Kudos to the Financial Services Pipeline (FSP) Initiative supported by Chicago-based financial institutions. The goal is to address the lack of diversity in Chicago’s financial services industry, particularly Latinos and African Americans. The initiative includes 16 members representing more than 30,000 professionals in Chicago’s financial service industry. FSP released findings from a report which will be utilized to develop an action plan to address the lack of diversity in its industry. While focused on one city and industry, the report’s findings can provide insights about the experiences of Latinos in other industries and regions.
In regards to career outlook, the report suggests that “Latinos indicate that they are dedicated to their careers, and are more likely than their white counterparts to indicate that career is their first priority.” However, many Latinos feel that the pace of their progression has been too slow. The report cites a “choke point” where career progression is halted, particularly into senior positions.
Hence, many Latino Executives and Senior and Managers “recognize that relationships with senior members of the industry are important for their career growth. They are more likely than whites to cite sponsorship programs as being helpful to their career and are just as likely as their white counterparts to have a mentor or sponsor within the company”
One comment from an interviewee in the study noted:
There is only one thing — hire more people of different races and ethnicities. Too much hiring in the financial services industry is based on internal networks, so excludes people that aren’t traditionally part of those financial industry networks.
This is a telling comment that is common among most industries. The “who you know not what you know” barrier. These are only a few highlights that caught my eye – there are a number of good takeaways in the details.
I often highlight how Latino communities are impacting the U.S. workforce today. But what about 20 years from now? This article via Fast Company Magazine highlights how increased birth rates, particularly in communities of color, will ultimately impact workforce trends. This trend is particularly true in Hispanic communities where the 18 and under population will continue to grow. An important point to make here – this trend is based on US born Latinos – not immigrants. According to William Frey, who was interviewed for the article, baby boomers will be dependent and Latinos and other younger communities of color to support government supported programs. It’s a fact that mostly white boomers will need to accept:
There may be a little backlash at first because of the vast cultural differences between mostly white boomers and those born after them, “but over the long term people will adjust to this,” Frey concludes. “They are going to understand that we have job openings and we need to fill them with skilled people. Savvy business owners and corporate leaders will understand that these are the demographics of the future, and we need to make the best of it.”
Graphic via Fast Company
A Partnership for a New American Economy report highlights the economic punch both native and foreign-born Latinos provide, particularly in states like California and Texas:
In some states, Hispanics now account for a large percentage of spending power and tax revenues overall. In both Texas and California, Hispanic households had more than $100 billion in after-tax income in 2013, accounting for more than one of every five dollars available to spend in each state that year. In Arizona, a state with a rapidly growing Hispanic population, their earnings after taxes accounted for almost one-sixth of the spending power in the state. In Florida, Hispanics contributed more than one out of every six dollars in tax revenue paid by residents of the state.
The data also shows how Latino tax revenues put more into Medicare and Social Security programs than they take out:
Hispanics, and foreign-born Hispanics in particular, play an important role sustaining America’s Medicare and Social Security programs. In 2013, Hispanic households contributed more than $98 billion to Social Security and almost $23 billion to the Medicare’s core trust fund. Foreign-born Hispanics in particular contributed more than $46 billion to Social Security, while paying in more than $10 billion to the Medicare program. Past studies have indicated that in Medicare in particular, immigrants draw down far less than they put in to the trust fund each year, making such tax contributions particularly valuable.
Rian Bosse tells companies to take notice:
With the growth, Latinos represent more purchasing power and are becoming the “backbone” of the economy in the United States while more and more enter the middle and upper classes, Cartagena said. One in six consumers in the country are already Hispanic and, since 2000, the percent of the Latino population making over $100,000 a year has doubled from 7 to 13 percent.
The full New American Economy report can be found here.
Two different but sometimes intersecting viewpoints about diversity and strategy.
Jonathan Jackson argues that the lack of diversity in organizations is systemic and considers race, gender, and culture a vital factor:
People talk at me when it comes to diversity, not to me, and certainly not for me. People want to solve diversity like it’s a business problem. It’s not. Diversity (read: the need for Black and Latino creativity, excellence, and ingenuity to be fundamentally embedded into the DNA of billion dollar companies and enterprises) has business implications, and there is a case for how it can improve outcomes, revenue, idea generation, and a host of other metrics. But at its core, the issue of diversity is a structural one. Systemic inequity has a legacy that is long, varied, and intertwined with a multitude of other issues that ‘Murica is wrestling with. It’s an autopsy in its purest form, and everyone is in the viewing room, peering down through their own vantage point, looking to make sense of the broken bones and exposed organs.
BJ Gallagher counters that race and gender are important but shouldn’t be the only focus: Continue reading
Graphic via SeattleGlobalList
How will the 2020 Census manage the continued inter-mixing of ethnicities, cultures, and families? One Latino describes his dilemma:
Drew Largé, a 24 year-old University of Washington student, dealt with these generalizations as well, but with the opposite outcome.
“I’ve been programmed to identify myself as a Hispanic male because of the way I grew up and the people that I was around,” Largé said. With a Hispanic father and white mother, Largé was primarily raised around his father’s family. With a name like Largé and light brown skin, he was conditioned to identify as Hispanic.
The environment that Largé grew up in had a significant impact on his ethnic identity too, as it does with most biracial people. While he grew up in close contact with his Hispanic family, I am more familiar with my white family. Due to a long history of conflict and instability among my Hispanic relatives, I missed all of the weddings, family reunions and quinceañeras. Does that make me less Hispanic?
I agree with Elianne Ramos.
Great Boston Globe piece on long time Latina journalist Maria Hinojosa’s series, America by the Numbers. I’ve watched a few of these episodes and find them refreshing. As the article notes, each demographic change tells a story. Hinojosa makes a sincere effort to understand what these changes mean not only to the group in focus but the U.S. as whole. She’s filling a much needed gap for intelligent and informative discussions on multicultural America, which often isn’t addressed by most mainstream media:
Hinojosa’s content is resonating in part because it does not approach the demographic changes with an inherent sense of controversy, like much of the media do. “The sentiment in many mainstream media newsrooms . . . is that the conversation around demographic change, the Hispanicizing of America, the browning of America . . . was often met with a sense of fear,” says Hinojosa, who was born in Mexico City and grew up in Chicago. “And because I am an American journalist 100 percent but I’m also 100 percent part of that demographic change, I don’t approach this change from a place of fear and panic. I approach it as a journalist and trying to understand what this means.”
Hinojosa is shedding a light on the corners of a new multicultural reality in America, and it’s working. “America by the Numbers” doubled the number of African-American and Latino viewers that typically watch PBS programming, while also maintaining the established audience for PBS news and public affairs.
Pew Hispanic Research reports that the U.S. born Latinos now account for the majority of Latino workers in the United States. The trend is expected to continue for a number of reasons:
It is likely that the share of the Latino workforce that is U.S. born will continue to increase. The U.S. born currently account for most of the growth in the Latino population, and it is uncertain that Latino migrants will return to the U.S. workforce in larger numbers. Some leading economists are of the view that the U.S. has entered a new era of slower economic growth. If so, jobs growth in the future may not be strong enough to reinvigorate immigration from Latin America. The future direction of U.S. immigration policy is also unknown. Finally, demographers have noted that sharp declines in birth rates in Mexico and other Latin American countries may ease the pressure to emigrate to the U.S. in the longer run.
Great piece from the NYT on how more Latino agricultural workers are moving from working in the fields to managing agricultural businesses. Latino owned businesses grew 21% from 2007-2012. Sergio SIlva, a high school dropout, is profiled in the video below. With his 30+ years of industry management, Sergio partnered with someone who knew the product – and a new business was born. The new business serves as inspiration for those working in the fields for them today.