From manufacturing and construction to start-ups and niche tech, firms that want to enjoy the benefits of diverse talent stacks must make the effort to overcome their reputations as risky or unwelcoming.- BY DEBORAH JENKINS
The more diverse the workforce, the more resilient and profitable the company. The differences aren’t small. According to Deloitte, diverse teams can generate up to 2.3 times higher cash flow per employee and are 1.7 times more likely to be innovation leaders in their market. Unfortunately, industries and niches within industries that are perceived as high-risk occupations – either due to on-the-job risks or beliefs about job security –often struggle to recruit and retain diverse talent, missing out on the benefits of having a diverse team.
To turn things around – to successfully recruit more diverse talents, convert them to hires, and retain them over time – these firms need to make some extra efforts. In particular, high risk industries will want to get more transparent, invest more in mentorship and apprenticeship options, offer more paid leave opportunities for parents and caregivers, and do more around schedule flexibility. It won’t always be easy, but the rewards in terms of reduced turnover and a more loyal and diverse workforce can make these efforts pay off quickly.
The first step for many firms is becoming more transparent about the day-to-day experiences of the job. One of the biggest reasons talent leaves – and this is especially true for Millennial and Gen Z hires – is because the job didn’t match their expectations. It’s not hard work, long hours, or even dirty jobs… it’s that mismatch to what was expected.
Transparency makes a difference. For PriveCo, a multimillion-dollar Detroit-based retailer of “intimate toys” that needed warehouse teams, the solution became oversharing with a heavy dose of humor. While the number of overall applicants went down, the ratios between inquiries and hires improved. Plus, because PriveCo’s ads included information about the opportunities for advancement and the team environment, applicants were more likely to be a match for the culture and operational needs of the organization than when PriveCo had used more generically styled job postings. This improved retention rates allowed the company to do more to nurture diverse talent pools.
Invest in mentorship and
apprenticeship
Along with greater transparency about what the day-to-day is going to be like, firms that want to retain high-quality diverse hires need to do more to make those hires feel like they belong and that the company cares about their careers. One of the best ways to do this is through mentorship and apprenticeship programming.
In the tech industry, that can look like Twitter’s Engineering Apprenticeship program. The 12-month program brings in candidates from underrepresented groups and non-traditional educational backgrounds, on a full pay package, to learn and train within multiple data science and engineering groups. At the end of the year, participants can “graduate” into a long-term employment arrangement in an environment where they’re familiar and comfortable with their co-workers.
In manufacturing, that can look like the solution developed by Mubea North America, a manufacturing company in Northern Kentucky. To fight applicant shortages and skills gaps, the company designed its own three to five year apprenticeship program in four skill trade areas. Diverse applicants are encouraged to apply, and as a part of the program earn a college degree in addition to their trade skill. Though free to move on after the apprenticeship ends, Mubea has found that most choose to stay, thanks to the relationships they’ve built throughout the program.
Lead the way with leave
Beyond recruitment, firms have the opportunity to grow a competitive advantage with diverse talent by enhancing one specific benefit: paid parental leave. According to a 2022 report from BenefitsPro, some 50 percent of women without access to paid parental leave will quit their jobs within one year of having a child. Within women, Black, Latinx, and AAPI women are more likely to cite the challenges of juggling work with parenting as a factor in leaving the workforce.
Of course, parental leave isn’t just a women’s issue. It rolls up into a larger issue of job flexibility, particularly at a time when illnesses like COVID can abruptly derail individual and family caretaking arrangements well beyond the newborn days. Plus, many mid-career talents juggle elder care in addition to childrearing. A few extra days of paid leave available can make or break family budgets, and companies willing to offer additional days of paid time off are more likely to retain talent through the caregiving years. This preserves a large segment of the workforce who might otherwise feel pressured to leave demanding jobs for something more family-friendly.
Flex that schedule
Along with additional days of paid leave, companies can also win by embracing optionality around where and how work happens. According to a survey by Future Forum, some 97 percent of Black knowledge workers want the future of the office to be remote or hybrid. Outside of knowledge workers, companies can dramatically boost retention and productivity by giving workers more control over their schedules.
According to 2020 research from Concordia University's John Molson School of Business in Montreal, Canada, routine or repetitive jobs can be improved by adding autonomy around scheduling or environment, which improves satisfaction and engagement rates. Higher engagement correlates with improved attention to detail and lower accident rates. In high-risk industries, where minor errors can lead to major accidents, this engagement boost is essential.
It’s also much less disruptive than managers may imagine. When a Michelin tire plant allowed all of their employees to choose their own hours, even the shift teams, they feared they might unleashing chaos. Instead, within a few years they had doubled their cash flow.
Final Takeaways
It is possible for ANY company to build a more diverse workforce. Being more open about the nature of the work, offering community and training through mentorship and apprenticeship programs, adding parental or flex paid leave times, and offering schedule flexibility can be the competitive edge needed to attract, hire, and retain more diverse talent. In this way, even high risk or historically “unwelcoming” companies can develop a diverse talent stack and begin to enjoy the benefits of more diverse teams.