Diversity delivers a distinct competitive advantage - BNZ ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Diversity delivers a distinct
competitive advantage
Bank of New Zealand Diversity Case Study 2014
He aha te mea nui o te ao?
He tangata! He tangata! He tangata!
What is the most important thing in the world?
It is people! It is people! It is people!Contents Message from BNZ CEO Andrew Thorburn Diversity – Where to Begin? .................................................................... 1 Our Journey to Date ............................................................................... 4 Diversity Governance .............................................................................. 6 The Economics of Women ...................................................................... 9 What’s happening in New Zealand – women get a fair go, don’t they? ... 12 BNZ’s gender balance approach.......................................................... 15 Empowering customers and women in the community ........................ 21 The Ageing Workforce .......................................................................... 23 Flexible Working for our People ............................................................ 26 Changing Cultural Demographics of New Zealand ................................. 29 Accessibility ......................................................................................... 36 In Closing ............................................................................................. 39
A message from our CEO E hoa mā, tēnā koutou katoa, As the global war for talent and the ageing workforce combine to reduce the volume of workers available in New Zealand, it will be increasingly critical that we attract, recruit, retain and develop the best talent – because when you have the best talent within your workplace, you have a culture that allows them to work and contribute to their utmost potential. We cannot afford to cut off a piece of the talent pool – whether we are talking about women, mature workers, those with disabilities, recent migrants or graduates. New market-leading ideas and perspectives require new thinking, and we believe a diverse workforce is the key lever behind such thinking. This case study provides insight into what we have been doing for the women in our organisation that led to an acknowledgement last year by UN Women and the United Nations Global Compact. While we are pleased with what we have done this is a work in progress. We recognise that this is a journey of change and will take some years, although year- by-year change is quite possible. What follows is an introduction to the work done within the organisation and covers some initiatives to support customers and the community.
N ew market-leading ideas and perspectives
require new thinking, and we believe a diverse
workforce is the key lever behind such thinking.
It is critical to appreciate that while listened. At the same time we looked at
BNZ has made progress toward gender international best practice on diversity
balance, we are addressing other aspects and we decided we had to put a stake in
of diversity, including tackling flexible the ground. We commenced with a focus
work practices and the ageing workforce, on gender balance.
right through to the changing cultural
If we apply the same rationale to our
demographics of New Zealand and
nation, to be successful as a small
the implications this has for market
economy, we have to leverage the diversity
segmentation – and indeed for our
of our nation as a key to our country’s
workforce and our leaders.
economic growth. As a starting point,
The global financial crisis revealed some achieving gender equity in New Zealand
gaps in the global industry particularly will deliver significant gains to our nation
around reputation and trust. Some of the – women are guarantors of growth and
issues were driven by poor culture within an economic force not to be ignored.
many financial institutions. Commentators Achieving this requires a confluence
challenged the industry, questioning if of thought – and action, between
there had been more women in leadership government, business, public and private
would the crisis have been averted? For sector enterprises and non-government
these reasons the industry embarked on organisations (NGOs).
a journey of reflection and action. It had
We invite you to read on and become a part
to examine the compelling argument that
of the change.
diversity within organisations leads to
better decision-making, innovation and
better returns.
At BNZ we led our review from the
top, including our board, myself and
the executive team. We looked at our
organisation and asked ourselves some Andrew Thorburn,
tough questions, engaged with our people Managing Director & CEO,
– they challenged and informed us, and we Bank of New Zealand.Diversity – Where to Begin?
Diversity Case Study 2014 Bank of New Zealand 1What exactly is diversity?
International research tells us that organisations can
improve business performance, innovation and creativity
by having a diverse mix of employees and perspectives,
particularly at senior leadership level.
A s well as improving business
performance and innovation it
is vital that leaders in business today
gender balance would actually help us
to understand the evolving expectations
of men, the flexibility that is going to be
understand how diverse cultural required as the ageing workforce impacts
norms, practices and communication New Zealand and the demands of the
styles affect our interactions and ability generation now entering the workforce.
to meet our customers’ needs, as well
as how we attract, engage and motivate We discovered that wherever the
our teams and employees. diversity journey commences there
are a number of pre-requisites or
It is not just good enough to bring
REQUIREMENTS FOR CHANGE:
together a diverse mix of people; it is
about having a culture (and leadership)
that engages and unleashes their full Clear leadership: Visible CEO and
potential in the workplace. leadership endorsement for the approach
and interventions are critical.
So we set our definition as:
Diversity@BNZ – Creating a high Clear link to business strategy: If senior
performance inclusive culture that values management cannot see the clear link to
difference and leverages diversity as a the business strategy with benefits, it will
distinct competitive advantage. be pigeonholed as a human resources (HR)
initiative or programme. Commitment
Sounds easy but the challenge for us, and from senior management is important
many organisations, is where to begin? and engaging them with a compelling
Following review of the work of academic argument that links to strategy is key.
institutions and organisations worldwide, Establish a clear commercial case:
we decided to start with gender balance Organisations with diverse teams
within our organisation – the experiences comprising different backgrounds and
of women and men at BNZ were different perspectives lead to better conversations
and the age-old argument or excuse that and innovation, leading to better business
women were not progressing owing to performance and returns to shareholders.
their ‘family role’ was no longer feasible
owing to a number of compelling Consistent repeated communications:
arguments, which we lay out in the next The business case will need to be
section. Additionally, we determined communicated over and over. Awareness
that commencing with women and will drive change.
2 Bank of New Zealand Diversity Case Study 2014Get to know your organisation: Don’t Talent identification processes are
make assumptions from the data you hold crucial: Look at talent identification
on your people – your own biases may be processes to strengthen the composition
at play. Conduct an audit, focus groups and of the talent pipeline. If managers appear
engage in two-way dialogue to understand to overlook some talent pools, send them
what is happening and why. back to ‘look’ again. Many minority groups
may not be in a position to be noticed,
Refinement of policy and process: From
so may not be getting opportunities for
the board downwards and throughout the
expansion or simply are not being ‘found’
organisation, policies and processes must
and are therefore not in the pipeline for
be reviewed and reworked.
further development opportunities.
Courage to challenge the norm: This is
Understand who is leaving and why:
about cultural change for organisations, as
Conduct exit interviews. There is much
outdated corporate attitudes and processes
talk of leaking pipelines of talent,
can often be a key barrier. It will take
particularly women. It is important to
courage and time to build a culture that
understand at each level who is leaving
understands diversity is not about making
and why. The assumptions we make
minorities conform to a dominant norm.
are not always correct.
Review recruitment practices: It is vital
Take a wider perspective: Diversity
to examine the processes of attracting and
issues, such as gender, are not just limited
recruiting talent, to ensure the organisation
to individual organisations. It may be an
is attractive to all talent pools.
industry-wide challenge that requires a
Encourage dialogue and debate: Many collaborative approach to attracting and
of the initiatives and changes implemented retaining talent.
will involve a period of debate and a
mindset shift to get buy-in. It is important
DO NOT GIVE UP: To achieve change
to build a culture where dialogue and debate
the approach must be tenacious
is respected and everyone has a voice.
and relentless.
Set targets or clear, identifiable
measures: Setting targets is contentious.
BNZ sets itself targets, which are
tracked and reported across a number of
variables, including gender. The targets
are tied to the executive team’s individual
performance scorecards. The conclusion
is that measurement is vital, as what gets
measured, gets done.
Diversity Case Study 2014 Bank of New Zealand 3APR 2010 NOV 2010 DEC 2011
Audit, interviews, best Senior Leaders Conference Governance & strategy
practice research. Initial New Zealand awareness moved to business-led
strategy set. scene setter diversity council
OCT 2010 FEB-AUG 2011
Targets agreed with Indepth gender research
parent company on women at BNZ.
Interviews, focus groups
and action plan in place.
Our Journey to Date
JUN-NOV 2012
Indepth research into
ethnic/cultural diversity:
Interviews and focus groups
and action plan in place.
FEB 2013
Increased focus on
flexible working.
Mandated all new roles
advertised to be flexible.
4 Bank of New Zealand Diversity Case Study 2014APR 2012
Pan-bank disability/
accessibility forum
established &
three-year strategy set
MAR 2012 MAY 2012
Committed to UN WEPs Co-launch Women
in Financial Services
Forum with FINSIA
JUN 2013 FEB 2014
MAR 2013 Committed to Ageing/mature workers
UN WEPs award win DiverseNZ Inc programme piloted
MAR 2013 NOV 2013
Cross-cultural Co-launched New Zealand
Ambassadors appointed Asian Leaders Programme
Diversity Case Study 2014 Bank of New Zealand 5Diversity Governance 6 Bank of New Zealand Diversity Case Study 2014
BNZ established a Diversity Council in December
2011 to lead the agenda, set strategic priorities
and oversee performance.
In setting priorities, the Diversity
Council considers the issues that affect
the bank’s customers and workforce,
The Diversity Council is led by a member
of BNZ’s executive team and while
ownership and leadership of the council
ensuring alignment to people and is an important lever in driving change,
business strategies. so is senior leadership. We are of the
opinion that change would not be possible
Council members are senior leaders without the committed and authentic
from across the business and are also leadership of the board, chief executive
responsible for setting the tone for the and executive team.
values and principles of diversity and what
The pan-bank Diversity Strategy includes
that actually means in practice to BNZ.
gender balance, among other key focus
The Council meets regularly and is
areas. Additionally, each business unit
responsible for engaging the wider
drives its own diversity strategy. These are
BNZ audience and in helping to sustain
aligned to particular commercial strategies
momentum on initiatives.
and needs and will deliver on each
The establishment of the Council gave business unit’s challenges. The diversity
an important signal to the business; that strategy is set annually and, following
diversity was not a people or HR initiative input and endorsement from the executive
but a long-term business strategy for BNZ. team, goes to the board for consideration
and endorsement.
Diversity Case Study 2014 Bank of New Zealand 78 Bank of New Zealand Diversity Case Study 2014
The economics of women
Diversity Case Study 2014 Bank of New Zealand 9There are a number of strong arguments, together with plenty
of research, that lead to the clear conclusion that there is a
business case to target women as consumers – and to ensure
they are fully engaged to achieve their maximum potential in
the workplace.
Markets – The common view Markets – The reality
China Women
India China
Women India
Adapted from One Key to Gender Balance 20-First Century Leadership, 20-first.net, 2014
O ver the past 30 years, and for the
first time in history, women have
been working alongside men in the
“Women now drive the world economy”.
The article went on to outline that globally,
women control about US$20 trillion in
same jobs – with the same qualifications annual consumer spending – and this
and comparable ambitions. could climb as high as US$28 trillion in the
following five years. Their US$13 trillion
With an ageing workforce, falling birth rates
in total yearly earnings could reach US$18
and skill shortages, women’s increased
trillion in the same period.
participation and success is a critical
component that will affect the future of Harvard Business Review surmised that in
both the workplace and the economy. aggregate, women represent a potential
growth market double the size of China
It would be foolish to underestimate the
and India combined.
female consumer
Other consumer research shows that in the
Evidence of the growing opportunity
United States (US) women make 80% of all
of female consumers globally is
consumer purchasing decisions 1. Similarly,
overwhelming. The cover of Harvard
research in Australia found that women
Business Review (September, 2009) stated
spend 90 cents in every household dollar.
1. G Pellegrino, S D’Amato, and A Weisberg . (2011) Deloitte, The gender dividend: Making the business case for investing
in women.
10 Bank of New Zealand Diversity Case Study 2014We know women are powerful drivers By growing income levels through work
of economic growth or entrepreneurship there is a more
direct benefit for local communities, as
Goldman Sachs coined the term
women spend more of their available
‘Womenomics’ to express the force that
income in local economies. This has the
women represent as guarantors of growth.
flow-on effect of lessening the need for
They also point to the huge implications
government or NGO support.
that closing the gap between male and
female employment rates could have for
the global economy, giving a powerful McKinsey & Company reports
boost to gross domestic product (GDP) in that Fortune 500 companies
important economies, such as Europe, with three or more women on
the US and Japan. the board gain ‘a significant
Over the next decade approximately performance advantage’ over
one billion women will enter the global those with the fewest:
economy and are poised to make a + 73% return on sales
significant difference. A report conducted + 83% return on equity
by Booz & Company (also reported in
+ 112% return on invested
Harvard Business Review (May, 2013)
capital.
refers to this population as the ‘Third
Billion’ – as significant again as that of the
billion-plus populations of China and India.
More women in leadership means
Economists worldwide have shown better business performance
strong macroeconomic reasons for a
Those companies with the most women on
more robust representation of women
their senior teams showed superior growth
at all levels of an organisation,
in equity, operational results and share
with some asserting that closing the
price. If at least a third of the senior team is
gender gap would boost the level of
women, then these companies outperform
New Zealand’s GDP by as much as 10%2.
those without women on nine criteria of
Many global forums focus on the value organisational excellence. McKinsey &
to economies of empowering women. Company, September 2011.
As then United States Secretary of State,
Similarly, research by Canadian think
Hon. Hillary Clinton, said at the APEC
tank Catalyst found boards with higher
Women and the Economy Summit in San
proportions of women can provide
Francisco on 16 September 2011 “… by
between 26 - 60% higher returns on
increasing women’s participation in the
investment. Catalyst (2010) The
economy and enhancing their efficiency
Bottom Line.
and productivity, we can bring about a
dramatic impact on the competitiveness
and growth of our economies”.
2. Goldman Sachs & Partners New Zealand Investment Research. Borkin, P. (2011). Closing the gender gap: Plenty of
potential economic upside. 9 August, 1-20.
Diversity Case Study 2014 Bank of New Zealand 11What’s happening in New Zealand –
women get a fair go, don’t they?
12 Bank of New Zealand Diversity Case Study 2014The position of women in society is an international
measure of health, maturity and economic viability.
A number of global bodies, including
the World Economic Forum,
the Organisation for Economic
Extracts from the New Zealand Census
of Women’s Participation:
SOME GOOD NEWS...
Co-operation and Development (OECD),
the World Bank and the United Nations, In many areas of public and professional
monitor the progress and position of life, there has been a 2-3% increase in
women in society. women’s participation, compared with
its last census in 2010.
The World Economic Forum Gender Gap
Report 2012 ranked New Zealand sixth Recent appointments will lift
globally, in terms of gender equality the representation of women as
and political empowerment – so that’s chief executives of public service
some good news. Yet, according to organisations by over 24%.
The New Zealand Census of Women’s In late 2012, NZX introduced a listing
Participation 2012, New Zealand is making rule requiring companies to include
“slow, incremental, but unspectacular the gender breakdown of directors and
progress” for women in many areas. senior management in their annual
reports. The 16th country in the world
to do so.
Women on boards of top 100
companies listed on NSX surpassed
10% for the first time, sitting
at 14.75%.
Representation of women on boards
of major trading banks in New Zealand
is 22.92%. This is comparable with
European Union banks and higher in
comparison to banks worldwide.
Diversity Case Study 2014 Bank of New Zealand 13AND SOME BAD NEWS…
It suggests New Zealand now follows, Women in New Zealand still make up
rather than leads, in measures to fewer than 35% of judges, fewer than
improve women’s participation. Also, 25% of top academic positions and
benchmarks are often set lower than fewer than 20% in top legal partnerships.
those overseas. Targets for women’s
Compared to other OECD countries,
progress set by government, business,
New Zealand has a relatively high level
private and public enterprise, do
of concentration of women workers in
not demand any ‘stretch’, and limit
female-dominated occupations. Research
expectations for New Zealanders to
shows almost half of New Zealand’s
lead and innovate.
women workers are in occupations more
The United Nations Committee on the than 80% female and that these female-
Elimination of Discrimination against dominated occupations tend to be lower
Women (CEDAW) has asked the paid. Women are still under-represented in
New Zealand Government to relook at higher-level jobs.
targets and plans for representation of
This under-utilisation of talent is not a
women in decision-making roles.
good situation – as a nation we need to
CEDAW has specifically asked the ensure that everyone is fully engaged and
New Zealand Government to provide, economically productive to drive growth,
within two years, data and information irrespective of gender.
on women in ethnic minority groups,
including access to employment.
Empowering women to more fully participate in the economy can
occur in different ways, from empowering entrepreneurship and
work at local community levels, to increased opportunities in middle
management of larger businesses, to business leadership roles.
Each of these presents a variety of challenges; each is important in
not just providing economic opportunities but in ensuring talent can
realise its full potential.
14 Bank of New Zealand Diversity Case Study 2014BNZ’s gender balance approach
Diversity Case Study 2014 Bank of New Zealand 15As a large and leading employer, BNZ already has a great
culture, with many good practices, policies and provision
for good working conditions.
B NZ continuously goes beyond
New Zealand’s legislative
requirements for workplace health
men and women but women’s experiences
in regard to progression differed. Men
and women at different levels within the
and safety and is generous in other organisation were interviewed. It also
areas, such as leave entitlements and looked externally in New Zealand and
offers wellbeing programmes for beyond to find best practices that would
employees, catering for health needs work within the BNZ culture and the
and extending, in many cases, financial services industry.
to dependants.
Research identified barriers as:
For example:
A lack of real leadership and
Ten days paid domestic leave, which
commitment to the issues.
may be used for medical care for
dependants. The business case for the value of
women in business was not deeply
Free counselling is available to
embedded in the organisation.
employees and dependants.
Systemic barriers within the dominant
Parental leave top-up for a maximum
BNZ culture, including small pockets of
of 12 weeks.
poor behaviour and attitudes.
Lifestyle leave of up to an additional
Unclear pathways.
two weeks a year.
Some programmes were designed to
Family leave of up to three days.
help, some to hinder.
10 days Study Leave.
There was some measurement but
Special leave up to three days. little accountability.
Two days paid volunteer leave to The stereotypical image of banking.
encourage our people to give back
to their communities.
It was clear that the issues
Extensive education, training and
identified would take a
career opportunities are available for all
employees, plus some that are targeted prolonged and multifaceted
specifically to women. response, from recruitment
through to development.
The Start of Our Gender Balance The bank would also have
Journey to join with other market-
In 2010, when BNZ commenced its leaders to tackle the wider
diversity journey, the organisation issues of the industry.
conducted indepth research into why it
had a workforce of equal proportions of
16 Bank of New Zealand Diversity Case Study 2014The biggest challenge was, and still is,
achieving greater representation of women
at senior management levels.
The uncomfortable topic of targets interventions, such as looking into
unconscious bias and its effect on
Following internal discussion and dialogue,
the workplace.
in 2010 BNZ management reviewed where
the business was in terms of gender Briefly, this is what we did:
balance. Following research into best
Policies and processes were reviewed,
practice, we set ourselves stretch targets.
rewritten or changed where necessary
The biggest challenge was, and still is, to support the intent of the diversity
achieving greater representation of women strategy and, in particular,
at senior management levels (what we gender balance.
call bands 4, 5 and b). Once the targets
We reviewed our employer value
were agreed, they were embedded in the
proposition to determine whether we
executive team’s individual performance
were attractive as an employer across a
scorecard measures. Initially, performance
range of talent pools, including women.
was reported only to the executive team
Changes were made to the wording of
and board. However, as part of a drive to
job advertisements. We also looked at
not only improve performance but also
recruitment practices, including
as a clear signal that the organisation
mandating that there would be at least
was maturing in its acceptance of the
one woman on the short-list for all senior
need to change, the target levels were
roles and there would be a woman on the
subsequently communicated to all levels.
interviewing panel. Supporting our gender
Once the targets were set – then what balance agenda, the bank also mandated
exactly did we do? that all roles would be advertised as
‘offering flexible work practices’. We
With the targets in place a multifaceted
believe this is an area that drives an
approach targeted attraction and
agile and productive workforce, as well
recruitment practices, development,
as supports work/life balance.
talent identification and cultural
TARGETED PERCENTAGE OF WOMEN LEADERS AT BNZ
October 2010 At February Original target
Focus
baseline 2014 by end 2015
People Leaders
(band 1,2,3)
50% 50% 50%
Senior Leaders
(band 4,5, b)
21% 26% 33%
BNZLT (now
executive team)
17% 63% 33%
Talent pipeline at
senior leadership
33% 53% 50%
Subsidiary boards
(N=21 in 2010) 6% 31% 24%
(N=23 in 2012)
Diversity Case Study 2014 Bank of New Zealand 17We ensured a ‘gender lens’ was applied BNZ identified high-performing women
to the talent processes, which has in all areas of the business and noted
resulted in increased women in the their aspirations. We are now providing
bank’s talent acceleration cycles and, particular support and development for
importantly, in the succession lists for them. By actively setting goals for the
executive and critical roles. development of women and identifying
that talent for development opportunities,
We ensured BNZ’s graduate recruitment
we are ensuring they are making it to
process has a 50:50 gender target.
management succession planning lists,
The targets were embedded into to reduce the risk of them leaving the
the executive team’s performance organisation. Proper succession planning
scorecards. A comprehensive people is good business but leaving a large
and diversity dashboard was developed, proportion of talent aside isn’t. Doing
covering a range of measures, including so fails to maximise the investment the
gender disaggregated data, and is business has already made in its talent
utilised in monitoring and decision- and involves more investment finding
making. These have now been replacement talent outside.
embedded into BNZ’s Performance
Alignment Framework.
We reviewed our succession
We continued with successful planning, with the bank
processes, like annually reviewing our
now having 24% of current
performance on fair and equitable
remuneration. The BNZ pay parity succession plans featuring
review examines male and female women. Women make up
remuneration levels. Analysis shows 53% of BNZ’s identified
that the remuneration gap between talent group. These are both
men and women reduced over the past high-performing and
five years, most notably in the senior high-potential employees.
management category.
Sponsorship of women was piloted Awareness-raising workshops,
by the Diversity Council, where each highlighting the business case for
member mentored a number of women diversity, were developed and run pan-
from a different business unit. The bank. To allow greater reach, we trained
intent was to raise visibility and the 26 ‘diversity champions’ to lead these
networks of the highly talented women workshops. Concurrently, paper-bag
– leveraging the brand power of the lunch sessions led by Diversity Council
sponsor. After the pilot, improvements members are still run regularly to enable
were made and the programme is now open dialogue about the objectives of
in its second phase. the work. These sessions also provide
The bank conducted ‘Women in all of our people the opportunity to talk
governance’ courses providing women about what is important to them and to
within the business with aspirations share their views on what we are doing
for governance positions additional as part of the bank’s diversity strategy.
visibility. This also enabled the We have engaged with external bodies
company secretariat to identify more on diversity and gender issues. We have
women of suitable experience and a number of relationships, including
calibre for subsidiary board appointments, representation or involvement with the
allowing us to improve performance in Ministry of Women’s Affairs, Diverse NZ
this important target area. Inc and FINSIA’s NZ Women in Financial
Services Forum.
18 Bank of New Zealand Diversity Case Study 2014Unconscious bias
The latest research from Harvard,
Yale and Massachusetts Institute
of Technology tells us that
BNZ recruitment unconscious bias and other implicit
– short-list process for processes have a significant effect
bands 4, 5 and B roles on our everyday decision-making
abilities in the workplace and, in
All roles should have a minimum of particular, in our interactions with
one qualified female candidate for diverse groups.
consideration for any open role.
Further research has identified the
If no such female candidate is palpable effect this bias has on
identified, return to the market for the advancement of women in the
one further week. workplace and on the bottom line.
If no suitable candidate is identified, Catalyst’s 2010 report, Pipeline’s
fill the role and provide a written Broken Promise clearly shows that the
explanation on each occasion. conventional wisdom regarding why
women are not well represented at
In an event where an exception to
executive levels do not hold true and
the process is required, e.g. a short-
unconscious systemic bias is clearly
listed candidate has a competitor
to blame for the failure to establish
offer, approval must be gained.
gender equity in organisations.
Exceptions and approvals to be
BNZ introduced a programme to
given by the Director – People &
understand and address when
Communications.
unconscious bias may affect the
Interview Panels business, such as in decision-making
or team selection. The bank believes
From February 2013 all interview
this is an important step to help move
panels for band 4, 5 and B roles must
towards a more inclusive workplace
have at least one woman on them, and
and a vital part of assessing the
it is recommended the same approach
impact of a leadership culture that
is used for all interview panels.
drives change. The programme raised
Measurement awareness and opened dialogue that
Gender balance and flexibility metrics was uncomfortable but a necessary
are reported on all roles advertised and element of an honest and open,
go to the executive team, board and inclusive culture.
the Diversity Council. In the first year our executive team,
senior leadership and the recruitment
teams underwent training. One of our
board members also attended. The
programme continues as an important
part of our diversity work. In 2014,
we aim for all board members, new
executive and senior leaders and 33%
of our middle management pool to
attend the training.
Diversity Case Study 2014 Bank of New Zealand 19Tackling gender balance
– an industry approach
Realise – development for
highly talented women One of the barriers to women’s
advancement identified in our
To ensure that diversity initiatives internal research was that many
were not ‘one off’, BNZ introduced women did not choose banking as a
a programme called ‘Realise’ career and the stereotypical image
targeting high-potential women of banking and the finance sector
ready for upward movement. was potentially precluding talent.
The programme resulted in a BNZ also funded trans-Tasman
strengthening of some of our key research led by industry body Financial
female talent. The initial results are Services Institute of Australasia
promising, with two of these women (FINSIA). It was clear that the BNZ
recently moving into senior leadership experience was shared by other
roles. Following from the initial institutions and an industry response
success and feedback in 2013, we tackling the attractiveness
doubled efforts with an additional of the sector to women was required.
programme targeting women in
BNZ’s Partners business. In 2012, in partnership with FINSIA,
BNZ launched the ‘NZ Women in
Financial Services Forum’ to facilitate
‘Realise’ is facilitated a programme of events, share and
encourage best practice within
by an external provider
the industry and to develop other
and covers elements initiatives to collectively contribute to
ranging from developing a greater female representation within
personal vision and goals, senior positions in the industry. In its
building a career path, first year the forum ran a number of
effective communications, events in Auckland with high-profile
empowering leadership speakers attracting growing numbers
of attendees (up to 150 per event).
and managing change
The events also provide women with
and transitions. important networking opportunities.
The forum also established a LinkedIn
profile to connect women and share
information on gender diversity. The
page now has over 200 members.
As part of the agreed industry-wide
approach, BNZ handed the chair role to
ASB in 2013. FINSIA has also benefitted
from the forum, with an increase in
new members, particularly women.
20 Bank of New Zealand Diversity Case Study 2014Empowering customers and
women in the community
Diversity Case Study 2014 Bank of New Zealand 21BNZ is proud of the work it does to support its female
employees and knows that it is equally important to do the
same for the women of New Zealand.
T he following examples demonstrate
how we provide practical, relevant
and simple solutions that embody
Financial literacy
Diversity ensures that each member of
the community can contribute fully. BNZ
the bank’s continued commitment
believes that good financial literacy is a
to strengthen and support the role
key foundation driving that ability and has
of women in the community. We also
committed to increasing financial literacy
recognise the economic and consumer
to targeted groups in our community.
power of women and are targeting
Since 2013, BNZ has partnered with
products and services to them under
the Commission for Financial Literacy
our private wealth and retail affluent
and Retirement Income and The Māori
segment strategies.
Women’s Welfare League, to deliver
Business education financial literacy workshops across the
country. Workshops are facilitated by
BNZ has facilitated more than 50 BNZ employees, offering them not only
women-specific education workshops, an opportunity to give back to their
with over 700 attendees countrywide, communities, which many find very
across many business sectors. One such rewarding but also the opportunity
programme, the ‘Women in Agribusiness’ for development.
workshop, designed to help New Zealand
women in the agricultural sector define In 2013, BNZ launched a financial
and achieve their business and life goals, education programme supporting women
has been very popular in bringing together who make financial decisions in whānau
like-minded women and enabling and marae situations, often in rural areas.
them to develop themselves and their BNZ Whānau Financial Literacy has been
personal leadership in a supportive, piloted with women in rural Waikato, West
yet challenging environment. Auckland and rural Northland. Supported
by a Māori and multicultural network of
Networking and support BNZ women, 20 women have taken part in
BNZ has also created business networking the first wave.
opportunities for women at the ‘Very Plunket
Early Lunch Club’ at our Highbrook
Partners Centre and the Auckland In March 2013, BNZ partnered with
Businesswomen’s Breakfast Association Plunket to introduce a new financial
in Newmarket. It is also the lead sponsor literacy programme for first-time parents,
for the Dairy Women’s Network. The Very in collaboration with the Commission
Early Lunch Club has been running for five for Financial Literacy and Retirement
years and aims to connect like-minded Income. BNZ’s involvement ensures
businesswomen, arming them with relevant financial education and volunteer
business insights, the ability to build new ambassador support (including 31
networks and overall inspire them from volunteer BNZ ambassadors and over
the host of guest speakers. 50 volunteer BNZ facilitators) across
New Zealand.
22 Bank of New Zealand Diversity Case Study 2014The ageing workforce
Diversity Case Study 2014 Bank of New Zealand 23An ageing workforce is an international issue – within the
OECD some predictions show that the workforce is expected
to shrink by some 50-60 million over the next 15 years.
T his highlights two big issues. First,
organisations must find innovative
ways to keep older people at work (and
continue, with New Zealanders continuing
to choose or needing; to work until they are
much older, making them an important and
get younger people to join them); and significant segment of the total talent pool.
second, demand for skilled workers will
The census results also revealed that some
increase across the globe.
regions will experience a greater impact of
While there has been much talk on the the ageing workforce. Some are not only
topic of an ageing workforce, we believe experiencing ageing but they are losing their
the pressure is only just coming on to young talent to the cities and overseas.
New Zealand organisations. We have
Understanding the impacts these
recently widened our own diversity
demographic shifts could have on BNZ
agenda to elevate addressing age to a
and its future workforce was one very
higher priority.
important reason why we commenced
The recent 2013 New Zealand census work on age and the workforce.
showed continued growth in the number Notwithstanding, there has also been
of people 65 years and over. There was much research and talk in recent years
significant growth in the 50–69 age group, on the needs and drivers of the different
up 21.5% since 2006, with this group now generations in the workforce.
comprising 23.3% of the total population.
BNZ reviewed our risk of losing intellectual
The percentage of people 65 years and capital, key client relationships and where
over who are employed has nearly doubled we do not have the right talent (or volume)
in the last decade, with 22% remaining in the pipeline.
in employment. This trend is expected to
24 Bank of New Zealand Diversity Case Study 2014BNZ AGE PROFILE AT 31 DECEMBER 2013
55 years Total
Permanent 248 1,384 1,435 1,185 628 4,880
Contingent 109 110 131 111 103 564
Total 357 1,494 1,566 1,296 731 5,444
programme was launched to demonstrate
We recognised the need to how we can support our employees,
with the aim of holding their knowledge
try and mitigate potential
and skills for as long as possible. The
damage or disruption through programme recognises the value of
the loss of our long-serving experienced and mature employees and
employees, needing them to actively works to understand how BNZ can
share their knowledge before better and more flexibly support them.
leaving the organisation. The approach is based around a holistic
framework of identity, money, career,
And, very importantly, we relationships and health. Lessons learned
needed to ensure we continue from this pilot will inform our work and
to value their input and help guide us as we work with employees
contribution and hold them across all life stages.
for longer.
For our Customers – Financial
Elder Abuse Prevention
The overall age structure of BNZ is likely
Over the last few years, national media
to be similar to other large organisations.
has done a good job of highlighting the
What we found compelling for immediate
vulnerability of senior New Zealanders; in
action was the high concentration of older
particular their susceptibility to scams.
workers in one of our units. An audit of
We have a dedicated team member who
the unit gave us a view on the exposure
has seen firsthand the impacts of financial
we had if the employees left en masse.
abuse on our customers. It’s something
Reviewing and reporting the talent
we take very seriously. We have been
pipeline and succession plans for the unit
actively advocating and working with
gave us a strong case to implement a
Age Concern organisations around the
workforce succession strategy and to pilot
country to protect those most at risk. This
a programme around mature workers.
work is making a big difference, and was
In February 2014, BNZ piloted a acknowledged with an award presented at
programme supporting mature employees parliament in 2013.
plan for their next phase of life. The
Diversity Case Study 2014 Bank of New Zealand 25Flexible working for our people 26 Bank of New Zealand Diversity Case Study 2014
From the start of the diversity journey, BNZ recognised the need
to increase the uptake and acceptance of flexible working as an
enabler for productivity and work/life balance and to support the
work we were doing in achieving gender balance. But it delivers
wider benefits, too.
International and domestic studies
show by implementing diversity and
work or career/life balance initiatives,
flexible working a reality – individuals
managing their own work/life wellbeing,
managers recognising the benefits of
we can gain benefits in a number flexible working and colleagues being
of areas: supportive of other team members’ work
arrangements. BNZ offers a range of
Employee motivation, satisfaction and
flexible working options; from job-sharing
engagement.
to working from home, staggered start and
Attracting and recruiting the best finish times and compressed working weeks.
possible talent.
Our formal reporting processes hold
Increasing productivity.
limited data on flexible working and
Reducing staff turnover. our reporting told us we had limited
Flexible working gives BNZ employees use of flexible arrangements. In fact,
real choices in managing work or career/ we had a large number of people using
life balance. Flexibility not only improves informal arrangements, as agreed with
employee wellbeing and engagement, it their individual managers. Our annual
also enables our business to be creative engagement survey results repeatedly tell
when thinking about how to deliver us that we offer a flexible workplace, which
business objectives, meet customer the majority of our people utilise. However,
expectations and enable BNZ to attract we know from focus groups and informal
and retain diverse talent. feedback that in parts of the organisation
we still have a culture or mindset that
Flexibility is not a ‘nice to have’ – it is
does not embrace flexible practices and
a fundamental part of the way we do
‘being seen at your desk for long hours will
business, stay agile and is critical to us for
equate to success’. It is this mindset and
being recognised as an employer of choice.
culture that we set out to break.
Everyone has a part to play in making
Diversity Case Study 2014 Bank of New Zealand 27In 2012, we introduced flexibility as a BNZ will periodically review those
priority as part of Leadership@BNZ in employees working flexibly to ensure
our bank strategy. To support this we they do not encounter bias in their
widened our flexible working policy going development, advancement, promotion
beyond the legislative requirement of only onto special projects and in their
being for ‘carer status’ (for employees performance ratings.
with dependant children or elder care)
and increased communication around Our Commitment to Flexible
the benefits of flexibility and examples Working
of how it was working in a variety of
roles bank-wide. We are committed to flexible working
and all job vacancies across the Bank
In 2013, we intensified efforts formally will be advertised as open to applicants
mandating that all roles advertised would wanting flexible arrangements
offer flexibility. Our talent acquisition (e.g. full-time, part-time, compressed
team (recruitment) works with managers weeks, flexi hours or job-share).
to ensure this is built into advertising and Flexible work practices are also
to encourage consideration to be given available for all current employees
to requests made once the interviewing and are not restricted to those with
process is under way. carer responsibilities.
We recognise that there may be
We also initiated exception occasional circumstances where a job
reporting to show us where is structured in such a way that it can’t
and who were being granted be worked flexibly and there will be an
requests, whether they were exception process signed off by the
new to BNZ – or an existing hiring manager.
employee. We are improving Exception reporting will be carried
this reporting, which goes to out to identify the areas where we are
not offering flexibility and allow us
the Diversity Council.
to look at solutions to overcome this
where practicable.
Storytelling has been used as a way to
Measurement
demonstrate real-life flexible working and
to help dispel the notion that it is only for Gender balance and flexibility metrics
some talent pools. Stories are regularly are reported on all roles advertised and
shared through the intranet, showing go to the executive team, board and the
men and women around the business at Diversity Council.
different levels and the differing flexible
practices they use to meet their lifestyles.
Examples have ranged from showing
our people representing New Zealand
at their individual sports, taking special
leave for personal development and we
regularly showcase our senior leaders
working compressed weeks – or initiating
no meetings before 9am in their teams as
they are dropping their children to school
at this time of the day.
28 Bank of New Zealand Diversity Case Study 2014Changing cultural demographics
of New Zealand
Diversity Case Study 2014 Bank of New Zealand 29New Zealand is one of the most diverse nations in the
world, with the latest census showing 213 ethnicities
among our 4.5 million residents.
B NZ commenced work in diversity
with a drive toward gender balance
at all levels of the organisation. But
New Zealand and Auckland are now
classed as ‘super diverse’ with two key
aspects: the size of the non-majority
that was just the first step. Our desire to populations – e.g., 23% of Auckland
bring wider perspectives and thinking is Asian. The other aspect is the
led us to also look at other significant increasing number of immigrant and
social and demographic shifts – ethnic communities3.
particularly that of the ‘changing face’
of New Zealand.
In the next 20 years two-
New Zealand is one of the most diverse
thirds of our growth will
nations in the world, with the latest census
showing 213 ethnicities amongst our 4.5
be in Auckland and by
million residents. This increasing diversity 2031 the Auckland region
impacts both our talent pool/workforce will have approximately
and our customers. two million people (38%
The five largest ethnic groups are: of the total population).
New Zealand European, Māori, Chinese,
Samoan and Indian. Ethnic diversity has The region’s demographics are changing
been increasing since 2006, especially too, with increasing multiculturalism. By
within the broader Asian category 2020 it is projected that 9% of the total
spearheaded by Chinese, Indian, and New Zealand population will be Asian,
Filipino ethnicities. During the seven years with the majority residing in Auckland
between censuses, the Chinese population (projection 25%). Since 2000 New Zealand
grew by 16% to 171,000. The number of has had the highest rate of per capita
Indians increased by 48% to 155,000 and immigration in the OECD. As the bulk of
Filipinos more than doubled to 40,000. these immigrants have opted to settle in
Auckland (70%), it has become one of the
most ethnically diverse cities in the world.
3. Source: New Zealand Herald, 12 December 2013.
30 Bank of New Zealand Diversity Case Study 2014At the same time, some sectors are What exactly have we been doing?
also growing. The Māori economy is
Firstly, for our workforce
strengthening with the value of assets
held by Māori more than doubling in the BNZ strives to have the culture where
last five years from $16.5 billion to $36.9 valuing diversity in thinking becomes one
billion. The sector is providing genuine of our greatest assets. Cultural diversity
commercial opportunities. The same can has a hugely valuable role to play in the
be said for Asian migrant banking and generation of diverse thinking and in
the Indian business community. BNZ has underpinning our ability to anticipate
built specialist teams that understand and and exceed client or customer needs and
support the interests of these sectors at expectations. In 2012, to assist with this
both the business and individual customer goal, BNZ conducted indepth research
level, ensuring we meet specific needs and into the perception of employees from
deliver the right products and services. dominant and non-dominant ethnic
groups to assess whether there were any
New Zealand’s changing demographics barriers to progress at BNZ.
are not only presenting us business BNZ planned to use recommendations
growth opportunities but they have from this work to positively influence
made us look at ourselves and ask some organisational culture, achieve a competitive
tough questions. advantage in product markets, recruit and
For example, are we reflecting the retain the best available talent from the
communities we live in and if we are, widest possible talent pool, advance
at what levels of the organisation? Are innovation, enhance employee satisfaction
there any barriers for advancement for and workplace relations and improve
any ethnic groups (such as unconscious organisational performance and profitability.
biases)? Do we give new migrants good The process included: one-on-one interviews;
work opportunities and can they advance focus groups containing one ethnic
in our organisation? grouping e.g., Chinese, Pasifika, and Māori;
focus groups with a mix of ethnic groups;
We believe asking these tough
focus groups from the human resources
questions will help us identify and rectify
team containing subject matter experts;
potential social and systemic inequities
analysis of our engagement survey results
in our workplace for people from non-
by ethnicity (our only ethnicity data on
dominant ethnic groupings. We have
employees); an independent review of BNZ
already stated that diversity is good for
by a postgraduate student from Auckland
business, as it helps us to attract and
University; insights from our Auckland
retain the best people, deliver innovative
Project workforce project team; and a review
business solutions and respond more
of best practices and secondary research.
effectively to our customer needs – it will
also help lead to a fairer and more
prosperous New Zealand for all ethnic/
cultural groupings.
Diversity Case Study 2014 Bank of New Zealand 31In the process we recognised we needed
to widen beyond a simple definition We categorised our response
of ethnic identity or origin to cultural across six areas of business
diversity. Cultural diversity is much more
practice crucial to managing
complex than a person’s country of birth.
It encompasses ancestry, citizenship, faith
cultural/ethnic diversity
and language spoken at home, in addition to build on the foundations
to how a person chooses to identify – that and activity in place:
is, the ethnic or cultural groups he or she
feels most strongly affiliated with. Another
key aspect is ‘intercultural capability’. This Leadership and management – provides
includes attributes like a person’s language the vision for the organisation to
abilities and global experience or mindset include ethnic diversity, and strategies
and links clearly to the desire to leverage to make it happen.
diverse thinking, perspectives and skills. People resources – provides tools
The research identified BNZ as a leading and resources to move beyond equal
employer, offering many opportunities employment opportunity (EEO)
for our people. However, it did highlight data collection.
that the prevailing dominant masculine/ Recruitment and selection – ensures
pākehā culture’s behaviours and norms are the best people are employed for
determining working styles, career paths the job, based on merit, regardless
and talent identification. This is possibly of ethnic background.
why some talent pools choose not to join
BNZ or why some talent does not put its Retention and succession planning –
hand up for promotion, is not recognised funding, growing, holding on to and
and promoted or leaves. Some cultural promoting talented staff, including
groups did declare a hesitance to put their those from ethnic backgrounds.
hands up for promotion or to claim their Product and service design – bringing
own contribution to work undertaken in it all together to use diversity to assist
the performance reviewing process, as this innovative product development and
is not how they are raised to behave. service delivery and develop higher
quality products and services to reach
broader markets.
Community outreach – growing
our communities.
While a large amount of resource and
diversity focus to date has been on our
gender balance activities, BNZ has started
to initiate and deliver more on cultural/
ethnic diversity for our employees and
our customers.
32 Bank of New Zealand Diversity Case Study 2014Māori cadetships
The following are examples of BNZ’s nationwide Te Pihinga
recent activity: cadetship, launched in 2014 in
partnership with Te Puni Kōkiri, is
BNZ leaders from New Zealand’s aimed at building Māori capability
largest ethnic/cultural groupings and encouraging more Māori into the
were appointed as ‘cross-cultural banking and finance sector.
ambassadors’. The group meets
Since 1990, 62 Treaty of Waitangi
regularly and leads the strategy and
claims have been settled (estimated
implementation on cultural diversity
at $1.4 billion) with approximately
within BNZ and the delivery of the
a further 60 to be reached. Iwi and
supporting commercial strategies.
Māori private sector businesses and
We developed Māori awareness Trusts are growing their businesses
training, which continues to be rolled in industries such as farming, fishing,
out throughout the organisation. The energy and property development
BNZ board and executive team, along and are venturing into infrastructure
with other leaders and teams equity investments. Iwi are actively
throughout the country, have been seeking new opportunities for joint
through training to increase their venture partnerships and greater
general knowledge and awareness of ownership in supply chain operations
Māori language, customs and protocols. and other business activities.
Two Māori and Pacific Island internships The growth in Māori business has
have been introduced into our finance seen a rise in the demand for banking
business unit. services and advice, finance and
Our financial literacy programme investment portfolio management
has been translated into te reo through the claims settlement
(Māori language) for use internally process to ensure resources are
and externally. well managed and sustained for
future generations.
We have significantly up weighted our
focus on cultural celebrations, such For BNZ, increasing our Māori
as Mātāriki and Diwali for our people employee talent pool and capability
throughout the country and in our will help enable our organisation
stores and Partners business centres. to better respond to the increasing
demands of the fast-growing Māori
business segment and economy, as
well as contribute to bringing new,
diverse thinking into our organisation.
Diversity Case Study 2014 Bank of New Zealand 33You can also read
