Representation of people of colour (PoC)* in supply chain organisations is much higher at every level when the company is publicly held, according to a survey by Gartner and the Association for Supply Chain Management (ASCM).
► Joint survey with Association for Supply Chain Management
► Goals, actions and accountability are key to DEI success
The Supply Chain Diversity, Equity and Inclusion (DEI) Survey of 384 supply chain professionals, conducted in December 2021, mostly in the US, Canada and Europe, found that people of colour make up 35% of the overall supply chain workforce in publicly-held companies and 13% of vice presidents. In privately-held companies, the figures are 30 and 7% respectively.
It saw a similar dynamic when comparing global companies – with a revenue of over $5 billion – to their smaller peers. Looking at manager level and above, the big players have much stronger pipelines when it comes to representation of people of colour. In addition, the pay gap is narrower between different racial and ethnic groups for publicly held organisations.
Figure 1: People of colour in supply chain organisations: publicly held companies have stronger pipelines
Source: Gartner (June 2022)
According to the survey, more than 75% of supply chain organisations consider gender and ethnicity/race in their DEI strategies and objectives. This is a significantly higher rate than in 2020, when 59% of respondents considered gender, and 62% considered ethnicity/race.
However, while three-quarters of those surveyed report that they focus on some dimension of diversity, only 40% are working on specific DEI projects or initiatives.
Gartner said that DEI success is dependent on the supply chain having its own DEI goals and initiatives, as well as measures in place to hold leaders accountable hitting those targets. Nearly all (93%) of respondents in large, global organisations have DEI goals – compared to 37% of smaller organisations. Large, global organizations are also 2.5 times more likely to have targeted DEI initiatives.’
DEI focus on recruitment, L&D, and employee engagement
Recruitment, learning and development (L&D), and employee engagement are the types of DEI initiatives most often seen, with more than 75% of respondents having schemes of some kind in place. Recruitment initiatives could include the use of diverse interview panels or diversity referral programmes. L&D programmes might include diversity mentorship or inclusive leader training. Employee engagement initiatives often centre on employee resource groups or community volunteering.
Fewer than half of organisations in the survey are implementing programmes focused on specific benefits, pay equity or advancement and progression of minority groups. This may pose challenges in retention of under-represented groups if they do not feel that they receive an equitable work experience or opportunities for role progression. However, 32% of supply chain organisations said that recruitment is the most effective initiative, followed closely by L&D (28%) and employee engagement (24%).
You can read more here.
* Gartner defines ‘People of colour’ as being Asian, Black/African/Afro-Caribbean, Hispanic/Latinx, Native American/First Nations, Pacific Islander and any other Indigenous person, which are all underrepresented groups in Europe, the US and Canada.
