On Black Women’s Equal Pay Day, Corporate Activism Focuses on Raising Awareness

On Black Women’s Equal Pay Day, Corporate Activism Focuses on Raising Awareness

Today is Black Women’s Equal Pay day, a date marking the pay gap between black women and white men in the US by representing how far into the next year a typical black woman has to work to earn as much as a typical white man earned in one year. It comes considerably later in the calendar than Equal Pay Day, which is observed in early April and symbolizes the gender pay gap irrespective of race; this illustrates the greater degree to which black women are disadvantaged in the American workplace than their white peers. McKenna Moore at Fortune highlights the salient statistics:

Women earn 80 cents for every dollar that men make, but black women make 63 cents for every dollar white, non-Hispanic men make. This means that black women also make 38% less than white men and 21% less than white women, according to a study published by the Institute for Women’s Policy Research. And the gap is only widening for women, both black and white. Extended over a 40-year career, the wage gap has black women earning $850,000 less than men’s median annual earnings, according to the National Women’s Law Center.

Studies show that the pay gap starts early. An data analysis of BusyKid’s app’s 10,000 users shows that parents pay boys a weekly allowance twice the size that they pay girls. By 16, black women are earning less than white men and the gap only widens as they age. As black women have families of their own, the gap means less money for their families, which is particularly harmful because more than 80% of black mothers are the main breadwinners for their households, according to the National Partnership for Women & Families.

The disadvantage lying at the intersection of racial marginalization and gender inequality is not limited to black women, either: Native American women don’t get their Equal Pay Day until late September, earning only 57 cents for every dollar paid to white, non-Hispanic men. Latina women suffer the greatest pay disparity at 54 cents to the white, male dollar; their Equal Pay Day doesn’t arrive until November.

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US Businesses Look to Bring Ex-Offenders Back into the Workforce

US Businesses Look to Bring Ex-Offenders Back into the Workforce

In the US, one in three adults, or around 70 million people, have some form of criminal records, while 20 million Americans have been convicted of a felony. These records often serve to shut otherwise qualified candidates out of all but the least-skilled and lowest-paying jobs. Black and Latino men, who make up a disproportionate share of the prison and ex-offender population, suffer the most from this barrier to employment. The inability to get a good job leaves many former prisoners with few options for escaping a life of crime, and studies have shown that gainful employment for ex-felons is one of the most effective deterrents to recidivism, which means employers play a key role in helping reintegrate former prisoners into society.

With unemployment below 4 percent, more job openings than candidates, and many US employers struggling to find the workers they need, the stigma attached to criminal backgrounds in employment now stands to harm not only individuals and communities, but also businesses. “It is morally and economically bad for our country if we do not start removing barriers that prevent returning citizens from a shot at a better life after they have paid their debt to society,” JPMorgan Chase CEO Jamie Dimon and former secretary of education Arne Duncan write in an op-ed at the Chicago Tribune. “Business should be at the forefront of solving this challenge. Frankly, it’s in our best interest to do so.”

Dimon and Duncan point to several initiatives going on in the Chicago area and around the country to create employment opportunities for ex-convicts and people at risk of being swept up in the criminal justice system:

First, Boeing and a number of other organizations are partnering on Heartland Alliance’s READI Chicago initiative. This two-year program is trying to reduce gun violence by providing returning citizens and others susceptible to gun violence with employment, job training and support services. Programs like this can help reduce recidivism rates, decrease neighborhood crime and promote economic opportunity.

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Study: White Employees More Likely to Succeed When Asking for Raises

Study: White Employees More Likely to Succeed When Asking for Raises

In a new study, the pay transparency and compensation data analysis site PayScale surveyed over 160,000 US employees to find out who is asking for raises, who is getting them, and what determines whether a request is granted. It will come as no surprise to leaders versed in the challenges of diversity and inclusion that the survey turned up gender and racial gaps, not in how likely employees were to ask for a raise, but rather in how successful they are in getting them, Aimee Picchi reports at CBS Moneywatch:

Compared with white men, people of color are significantly less likely to receive raises when they ask supervisors for more money. The reason may boil down to bias, although it’s unclear whether it’s due to overt or unconscious bias, said PayScale Vice President Lydia Frank. … Women of color are 19 percent less likely to have received a raise than white men, while men of color are 25 percent less likely, the analysis found. The research found that no ethic group was more or less likely to have asked for a raise than any other group. …

Workers are often told it’s up to them to ask for a raise, but the findings suggest that employers should scrutinize their own processes for distributing pay hikes, Frank added. “If people don’t receive the same consideration, employers have a responsibility to ask how do we ensure everyone is treated fairly,” she noted.

The study did find a meaningful difference between men and women in terms of rationale among those who don’t ask for raises, with 26 percent of women saying they didn’t ask for a raise because they felt uncomfortable negotiating their salaries, compared to 17 percent of men. Still, the study doesn’t support the notion that women experience pay gaps because they are less likely to negotiate their pay; PayScale notes that it found ” no statistically significant difference in the rates at which women of color, white women, men of color and white men ask for raises.”

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Boeing Announces Partnerships to Expand Employee Education Benefits

Boeing Announces Partnerships to Expand Employee Education Benefits

After the US Congress cut the corporate tax rate from 35 to 21 percent in December, the airplane manufacturer Boeing announced that it would spend $300 million of its tax savings on corporate giving and employee programs, including a $100 million investment in learning and development over the next several years. The company is deciding how to structure that investment based partly on an internal survey, which found that 39 percent of Boeing employees wanted better technical development and 29 percent wanted new skills for jobs affected by new technology.

Now, we’re starting to see how Boeing is spending that money. The company announced several new education initiatives this week, focused on digital skills development and diversifying the company’s talent pipeline, GeekWire’s Alan Boyle reports:

The initiatives include a partnership with Degreed.com to give employees access to online lessons, certification courses and degree programs. Another initiative will put $6 million into a partnership with the Thurgood Marshall College Fund and several historically black colleges and universities. That investment will support scholarships, internships and boot-camp programs to help students experience what it’s like to work at Boeing, the company said.

There’ll also be several new programs to help Boeing employees enhance their technical skills and keep up with industry trends. The focus of the first program will be digital literacy, Boeing said.

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Supreme Court Declines Case on Banning Dreadlocks in the Workplace

Supreme Court Declines Case on Banning Dreadlocks in the Workplace

In 2016, a US appeals court ruled against the Equal Employment Opportunity Commission in a suit the agency had brought on behalf of Chastity Jones, a black woman who had been denied employment at the Mobile, Alabama insurance claims processing company Catastrophe Management Solutions after she refused to cut her dreadlocks in compliance with the company’s grooming policy. Absent an explicit racial dimension to the policy, the court ruled, CMS was within its rights to ban dreadlocks in general as part of its dress code.

The EEOC chose not to pursue the case further, but the NAACP Legal Defense and Educational Fund sought to appeal the ruling in the Supreme Court. Last week, however, the high court said it would not take the case. The court’s refusal to hear this case is a blow to advocates who see workplace hairstyle policies like these as discriminatory in effect if not intent, as they place greater constraints on the choices black people, and particularly black women, than other employees and often penalize black employees for wearing natural hairstyles. Implicit bias against black women’s naturally textured hair is a well-documented phenomenon in American society, which causes many black women to experience pressure to artificially straighten their hair or wear hairpieces.

CMS’s dress code did not explicitly mention dreadlocks, but rather mandated grooming that reflected a “professional image” and barred “excessive hairstyles.” This suggests to Rewire’s senior legal analyst Imani Gandy that such policies as applied are not as race-neutral as they appear on paper:

First, CMS’s purported race-neutral grooming policy is anything but—since it excludes Black women’s natural hairstyles based on stereotypes that natural hairstyles are unprofessional, messy, not neat, political, radical, too eye-catching, or excessive.

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How Starbucks Can Make Its Massive Bias Training Count

How Starbucks Can Make Its Massive Bias Training Count

Last month, a manager at a Philadelphia Starbucks called the police on a pair of black men who were waiting in the store for a business meeting and had yet to make any purchases. A cell phone video of the two men’s subsequent arrest, which also captured other patrons’ outrage over the incident as it happened, quickly went viral and prompted a nationwide conversation about the racial profiling that black Americans often face in places of business. For Starbucks, which has sought to establish itself one of America’s most progressive employers, it has created a crisis, raising questions about whether this was truly an isolated incident and whether the roughly 40 percent of Starbucks employees who identify as racial minorities have faced hostility or felt unwelcome in the workplace—as many Americans of color have indicated in surveys that they do.

In an unprecedented response, Starbucks quickly announced an ambitious initiative in which it will close all of its over 8,000 company-owned US stores on May 29 so that nearly 175,000 employees can attend an anti-bias training. By conveying that the company takes this matter seriously and is committed to addressing it, the announcement won the coffee chain praise in the world of public relations, but from the perspective of HR—and Diversity and Inclusion more specifically—the standards for success are much higher and more difficult to meet. To make this response count as more than a PR spectacle, Starbucks will need to demonstrate that it’s not just making the right kind of noise, but actually making meaningful changes that are tangible to its vast numbers of nonwhite customers and employees. Furthermore, whether the initiative succeeds or fails, it stands to have an impact far beyond this one company. The stakes are high and all eyes are on Starbucks.

From the D&I research team at CEB, now Gartner, here are some points Starbucks should keep in mind in designing and deploying this anti-bias initiative—and for HR leaders at other organizations to consider in their own efforts to combat the insidious problem of bias.

Anti-Bias Training Should Encompass all Stakeholders’ Perspectives

To underscore the importance of this training, Starbucks announced that the curriculum would be designed with help from prominent experts in civil rights and racial justice, including former attorney general Eric Holder, President and Director-Counsel of the NAACP Legal Defense Fund Sherrilyn Ifill, and Bryan Stevenson, founder and Executive Director of the Equal Justice Initiative. This A-list roster lends an extra dose of credibility to the initiative, but Starbucks might also consider engaging with the communities they serve to understand the experiences of their nonwhite customers on a more personal level. A great example of this kind of stakeholder-focused inclusion strategy is ANZ Bank’s accessibility initiative for people with disabilities, which involved stakeholders across the workforce, workplace, and marketplace in determining accessibility goals and how the bank would achieve them. (CEB Diversity & Inclusion Leadership Council members can read the case study here.)

Starbucks could also benefit from bringing employees’ voices and experiences into the conversation as opposed to making this a one-way training exercise. To be fair to the staff, they’re often at the frontlines of how the public feels about the company (like the time that a Miami man was videoed screaming “Trump!” at a black Starbucks employee, or the “Trump cup” protest, or the “open carry” protest, or the annual “war on Christmas” protests). Starbucks doesn’t exist to serve the community in the same way as the police or the government, but the company has consistently worked to cultivate a brand image of its cafés as public spaces, which imposes a unique set of challenges for its front-line employees.

Treat Employees as Partners, Not Part of the Problem, in Combating Bias

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Tech Founders Demand Diversity in Venture Capital Backers

Tech Founders Demand Diversity in Venture Capital Backers

A group of more than 400 tech entrepreneurs and CEOs have formed a coalition called Founders for Change to press for greater diversity and inclusion in the venture capital industry. The group includes the chief executives of major startups like Dropbox, Lyft, and Airbnb, as well as public companies like Stitch Fix, and represents a reversal of the traditional founder-VC relationship, Pui-Wing Tam reports for the New York Times:

On Tuesday, in a statement underlining the importance of diversity in the tech industry, the tech executives said the racial and gender makeup of a venture capital firm would be “an important consideration” when they were raising money …

The entrepreneurs’ public statement is unusual. In Silicon Valley’s start-up ecosystem, founders and investors have generally maintained a delicate power equilibrium. Venture capitalists strive to get into the hottest start-ups, aiming for a big payoff when those companies go public or are sold. Entrepreneurs, in turn, take money and guidance from the investors to help their start-ups grow and flourish.

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