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

Australia is Culturally Diverse; Diversity is Increasing Source: ABS 2011 census The Market is Changing Only 33.5% of post-2006 migrants speak English at home Migrant groups have a significantly younger age profile. Migrants are well qualified and ambitious An increasing proportion of the population claim a cultural heritage other than Australian / British Isles

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 Diversity Insights in the Workplace Powered by Origins Analysis 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?

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 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. 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 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 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 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

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 Greater Workplace Cultural Diversity? Brand Reputation Positive reputation increases chance of growing share of Australian multicultural market (estimated at more than $75bn per year) Opportunity for annual corporate social responsibility diversity reporting 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 84% of surveyed CALD leaders and emerging leaders seek a very senior role Strategic Planning Helps CEO and business leaders check for alignment between employee diversity, customer diversity and market diversity

Why use Origins? Quick, cost-effective and accurate measurement of cultural diversity in the workplace 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; language spoken at home; or self-identified ancestry that tends to over-state ‘Australian’ Benchmarks against local labour market counts created with the same name recognition tool = valid like-for- like comparisons Defines 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, Canada and South Africa

How Does Origins Work? The underlying databases are derived from 1.2bn global individuals Family and personal name databases of 2.5m and 900k have been created The outcome is a truly global solution achieving >99.5% coding rates with around 85% accuracy at individual level – even allowing for name changes due to marriage and other reasons A multi-dimensional classification enables reporting and appropriate action –257 detailed CEL codes reflecting countries, cultures/ethnicities, regions, languages and religions –Customisable aggregation 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. A ‘confidence score’, along with rules applicable to the Australian market are used to assign the overall name combination to a single code Reports are then produced at an appropriate level of aggregation

Validation: Origins vs Census 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. Despite differences in methodology and classification, there is a broad alignment between the Origins analysis of OriginsInfo’s 16m national adult names database and the census

What are the deliverables? - Consulting Reports and charts detailing the cultural origins of your workforce A comparison of your workforce with the labour market from which it is drawn An on-site presentation and review of results; associated discussion

For further information and an obligation-free quotation, contact Michael Dove Director Delivering the Dividend of Workplace Cultural Diversity Evidence-based Measurement and Monitoring