Making Diversity & Inclusion a Business Reality 2021 - Auto ...
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01 The role of D&I and the broader HR function has been critical in supporting businesses as they successfully Welcome navigate the challenges faced over the last year Lynda Ennis FOUNDER, ENNIS & CO. W elcome to the third Making reopening, the way consumers search for their Diversity and Inclusion a next car, the way they buy them, and even the Business Reality report from fundamental way in which they think of them, automotive and mobility has evolved dramatically. executive search specialists, Ennis & Co, and digital marketplace, Auto Therefore, in both our research and during Trader. In this edition, we’ll be presenting the event itself, we wanted to understand the findings of our latest research into the what D&I looks like today; how have health of diversity and inclusion (D&I) within commitments and strategies evolved; has the automotive industry, and some of the key progress been accelerated or hindered; and insights from a range of experts and thought has its role and perception within the industry leaders which were shared during our recent changed? We also wanted to look at it on a digital seminar, hosted in May 2021. granular level to identify where today’s gaps are, as well as the initiatives that are proving Over the last 16 months the automotive the most effective. industry, like all others, has faced a set of unprecedented challenges which has forced it Wherever your business is on its D&I journey, to adapt to a rapidly changing landscape. From we hope the insights and the expertise over the the beginning of the pandemic, throughout the following pages serve as a valid contribution various lockdowns, and to physical forecourts to your strategy. Rebecca Clark GROUP SALES DIRECTOR, AUTO TR ADER I t was a privilege to once again be a part of The role of D&I and the broader HR function the event and to bring together some of the has been critical in supporting businesses as leading voices from across the industry. they successfully navigate the challenges Whilst the two hour digital format was faced over the last year. And without wanting shorter than our usual half-day physical to spoil the findings of the research, I am event, the webinar saw over 100 MDs, CEOs, pleased that the commitment to D&I remains HR Directors, and change leaders at every strong despite the pressures of the pandemic. level from across the industry tune in and However, as we’ll come to see, there is interact during the Q&A sessions. Not only still a long way to go to make it a reality in does it underpin the importance of diversity UK automotive. As an industry, we need to and inclusion as a topic, but also our shared galvanise the positive sentiment evident in this commitment to driving the D&I agenda report, and push this towards commitment to forward collaboratively. action, rather than just words. 2 3
DIVERSIT Y AND INCLUSION IN 202 1: A TEMPER ATURE CHECK 02 Businesses are making progress in achieving their D&I objectives Over the last 12 months, the progress my business has made around D&I has been... EXCELLENT 50% in 2021 vs Diversity and inclusion in 2021: VERY GOOD 28% in 2019 A temperature check GOOD 39% in 2021 vs 61% in 2019 A FAIR ccording to our research, which publication of our previous report) and 2018, surveyed over 40 organisations where ‘attracting and retaining the best talent’ POOR from across the automotive was the primary function of D&I strategies. industry (representing retailers, 0 5 10 15 20 25 30 35 manufacturers, suppliers and trade bodies) in April 2021, D&I within the automotive industry remains in solid health. The perceived importance D&I is not only high up the agenda in 2021, of D&I is accelerating The COVID-19 effect but its importance amongst businesses is accelerating. In fact, the number of D&I is ‘very important’ to our business Reassuringly, despite the challenges of the last year, the perception amongst the industry is that organisations stating D&I as ‘very important’ progress has been made over the last 12 months. 50% thought their businesses had made either very to their organisation has increased good or excellent progress, which is up considerably on the 28% recorded in 2019. Conversely, the consecutively each year since we first began tracking it’s perceived importance in 2018, 80% number of those believing their progress to be just good or fair, fell from 61% to 39% increasing from 75% to 80% this year. 2021 Whilst that’s encouraging to see, as The pandemic resulted in benefits to the D&I and HR function highlighted later in this report, there are clearly challenges that still exist for D&I in the 78% What, if any areas of the D&I or the broader HR function, automotive industry: a number of initiatives are 2019 have been affected positively? either on hold due to the pandemic, or are non- existent in many organisations. What’s more, some D&I strands remain underserved. To ‘contribute to achieving business results’ was identified by the greatest number of 2018 75% businesses as the primary objective of D&I in 2021. This marks a slight shift from 2019 (the CULTURE WAYS OF RECRUITMENT ENGAGEMENT TR AINING PERFORM ANCE COLLEAGUE (e.g. values WORKING (e.g. interviewing (e.g. keeping (e.g. conducting M ANAGEMENT WELLBEING & principles, (e.g. remote remotely, on- colleagues engaging training (e.g. reviews) (e.g. mental working working, flexible boarding new motivated & remotely) health) environment) hours etc.) starters etc.) engaged etc.) In fact, for most organisations the coronavirus has strengthened their commitment to D&I, with 85% of those businesses we researched stating that it had pushed it further up the agenda at a For most organisations the senior level. And whilst the challenges have been significant, some positive influences could be coronavirus has strengthened found, with many forced to change or reassess outdated policies, not least in the ways of working. Arguably the most valuable benefit has been around the shift in focus to colleagues’ wellbeing, their commitment to D&I particularly in terms of their mental health. 4 5
M AKING DIVERSIT Y & INCLUSION A BUSINESS REALIT Y 202 1 DIVERSIT Y AND INCLUSION IN 202 1: A TEMPER ATURE CHECK This was a view shared by the HR Directors and people leaders who joined our panels Feedback: The positive The greatest negative influence was on during May’s event: Alison Fisher (Chief People impact of COVID-19 the potential wellbeing of colleagues Officer, Cox Automotive International); Jo Moxon (HR Director, Marshall Motor Holdings); In our research we asked what positives Mandeep Dhatt (Executive Director of HR, could be found from the pandemic on D&I What, if any areas of the D&I or the broader HR function, McLaren Automotive); Penny Weatherup and the broader HR objectives. We received have been affected negatively? (HR Director, Volkswagen Group UK); Laura some enlightening responses: Haskins (HR and Academy Director, CitNOW); Dr Astrid Fontaine (Member of the Board of People, Digitisation and IT, at Bentley Motors); Geraldine Ingham (Global Category Director, Automotive, Facebook); and Andrew ” There has been a heightened Humberstone (Vice President and Managing sense of trust and productivity, Director, Nissan GB). even whilst working remotely. ” Commenting on the early days of the CULTURE WAYS OF RECRUITMENT ENGAGEMENT TR AINING PERFORM ANCE COLLEAGUE pandemic, Alison Fisher highlighted just how (e.g. values WORKING (e.g. interviewing (e.g. keeping (e.g. conducting M ANAGEMENT WELLBEING & principles, remotely, on- colleagues engaging training important and beneficial it was to concentrate (e.g. remote (e.g. reviews) (e.g. mental on the wellbeing of colleagues: ” Mental health has been a working environment) working, flexible hours etc.) boarding new starters etc.) motivated & engaged etc.) remotely) health) much louder conversation since “We have a guiding principle that says, ‘do COVID with more senior people the right thing, always’ and that has led us over becoming involved. ” the last 12 months. It’s about prioritising the The negative impact of COVID on D&I commitments health, the well-being, and the safety of our team members and that continues to be our Whilst positives could be found, they were far outnumbered by the negative effects the pandemic number one priority. As a result, we’re stronger had on D&I and the broader HR function. According to the research, this was especially true around as a business and as an HR team. I truly believe ” Had to document ways of ways of engaging with colleagues and keeping them motivated remotely. Although a positive result those organisations that have stuck true to working/tighten our aticulation of of the pandemic was a renewed focus on the wellbeing of colleagues, the detrimental impact on their values, and prioritises their people, will values and behaviours that matter mental health was a huge concern. emerge from this pandemic far stronger.” to us and be mindful of improving our internal communications. ” For Mandeep Dhatt, the pandemic advanced the business’ thinking around its culture and Feedback: The negative impact of COVID-19 ultimately its approach to recruitment. Mandeep The direct feedback from those businesses that took part in the research revealed highlighted that one of the positive outcomes has been the acceleration of ‘hybrid working’ ” We recognise that the old some very clear themes around the negative effect on colleagues and culture: and the resulting impact on recruitment: norm may not have been the best way to operate. ” ” Some colleagues have been ” We haven’t been able to do outreach “Last year we saw more women enter our unwilling to share what issues/ to schools, attend recruitmentfairs or workforce than in previous years, which in challenges they face with ways of work on D&I more broadly, as our focus part, has been down to a change in mindset working due to family scenarios. ” has been taken up with health and about where you need to do your work. Last ” People have worked out that safety, furlough etc. ” year taught us, that for some of what we need they can work more independently to do as an organisation, can be done from home. The result has been a positive impact on than they realised and it has ” One size doesn’t fit all. What is ” It’s been hard to engage good for some is less so for others. A our diversity.” accelerated enormously the focus with colleagues properly and recruitment freeze, excessive workloads on employee support. ” keep them motivated. ” and mental health challenges have all added to the pressures. ” ” Unfair advantage to those “I truly believe those ” Leadership accessibility is outgoing personality types for organisations that have greater than ever with clear ” Reduced capacity to carry out performance reviews. ” onsite reviews and training has leadership from the top to ensure stuck true to their values, health and wellbeing of all. ” impacted positive interactions. Our ” It’s been a very challenging year for reduced workforce has meant higher and prioritises their people, pressure on individuals. ” mental wellbeing – burnout in employees is a serious factor we’ve worked hard to avoid. ” will emerge from this pandemic far stronger” ” Helped work life balance. ” ” We haven’t been focussed on training ” Some difficult conversations Alison Fisher, Cox Automotive International as we have prioritised other areas. ” are more challenging remotely. ” 6 7
M AKING DIVERSIT Y & INCLUSION A BUSINESS REALIT Y 202 1 DIVERSIT Y AND INCLUSION IN 202 1: A TEMPER ATURE CHECK Many key initiatives have been put on hold due to the pandemic Which, if any, D&I initiatives have you put on hold due to COVID-19? (select all that apply) Flexible working policies Monitoring & reporting on the diversity make-up of all employees Mentoring & coaching programmes for minority colleagues It felt like all eyes Leadership training on managing a diverse workforce were on HR, looking Employee training on servicing diverse customers to us for answers. We had to become Employee networks / Employee Resource Groups experts in so many Employee D&I training and education programmes new things overnight An established D&I governance structure An articulated D&I commitment or plan/strategy with objectives Active recruitment of diverse employees A D&I leader or sponsor at C-Suite level None of the above Other The vital role of the HR team during the pandemic Whilst the welfare of all colleagues was We have relied heavily on internal communities One of the big themes that came through Indeed, the integral role the HR function important, the pressure that COVID placed to bring to life the elements of an inclusive during this year’s event was the huge pressure played in supporting businesses to not only on families was a particular concern for culture we all strive towards. Over the past COVID-19 placed on HR departments, and the navigate the early days of the pandemic, but Laura Haskins, CitNow’s HR and Academy couple of months, we have introduced challenges they faced in adapting businesses ultimately provide the foundations required Director: “During the pandemic, we did pay more culture champions throughout the to a completely unprecedented situation. As to adapt and to successfully operate, was particular attention to our working parent organisation who have helped us alongside Cox Automotive’s Alison Fisher said: “There highlighted by some of the industry’s leading group, which makes up over half of our other communities, such as mental health was no rule book. And certainly, it felt like all chief executives. workforce. The concept of work life balance first aiders and wellbeing ambassadors, to eyes were on HR, looking to us for answers. is not a new one, but with additional factors continue focussing on having an inclusive We had to become experts in so many new such as self-isolation and bubbles, it can feel culture ingrained within the business.” things overnight.” overwhelming for them.” However, in the research, for more than one As a result, the business gave working in five (21%) businesses, employee networks / parents additional paid time off to support Employee Resource Groups were put on hold A view from the top tough home-schooling times, as well as as a result of the pandemic as were other vital introducing flexi-time programmes. It also initiatives. set up forums for colleagues to discuss and 21% support each other during difficult times. This need for communication, whether at a company level from a leadership perspective, or creating platforms for individuals to connect, was identified as a priority for all of those on the panel. According to Mandeep, the role of networks has been key to shaping of businesses placed Daksh Gupta Martin Forbes Alistair Horsburgh Alex Smith the business’ culture: employee networks CEO PRESIDENT CHIEF EXECUTIVE M ANAGING DIRECTOR “Ensuring our culture continues to be / Employee Resource M ARSHALL MOTOR GROUP COX AUTOMOTIVE INTERNATIONAL CITNOW VOLKSWAGEN GROUP UK inclusive is incredibly important to us. One very effective avenue to driving this has been Groups on hold as a Click to view video Click to view video Click to view video Click to view video through our communities and networks. result of the pandemic 8 9
DIVERSIT Y AND INCLUSION IN 202 1: A TEMPER ATURE CHECK 03 Although D&I progress is being made, there is a notably low adoption of some key initiatives Which D&I initiatives do you have in place? (select all that apply) Flexible working policies Monitoring & reporting on the diversity make-up of all employees What does D&I look like today? Mentoring & coaching programmes for minority colleagues Leadership training on managing a diverse workforce Employee training on servicing diverse customers Employee networks / Employee Resource Groups P Employee D&I training and education programmes romisingly, our research showed and part of our journey and valuing our people that most organisations have a as individuals.” An established D&I governance structure strong focus on creating an inclusive environment for all employees. The research also looked at what D&I An articulated D&I commitment or plan/strategy with objectives However, women/gender is by far initiatives and practices businesses had the most prevalent diversity strand in the in place. Interestingly, 34 out of the 40 Active recruitment of diverse employees automotive industry and many groups remain organisations surveyed reported they had A D&I leader or sponsor at C-Suite level very underserved. flexible working policies. Whilst it’s possible that 85% do indeed offer it, potentially None of the above Whilst it is important to drive more women into some people / businesses have confused automotive, the panel of HR leaders agreed colleagues working from home with flexible Other that the objective of attracting a more diverse working and as a result assume all colleagues workforce and creating a more inclusive are experiencing the associated benefits. culture, shouldn’t be limited to just gender or However, separate research from McKinsey¹ indeed any single diversity strand within its own has shown that despite efforts from silo. True inclusivity needs to be intersectional; employers, employees – especially diverse The automotive industry still has some way employees aren’t one-dimensional, so an employees and working parents - are still to go in reaching its D&I commitments effective D&I strategy shouldn’t be either. struggling with the multitude of challenges 60% posed by the pandemic. Ultimately, it’s not monitor and report on the diversity Laura Haskins, said: “Gender is an important flexible working if colleagues are expected to ONLY make up of their employees topic, but our approach is not about any spend from 8:00am – 6:00pm on Zoom calls. particular group; the heart of our approach is about creating an inclusive culture where everyone belongs and feels part of CitNOW The research also highlighted a notably low adoption of some key D&I initiatives. JUST 60% have D&I education and training programmes in place Women/gender is the biggest focus for businesses in 2021 ONLY 52% have a D&I leader or sponsor at C-suite level To which strands of diversity does your business have the strongest focus? JUST 52% actively recruit diverse employees (via outreach programmes or internships) 1 WOMEN / GENDER 2 3 R ACE / ETHNICIT Y LESBIAN, GAY, BISEXUAL, TR ANS ONLY 47% have a coaching programme for underrepresented employees 45% 4 DISABILIT Y have employee networks JUST 5 NEURODIVERSIT Y in place 6 AGE 7 8 SOCIAL MOBILIT Y RELIGION / BELIEF JUST 41% have an articulated D&I commitment or plan 1 in 5 9 OTHER businesses have employee training JUST First choice Last choice on serving diverse customers 10 1. Source: McKinsey & Company, November 2020: Diverse employees are struggling the most during COVID-19 11
DIVERSIT Y AND INCLUSION IN 202 1: A TEMPER ATURE CHECK 04 5. Focus on mental health M ANDEEP DHAT T, McL AREN AUTOMOTIVE: What one thing can “Mental health and wellbeing is something business leaders do to we’ve always talked about, but our focus on it progress the D&I agenda in is more important than ever before. We have more wellbeing ambassadors and mental the automotive industry? health first aiders in place, and we also Forward focus – actionable have representation in our senior leadership team. We’re looking forward to continuing the conversation with our employees around In the research, receiving senior support was identified as one of the biggest factors in driving D&I in not only individual businesses, insights to drive your D&I agenda authenticity and how we can create an environment in which everyone can bring their whole self to work.” but also across the industry. The direct comments from those taking part in the research highlighted some key themes: Looking ahead, our panellists shared details around their respective D&I strategies, and the areas 6. Lead by empathy GER ALDINE INGHA M, FACEBOOK ” Think bigger …a lot has been done but there is a significant need of focus and the initiatives they think will be key to driving their objectives over the coming months: “I hope it would go without saying, but don’t to accelerate the agenda to ensure ever lead by fear. In my 25 years’ experience, we have equality at all levels. 1. Broaden your talent pool 3. Develop and nurture skills early leading by empathy, making people feel Equality, diversity and inclusivity PENNY WE ATHERUP, VOLKSWAGEN GROUP UK: M ANDEEP DHAT T, McL AREN AUTOMOTIVE: included, and valued really does work. Put needs to be central to the work we people first by making small gestures, like do and become our industry DNA. ” “The automotive industry, as with many “The 16-24 age category is something the giving an extra day’s holiday to say thank industries, tends to be very insular. When it government is focusing on, and for us, you. I know productivity is key, but you’ll comes to recruiting the best talent, I think we apprenticeships and early career strategy is get far more out of your people by showing need to reach out as far beyond our industry very important. This year we are very much recognition and trust.” as possible. We have to promote our inclusive culture to attract diverse talent to in order to looking forward to building that community for the long- term, which is central to our ” Less head nodding and talk and more action. Have policies create different ways of thinking and doing. If conversation around diversity and inclusion. 7. Seek active senior support in place that make a difference, we don’t do that, we’re not doing the best for JO MOXON, M ARSHALL MOTOR HOLDINGS: our business, our people and most importantly “This is about looking beyond the traditional and proactively reach out beyond for our customers.” borders and going out of our way to attract “For me, the incredible support we’ve the industry otherwise we’re just young talent into the industry. Reconnecting received from our leadership team has talking to the same people. ” with schools, education, and boards we are been invaluable in our objective of creating 2. Keep communicating actively part of is how we aim to recombine the an inclusive business, particularly in their ALISON FISHER, COX AUTOMOTIVE INTERNATIONAL: acceleration of talent into the industry from a efforts to be so vocal and visible in their STEM perspective.” commitment. This year’s research highlighted “The most important focus during those early that “actions speak louder than words” and ” It has to be a commitment stages was communication; weekly check-ins I couldn’t agree more. The most effective from the top of businesses, with with team members and getting messages out 4. Put networks at the heart of your D&I senior support is not about words, it’s about clear aims and goals which are there. Employees were looking for reassurance DR ASTRID FONTAINE, BENTLE Y MOTORS: action and leading by example.” measured and visible within the from leaders, which was lacking in the media. “Our networks, which were self-grown and business, as well as forming part “Communication has been paramount in operate organically, provide us with so much 8. Encourage diversity and inclusion of a clear external commitment. ” giving people reassurance and certainty. Our invaluable insight into how people from through leadership job was and will continue to be for the coming diverse backgrounds feel when they come to ANDRE W HUMBERSTONE, NISSAN GB: months, to keep everybody calm, engaged work for us. Each network, which represent the and confident in the leadership team. LGBT+ and BAME communities, plus a group “Organisations need to update their Communication is absolutely vital.” focusing on increasing the representation of management style to understand the ” Recognise the business benefit women in automotive has a Board sponsor, emotional economics of the business. The and then prioritise accordingly. This and we learn so much in terms of how we can days of having a controlling Machiavellian is not a humanitarian subject. ” serve them better: what are the things holding leader are obsolete; you need to engage When it comes to us back; where do we need to inform people with every employee and member of the more; and where can we improve more? It management team in your business, and work recruiting the best talent, ensures we’re creating a culture in which our with them to understand what motivates each I think we need to reach colleagues can bring their true selves to work.” specific individual. This method is much more ” Create and publish D&I strategy out as far beyond our challenging but also much more interesting.” with measurable progress and share best practice. ” industry as possible Penny Weatherup, Volkswagen Group UK 12 13
05 06 In conclusion Contact A s we’ve seen, whilst there has As highlighted by our panellists, we all About Auto Trader About Ennis & Co been some good progress made have a responsibility to drive the D&I agenda over the last 12 months and under beyond our own businesses and to guide this Auto Trader Group plc is the UK and Ireland’s Founded in 2010 by Lynda Ennis, Ennis & Co some extremely challenging positive sentiment towards action. We need largest automotive marketplace. Our draw on decades of experience not only in circumstances, we still have a to be D&I evangelists to not only ensure it is an marketplace sits at the heart of the car buying global recruitment and executive search, long way to go as an industry to truly make D&I industry wide priority, but to also encourage, process, with the largest number of buyers but at senior levels of the automotive and a business reality. Representation remains motivate and inspire change. and the biggest choice of trusted stock. mobility industries. This gives them a profound limited, with minority groups potentially and holistic understanding of the needs of underserved, whilst many core D&I initiatives The automotive industry may not be at Auto Trader exists to change how the their clients and the industry, meaning they are either on hold or are non-existent. And the forefront of change, but it’s clear there UK shops for cars by providing the best are trusted by many of the world’s leading whilst there are many automotive businesses are some important steps being made by online car buying experience and enabling automotive brands to appoint their senior that are committed to creating a more diverse some exceptional HR and business leaders. all retailers to sell online. We are building leaders. and inclusive culture, there are more that The opportunity to discuss ideas and share stronger partnerships with our customers, aren’t. And whilst it’s clear from the research experiences with them is always invaluable using our voice and influence to drive more Ennis & Co carry out executive search that businesses are generally bought into the in driving our industry forward, and we thank environmentally friendly vehicle choices and assignments for organisations across the value and opportunity of D&I, many don’t know everyone for their participation. creating an inclusive and diverse culture for all entire automotive and mobility spectrum, how to translate this into action or to invest the of our people. Auto Trader listed on the London ranging from manufacturers to national sales time to take tangible steps to change. Stock Exchange in March 2015 and is a member companies (high-volume through to prestige of the FTSE 100 Index. and luxury brands), as well as supply chain companies, retail groups, leasing/mobility providers, data analytics organisations and For more information innovative technology companies. We all have a responsibility Please visit: The consistency Ennis & Co’s values to drive the D&I agenda, https://plc.autotrader.co.uk/who-we-are/ surrounding diversity and inclusion, coupled particularly senior leadership about-us/ with the close working relationship they develop with clients, has allowed the business For all media enquiries, please contact: to grow 20% year-on-year. Over the past two Andrew.Nankervis@autotrader.co.uk years, 78% of Ennis & Co’s assignments have been for roles based outside of the UK, across APAC, EMEA and The Americas. Their clients are their biggest advocates, where more than 85% of them are repeat customers. For more information Please visit: www.ennisco.com For all media enquiries, please contact: Michaela.Rowland@ennisco.com 01962 392150 14 15
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