Maximizing Workplace Cultural Diversity: Evidence-based Measurement and Monitoring

1. Delivering the Dividend of Workplace Cultural Diversity Evidence-based Measurement and Monitoring Michael Dove Director, OriginsInfo

2. Contents • Demographic context • What does it mean for business? • Benefits of cultural diversity in the workplace • Origins • Why and how • Validation • Deliverables – Consulting / In-house Licensing

3. Demographic Context 2016 Census Nationally, overseas-born is up 21% in fifteen years Recent migrants are disproportionately well qualified ... and ambitious

4. Demographic Context 2016 Census Sydney and Melbourne are approaching a majority of people whose cultural identity is not connected with Australia or the British Isles 22% nationally speak a non-English language at home; almost 40% in Sydney and 35% in Melbourne Of post-2006 migrants, 71.5% speak a non-English language at home; 80% in both Sydney and Melbourne

5. Demographic Context 2016 Census Australia rapidly becoming a less Christian society; declines almost a quarter in 15 years Consistent growth in Secularism, Buddhism, Hinduism and Sikhism reflect increased diversity of world views

6. Demographic Context 2016 Census Age-Sex mix varies substantially by cultural background and migration history

7. Australia is Culturally Diverse Diversity is Increasing The market is changing; and so must business and government • Translation services and ad placements in ‘ethnic’ media are no longer enough • Moving from ‘ethnic’ to ‘multicultural’; from marginal to mainstream • Multicultural images ≠ Engagement – brands must go beyond tokenism • From passive diversity awareness, to active inclusion of employees The challenge: remaining relevant in a dynamic market • Recruiting culturally-diverse employees • Meaningful engagement with culturally-diverse employees Underpinning the pathways to success is a desperate need for data to measure and report on culturally-diverse inclusion. This is essential to help answer many business-critical questions …

8. Which cultural groups are over and under represented compared with the labour market? How do these patterns vary by functional area or service line? Is gender a dimension of cultural diversity? Does diversity vary by role or seniority? What is the relationship between diversity and tenure? Cultural Insights: What to know about employees • Are there critical drop-off points for culturally diverse talent? • Are there geographical variations to the patterns? • Does employee satisfaction vary by cultural group? • Does workplace diversity reflect customer diversity?

9. Leading companies now recognise the need for their workforces to broadly reflect the communities from which they are drawn. This makes sense in developing a healthy and non-discriminatory workplace. Why Workplace Cultural Diversity is Important 9.9 million Australian consumers are either born overseas or have at least one parent born overseas - businesses that want to reach their ‘whole’ market cannot afford to ignore this critical mass of consumers. Diversity Council Australia The ability to work collaboratively with stakeholders across regional and global markets will play a crucial role in the success of our firm, as it will for many organisations. This is why diversity and inclusion are integral to our strategy. Luke Sayers, CEO pwc Deloitte 2014 • HR Analytics is one of the Top 5 global trends • 82% high performing companies “felt an urgent need” • 86% companies report no HR analytics capability Source: Global Human Capital Trends Deloitte Development, LLC A culturally diverse workforce, at all levels from graduate hires through to executives, fosters creativity and innovation, which is essential to any company’s ongoing success. Andrew Stephens, Managing Director, IBM AU & NZ It is also important for positive customer experience. Companies with a mono-cultural image are less likely to effectively engage with, or appeal to, people of CALD background. Organisations increasingly recognise the benefit of reflecting the market and customer diversity in the diversity of their employees.

10. Economic Performance Research published in the American Sociological Review identifies workplace diversity as a key predictor of sales revenue, customer numbers and profitability. Author, Cedric Herring: “For every percentage increase in cultural diversity (up to the proportion found in the wider population) sales revenue increased by approximately 9 percent.” “Racial diversity in the workforce is a better determinant of sales revenue and customer numbers than age or number of employees, or company size.” What are the Benefits of Increased WorkplaceCultural Diversity? Resource Advantage Capability • CALD students are disproportionately represented in high achieving school leavers • Multi-lingual skills Productivity Workforce cultural diversity is linked to • Increased innovation and creativity • Better communication and more harmonious workplaces • Recruitment advantage through more demand Motivation/Ambition • 84% of surveyed CALD leaders and emerging leaders seek a very senior role Brand Reputation • A positive reputation increases chance of growing share of Australian multicultural market (estimated at more than $200bn per year) • Opportunity for annual corporate social responsibility diversity reporting Strategic Planning • Helps CEO and business leaders check for alignment between employee diversity, customer diversity and market diversity

11. Why use Origins? • Fast, cost-effective and robust • Avoids expensive and intrusive employee surveys that • Rarely achieve adequate response rates - overall, and particularly from CALD groups • Rely on narrow definitions of ‘culture’ – eg country of birth; passport; language spoken at home; or self-identified ancestry that tends to over-state ‘Australian’ • Inappropriately benchmark against the census – not like-with-like • Benchmark against local labour market measured with the same name recognition tool = a valid like-for-like comparison • Timestamp a reference point for monitoring and trend analysis Origins is a market leading cultural diversity measurement tool developed in the UK and adapted for use in Australia, New Zealand and Canada

12. How Does Origins Work? • Underlying databases derived from 1.2bn global individuals • Family and personal name databases of 4m and 900k unique names • A truly global solution achieving >99.5% coding rates at around 85% accuracy at individual level – even allowing for eg name changes due to marriage • Multi-dimensional cultural classification enables reporting and appropriate action • 260 detailed CEL codes reflecting countries, cultures/ethnicities, regions, languages and religions • Custom aggregations from CEL level to suit business context and statistical reliability • Origins separately evaluates each personal and family name and assigns a CEL code to each. • Origins refines any ambiguities by referencing local demography. • Algorithms assign the name combination to a single code and calculate a ‘confidence score’. • Reports are produced to highlight over and under-representation

13. Validation: Origins vs Census Despite differences in methodology and classification, there is a broad alignment between the Origins analysis of OriginsInfo’s 18m national adult names database and the census For further information on validation, please see https://www.originsinfo.com.au/measuring-cultural-diversity/coverage-accuracy-privacy/validation/ Note: Differences in methodology and categories between Origins and the census, coupled with known shortcomings relating to the census Ancestry question inevitably limit direct comparability.

14. What are the deliverables? - Consulting • Reports and charts: over & under-indexing of employees by cultural origin • Comparison of your workforce with relevant labour market(s) • On-site presentation and discussion of results; technical support Indicative Only – Reports are designed in consultation with client

15. What are the deliverables? – In-house Licensing Platform choice for in-house coding b) API connected to our Sydney-based server a) Desktop software • Use of software/data • On-site installation/training • Unlimited technical support • Application support • Updates at no charge • Licensed data • Real-time batch or single search • API documentation • Application support • Updates at no charge Geographical Data – for mapping and area profiling • Origins data referenced by any geography (eg Mesh Block, SA1, Postcode) • Customisation options • Application support • Updates at no charge

16. Delivering the Dividend of Workplace Cultural Diversity Evidence-based Measurement and Monitoring Michael Dove Director michael.dove@originsinfo.com.au www.originsinfo.com.au +61 418 359 711