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
One of the more annoying arguments in the immigration debate is that undocumented immigrants coming to this country take jobs away and have a negative effect on the economy. These recurring arguments make terrific sound bites and usually appeal to the emotional and uninformed voter, especially during hard economic times. And yet these are the false viewpoints that still guide today’s immigration policy debate.
Over the years there have been numerous studies which debunk these false narratives. Here’s another by the Urban Institute.
In short, this study and others demonstrate that immigrants help to fill gaps in our labor market, immigrants complement rather than replace existing workers, and increase, not lower, wages and productivity.
The Urban Institute’s study again helps to quash the notion that immigrants are “stealing” American jobs. In fact, as the study points out, many low skilled immigrants and native workers aren’t competing for the same jobs. If this isn’t enough evidence, a recent study by PEW suggests that immigrants are “much more likely than U.S. foreign workers to be self-employed.” From a Latino perspective, immigrants were nearly twice as likely as U.S. born Latinos to be self-employed. So in other words, the PEW study suggests that immigrants are in fact job creators (aka entrepreneurs) not job takers!
So don’t fall into believing this overused false narrative.
And while it seems that immigration reform won’t happen anytime soon, when it does, let’s hope it’s developed based on facts – not fiction.
If you’ve not had a chance to read through Fast Company’s Strong Female Leader series, I’d encourage you to do so. Gender equity topics regarding leadership, pay, and entrepreneurship paint a picture of how much more work is still needed in the corporate world.
A recent addition examines the gender pay gap by industry. Consider the following statement and then review the graphic below.
There is no industry where women earn equal to or than men overall, even when controlling for all measured compensable factors.
Graphic via PayScale.com
Latinos, women, and other people of color still earn less than white men, even with similar education levels.
Among workers age 25 and older with at least a bachelor’s degree, median weekly earnings in 2014 were $1,385 for men and $1,049 for women. Black or African American workers with at least a bachelor’s degree had median weekly earnings of $970 in 2014, compared with $1,219 for White workers with the same level of education. Asians with at least a bachelor’s degree had median weekly earnings of $1,328. The median for Hispanic or Latino workers with that level of education was $1,007 per week.
Excelencia in Education celebrates 10 years of providing critical data on the progress of Latinos from kindergarten to the workforce. The Condition of Latinos in Education 2015 shows progress, but Latinos are still very much on the lower end of most the items examined in the report.
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.
Expanding diversity in organizations often focuses on increasing the “pipeline” – the flow of diversity talent coming into the organization. However, I agree with Sarah McBride and Noel Randewich who assert an organization has a lot of enough diverse talent within its own corporate walls – the authors draw upon Intel’s recent announcement of investing $300 million to diversify the company’s workforce noting the money should be focused somewhere else:
Diversity advocates say seizing on the supply issue can obscure other causes.
“They are blaming the pipeline for their own faults,” said Vivek Wadhwa, author of “Innovating Women,” noting that many technology companies no longer consider degrees of any sort, including computer science (CS), a requirement for employment.
He and others say technology companies should look inward, working on making themselves attractive to qualified women and minority candidates who avoid or abandon technology careers.
Of all science and engineering graduates, only about 31 percent of males and 15 percent of females work in related occupations, according to the U.S. Census Bureau. Just 17 percent of African Americans with science and engineering degrees go on to work in related jobs.
To draw women and minorities, Intel should make managers accountable to specific diversity goals and measure progress through employee surveys, said Katherine Kimpel, a lawyer specializing in discrimination at Sanford Heisler Kimpel LLP.
Lori Nishiura Mackenzie, executive director of Stanford University’s Clayman Institute for Gender Research, said Intel should spend the bulk of its cash on what she called “the frozen middle” just below the top executives.
So implies Shikha Dalmia who also contends the immigration assimilation argument is often a myth, especially when it relates to Latinos:
But such snapshot comparisons between the attitudes of naturalized and native-born citizens tell us nothing about the assimilability of modern immigrants compared to past immigrants — a good third of whom returned home because they didn’t like America. What’s more, assimilation is a multi-generational process that by all available metrics seems to be proceeding just fine. For example, restrictionists consider Latinos the most resistant to assimilation because of their tenacious fondness for Spanish and their relative proximity to their homeland. Still, 91 percent of the children and 97 percent of the grandchildren of Mexican immigrants to America speak English as their dominant language.
Victoria Stilwell expects this “majority minority” to have significant economic impact in the coming years. Continue reading
Graphic via PEW Research
PEW Research claims that approximately one-in-ten mothers with a Master’s degree and above “opt out” of the workforce to stay home to raise their children. As a stay-at-home dad for the last 15 years with a doctorate, I’m wondering where I fit in?