Detroit Equity Report 2022
Report Reveals Concrete Steps to Closing Equity & Inclusion Gaps
In 2016, a typical white family in the U.S. had a net worth of $171,000, while a typical Black family had a net worth of $17,150, according to The Brookings Institution.
It’s a shocking disparity and a key statistic called out in the Detroit Equity Inc. (DEI) 2022 Detroit Equity Report. DEI released the report, developed in partnership with Wayne State University’s Damon J. Keith Center for Civil Rights, at its 2022 Detroit Equity Symposium, an inaugural event attended by Detroit corporate and civic leaders.
The 2022 Detroit Equity Report reinforces the idea that diversity, equity and inclusion aren’t just the right things to do, they provide value. It outlines key data points, actionable steps and case studies targeting diversity in three areas: Detroit’s workforce, governing boards and the supply chain.
Diverse Interview Panels Enhance Workforce Diversity
Affinity bias can quickly disregard well-qualified candidates, denying them an employment opportunity and causing companies to lose out on potentially valuable team members. To alleviate bias in the hiring process, more and more companies have turned to diverse interview panels in lieu of a single hiring manager. These panels typically represent different age, gender, race and ethnicity groups. They include people with different backgrounds and experience, bringing a range of perspectives to the table.
Use of diverse interview panels prompted Intel to increase its hiring of women of color from 31% to 45% and at Cisco, it increased the likelihood of employment for African American women by 70%.
Board Diversity Helps Companies Better Understand Communities They Serve
In 2018, women of color made up only 4.6% of Fortune 500 board members. In 2019, ethnic minorities in the U.S. made up only 10% of Russell 3000 board members.
To reverse this trend, Henry Ford Health System recognized the value of board diversity and made a concerted effort to be more inclusive. The company conducted a board assessment to identify gaps, set specific board diversity goals and broadened its slate of candidates. It now operates with a board that more accurately reflects the communities it serves.
Supplier Diversity Initiatives Yield Economic Benefits
To improve supplier diversity and expand business opportunities in marginalized communities, U.S. companies have implemented several key practices:
Partnering with organizations that champion the cause and can connect them with diverse suppliers
Developing tier 2 supplier programs that encourage tier 1 suppliers to contract with diverse small businesses
Instituting inclusive bidding processes, vendor mentoring, and program tracking and assessment
According to a Korn Ferry report, for every $1 million Microsoft spends with diverse suppliers, 75% is retained by the local community and more than 17 jobs are created.