Pay Equity need not be a beast of burden

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I sometimes get self-conscious about being more supportive of feminism than some of my women colleagues.  Sure, I have lots of tools at my disposal to help make a difference.  And yes, it is part of my job in Human Resources to make things fair and reasonable.  But is this really my fight?  Should I really be getting excited about it?  I’ll give an example.

In April 2018, Tracey Smith from Numerical Insights blogged that the Gender Pay Gap is NOT the Same as Pay Equity.  It’s an interesting read because there is some truth to it, but the devil is in the details.  I have worked on a several efforts to equalize pay between men and women, and I can confirm the pay equity exercise is narrow in scope and changes salaries far less than some would hope.

The problem is branding.  It’s too popular.  It has become the yoke that carries all the hopes and dreams of the broader equality conversation. We need to expect less of this one solution, and allow for some levity. We need to give pay equity permission to wear sweatpants to the convenience store and grab a slushie, without paparazzi snapping photos for Stars Without Makeup.

Some Problems Are Not Solved by Pay Equity Alone

Smith references the predominance of males in some professions:

Certain STEM-based professions (Science, Technology, Engineering and Math) are naturally male-dominated because the graduating classes are male-dominated. That’s the hiring pool, so through no fault of any company, these STEM companies will be “more male” in the specialized jobs.

She also notes it is common for fewer women to apply for management jobs, implying women are self-selecting away from these roles in child-bearing years.  As a result of men self-selecting into higher-paid professions and higher-ranking roles, this creates average salaries for men that are higher.  Smith asserts that this is not a measure of pay equity, and that’s true.  The smaller number of women in these roles might be paid equal to their male counterparts, so pay equity might have been achieved already.

But let’s step back, consider the larger picture, and match problems with reasonable solutions.  If there’s a shortage of women graduates from STEM disciplines, we should consider reserving an equitable number of college and university spaces for women in these fields.  If women are less likely to put themselves forward for management openings, workplaces can cultivate leadership styles that are less critical, are more encouraging, and are time-structured to get people home at a reasonable hour.  If the problem is career growth during childbearing years, a suitable remedy is maternity leave provisions and government-funded child care.

Which tools should we consider if we want to achieve broader equality between the sexes?  My favourite tool is, “all of them, now.”  Does that sound better?  It makes far more sense that ridiculing pay equity for its shortcomings.

Battles Over Pay Equity Legislation Are More Than Meets the Eye

Smith also noted that the United States recently cancelled legislation to require the reporting of average salaries by sex.  The government expressed concerns that the reporting obligation would “lack practical utility, …[be] unnecessarily burdensome, and …not adequately address privacy and confidentiality issues.”  There was something fishy about this quote, so I cut-and-pasted it into a Google search and got something totally different.

In a Washington Post article, reporter Danielle Paquette described this cancelling-of-legislation as the Trump administration reversing an Obama-era rule to shrink the gender wage gap.  That article notes Ivanka Trump originally supported the Obama-era measure, but after she consulted experts, “worried that it wouldn’t work as intended.”  We have since learned that the only expert consulted at the White House is the President himself.  The Obama-era official who brought in the rule and leaders of women’s equality organizations panned the decision.

The Post article quoted Nancy Hammer, who spoke on behalf of the Society for Human Resource Management:

She recommends that employees go to their human resources department if they’re concerned about their paycheck, giving their employer a chance to explain or fix the issue.  Otherwise, Hammer said, “to really do it, you’d need to practically report on every single employee.  That’s not a practical way at looking at this issue nationwide.”

It’s ironic that she thinks it’s impractical to report on every single employee. Moreover, she asserts that for women, as individuals, to approach their human resources department to fix unequal pay without government or union backup, is totally practical. I would note that Nancy Hammer is a lawyer speaking on behalf of HR generalists.  The correct professionals to consult about this work in Compensation, and in North America their profession is represented by WorldatWork.  Also, employees are legally allowed to talk to each other about their pay, despite of the fact that HR often discourages such talk.

Pay Equity Analysis is Not Onerous

Under conventional pay equity plans, employers do in fact report on every single employee, bundled by job classification.  This data-bundling includes average pay and headcount indicators of whether a classification is predominantly made up of men or women.  This data, combined with other sources, allow employers to do a simple statistical analysis to measure pay inequality and take appropriate action.

The analysis is done either by consultants or in-house by HR departments.  The analysis is made available to regulators, union representatives, and litigants alike, under appropriate confidentiality protections.  The process involves slightly more work than creating a new pay structure in the first place.  It’s not practical to do it this way nationwide, because it is done at the organizational level as is normal for pay structure design.  The cancelled legislation obliged employers to report simplified data that was consistent with this approach.

Activist Campaigns Even the Score with the Trump Family

Let’s go back to Ivanka Trump speaking against this legislation.  In July of 2018, Ivanka Trump closed shop on her fashion brand.  Sales were flagging.  In particular, sales were way down at Nordstrom and Hudson’s Bay Company, two of the companies targeted by #grabyourwallet.  For those unfamiliar, #grabyourwallet is a consumer activist campaign that calls on people to refuse to give money to the Trump family.  The campaign was a response to the Access Hollywood tape revealing that Donald Trump thought he could accost women sexually, in public, without recourse, because he was rich and famous.  Some women felt otherwise, hence the campaign.

Let’s return to how women advance their own careers.  If women are reluctant to advance themselves into situations that make them vulnerable because the environment makes them unsafe, maybe the best remedy is to foster and support an activist base that keeps men on their toes about abuses of power.

And if a company is openly unsupportive of women’s equality, one possible remedy is for an activist base to reduce it to rubble.

But don’t try to do this alone.  Team up with others to bring more than one solution.  Pull your car into the convenience store and pick up your old friend in the sweatpants.  As she hands you your own slushie she smiles and says “I found your wallet.”  And drive onward to the next adventure.

Workplace Wisdom Needed in This Day and Age

Landscape. byi Rosmarie Voegtli
Landscape. Photo courtesy of Rosmarie Voegtli.

What are the biggest blind spots in communication between the generations? Probably the ones that are never discussed.  When I’m formatting charts and tables, I have a rule that the font size has to be at least 12-point.  As my information goes up the chain of command, higher-ranking people tend to be older.  Their eyes aren’t what they used to be, and they might not tell you. You have just to “know” they can’t read 10-point.  If only things were more transparent.

What does it take to create a team environment in which all generations are encouraged to bring their unique perspectives?

Developing Positive Attitudes About Older Workers

Older workers are a vulnerable population – particularly when they’re laid off. In an interesting article at the New York Times, Kerry Hannon reviews several businesses that are getting the most out of older workers.  Employing older workers is all about having the right attitude. At Silvercup Studios, which produced Sex and the City and Sopranos, more than half of the workforce is over 50. The company perceives that older workers are more settled, have a greater sense of loyalty, and can be retained at a lower cost than bringing in someone new.

Hannon references the Age Smart program delivered by Columbia University’s Mailman School.  The program strengthens the relationship between employers and older workers.  Age Smart’s fact sheets are packed with interesting and relevant information.  One of the fact sheets emphasizes that the visibility of older workers to older customers “enhance business relations and open opportunities with this market…” Often the most compelling case for diversity management is to match employee and customer demographics for comfort, understanding, and increased sales revenues.

The job tenure of older workers tends to be longer, increasing the return on investments in learning.  This is important because the stereotype is that older people don’t learn as quickly.  But they can still learn with more time, and older workers bring a lot of accumulated knowledge in the first place.  Your mixture of new vs. established knowledge can be improved with age diversity.

Sometimes, but not always, the old ideas turn out to be the right ones.  For example, my hippie stepfather taught me that if you are attending a political rally, the protester advocating violence is probably a cop.  He observed this phenomenon 50 years ago.  His advice kept me out of trouble.

Older-Worker Programs Require Good Practices Generally

The biggest benefit of having proactive programming for older workers is that it obliges the employer to create a more deliberate workplace.  High-functioning diversity programs begin with good human resources programs onto which a diversity lens is added.  Age-inclusive workplaces are no exception:

“Age-diversity training and education allows managers to build cohesive and functional organizational culture among employees of all ages. Proven tools and techniques to address age as a diversity issue also assist managers to set goals, track progress and remain accountable to organizational leadership for continued progress and improvement.” (Emphasis added)

As I mentioned when discussing women’s financial security, personal financial worries tend to distract employees from focusing on their best work. Programs to ease employees into a viable retirement involve features such as financial planning, phased retirement, and opportunities for post-retirement work engagements.  These hybrid supports “…decrease stress, reduce absenteeism, increase productivity and improve employee loyalty…”

Knowledge Management Harnesses Older Workers’ Knowledge

Hannon interviewed staff at Huntington Ingalls Industries, a major shipbuilder, where “Nearly half of our employees could retire at any day…”  They have no age limit for their apprentice program.

“To keep its aging workforce engaged with their work, there are intergenerational mentoring programs. Younger workers mentor older ones, too. ‘…the younger workers are helping employees who have been here longer get really comfortable with using the technology.’”

I’m impressed by the sophisticated attitude about who knows best.  You learn a lot by teaching others because you have to become clear about what your expertise is and how to explain it.  Giving younger workers the opportunity to impart technological knowledge to older workers is a win for both parties, and the business too.

Age Smart makes a distinction between professional development programs that are age-neutral (i.e. offered equally regardless of age, like the program above) and age-sensitive programs that are aimed at middle-aged and older workers.  But both types are beneficial:

“Both types have been shown to improve job performanceincrease promotions and improve retention among older workers. They also develop and universally apply performance metrics across the organization to ensure optimal performance and job fit from employees of all ages.” (Emphasis added)

Effective workplace cultures are built around passing information freely between employees, not the monopolization of knowledge for power and job security.  As such, Age Smart employers are encouraged to engage in knowledge management.  They need to “identify and prioritize the types of knowledge and information that is critical for organizational stability… institutional knowledge, relationship knowledge, job knowledge, tacit knowledge and historical knowledge.”  This practice is generally a good idea but the aging workforce makes it an imperative.

Flexible Work Arrangements Have Diverse Benefits

Older workers also benefit greatly from flexible work arrangements.  Hannon spoke with leaders at the accounting firm PKF O’Connor Davies, who noted that workers approaching retirement often arrange to relocate to offices nearer to home or work part time from home, often to be close to relatives needing care.

When employers organize flexible work arrangements they are encouraged to “Offer a variety of flex options, define expectations clearly and make them universally available to all those who meet criteria.”  This makes things fair and creates accountability, hallmarks of a good practice.

“Workplace flexibility is an increasingly utilized strategy to boost engagement and improve retention among employees of all ages. It is particularly important for managing older workers to stay effective at work while balancing changing life priorities.  …Establish a culture of flexibility where management is trained to manage flexible schedules and virtual offices, and employees are educated about flex options. Ensure these options are not perceived as damaging to career security or growth.” (Emphasis added)

As mentioned in my overview of work-from-home arrangements, those working from home can experience a reduced likelihood of promotion. That may not be a major sacrifice amongst those easing into retirement.  But in order to find out, you would need to ask them as individuals about their perspective.  (See how that works?)

Not everyone will tell you what they’re thinking.  Age Smart employers are encouraged to create documents in large fonts, because eye problems start to emerge after age 40.  If you asked me, I would say I can see everything just fine. I’m only 48.  I’m going to rock forever!

Interracial Couples are Eroding Racism

hands-2604868_1280, CC by pixabay

Do you ever get pressure to choose between two ways of thinking?  Yeah, I don’t like it either.  Personally, I have always been intrigued by the lives of those who straddle categories.  Unless it’s on a chessboard, there’s nothing pleasant about dividing things into black versus white. The state of our discourse has been reduced to binary arguments that strip away our ability to have nuanced conversation. That is not who I am and not what society is meant to be.

Research shows that opportunities and opinions go in circles within cliques, and that people within those cliques are usually very similar.  If you were organizing a workplace or a community towards mutual understanding and opportunity for all, you would want to open up those cliques.  And if you personally wanted to break free you would need to make inroads into new crowds.

So how do you break down cliques? Nobody does it better than people with a foot in two worlds.  I personally find this interesting because I have a background in the labour movement, but I have since moved into human resources.  I have had some wild conversations about what people think the union ought to do, and what I assert the union is certain to do based on their history and their purpose.  But that’s lightweight compared to what some people have experienced.  Some people straddle worlds by changing nationality, by seeking education beyond what their parents had achieved, or by switching religious or political affiliation.  Others are born into two categories, including those who are biracial.

The Loving Generation and Emerging Career Equality

Anna Holmes wrote an interesting editorial in the New York Times in February 2018.  Holmes is a member of the “Loving Generation,” children born to mixed-race couples shortly after the Loving vs. Virginia supreme court ruling.  The 1967 case struck down laws prohibiting black and white couples from marrying.  More mixed-race kids were born soon afterward, heralding the arrival of a new and more prominent hybrid identity.

When Holmes was in her early thirties she began to compile a list of people who, like herself, were part of this cohort.  The list included public figures in sports, entertainment, and politics such as Derek Jeter, Halle Berry, and even Barack Obama.  When she looked to leaders, she found black communities where the leadership was disproportionately mixed-race.

Holmes perceives that mixed-race people can call upon their whiteness to open doors.  Members of the Loving Generation have a comfort with white people because of their upbringing, and often presume that they can do just as well as the white side of their family.

Holmes spoke with Mat Johnson, author of the 2015 novel Loving Day.  Johnson notes,

“If we are a segment of the African-American population that has access to power and privilege, what does it mean ethically to live that life?” For his part, Mr. Johnson said, it means making a sustained effort not just to acknowledge his privileges but to use them to help those not similarly situated. He paused, then added, “I think it’s valid to point this out even if it’s uncomfortable.”

If you have an advantage, you can still take care of yourself.  But you still have a responsibility to others who do not have that advantage.  It’s a good leadership principle for people of all backgrounds.

But wait, what about white people who have an abundance of privilege?  Do they perceive that they should help others?

Anxiety About White Decline is Sensitive to Data Definitions

Over at the Washington Post, Dowell Myers and Morris Levy cite some interesting research about anxiety amongst American whites over the multi-decade decline of the white majority.  While some people want to hold onto the advantages of their “category,” the definition of this category is not so robust.

What they uncovered is that there are six different forecasts for the prevalence of whiteness in America based on different definitions.  In all data analysis your data definitions have an outsized impact on what raw data comes out, how it is analyzed, and how it will be interpreted – even by an unbiased researcher.  The forecast showing a white majority disappearing in America by 2042 relies on people identifying as white and no other ethnicity.  It’s equivalent to the one-drop rule from the 19th and 20th centuries in the US.  Under the one-drop rule both parents must be white for someone to be categorized as white, with that rule carrying back into all prior generations.  It’s an archaic definition that lends itself to conservative assumptions.  But there are other ways of looking at things.

Myers and Levy draw attention to their own research on this topic.  They ran a controlled experiment sharing two simulated news stories using similar race projection data based on different definitions of whiteness.

The first mimicked the conventional [one-drop rule] narrative about the decline of non-Hispanic whites. The second …mentioned the rise of intermarriage and reported the Census Bureau’s alternative projection of a more diverse white majority persisting the rest of the century.  …Forty-six percent of white Democrats and a whopping 74 percent of Republicans expressed anger or anxiety when reading [the first story] about the impending white-minority status.  But these negative emotions were far less frequent when participants read the second story about a more inclusive white majority. Only 35 percent of white Democrats and 29 percent of white Republicans expressed anger or anxiousness about this scenario. [Emphasis added, paragraph breaks removed]

In brief, one quarter of Democrats and two-thirds of Republicans who would normally be anxious about the decline of the white majority have more positive feelings about the emerging population of hip mixed-race semi-white people, whom they readily regard as kin.

Change Our Definitions, Change Racism

These findings imply that when we measure ethno-cultural background for Employment Equity purposes, we need to allow people to choose multiple ethnicities.  Also – and this may be controversial – we need to start reporting on the representation of the white population in a manner that empowers the new hybrid definition.  Sympathetic white people are a target audience for equity reporting.

I have a self-image that I’m one of those non-racist people who is unbothered by white decline.  But if I happened to be one of those coastal urbanites who was deluded about their own implicit racism (you know, hypothetically) then this new mindset would affect me.  I look to mixed-race couples and biracial kids and think, yeah, they could totally grow up in my neighbourhood, work with me, and become family, no problem.  It’s a gateway into general tolerance.

By blowing-out binary categories we can think expansively about being human and embrace complexity in an era of rapid change.  We cannot let demagogues simplify us; we need to become contradictory and cosmopolitan people in order to be true to ourselves and be comfortable in our own skin.  Only then can we freely consider all of our options and seek every opportunity that we choose.

[Hat-tip to Guy Kawasaki for sharing the Washington Post article on LinkedIn]

Stop Trusting People Who Agree With You

Réception, dîner et dansede la présidente commandités par Fisher Scientific Education Dining Services [Musée de la civilisation]
Photo courtesy of CAUBO 2016.
Do you really need to network to get ahead?  You might wish you didn’t have to.  Sure, the appetizers at those networking events are tasty.  But do you really need to spend more time talking with strangers you would never invite for dinner?  Yes you do, but mostly you need to imagine a life where you can learn something from anyone.

An interesting debate emerged in August 2017 between two big names, and their arguments deserve a closer look.  Adam Grant, who has an exceptional TED podcast called Work Life, proposed that networking wasn’t that big of a deal in achieving career success. Jeffrey Pfeffer, one of my favorite counter-intuitive business authors, respectfully disagreed.

Grant provided several examples of people who worked hard at developing an exceptional talent or creating something novel, who were only then picked up by an established social network.  He noted that there are many cases of people trying and failing to use networking to advance their careers in the absence of underlying talent.  Those who develop a meaningful contribution are more likely to get noticed.  The subsequent networking is a consequence, not a driver.

Pfeffer did a good job of acknowledging that being excellent in more than ways than one is important.  However, he asserted that there is a major distinction between talented people who are not networked, and those who got networked and achieved career breakthrough afterwards.

Pfeffer and Grant agree on a core point, which is that people should aspire to become intrinsically excellent and then extend that excellence with robust networking.  They are just debating what-causes-what.  I think that everything causes everything else, and that it’s often ridiculous and pointless to find one thing that’s driving everything.  For example, I propose that all of those successfully networked people got a great night’s sleep, and their sleep is the main driver of both the intrinsic talent and the excellent networking.  That’s just a little example of how easy it is to choose a single driver of excellence. You can always take it back one step and find one thing that is even more important.

In terms of applying the research to our daily efforts, the key issue is to understand network diversity.  As a sociological puzzle, it is strange and disturbing how we’re attracted to people who are just like us, how we expect our friends to like each other, and how we get sucked into tiny little cliques of like-minded people.  All of these cliques are confirmation-bias echo-chambers filled with ideas and opportunities that only go in circles.

In an article at Entrepreneur magazine, networking expert Ivan Misner emphasizes the importance of diversity in networking efforts.  He describes the experience of his colleague Patti Salvucci who arrived early at a networking event in Boston.  She struck up a conversation with and older gentleman who was laying out coffee mugs for the meeting.  She noticed his great voice and asked about it.  It turns out that he used to be a commentator on CNN and had interviewed several public figures including JFK, Nelson Mandela, and Martin Luther King, Jr.  He had downshifted and moved to be closer to his daughter.  Later at the event, there was another person who confessed that he wanted to start a radio talk show but had no idea where to start.  Salvucci recommended he talk to the gentleman who was helping with the coffee, explaining the back-story.  Nice connection!

That story shows new opportunities, but sometimes it’s about new opinions.  When I was coming around to the realization that I was an atheist, I had a conversation with a colleague about my expectation that everything can be figured out.  She had her own spiritual values, and she pressed me on whether it’s possible to have a deep admiration for the unknown. Pshaw, I said, people who lead society shouldn’t be obliging us to believe in anything that lacks evidence.  That was my impulse.  But her comment grew on me.

A year later I came back to her and confessed that the reason I always pursue evidence is that I am deeply passionate about the unknown.  She was happy to leave-be the unknown, and to experience the joy of being surprised by the unexpected.  I wanted to overcome the unknown as an obstacle, as an adventure in the pursuit of research and wisdom.  We had two variants of a similar opinion.  I had to fess-up that she had a great point, and that she had shaken me from a smugness.

Maintaining your cliques is what keeps you in your place. By contrast, the disruption of the established order is largely achieved by finding unusual connections with people who make you uncomfortable in some way.  In order to make new connections in untapped areas, you must be brave and choose discomfort.  And while maintaining discomfort during civil conversations, you must be curious about the opinions of those you at first think have it wrong.  This important work is impossible to do if you lack humility.  If you think you have figured everything out, you need to suspend your disbelief, and consider that others can change you for the better.  Ask others where they are coming from, get sincere and uncomfortable, and play with the idea of changing your perspective.  It’s hard work, but it’s usually the only way to get away from the tried-and-true.

Sincere networking isn’t one thing.  It’s several things; attempting courage, enduring discomfort, developing curiosity, feeling a sense of humility, and changing perspectives.  If you do all of that in one day, you’ll sleep heavily that night.  And when you wake up in the morning, you might realize that you can accomplish anything.

Mini-Me Recruiting: Always Funny, Always Uncomfortable

Mini Me and Me (a.k.a. Verne Troyer) by Bit Boy
Mini Me and Me (a.k.a. Verne Troyer).  Photo courtesy of Bit Boy.

Who hasn’t wanted to clone themselves, especially when deep into a project that leaves a weekend in tatters. Dr. Evil of Austin Powers fame hilariously and awkwardly created Mini-Me as this right-hand man. While Mini-Me failed to carry out Dr. Evil’s plans for world domination, he succeeded in illustrating a major problem in human resources that needs more scrutiny than ever.  The actor Verne Troyer – who played Mini-Me – immortalized an uncomfortable concept.

The hiring of mini-me in organizations is a problem-behaviour caused by two cognitive fallacies.  One is the affinity bias, the liking of people similar to ourselves. The other is the exposure effect, where we like things that we have been merely exposed to. In the readings of cognitive fallacies it becomes clear that the majority of such fallacies are a variant of the “availability heuristic,” when we over-value thoughts that come to mind easily.  If we choose what’s comfortable, we reproduce our own status quo.

However, it’s usually the case that an employer needs a diverse team.  Even the most excellent leaders need people who have different strengths.  In an article at entrepreneur.com, George Deeb asserts;

“Maybe you don’t need a ‘glass half full’ optimist like yourself… Maybe you need a ‘glass half empty’ realist, who will bring a sense of caution to your investment decisions. Or, you may need a similar ‘A-Type Personality’ to lead your sales team efforts… But, maybe a ‘B-Type Personality’ may be a better fit to manage your more introverted team of technology developers. …Maybe what you really need is the opposite of yourself. You need your Anti-Me to help keep yourself organized, on plan and in check. It really comes down to what you see as your personal strengths and weaknesses, and filling in any voids in your skill-sets.” (Emphasis added)

Equity and Inclusion in Hiring Decisions

The most visible consequence of unconscious bias is that organizations hire and promote people in the same demographic category as the hiring manager, increasing the momentum behind historic privilege.  In an article in the Guardian in 2016, Matthew Jenkin notes that the context of a selection interview will have an outsized impact on who is chosen.  If the context is white and middle-class, candidates who are white and middle class will be favoured.

Bias goes beyond blockbuster items like race and social class. Hobbies, personal experiences, and how we dress can be factors too. If the leadership of an organization is “all of one type” it is a reliable sign that the leadership has lost all curiosity, has no self-doubt, and does not take evidence seriously.  The leadership is not reading the news, and if they are, they are only reading it in print.

This is not the mindset of leaders who will make an organization successful in the near future.  Yes, we must achieve indicators of diversity, but we must also foster receptiveness to new information, a curiosity about diverse ideas, and ways in which an individual can be excellent in a manner that might be considered weird.

Why Structured Interviews Matter

The professional association in the UK, the Chartered Institute of Personnel and Development (CIPD), released a paper in 2015 entitled A Head for Hiring: The Behavioural Science of Recruitment and Selection. It looked at, amongst other things, the role of unstructured interviews.  The authors found a study that fed research participants a combination of good evidential information, plus random irrelevant information from an unstructured interview.  The research subjects upgraded the importance of the random irrelevant information and discounted the good information.  “This can be seen as evidence of sense-making – our tendency to identify patterns or detect trends even when they are non-existent.”

It’s not just the interviewers who are at risk of making bad judgment calls. The CIPD paper identified cognitive fallacies in the mind of the interviewee that caused them to self-select away from promising job matches.  And walking into an unfamiliar environment, where they feel like an outsider, can cause job candidates to underperform because of the additional stress.  When people are using their brains, they are vulnerable to issues of cognitive load in which a complex environment exhausts their brain prior to facing decisions.  Those coming from a different context face disadvantage in an environment that might seem “normal” to the host.

Solutions in Diversity Hiring

What is the remedy for these problems?  For one, structured interviews are key, as they narrow the range of evidence to information that is relevant.  Also, we must actively seek contrary evidence; not taking things at face-value, and seeking information that is outside of what is familiar and comfortable.  There is also diversity representation.  Charles Hipps, CEO of e-recruitment company WCN, was quoted in the Guardian article and  “…suggests having team members from the particular group you are trying to attract present during the recruitment process – whether that’s meeting and greeting candidates or on the interview panel.”  Structure a diverse context and it will set a balanced comfort-level with reduced cognitive load.

Employers are also starting to get hard-core, using new tools to improve the selection process.  The Guardian article spoke with one company, Elevate, that “uses algorithms to score every candidate’s CV, previous work experience, skills and education, and assesses their suitability for a role. It then ranks candidates much like Google’s search results…”   Another company, Joinkoru, conducts validated pre-hire assessments which provide candidate scores that are less sensitive to the candidate’s similarity to current employees.  It is also feasible to do blind selection in the process of creating a shortlist, in a manner that obscures the name and sex of the candidate.

Not all of these tools are perfect, and indeed there are emerging risks that algorithms can carry-forward the historic bias of past human behaviours.  The rise of the racist robots is a concern.  We might not be creating cloned versions of ourselves (yet), but we are at serious risk of creating artificial intelligence which has flaws identical to our broader society.

And the technology can be expensive.  Doctor Evil is the only one selling it, and he’s going to charge you (pinky to mouth) one million dollars.

Women’s Financial Security Depends on Their Own Courage

Too little to think twice about jumping. By Rob Briscoe
Too little to think twice about jumping. Photo courtesy of Rob Briscoe.

Does it seem unfair that men can carelessly do what they want with money when women can’t?  Well, it is unfair.  But women’s attitude about money has a huge impact on their financial security.  Fear itself might be causing women to be less financially secure, by weakening their moxie.

In an October 2017 report, Mercer published the report Inside Employees’ Minds – Women and WealthTM.  In brief, women are more worried about financial security than men, and the worry and fear de-motivates women from taking full advantage of programs intended to help them improve their finances.  The report is based on a survey of 3,000 U.S. employees in late 2016.

Financial Wellbeing is Part of Workplace Wellbeing

The report asserts that financial wellbeing is “a core pillar of total well-being.”  Wellbeing is not just about physical and mental health. Our ability to seek the comforts we desire, make meaningful connections with others, and achieve our financial goals are all amongst the things that make us well.  New wellbeing efforts foster self-awareness about our individual goals, and a sense of self-efficacy and autonomy over our lives.  These efforts imply a workplace culture of free-flowing information, respectful discourse, power sharing, and building intrinsic motivation.

In employee engagement surveys, wellbeing is often a hygiene topic.  Hygiene topics are important-when-bad; things such as physical safety or sexual harassment. Hygiene topics are important to identify because the policy imperative is to not to make the topic positive, but to make them “not negative.”  They need to be good enough that you can forget about them.

When employees feel that they lack control over their personal finances, they worry – at home and at work.  People need to learn how to improve their finances if only to stop being distracted by them.  Therefore it may be necessary for employers to express concern about the personal finances of their employees.  And women and men think about their finances differently.

Women’s Financial Courage Affects Their Financial Wellbeing

The analysis shows a major difference between men and women, with men once again coming out ahead.  “Whereas 62% of men scored in the medium-to-high or high range on Mercer’s Financial Wellness Index, only 41% of women scored in this range.”  Why is this so?  The report identified that financial courage is a major driver of financial wellbeing. Forty-nine percent of men exhibit high or medium levels of financial courage, compared to 30% of women.

Financial courage is made up of items such as attitude towards finances, time spent worrying, financial planning preferences, and a person’s self-assessment of their financial knowledge.  It turns out that courage is more important than underlying knowledge, consistent with the trend that personality can be more important than IQ.  Women holding modest-but-accurate self-opinions might be penalizing themselves, because confident men are taking initiative based on their bravado.

Those with low financial courage do things that cause their finances to be worse, such as avoid financial discussions to avoid embarrassment, decline investment opportunities for fear of losing money, and slip into a paralysis of inaction on their finances.  By contrast, people with high financial courage engage in the flip-side of these behaviours in an upward spiral.

Getting Women to Engage in Financial Wellbeing Resources

Imagine how those who lack courage will avoid thinking about it when there is an offer to attend a financial wellbeing class or advisory session.  That reduced awareness leads to reduced engagement in such programs.  Mercer suggests;

“Employers have the opportunity to help their female employees break the cycle of lower financial wellness by helping them build financial courage and become more confident in engaging in their finances. Simply offering women more in the way of financial education is unlikely to have the desired impact.” (Emphasis added)

Employers hoping to set up their employees to be well-and-productive need to prioritize financial courage with targeted programming for women.  So, who are the role models that women would look to while building this courage?

Women Are Building Wealth

Outside of the workplace, women are becoming more prominent investors.  An article in the Economist from March 2018 noted that global wealth held by women is trending from $24 to $72 trillion between 2010 and 2020, with their percentage of global wealth growing from 28% to 32%.  The growth is due to women participating more in the labour force, being better-paid, and benefitting more equally from inheritances.

Women behave differently when they invest.  The Economist cites a study that finds that

“…women outperformed men in the market by one percentage point a year.  The main reason, they argued, was that men were much more likely to be overconfident than women, and hence to carry out unprofitable trades.”

It’s not so much that women need to imitate men’s overconfidence, it’s that they need enough courage to take care of their wealth and then proceed with enough conscientiousness to make good decisions.  Courage and conscientiousness are not contradictory traits, and it’s possible to embody both.  Related to this phenomenon is that one of the first things women do when they get their hands on a bundle of money is to get rid of their money managers and start making investments by themselves.

And in the process they make different decisions about their own money.

Women Lead Socially Responsible Investing

Women are far more likely to be socially-responsible investors, with the Economist citing Morgan Stanley research noting that 84% of women (relative to 67% amongst men) are interested in social or environmental goals.  Funds specializing in responsible investing note that women tend to be the trailblazers.  And one of women’s criteria is to apply a gender lens.

Beyond the evidence that bias is bad for business, treating women fairly is increasingly seen as a sign that a company is diligent, responsible, and keeping apace of emerging trends.  A comparison to the environmental lens is helpful.  One investment fund

“…dropped Volkswagen because the carmaker scored poorly on corporate governance well before its value was hit by the revelation that it was cheating on emissions tests, [and] in future it hopes information about problems such as sexual harassment could help it spot firms with a ‘toxic’ management culture before a scandal hits the share price.”

Independent of whether “being good” is a core business goal, investors are watching for whether a company’s stock will tank because of regulatory failure, lawsuit, or customer disengagement following a public relations meltdown.  Investors, too, can be concerned about hygiene topics and women investors are ahead of the curve.

Yet we can still choose to be good, for the sake of being good.  Social change comes from all directions; from governments, social movements, and sometimes from investors.  But usually there’s that one person who has decided there’s something wrong in their life, and it’s time to take action.  That brave and conscientious person can be you.