Fighting Gender & Racial Bias in the Workplace: Onsite at REACH

MONTEREY, Calif. – Only 5% of credit union CEOs are people of color. If one out of every 10 people on an organization’s leadership team is female, 45% of men believe women are well-represented on that leadership team. And resumes with “black-sounding names” are 50% less likely to be called by hiring managers.

Those were a few staggering statistics from CUNA, McKinsey & Leanin and an unknown source, respectively, presented by Jill Nowacki, president/CEO of human capital consulting firm Humanidei, during a breakout session at the California and Nevada Credit Union Leagues’ REACH conference Oct. 29. The former president/CEO of the Credit Union League of Connecticut opened the session by sharing her own experiences as a woman climbing the ranks of leadership in the credit union industry.

“I was the youngest league president, and one of only a few women league presidents,” Nowacki said. “I felt pressure to represent my entire gender and generation.” She added that she felt as if she was placed in the role as a “token” of her gender or generation, not as a qualified individual, and that she would sometimes suppress her ideas.

“Think of a time when you didn’t feel like you fit in with a group,” she said, painting a picture for the audience of what it can feel like as a woman or minority who is underrepresented in a workplace. “How did you not bring your best self to the situation?”

She then broke down the topic of diversity and inclusion into 10 “tiny conversations,” offering insight into why women and minorities are often underrepresented in the workplace, and how credit unions can help level the playing field for all individuals.

1. The business case: Nowacki presented statistics that show diverse teams lead to business success. For instance, citing McKinsey & Leanin, she said companies with a higher level of diversity in management earned 38% more revenue in the last three years, and diverse teams have 38% to 48% more employee engagement.

2. The glass ceiling: Nowacki said some believe that the credit union industry has already done its part to achieve diversity and inclusion in leadership, but the facts tell a different story. For example, only 14.5% of CEOs at credit unions with $1 billion or more in assets are female, according to CUNA, and four large credit union associations – CUNA, NAFCU, CUES and WOCCU – have never had a female CEO.

3. The missing first rung: Woman are entering the workforce in entry-level management positions less often than men are, Nowaki noted. According to McKinsey & Leanin, 56% of college degrees are held by women, yet, 62% of entry-level management positions are held by men.

4. The gender wage gap: While laws on gender and wages have helped to narrow the gap, Nowacki said, credit unions can take action on the issue too. Her suggestions included selecting a diverse hiring panel, removing non-essential requirements from job descriptions, ensuring that pay rates match positions and offering employees salary negotiation workshops.

5. Tokens and quotas: Avoid selecting one woman or minority for your board or management team to meet a “diversity quota.” Nowacki said when this happens, “they become a lonely only and stick out, so they end up having to assimilate to the group instead of adding their own value.” She said credit unions shouldn’t hire someone because of their gender or race; instead, they should focus on breaking down barriers that prevent these people from joining their teams. To open up the board to more diverse members, for example, credit unions can hold meetings during evenings and weekends, when more people are available, and allow board members to join meetings via video conference.

6. Unconscious bias: Resumes can get overlooked for the wrong reasons – for example, Nowacki said, employers might choose candidates based on the length of their commute, thinking that if they have a shorter commute, they’ll stay in the job longer. But that could mean they’re overlooking candidates from less-affluent neighborhoods. She said one way to avoid unconscious bias during the resume screening process is to block out candidates’ names and addresses.

7. Sexual harassment: According to McKinsey & Leanin, 35% of women have experienced sexual harassment at work, and the likelihood of harassment increases if the woman is in a leadership position. While the proliferation of harassment accusations has led some men to avoid mentoring women out of fear, Nowacki said, “in order to get ahead, women need to be mentored by people in higher positions, including men.”

8. In-group promotion: Oftentimes, managers approach hiring and promoting with a “tribe” mentality, selecting candidates based on who will best fit in with their team, she noted. However, hiring people who are different will lead to more creativity and innovation within a group.

9. Male allies: To successfully create a diverse, inclusive workplace, it’s important for men – especially white men – to be on board as allies and mentors, Nowacki said. But since many men who are interested in becoming allies aren’t sure of the steps to take, we have to put a path in place that makes it easy for them, she added.

10. Metrics: An important element of a diversity and inclusion strategy is to set goals, track your progress and keep employees in the loop about your progress. “It’s more likely to work if it’s kept transparent and everyone knows what’s going on,” Nowacki said.