Making Diversity & Inclusion a Business Reality - Ennis & Co
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01 Welcome Lynda Ennis, Ennis & Co W elcome to our second automotive retail and manufacturing annual diversity and brands, service providers and trade inclusion (D&I) report bodies come together to share ideas from executive search and best practice. specialists Ennis & Co. and digital Their personal experiences and automotive marketplace Auto Trader. learnings make for a fascinating read, In this edition of Making Diversity and so in addition to providing an and Inclusion a Business Reality update on how far the industry has we’re focusing on fresh findings progressed in its D&I commitments, from research specialists Qlearsite, our objective for the following pages is as well as the key insights distilled to offer both inspiration and practical from our one-day collaborative solutions for attracting and retaining a seminar hosted in May 2019. The event diverse workforce for all organisations, saw close to 90 HR directors, chief regardless of size and regardless of executives, managing directors and where they are in their journey. change leaders from many of the major Rebecca Clark, Auto Trader S triving to make Auto Trader Whether you were able to join us for the an inclusive employer where event or if this is your first introduction diverse people can enjoy to Making Diversity and Inclusion a fulfilling careers, while Business Reality, we hope you find the making a positive contribution to the insights and expertise an equally valid communities in which we operate, is a contribution to your own D&I strategy. strategic priority for our business. The The campaign to drive greater opportunity to engage with and learn D&I in our industry is a collaborative from so many passionate individuals one. If you’d like to contribute to the was an invaluable experience to learn conversation, then please follow and refine our thinking. #diversityinauto on Twitter and LinkedIn. 3
02 But what is D&I? It may seem like a can foster and bring benefit to your moot point, but it’s hard to determine business. the value of a diversity strategy or Mat Davies, the Addison Lee Group’s to champion its introduction without HR Director, encapsulated the depth being clear on what it actually is. of D&I when he said that: “It’s about As a concept, diversity has been on providing an environment in which the agenda in a variety of guises for our colleagues can bring their true decades, but it has not always been authentic selves to work and an A business used in the most relevant context, or its environment where they feel supported meaning has simply been diluted. to do brilliant work every day.” First and foremost, D&I isn’t a quota, The idea of creating an environment critical issue and nor is it a tick boxing exercise; it’s where everyone feels welcome and not simply about employing what might differences, visible and non, are be deemed as an adequate number of celebrated, is key to understanding women, minorities or disabled people the potential impact a D&I strategy in your workforce and moving on. can have on a business. Not everyone Rather, it’s much more profound – it’s subscribes to the idea of a ‘war for a company-wide shift in mindset that talent’ but there remains little doubt T redefines the culture and approach that the need for more diverse skills is he sheer number of senior it’s easy to lose sight of the business- to not only how you engage with greater than ever. professionals that took time critical value of a D&I strategy, even for your colleagues, but your customers Pressures and influences from out of their busy schedules to those brands already on their journey. too. A common definition states that government, from customers and from take part in our event highlights This was a point highlighted by diversity is about focusing on the society at large means our industry just how much of a priority diversity Marshall Motor Group’s Chief Executive positive difference it can bring to an will see more change in the next and inclusion (D&I) has become for Officer, Daksh Gupta. Speaking on organisation, and inclusion is around decade than we’ve seen in the last the industry. For good reason too. a panel with senior executives from creating an environment where that century – be under no illusions, we’re As we’ll explore in more detail, not McLaren, Cox Automotive UK, Nissan, only is the automotive sector facing and Auto Trader, he commented: unprecedented challenges, but it’s “Regardless of whether you’re building also evolving at a dramatic rate. D&I cars or you’re selling them, we’re all isn’t simply a ‘nice-to-have’. Without a busy spinning plates, so it’s very easy diverse, representative workforce with to let your diversity commitments the skills, the talent and fresh thinking slip down the agenda. That’s why it’s to help businesses adapt to future so important to have a dedicated technologies and customers, they will individual or team to not let that be at a huge disadvantage in an already happen…diversity and inclusion really highly competitive marketplace. is that vital to our success.” Whilst it would be tempting to consider these brands as representative of the whole sector, there are many organisations yet There are many to begin their D&I journey or even recognise the fundamental need for a organisations yet to diverse workforce. It’s understandable, begin their D&I journey particularly during such a turbulent market where almost every day or even recognise the leadership teams face another fundamental need for a challenge to their bottom lines; whether it’s fuel type confusion, Brexit diverse workforce anxieties or new emission regulations, 4 5
Women's experiences of car dealerships1 facing a revolution which will require an evolutionary leap in every aspect of automotive. Whether it’s designing and constructing technologically 35% 13% 40% 36% advanced vehicles, servicing them, or selling them, the traditional pool will not suffice. For the sector, and for individual brands to survive in an increasingly sophisticated and competitive market, fresh ideas, new is the average staff of women who visited a dealership noticed of car buyers found the experience an of the women surveyed stated that greater approaches, and new ways of working will be essential. turnover within the there were very uncomfortable one diversity would create few, if any, female as a result a better in-dealership As Mandeep Dhatt, Executive automotive industry; Asalespeople vote of noorconfidence staff experience for them Director of HR at McLaren Automotive framed it: “We’re about delivering a challenging stat history, about legacy, so we want the for a sector which a third (35%) of women who visited a which offers a plethora of fantastic right talent and the right mind set. In an industry where innovation is key, offers a plethora of dealership noticed there were very careers. Fundamental to this issue where creativity is vital, having a fantastic careers few, if any, female salespeople or is that D&I hasn’t only been climbing reflective workforce where visible and staff, with 13% finding the experience the agenda in boardrooms, but the non-visible differences are celebrated The impact of a more diverse an uncomfortable one as a result. 40% candidates’ too. This year’s guests means we enrich our pool of talent. workforce is not limited to just of the women surveyed stated that all agreed that over the last five years Their different ideas, passions, and the product you’re selling. It has a greater diversity would create a better a working culture underpinned by a experiences all get channelled into our profound effect on your customers in-dealership experience for them. strong D&I commitment has become physical product that people can feel too. Previously reported research Gill Crowther, General Manager, HR more and more important for not just and even sense.” from Auto Trader highlighted over and Administrations, Mitsubishi Motors, prospective employees but also for agreed: “We’re evolving very quickly, current ones. particularly with electrification, and When it comes to their career, our customers will need help managing people have incredible choices they that. I have no doubt they’ll be more can make. The access to information comfortable entering a dealership about organisations and their options where the environment is right because as to where they take their skills and there is diversity there, and they experience are a daily activity. If can deal with people who they feel you’re not providing an environment comfortable with.” that is properly diverse and properly The industry currently has a turnover inclusive, it should be no great surprise of around 36%, compared with a candidates and employees will take national average across all sectors their talents and experiences elsewhere. of 15%1 ; a challenging stat for a sector "In an industry where innovation is key, where creativity is vital, having a reflective workforce where visible and non-visible differences are celebrated means we enrich our pool of talent" Mandeep Dhatt, Executive Director of HR, McLaren Automotive 6 1. Auto Trader research conducted by OnePoll in April 2018 2. Source: Monster Jobs https://www.monster.co.uk/advertise-a-job/hr-resources/workforce-management-and-planning/staff-retention/what-is-the-ideal-employee-turnover-rate/ 7
03 Automotive D&I in practice D&I remains high on the agenda I n 2018 we presented the findings look at how organisations, large and from an in-depth study into the small, view this complex issue and are pervading attitudes to D&I within translating it into actionable policies. the UK’s automotive sector. It was an Reassuringly, the findings reveal D&I effective litmus test of the most pressing remains high up the agenda for the issues in the industry and gave food for vast majority of businesses, and is in thought on where to prioritise action. fact growing in importance, with the This year we commissioned insight number of respondents identifying it specialists Qlearsite to not only as a key priority increasing from 85% in continue measuring the most pressing 2018, to 88% this year. lines of enquiry to establish progress, Underpinning the ‘war for talent’ but to also use artificial intelligence comments shared during our seminar, technology to dig deeper into the the need to attract and retain a greater data. The results offer a fascinating array of skills and experiences is The primary objective of D&I in my organisation is to: Other Comply with our external reputation 7% 7% Comply with legal requirements 7% 53% Attract and Achieve business results 12% retain talent 15% Best serve diverse customer/client bases 9
the key motivation for driving a D&I organisations believe they haven’t Which D&I initiatives do you have in place? agenda. Whilst it topped the list in both made any progress in these areas. the 2018 and 2019 surveys, accounting Answer Headcount, % of total Clusters for over half of all responses, it grew Selective focus: Flexible working policies and practices 76% 4% in 2019, reflecting the increasing Around 41% of respondents report need to adapt to the rapid changes progress in becoming more focused Monitoring and reporting on the diversity make-up of employees 64% in the market. Revealingly, enhancing on the positive results of delivering external reputation also saw a change, compared to the longer-term Targeting Leadership training on managing diverse significant increase, up 6%. strategic options of creating a diverse populations 48% majority It was equally reassuring to see culture across all areas (36%) and attitudes that the general perception within active focus on policies beyond gender Employee D&I training and education programmes the industry is that progress has been and ethnicity (29%). (e.g. awareness-building, overcoming unconscious bias) 48% made over the last 12 months. However, Active recruitment of diverse employees there is clearly room for improvement; Brand engagement: (e.g. outreach programmes, such as internships, scholarships, 42% 61% of respondents said their progress The most progress has been made targeting recruitment) had been ‘fair’ or ‘good’, whilst just with internal communications, as Targeting Inclusion networks/Employee Resources Groups over a quarter (28%) felt it had been reported by nearly two thirds (63%) minority ‘very good’ or ‘excellent’. of organisations. There appears to with mentoring programmes for minority or under- represented employees 42% representation Thanks to Qlearsite’s depth of be less focus on strategic or longer- analysis, we can explore this progress term initiatives, like a long-term (i.e. groups formed around a shared interest, experience or demographic) in more granular detail, framed against commitment with schools (42%), a reminder of 2018’s key themes: retaining restless talent (39%) and A D&I leader or sponsor at the C-Suite level 42% incentivising restless talent (32%). An articulated D&I commitment or plan (e.g. Ways of working: Most popular D&I initiatives D&I strategy) with specific D&I objectives and 39% measurable progress Organisations have largely shown a Looking at which D&I categories positive commitment to modernising businesses have implemented, most An established D&I governance structure 25% Targeting ways of working, with 56% claiming to have prioritised initiatives which aim Progress towards meeting D&I goals influences business offer flexibility in working arrangements, to influence the representation and performance evaluation and compensation 20% operation 36% redefining how teams work behaviour of the whole workforce outcomes for leaders and 29% have begun developing a i.e. the majority. Of lesser popularity business case for better work life are those initiatives which target None of the above 7% balance. Clearly, significant progress representation of minorities in the Other 5% is being made towards enabling workforce. The least implemented employees to tailor their work lives are those which target how business' around the priorities in their personal operate, through means like strategies, What’s working? 41% lives, but worryingly, one in five (22%) processes and governance. The aim of D&I initiatives is to create a more diverse and inclusive workforce and environment, and according to this year’s study, the industry is progressing towards achieving this aim, frequently attributing the progress of respondents report to improvements in training and development of existing talent and progress in becoming recruitment of new talent. Anecdotal more focused in the evidence suggests that a result of these initiatives has been an increase in women positive results of representation in senior positions leading to a wider range of perspectives delivering change when making critical business decisions. 10 11
What’s delivering tangible business benefits? What one thing can the leadership of the automotive industry do to make a tangible improvement to D&I? Answer % of total 2019 rank 2018 rank change Training & development 36% 1 2 1 29% Diverse & inclusive workforce 33% 2 1 -1 Recruitment 19% 3 6 3 H E A D C O U N T % O F TOTA L Leadership & management 17% 4 3 -1 Strategy & targets 10% 5 7 2 19% Flexible working 9% 6 5 -1 Pay gap 9% 7 11 4 14% Engagement 7% 8 10 2 10% Investment 7% 9 12 3 Awareness 5% 10 4 -6 7% 7% 7% 5% 5% Early careers 5% 11 9 -2 3% Clear communication 2% 12 8 -4 Diverse and inclusive workforce Leadership and management Training Recruitment Awareness Communication Flexible working Culture Strategy Early careers The top two most pressing issues When asked what leadership should around D&I are both centered around do, leadership and gender are the leadership. The lack of people from top two actions prioritised across the ANSWER under-represented groups reaching 2018 and 2019 surveys. Clearly, the Create diverse leadership through recruitment and training senior and C-suite roles within the industry wants more women in senior automotive industry is considered the roles, which is not surprising as there 2019’s study revealed a clear view most pressing (33% agree), closely is a strong belief that the significant that making progress in diversity and followed by the automotive sector gender imbalance is impacting inclusion starts with leaders themselves, failing to see diversity as a business- structural processes, like promotion something which was echoed during critical leadership issue and therefore and pay, and cultural traits, such as our event. Three of every five (60%) not demonstrating commitment from attitudes and behaviours. comments received discussed improving its senior leadership (29% agree). the diversity at senior and leadership 52% level, focusing on training existing talent (14% of comments) and recruiting external talent (10% of comments). Overall, the study paints a positive picture: 82% of respondents either Leadership and gender agree or strongly agree that leadership reported that their are the top two actions is committed to D&I, and 72% agreed organisation has a or strongly agreed that employees prioritised across the are equally committed. Over half (52%) strong focus on creating 2018 and 2019 surveys reported that their organisation has a an inclusive environment strong focus on creating an inclusive environment. 12 13
04 Theme one: selective focus Between the two groups, the guests focused on approaching D&I more broadly than improving just female diversity. They looked at how to move the dial on other demographics that experience marginalisation at work. Selective focus (dos): Selective focus (don’ts): Embedding D&I: 1. Involve the whole organisation: Involving the whole company 1. Don't over complicate: Avoid trying to do too many things at the dos and don’ts (especially at the top) will make once. Don’t do too few things either implementing a D&I initiative much but you must make sure what you’re easier to initiate and feel more doing is clear so colleagues and authentic. Identify the personal candidates can understand what’s passions and set up focus groups going on and feel a part of it. involving all levels of the business and empower them to create and 2. Don't be a phony: T drive ideas. Avoid D&I buzz words or introducing he automotive industry should crack; we need to work together as an initiatives simply because other celebrate its success so far, but industry to move forward”. 2. Look to the future: businesses are doing them. It’s the findings indicate an intention- During the one day seminar, senior D&I isn’t static, but like the industry essential that any activity is action gap. Organisations know executives from brands such as: itself, is constantly evolving. Don’t authentic to your organisation there is still a lot to do, they have plans for TrustFord, Marshall Motor Group, dwell on today’s customer or today’s otherwise colleagues and how to address it, but progress is lacking. McLaren Automotive, Addison Lee colleagues, but rather think of candidates will see through it. Qlearsite’s findings identified three key Group, Pendragon, Mitsubishi, Ford tomorrow’s. The need for technology themes this year: brand engagement, Motor Company, Inchcape UK, Toyota, and digital skills within automotive is 3. Don't view success as a KPI: commercial benefit, and selective Volvo, Volkswagen, Renault UK, Aston only set to accelerate. KPIs aren’t enough when it comes to focus. These framed our event, Martin, Cambria Automobiles, and the recruitment or retention. Focus on along with a spirit of collaboration, Retail Motor Industry Federation (RMI) 3. Collaborate with your peers: the culture you’re fostering within highlighted by Auto Trader’s head split between two groups for each Creating a more diverse industry your organisation – focus on the of people and culture, Christos theme, identifying a range of practical will have a positive impact on environment and the talent will come Tsaprounis. He said “This issue is a nut dos and don’ts for embedding a every business within it. Working and stay organically. far too big for just one organisation to successful D&I strategy. collaboratively and sharing ideas with others is vital. 4. Create a safe environment: Offering developmental mentorship 'This issue is a nut far at all levels, as well as the opportunity It’s essential that for colleagues to sit with senior too big for just one leaders in a frank one-to-one session any activity is organisation to crack; to discuss any issue, helps create authentic for your an environment in which people feel we need to work respected, safe and valued. organisation together as an industry to move forward’ Christos Tsaprounis, Head of people and culture, Auto Trader 14 15
Theme two: brand engagement Theme three: commercial benefit For this theme, our groups looked at how the automotive industry needs to shake For this theme our groups discussed how the benefits of diversity exceed creativity, up its image and how they can go about achieving it. They agreed that brands that innovation and reputation, whilst boosting the bottom line. Here are their top tips for prioritise heritage and tradition over adaptability and change risked isolating making sure internal and external stakeholders are managed in the right way, as well as diverse talent and booming minority customer markets. coaching and teaching the correlation between D&I engagement and the bottom line. Brand engagement (dos): Brand engagement (don’ts): Commercial benefit (dos): Commercial benefit (don’ts): 1. Have a business and education 1. Don’t be afraid to be aspirational: 1. Culture and leadership: 1. Don’t bury your head: strategy: Every brand has to start somewhere D&I will only become a reality and Avoid putting your head in the sand Shape the perception of the and being honest and open with your people will only bring their true selves and not having the discussion. If you automotive industry from an early current and potential employees as to to work (and unleash their full potential) want to make a change you need to age to move away from outdated where you are will resonate far more if it’s embedded in the culture and part take action. Challenge the status quo, industry stereotypes. Engaging with powerfully than false promises. of the DNA of the business at every have a plan and see it through. schools and parents can be hugely level. Ultimately culture and leadership impactful but needs to showcase 2. Don’t be inconsistent: are intertwined – it has to come with the 2. Don’t use today’s employment template: the diverse colleagues and talents in Make sure that all your D&I messaging endorsement of the senior leadership You can’t afford to use today’s your business to truly inspire. are aligned both internally and of the business. employment templates for planning externally. Inconsistency is the the future. That means hours of work, 2. Utilise role models: quickest way to cast doubt and 2. Look at it through the shareholders’ lens: place of work, systems and process all Role models that are visible across uncertainty on your authenticity. If you want senior buy-in, consider have to change and be adapted. every professional touchpoint are their priorities - try and frame D&I fundamental to a successful D&I 3. Don’t wait to engage staff: successes, however large or small, 3. Don’t think of D&I as a ‘bolt-on’: strategy – not just from an external New recruits are a pool of fresh ideas within a commercial benefit e.g. Don’t treat D&I as a 'bolt-on'. It needs perspective, but internal too. and thinking, so don’t wait for them to happier colleagues = happier to be in the DNA of your culture, of the Promoting a diverse culture becomes be embedded into your existing culture customers = better profits. actions that you take and the plans more authentic and transparent or practices. Let them shape your new that you make. Only then will people when brands can champion real culture and create powerful internal 3. Utilise commercial champions of D&I: believe it and only then will brilliant people with real jobs in their ambassadors. Identify individuals within the business things happen. organisation. that represent the benefit of greater D&I 4. Don’t be tokenistic: and then play it up to the senior leadership 3. Look outside your own industry: D&I is not about quotas so tokenism team. That way they have tangible Sourcing talent from outside of your should never be an option. Diversity evidence of what impact it’s already own industry is not only a great way should be for the right reasons, so always having on their business or could have of bringing new skills and ways of recruit the right person for the job. in the future e.g. highlight the benefits thinking into your business, but also creating strong ambassadors for 5. Don’t avoid managing unconscious bias: of a more diverse skill set and expertise. Don’t treat D&I as your organisation. Utilising them in It’s an uncomfortable fact to accept, 4. Look at what you do, not what you say: a bolt-on. It needs your recruitment is an effective way to showcase a career in not only your but unconscious bias still exists. It needs to be managed accordingly. Be bold and have a go – a business or individual might get it wrong but getting to be in the DNA of business but the industry too. the endorsement from senior leadership your culture and committing to trying could make all the difference to your culture. If it doesn’t work, don’t dwell on it but D&I is not about learn from it and try something else. quotas so tokenism 5. Make it personal: should never be Diversity touches us all, so if necessary, identify what matters to the senior an option leadership team and make it personal. 16 17
04 About Auto Trader About Ennis & Co Conclusions Auto Trader Group plc is the UK and Ennis & Co is an executive search Ireland’s largest digital automotive organisation that specialises in marketplace. Auto Trader sits at the automotive sector. Clients the heart of the UK’s vehicle buying choose to engage with us because process and its primary activity we secure the best available Rebecca Clark, Auto Trader is to help vehicle retailers and talent and candidates appreciate I brands compete effectively on the our supportive approach. Above t’s heartening to see so much a D&I agenda, there are all too many marketplace in order to sell more all, we are a trusted partner. We evidence of an industry in positive that aren’t, due largely to a lack of vehicles, faster. Auto Trader listed have a nuanced understanding of transition, moving away from the awareness of the business-critical need. on the London Stock Exchange in the automotive market including closed outdated stereotypes, As was highlighted in both our research March 2015 and is now a member of prestige and luxury brands, practices and environments that have and our recent event, D&I isn’t to the the FTSE 100 Index. and fulfil assignments at senior held us back, towards a more diverse benefit of an individual business but The marketplace brings together management levels including Board and inclusive culture that actively rather the whole industry. Conversely, the largest and most engaged and C-grade. We place candidates invites new skills, talents and ideas. a weak link in the chain is to everyone’s consumer audience. Auto Trader in the UK and internationally in However, it’s important not to get detriment. Unfortunately, there are still has over 88% prompted brand functions from Executive to HR, ahead of ourselves. Whilst there are lots of weak links. The solution is clear: awareness and attracts an average Finance, Technology and Sales & clearly those automotive businesses we must become D&I evangelists. of 49 million cross platform visits Marketing. and brands that are proudly pursuing a month, with circa 70% of visits coming through mobile devices. For more information, please visit: The marketplace also has the http:// ennisco.com/ "Whilst there are clearly those automotive largest pool of vehicle sellers (listing businesses and brands that are proudly more than 450,000 cars each day). For all media enquiries, please contact: Over 80% of UK automotive retailers Michaela.Rowland@ennisco.com pursuing a D&I agenda, there are all too advertise on autotrader.co.uk 01962 392150 many that aren’t" For more information, please visit: https://plc.autotrader.co.uk/press-centre For all media enquiries, please contact For the latest updates, blogs and insights, Lynda Ennis, Ennis & Co Auto Trader’s Press Office: follow @ennisandco on Twitter and B Press@autotrader.co.uk ennis-&-co-ltd on LinkedIn ringing together like-minded speaker panels that reinforce 020 3747 7038 people is a fantastic way to stereotypes, and above all we need to Andrew.Nankervis@autotrader.co.uk share ideas and best practices, push our role models to inspire. About Qlearsite but for it to truly resonate The automotive sector is undergoing Qlearsite is a workforce analytics across the industry, we need to resist huge challenges and exciting changes. platform that helps businesses the temptation to only speak to those Such is the value of D&I, working become more successful by making businesses that share our ideals. In our collaboratively to drive it across the smart, informed decisions about wide networking circles, we need to industry will help us to do more than For the latest news, views and insight for their people. discuss it, we need to call out outdated simply just survive, but to grow and the automotive retail community, follow For further information please visit: processes, we need to challenge thrive too. @ATInsight on Twitter and LinkedIn. www.qlearsite.com/diversity-and-inclusion 18
With research from #diversityinauto Copyright © Auto Trader Limited / Ennis & Co 2019
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