Inclusion & Diversity Study 2021 - June 2021 - Energy Workforce & Technology Council
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Updated OPTION 2 Inclusion & Diversity in the Energy Technology and Services Sector Study Overview The 2018 Study: 2021 Study: • Established a baseline on Follow-up on progress on gender diversity gender diversity • Led to actions for progress: Build a baseline on ethnic minority and racial diversity ⎼ Diversity Toolkit in the sector ⎼ I&D Business Champion Program Identify key gaps to close for women and ethnic • Set a goal of reaching 20% women minorities by 2020 in the sector workforce
DIVERSITY MATTERS MORE THAN EVER Inclusion & Diversity is imperative for the energy technology and services sector as it reinvents itself for a low-carbon future
Improving Inclusion & Diversity metrics will play a more central role in the sector’s performance INNOVATION The sector will increasingly need to innovate to remain relevant within the expansion of new energy technology and services • Companies with inclusive cultures and policies report an increase of over 50% in creativity, innovation, and openness1 ESG METRICS Investors are increasingly looking at companies to have actionable and measurable plans for improving diversity, equity and inclusion2 • I&D has moved beyond being an “S” only issue and is becoming more intertwined with E and G metrics as well, weighing heavily on overall ESG performance 1: Why diversity and inclusion matter, Catalyst.org, June 2020 2: Blackrock 2021 Letter to CEOs
2020 was a challenging year for women and minorities in the workforce The pandemic and associated drop in oil prices resulted in more than 100k jobs lost in the sector. Women have seen their Energy Workforce & Technology Council earnings decline almost two thirds more sharply than men, dropping by 16.5% on Women and minorities, average since the pandemic especially those in households began, compared with a drop with children, dropped out of the of 10.1% for men workforce at higher rates than Accenture Research / W20 men and whites overall. Fewer women and minorities are returning to the workforce. Federal Reserve Bank of Dallas
However, women have made progress in representation within the sector since 2018 2021 Workforce Composition Change from 2018 Men Women Overall US Workforce1 53% 47% No change Up from 81% 19% Oil & Gas US Workforce1 15% Up from Council US Workforce2 81% 19% 16% Source: 1 -Overall and Oil and Gas Workforce: Department of Labor Statistics, Oil & Gas related industries (oil and gas Council extraction, petroleum refining, construction, and mining and oil and gas field machinery manufacturing) 2020 Target 2 -Council Workforce: 2021 I&D Study prepared for the Council by Accenture
Women are more equally distributed between business support and technical roles… Women in the sector by Job Discipline Total Business Total Technical/ Support Functions Operating Functions 12% 34% Up from Up from 31% 52% 48% 8% in 2018 in 2018 2021 88% 66% Business Support Functions Technical / Operational Functions Women Men Source: 2021 I&D Study prepared for the Council by Accenture
…but challenges faced in promotion and leadership roles remain relevant 80% of respondents cite women represent… Emerging & Senior Leaders Top Leaders (first-line and middle/upper management) (highest ranking executives) Business Support ≤ 31% ≤ 18% Functions Only leadership Technical/ Operating ≤ 11% ≤ 9% group to improve Functions from 2018, up from 7% 2021 2021 Source: 2021 I&D Study prepared for the Council by Accenture
Ethnic minority representation within the sector lags the overall US workforce Workforce Composition Black or African American Asian Hispanic or Latino Total Overall US Workforce1 12% 6% 18% 36% Oil & Gas US Workforce1 8% 6% 14% 28% Council US Workforce2 5% 5% 15% 25% Source: 1 -Overall and Oil and Gas Workforce: Department of Labor Statistics, Oil & Gas related industries (oil and gas extraction, petroleum refining, construction, and mining and oil and gas field machinery manufacturing) 2 - Council Workforce: 2021 I&D Study prepared for the Council by Accenture. Numbers are benchmarks as this is the first time this data is being collected.
…but face similar challenges in representation when it comes to management and top leader roles 80% of respondents cite that ethnic minorities represent… Emerging & Senior Leaders Top Leaders (first-line and middle/upper management) (highest ranking executives) Business Support ≤ 23% ≤ 22% Functions Technical/ Operating ≤ 25% ≤ 9% Functions Source: 2021 I&D Study prepared for the Council by Accenture. Numbers are benchmarks as this is the first time this data is being collected.
Pushes for diversity still need to come from the top of the house Company-wide strategies and initiatives (e.g., employee resource groups, mentorship programs, and leadership role models) help build an I&D mindset and drive change. Recruitment Expand talent searches to ensure diverse recruitment Retention Keep women and minorities in the workplace Advancement Mentorship and leadership role-modeling matters
RECRUITMENT RETENTION ADVANCEMENT Representation starts with finding and tapping into diverse talent pools for candidates 2021 Talent In-flow Women Ethnic Minorities Women still account Overall 15% 36% for less than 20% of 16% in 2018 entry-level recruits within the sector, while they account for Entry Level 15% 17% more than 36% of 15% in 2018 STEM degree undergraduates in the Experienced US1 15% 41% Hires 18% in 2018 Source: 2021 I&D Study prepared for the Council by Accenture 1: Women in Science, Technology, Engineering & Mathematics 2020, Catalyst.org
RECRUITMENT RETENTION ADVANCEMENT Flexibility and support enable more diverse talent Flexible work programs Childcare back-up options Respondents that have flexible work programs1 Respondents that have back-up childcare options available (% of total respondents) (% of total respondents) 42% in 0% in 4% 2018 Has flexible 2018 Available 32% work programs Not available Does not have a flexible work program 96% 68% 2021 2021 Source: 2021 I&D Study prepared for the Council by Accenture 1: This excludes any flexible work programs that have been implemented as a result of Covid-19
RECRUITMENT RETENTION ADVANCEMENT Providing paid leave for primary and secondary caregivers increases flexibility for the workforce Weeks of fully paid leave for caregivers (% of total respondents) Maximum number Median number of of fully paid weeks fully paid weeks Primary Caregivers 44% 32% 18 8 24% Secondary Caregivers 52% 40% 16 1.5 8% 0 weeks 8 weeks More than or fewer 8 weeks Source: 2021 I&D Study prepared for the Council by Accenture
RECRUITMENT RETENTION ADVANCEMENT Employee Resource Groups can be leveraged as valuable partners to determine what a diverse workforce requires Less than 50% of respondents have Employee Resource Groups (ERG) 1, and likely don’t utilize them to their fullest potential Ways to better utilize Employee Resource Groups2: • Compensate ERG leaders for their work • Fund ERG conference attendance • Leverage ERGs for internal leadership pipelines • Show visible support from CEOs and leaders at ERG events • Provide C-suite executive sponsorship for each ERG • Actively seek employee experience input from ERGs Source: 1: 2021 I&D Study prepared for the Council by Accenture 2: Harvard Business Review, What Black Employee Resource Groups Need Right Now
RECRUITMENT RETENTION ADVANCEMENT Representation at the top of the house helps support and signal gender and ethnic minority diversity for the organization Availability of Programs to Support Diversity (% of total respondents) C-suite Gender Diversity Strategy 40% 60% Diversity efforts at the CEO level have been less successful, with women holding only 7 percent and ethnically diverse executives only 9 percent of CEO positions among C-suite Ethnic Minority Fortune 500 companies.” Diversity Strategy 40% 60% Yes No Source: 2021 I&D Study prepared for the Council by Accenture “The Sorry State of C-suite Diversity”, Cooley PubCo, May 2020
RECRUITMENT RETENTION ADVANCEMENT Creating formal mentorship programs plays an important role in career advancement Availability of formal mentorship programs (% of total respondents) Of the respondents with formal mentorship programs: 40% 75% 50% 62% 60% Have at least Have at least At least 15% of their 2021 20% women in 30% ethnic top executive are Has formal mentorship programs their workforce minorities in women or ethnic Does not have formal mentorship programs their workforce minorities Source: 2021 I&D Study prepared for the Council by Accenture
Ambitions going forward Largest areas of focus since 2018 Largest focus areas for the for the advancement of diverse future, according to talent that respondents cite: respondents • Education on unconscious bias / • Develop pipeline of diverse inclusion training that emphasizes talent for leadership roles and role-models inclusive behavior • Offer competitive • Creating allies for women in compensation leadership • Conduct diversity, equity and • Partnerships with employee inclusion reviews resource groups • Expand focus to include • Focus on gender diversity in ethnic diversity technical and STEM roles Source: 2021 I&D Study prepared for the Council by Accenture
How the Council can help In 2021, the Council can push progress forward by • Offering action-oriented inclusion The 2021 iteration of training to Council members study proves the value of • Establishing best practices for tracking metrics to increasing ethnic minority diversity – evaluate what works and how to best utilize ERGs, broker drives progress. partnerships to increase recruitment and pipeline diversity, provide sponsorship program models, etc. • Creating opportunities and channels for Council members to cross-share diversity, equity and inclusion strategies Source: 2021 I&D Study prepared for the Council by Accenture
About the Research Participating companies from the Energy Workforce & Technology Council directly provided workforce data as of January 2021 for the survey. 25 Total Companies Participating 14 1000 Total 12 Reported Non-US Employee Headcount Employee Headcount Employee Headcount 249,175 Combined Employee Headcount 1 63,557 185,618 US Headcount Rest of World Headcount 13,392 Recruits 2,345 11,047 Entry level recruits Experienced hires
APPENDIX
Survey Findings: Workforce Composition Global USA Ethnic Minority – US1 Overall Total 2021 18% 85% 19% 81% 27% Total 2018 16% 83% 16% 84% Companies Total 2021 18% 85% 19% 80% 23% > 1000 employees Total 2018 16% 81% 16% 85% Companies Total 2021 14% 89% 14% 88% 43% < 1000 employees Total 2018 21% 85% 22% 82% Source: 2021 I&D Study prepared for the Council by Accenture Note: Global refers to US and Rest of World workforce 1: Ethnic minority includes 2% for other ethnicities
Survey Findings: Recruitment Global USA Ethnic Minority - US Overall Total 2021 18% 77% 15% 80% 36% Total 2018 17% 83% 16% 84% Companies Total 2021 16% 75% 16% 81% 39% > 1000 employees Total 2018 19% 81% 15% 85% Companies Total 20211 8% 79% 8% 79% 9% < 1000 employees Total 2018 15% 85% 18% 82% Source: 2021 I&D Study prepared for the Council by Accenture Note: Global refers to US and Rest of World workforce 1: Rest of World data for 2021 was not provided by respondents
Survey Findings: Women in Leadership Ranking of Company Responses – High to Low 80th Percentile % Women Emerging & Senior Leaders % Women Top Leaders Business Support 75 60 Functions 40 38 36 33 31 28 26 23 21 20 18 16 14 13 13 15 14 14 10 4 4 3 3 2 2 1 1 1 0 0 0 2 1 1 0 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Technical / Operational Functions 33 17 16 15 17 11 10 9 6 5 5 2 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Source: 2021 I&D Study prepared for the Council by Accenture
Survey Findings: Ethnic Minorities in Leadership Ranking of Company Responses – High to Low 80th Percentile % Ethnic Minority Emerging & Senior Leaders % Ethnic Minority Top Leaders Business Support Functions 39 29 27 29 25 23 21 21 22 22 20 18 15 15 7 6 5 4 3 2 3 2 1 1 1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Technical / Operational 67 Functions 30 27 26 25 25 25 22 20 13 9 9 6 2 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Source: 2021 I&D Study prepared for the Council by Accenture
About Energy Workforce & Technology Council Accenture The Energy Workforce & Technology Council is the national Accenture is a leading global professional services company, trade association for the energy technology and services providing a broad range of services and solutions to deliver on sector, representing more than 600,000 jobs in the the promise of technology and human ingenuity. Combining technology-driven energy value chain. Energy Workforce is unmatched experience and specialized skills across more than a trusted resource, advancing member policy priorities and 40 industries and all business functions. Accenture works at providing targeted workforce development for the entire the intersection of business and technology to help clients OFS sector. Energy Workforce members represent more improve their performance and create sustainable value for than 600 energy technology and services companies. their stakeholders. With approximately 537,000 people serving energyworkforce.org 6,000 clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. accenture.com
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