedonresearch

conductedbyBetterUp,whichfoundthatcompanieswithacultureofbelonging

A2019studybytheWallStreet

realizea56percentincreaseinindividualjobperformance.7

Journalconcludedthatdiversityandinclusionaregoodfor

MarcBenioff,thechairmanandCEOofSalesforce,along-standingWorkday

businessbasedonareview

customer,hasbeenanoutspokenleaderonthistopic.Benioffrecently

ofprofitmargins.Thetop20

commentedthat“everycompanymustrecognizethattheirresponsibilitiesdo

most-diversecompanieshada

notstopattheedgeofthecorporatecampus.Whenwefinallystartfocusing

profitmargin,onaverage,of12%

onstakeholdervalueaswellasshareholdervalue,ourcompanieswillbemore

comparedtoaprofitmarginof

successful,ourcommunitieswillbemoreequal,oursocietieswillbemorejust,

only8%forthelowest-ranking

andourplanetwillbehealthier.”8

companies.Themost-diversecompaniesalsohadhigher

AttractandRetainTalent

sharesonaveragewithan

Organizationswithacultureofinclusionandbelongingprovideanimproved

averageannualtotalreturnof

experiencefortheiremployeesandarebetterequippedtoattractand

14%over10yearsversus12%for

retaintalent.AccordingtoastudybytheInternationalLabourOrganization,

the20least-diversecompanies.9

companiesthathaveaninclusivecultureandinclusivepoliciesare59.7percent

morelikelytohaveanenhancedabilitytoattractandretaintalent10Additionally,

BetterUp’sresearchfoundthatemployeeswhohaveagreatersenseof

workplacebelongingfeelgreaterjobsatisfactionasseenthrougha50percent

dropinturnoverrisk.11Workdayfounderscenteredthecompany’svaluesaround

employees:mostfundamentally,peopleareatthecoreofourbusiness,and

weinvestinwaystohelpouremployeesfeelaconnectiontoWorkdaybeyond

businessasusual12

WorkdayProvidesInsightsintoAction

Regardlessofwhatmotivatesorganizationstoprioritizediversity,inclusion,

belonging,andequity,achievingoutcomesandreal,positivechangecanbe

challenging.Companiesoftenhavegoodintentionsbysettinggoalsandtargets,

yetprogresshasbeenslow.

Onereasonwhyoutcomesaren’tmatchingintentionsisthatcompaniesoften

investinacquiringdiversetalentbutdon’tfocusenoughontheexperienceand

developmentofthattalent.Webelievediversityandemployeeexperienceare

fundamentalinordertobuildanorganizationthatisagreatplacetoworkforall.

Well-intentionedprogramstoimprovediversity—butwhichlackanintentional

efforttounderstandandimprovetheemployeeexperience—haveledtoacycle

ofattrition,disengagement,anddisappointment.Anotherreasonwhyoutcomes

aren’tmatchingintentionsisthatcompaniessetambitiousgoalsbutdon’thave

asystemofaccountableanalyticstohelpthemachievethosegoals.

CreateaMoreDiverse,Inclusive,andEquitableWorkplacewithWorkday|3

Webelieveinasystemicapproachwithaccountableanalyticsandconcerted

actionsondiversitythatplacesemployeeexperienceatthecentertofoster

inclusion,cultivateasenseofbelonging,andensureequity.Workdayofferstools

thatuniquelyenableourcustomerstonotonlysetgoalsfordiversity,inclusion,

belonging,andequity,buttoalsotakeactionstoachievethosegoalsanddrive

positivechange.OurVIBEIndexTMhelpsorganizationsidentifywherethereisthe

greatestopportunitytodrivepositivechange,VIBECentralTMhelpsorganizationsidentifyactionstotaketoachievedesiredoutcomes,andourtechnology

Weknowyouneedastrategy—inourcase,wehavetoinclude

foundationprovidesinsightsintohowtoreducebiasanddrivecontinuousimprovements.

inclusion,belonging,andequityalongwithdiversity.Wethinkit’s

VIBEIndex

Everycompanyisuniqueinitsareasofopportunityarounddiversity,inclusion,

importanttosetupagoal-gettingsystemtocomplementthegoal-settingsystem.

belonging,andequity,andunderstandingthebaselineisanimportantfirststep

insettingtherightgoals.OurVIBEIndexTMhelpscompaniescomprehensively

GregPryor,ExecutiveDirector,

measureandcomparebelonging,equity,diversity,andinclusionforabetter

Marketing

understandingofparityacrosstheorganizationandwheretofocusefforts.

Workday13

TheVIBEIndexisuniqueinthreekeyways.Thefirstisitsbreadthanddepth

acrosstheemployeelifecycle,fromsourcingandhiringdiversetalent;to

retaining,developing,andpromotingthattalent;tocreatingbelonging

experiences;andallthewaytoattrition.Thesecondishowitintersectswith

theabilitytocompareandassessperformancebasedonmultipledimensions

ofaperson’sidentity,suchasgender,ethnicity,andsexualorientation.Thethird

isitsequityandparityfunctionalitythatusesaheatmaptoquicklyidentify

wherethereisdisparityacrossintersectionalgroupsandwhereintheemployee

lifecyclethereisthegreatestopportunitytoimprove.TheVIBEIndexprovides

aVIBEScoreTMforoverallworkplaceequityandeasilyaccessible,real-time,

accountableanalytics.

SampleVIBEIndexhighlightingareasofopportunityforequityandparityacross

intersectionalgroupsandthebreadthanddepthoftheemployeelifecycle.

CreateaMoreDiverse,Inclusive,andEquitableWorkplacewithWorkday|4

VIBECentral

Afteridentifyingareasofopportunity,companiesneedtodivedeeperto

identifyindicatorsandactionsthatwilldriveoutcomesandpositivechange.

TheVIBECentralTMtoolbringsalldiversity-andinclusion-relatedbest-practices

content,metrics,reports,andbenchmarksintoonecentralizedplace.This

helpscompaniesidentifyindicatorsthatexplainwhytheyarenotgettingthe

outcomestheywantsotheycantaketherightactions.

Forexample,ifhiringislowforacertainintersectionalgroup,VIBECentral

canhelpidentifywherethereisanissueintheprocess—whethertherearen’t

enoughdiversecandidatesapplyingorifdiversecandidatesaredropping

offatsomepointinthepipeline.Havingallofthisreal-timeinformationinone

placeenablesquickanalysistoidentifyindicatorsandactionsthatdrivethe

broaderstrategy.

SampleVIBECentraldashboardhighlightingemployeemovementvs.

headcountbygenderanalysis,andlinkstorelatedcontent.

TechnologyFoundation

Allofthesebroad,intersectionalanalyticsaremadepossiblebythefact

thatwithWorkday,allaspectsoftheemployeelifecycle—recruiting,talent,

performance,compensation,development,andsoon—aremanagedinasingle

system.Thisalsomeansthatoncecustomershaveidentifiedindicatorsand

actionstodrivepositivechangeinareasofopportunity,theycanquicklytake

thoseactionsrightinthesameplace,enablingcustomerstoachievethegoals

thatthey’veset.Forexample,ifacompanyidentifiesthatdiversecandidatesare

droppingoffthehiringfunnelinthescreenstage,itcantakeactioninWorkday

bymaskingidentifyingdetails,suchascandidatenamesorschoolsonresumes,

toreduceunconsciousbias.

Additionally,weembedmachinelearningintonearlyeveryaspectof

ourplatform,andthesecapabilitiesenableskillsmatching,whichhelps

organizationsreducebiasfromdecision-makingacrosstheemployeelifecycle.

CreateaMoreDiverse,Inclusive,andEquitableWorkplacewithWorkday|5

Thisstartswithattractingandhiringadiverseworkforcebasedonskillsand

experiencethatmatterinsteadoffactorsthatcanleadtobiaseddecisions.

Machinelearningcapabilitiesalsohelpexpandcareeropportunitiesforexistingemployeesbyenablingcompaniestoidentifyinternaltalentforopenrolesand

torecommendstretchassignmentsbasedonskills,enablingmoreinclusive

Kimberly-ClarkusesWorkdayto

careerdevelopmentpractices.

trackandscrutinizeHRdata.Theyfoundthatwomenwerehitting

Finally,theemployeeexperienceisthecoreofanysuccessfulprogram

glassceilingsattwopoints:after

designedtofosterinclusion,cultivateasenseofbelonging,andensure

thefirstprofessionalpromotion,

equity.Workdayprovidestheabilitytomonitoremployeesentimentwiththe

andagainjustbelowdirector.

belongingindexandcreatepersonalizedexperiencesbycuratingcontent,

Afterdeepdiscoveryandchanges

resources,mentors,andconnectionstoemployeeresourcegroups.Moreover,

suchaswritingmoreinclusive

anorganization’sabilitytocontinuouslyimprovetheexperienceisessentialfor

jobdescriptions,Kimberly-Clark

anysustainableprogram.TheflexiblebusinessprocessframeworkinWorkday

realizedalotofprogress,including

enablesorganizationstocontinuouslyadaptworkflowsandinsertanalyticsinto

an82%increaseinwomenwhohold

criticalprocesses.Theendresultisamoreinclusiveexperienceforemployees,

director-levelorhigherpositions.

moreequitabledecisionsbymanagers,andamoreflexiblesystemthat

Butthechangesgobeyondhard

promotescontinuousimprovement.

numbers.Ihearmoredebates,morediscussions,andIseemanymore

CreatingaMoreEquitableandInclusiveWorkplace

solutionstooldproblems14

Organizationsdeploydiversity,inclusion,belonging,andequityprogramsfor

ChiefDiversityOfficer

avarietyofreasons.Regardlessofwhytheychoosetodoso,creatinglasting

Kimberly-Clark

andmeaningfulchangeinanorganization’scultureischallenging.Successful

programsimpactprocessesacrosstheentireemployeelifecycle,require

accountableanalyticstoturnintentionsintooutcomes,andsupportunbiased

decision-makingateverystep.Sustainableprogramsrequireorganizationsto

measureresultsandcontinuouslyadapttochangingworkplacedynamics.Our

VIBEIndexTMandVIBECentralTMtools,alongwithourtechnologyfoundation,can

helporganizationsintheirjourneytoachievingtheirgoalsforthesesuccessful

andsustainableprograms.

CreateaMoreDiverse,Inclusive,andEquitableWorkplacewithWorkday|6

Endnotes

1“

BelongingandDiversity

,”Workday,accessedSeptember2020.Webpage.

2

“Diversity,Equity,andInclusion4.0.

,”WorldEconomicForum,June2020.Webarticle.

3“

WorkdayCEO:‘CompaniesNeedtoHaveaSoul,

’”LeadershipNext,Fortune,August2020.Podcast.

4EllynShookandJulieSweet,“

Equality&InnovationintheWorkplace

”;Accenture,2019.Webarticle

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