1. Delivering the Dividend of Workplace Cultural Diversity
Evidence-based Measurement and Monitoring
Michael Dove
Director, OriginsInfo
Diversity in Health - March 2008

2. Australia is Culturally Diverse; Diversity is Increasing
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
Source: ABS 2011 census
Diversity in Health - March 2008

3. Cultural Diversity Insights in the Workplace
Powered by Origins Analysis
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?
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?
Diversity in Health - March 2008

4. Why Workplace Cultural Diversity is Important
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.
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.
Diversity in Health - March 2008

5. What are the Benefits of Greater Workplace Cultural 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
84% of surveyed CALD leaders and emerging leaders seek a very senior role
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.”
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
Strategic Planning
Helps CEO and business leaders check for alignment between employee diversity, customer diversity and market diversity
Diversity in Health - March 2008

6. 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
Diversity in Health - March 2008

7. 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
Diversity in Health - March 2008

8. Validation: Origins vs Census
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
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.
Diversity in Health - March 2008

9. 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
Diversity in Health - March 2008

10. Delivering the Dividend of Workplace Cultural Diversity
Evidence-based Measurement and Monitoring
For further information and an obligation-free quotation, contact
Michael Dove
Director
Diversity in Health - March 2008