Organizations with diverse leadership deliver better business results. A recently published McKinsey & Co. report titled “Diversity Matters” confirms our long-held belief as to the power of having a diverse group of leaders. However, if studies and business results demonstrate it, why are many Chicago companies challenged with developing and promoting diverse employees?
The 2014 Chicago United Corporate Diversity Profile (CDP), a biennial survey that measures racial diversity in the boardrooms and executive level management teams of Chicago’s 50 largest corporations, highlighted the changing landscape of the workforce.
Consistent with changes in the overall population, the number of minorities working in Chicago firms has increased. Yet, the CPD findings indicate minorities hold just 12 percent of the 551 board of director positions, 8 percent of the 201 C-suite positions and 10 percent of the 660 executive positions at the top 50 Chicago firms.
If the rate of increased inclusion remains unchanged, it would take 64 years for minorities to achieve equal representation.
To better understand how we can improve the pipeline of diverse leadership, Chicago United interviewed a sample of local employers along with a few early careerists. Our discussions revealed the challenges in developing and retaining minority talent is both systemic, in nature, as well as self-imposed.
For example, some minority professionals find themselves stuck within companies where upward mobility is unlikely or seems impossible. These individuals are likely to feel disengaged and unappreciated, thus motivated to leave the company in the early stages of their career.
Local business leaders seeking to diversify the talent pipelines and retain young urban professionals within their companies should examine and consider the following approaches:
Engage diverse employees around company recruitment efforts and incentivize solid referrals – Minority professionals are more likely to be involved in networking organizations that aim to empower diverse leaders and foster burgeoning talent, creating an opportunity to connect your company with diverse potential candidates.
Sponsor programs or organizations targeting diverse young professionals – Global public relations firm Weber Shandwick fuels its diversity efforts through a partnership with The LAGRANT Foundation, a nonprofit organization dedicated to addressing the lack of diversity in the advertising, marketing and public relations fields. Weber Shandwick supports the foundation’s career development workshops, thus creating a direct pool of diverse candidates to choose from.
Establish an internal mentorship program, pairing senior leaders with junior employees of color to provide one-on-one coaching and guidance – The unique cultural nuances that exist within minority communities may not align with organizational culture. However, these nuances are rarely obvious or even apparent to the diverse individual. Therefore, counsel from a leader who is well-versed in the company’s culture could help fast-track the new employee’s onboarding and overall development.
To accelerate the pace at which young minority professionals achieve and demonstrate value at their respective organizations, Chicago United has collaborated with Chicago Scholars to create the Chicago United Fellows Program. While plans will evolve over time, the initial phase of the program is dedicated to designing an effective and scalable blueprint that can be replicated to reach larger audiences of eligible students, corporations, and organizations.
We know that companies supportive of a diverse workforce and leadership are better equipped to meet its unique business challenges. Through the Chicago United Fellows Program, we hope to improve retention and mobility rates of minority candidates, as well as provide solutions to the larger talent management challenges facing the Chicago business community.
Gloria Castillo is president and CEO at Chicago United, a corporate membership organization that promotes multiracial leadership in business to advance parity in economic opportunity.
