Biz Journals: Businesses take stock of diversity efforts

3M, U.S. Bank make progress in diversity efforts, reports Center for Economic Inclusion - Alyxandra Sego - Minneapolis/St. Paul Business Journal, September 13, 2023

“While pressures to abandon racial equity and inclusion efforts are loud and sometimes vicious, the case for accelerating efforts is even more compelling when considering the opportunity that inclusion presents businesses and our broader economy.”

3M Co. (NYSE: MMM) and U.S. Bancorp (NYSE: USB) are among Minnesota companies making progress in diversity, equity and inclusion efforts, according to this year’s racial-equity report from the Center for Economic Inclusion (Center).

The "2023 Racial Equity Dividends Index Report- Private Sector" is the second annual report from the St. Paul-based racial economics organization. Last year, 40 companies with large footprints in Minnesota participated in the racial-equity survey. For this year, 22 companies participated, making the total of unique companies participating for both years at 50, the Center reports.

The index was created as a tool to help businesses identify and monitor their actions for anti-racism, Tawanna Black, the Center’s founder and CEO wrote in the report’s opening statement. It also serves as a barometer for consumers, workers, shareholders and investors, she continued.

The index currently measures 43 racial-equity standards across seven equally-weighted categories (leadership; hiring; culture, retention and advancement; procurement; products and services; philanthropy and investment; and public policy). Some categories, if they were not applicable to a certain company, were excluded from that company’s total score. For example, if a company didn’t participate in lobbying, public policy may not be measured against their score.

According to the report, the average score for this year’s participants was 44 out of 100.

Both 3M and U.S. Bancorp met racial-equity standards within four of the seven categories, the highest in this index. Maplewood-based 3M scored at highly in initiatives related to leadership, hiring, procurement, as well as philanthropy and investment. Minneapolis-based U.S. Bank, meanwhile, scored highly in leadership, hiring, products and services, as well as philanthropy and investment. Both organizations last year met the report’s standards for the category measuring culture, retention and advancement, but did not do so in this year’s report. 

Click to read full article from BizJournals (paywall)

• Read the full 2023 Racial Equity Dividends Index for the private sector to learn more about the organizations that participated.

• Contact Nashan McKelton, director of sales and growth if you want to see how your organization measures up.

• Join us at our Oct. 5 #PoweringInclusion Forum (a virtual event) to understand how recent U.S. policy changes could undermine these efforts!

Do hiring goals still matter? Yes, especially if building a racially equitable and inclusive workplace is the goal

The Racial Equity Dividends Index (Index) is a comprehensive analytical tool developed by the Center for Economic Inclusion that helps businesses measure their progress toward building a racially equitable and inclusive workplace. This post explores the research behind the standards in the Index, and how implementing these policies and practices can help close the racial wealth gap in Minnesota.

Shoreé Ingram

By Shoreé Ingram,
Managing Director, Employer Services and Consulting

In 2022, just 35% of companies participating in the Racial Equity Dividends Index indicated that they set enterprise-wide goals for hiring, retaining and advancing Black, Indigenous, Hispanic, and Asian people in their organizations.

This racial equity standard is one of the most important ways that companies can make real structural change in their organizations. A key lever for this permanent structural change is organizational responsibility—when leaders take responsibility for reaching these goals.  

Studies have found that setting specific goals for hiring, retaining, and advancing workers of color is a highly effective strategy for increasing the racial diversity of an organization’s workforce, especially for management-level roles. This practice has a stronger demonstrated impact on workforce diversity than efforts to create mentorship networks or trainings to reduce bias and discrimination.

While setting the goal is the first step, creating shared accountability across the organization toward achieving these goals is the immediate second.  

What Gets Measured, Gets Done

Companies need to have mechanisms in place not just for measuring progress, but for supporting and holding leaders accountable for developing, implementing and resourcing those anti-racist strategies, and actions needed to achieve goals.

Here are three examples of racial equity standards companies can incorporate into goal setting:

• Hiring, retention, and advancement questions in managers' annual performance evaluations.

• Holding specific strategy sessions with managers on a quarterly, biannual, and annual basis to review progress.

• Offering performance bonuses to managers based on their success in meeting hiring, retention, and advancement goals.

Goals combined with resourced action plans with clear accountabilities will achieve and sustain positive organizational change critical to a racially equitable and inclusive workplace.

Companies increasingly understand the benefit of goal setting to increase racial and ethnic diversity in their organizations and cite research that shows commitment in practice to racial equity and inclusion positively shapes perceptions of culture and work environment for all employees.

Research also shows that companies with teams made up of diverse backgrounds not only benefit from improved financial performance, but are more innovative, able to evolve to meet current market demands and compete in a global economy. This study cited diverse teams are more likely to challenge ideas and rely closely on facts with less likelihood of mistakes or errors. 

Maintaining the Commitment 

While setting goals, and putting action and accountability plans in place are critical, companies need to also maintain this commitment not just during times of stability or growth, but when grappling with economic downturns. Historically during economic downturns, including from 2019 to 2020, Black and Brown workers are too often the first to be laid off or fired, and the last ones hired.

A company and our region’s commitment to racial equity and economic inclusion must be centered in an understanding and commitment to what data has already showed us: we all benefit when we are all included and able to fully participate in our economy.  

Do hiring goals still matter? Yes! Set those goals and be accountable for measurable progress toward a racially equitable and inclusive workplace where every employee thrives .

The Center is ready to help you kick-start and achieve your hiring goals through participation in the 2023 Index. Let’s build!

To learn more about how your company can use the Index to build enterprise-wide goals for hiring, retaining and advancing Black, Indigenous, Latino, and Asian people in your organization, register online by February 24. 

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Making the Unseen Visible: The Racial Equity Dividends Index for the Public Sector

The 2023 Racial Equity Dividends Index registration period is open now through Friday, July 15. Register your organization today.

By Heather Worthington, Managing Consultant

In the last few years, local governments have begun to truly embrace the deeper work of changing policies and practices to address racial disparities in their communities. As they reckon with this, they have found limited tools available to truly measure progress in this area.

As John Dulles said, “The measure of success is not whether you have a tough problem to deal with, but whether it is the same problem you had last year.”

Dozens of organizations in the state are working to solve this dilemma through a unique new racial equity tool.

A Data-Driven Tool to Guide Racial Equity Action

The Racial Equity Dividends Index (Index) for the Public Sector helps public entities better understand their organization’s progress toward meeting their racial equity goals. Diversity, Equity and Inclusion work is important, but in order create and scale systemic change with results that matters to the communities local governments serve, adopting an anti-racist mindset and framework is key. The Racial Equity Dividends Index—Public Sector helps organizations establish a baseline that can be used year-over-year to:

• guide action on racial equity work

• enlist help from staff

• help prioritize resources, and

• experience the meaningful and measurable impact of achieving greater performance in areas like recruitment and retention of employees, procurement from Black, Indigenous, Asian or Latine-owned businesses, and development that addresses historic harms and catalyzes trust-based development in communities of color. 

 The Index also helps organizations understand how policies and practices impact the community in areas like housing, economic development, transportation, public safety, and human services.

Learning to Lead on Racial Equity

Public Sector leaders see the Racial Equity Dividends Index for the Public Sector as an important resource for local governments to use in establishing a baseline measurement of their racial equity work.

“This tool will empower our public organizations to build anti-racist policies,” says District 14 Metropolitan Council Commissioner Toni Carter. “With the help of the Center, and through this Index, our public institutions can truly focus their attention to using their results to uplift Black and Brown people in our communities who have been historically undervalued and underserved.”

Participating organizations receive a report of their results and peer rankings. The report also features peer-reviewed research and profiles of successful approaches to each focus area from the Center and our national partners like Brookings and Policy Link. These features offer supporting documentation for the standards for anti-racism that comprise the Index survey questions. The Report offers organizations a road map for taking action to accelerate areas of strength, and uproot systemic roadblocks to progress on the journey to racial equity and inclusion.

“We know that our communities are looking to us to take the lead on diversity, equity and inclusion,” Center Managing Consultant, Heather Worthington. “We also know that leadership needs data-rich resources like these to show residents, elected officials, and staff that this work is a necessary investment and will benefit everyone. The Racial Equity Dividends Index for the Public Sector is one of the most valuable tools in helping build that business case for investing heads, hearts, and budgets in building a stronger community.” 

Maximizing Action with Limited Resources

For many local governments, data collection is a heavy lift. Human and financial capital and resource restrictions are the source of analysis paralysis – leading to the ever-present question of, “where do we start?” The Racial Equity Index-Public Sector is an ideal tool to get started on measuring racial equity progress—and making sure the strategy aligns with the needs of residents, employers, and government entities.

Once the metrics are more widely understood, the Center can work with staff to address the findings from the Index to assist leaders in better utilizing their unique data with regard to policy and practices. Finally, while all data is anonymized, it is peer-reviewed with similar size local governments in Minnesota and comparable communities across nation. This benchmarking helps organizations establish racial equity goals that also facilitate inclusive economic growth and competitiveness, helping to ensure the community you are building is a community of choice for talent, employers, and investors. 

Getting started is often the hardest part of the work. We’re here to offer a tool that can help leaders take that first step toward becoming a more equitable and inclusive organization. And we’ll be there to guide you and your peers and elected leaders on the journey from increased awareness about what’s working and what’s not, to taking actions that will transform the community into one that is good for all people to live, work and play.

This is an investment that will pay great dividends for staff and ultimately for the community.

• To learn more about the Public Sector Index, email Center for Economic Inclusion Director of Sales & Growth, Nashan McKelton at activate@centerforeconomicinclusion.org.
  
  

A Long Overdue Investment in Racial Justice: Raising Wages for Care Workers

Betsy Ohrn

By Betsy Ohrn Director of Research

At the Center for Economic Inclusion, we believe all workers should earn a family sustaining wage.

One racial equity priority that we were excited to see reflected in Governor Walz’s proposed budget is a major investment to increase the wages of direct care workers. The budget includes $300 million in this biennium and $500 million in the next to implement the tentative contract agreement between the State of Minnesota and SEIU Healthcare Minnesota and Iowa, providing a historic rate increase for more than 20,000 home care workers in Minnesota.  This is a critical opportunity to address a deep racial injustice that touches the lives of hundreds of thousands of Minnesotans. 

“As a woman of color who has chosen to make Homecare a career choice I cannot express how discouraging it is to find an occupation that you truly love and are made for, which also benefits the people you provide services to, but find that you can’t earn enough at to financially support your own household without some type of assistance or additional employment.”- Tavona Johnson 

Women make up 85% of the direct care workforce, 36% of these workers are people of color. Based on DEED data, almost 11% of working Black Minnesotans work as direct care workers (personal care workers, or nursing/home health aides.) This follows a national trend which also shows that Black women are deeply overrepresented in direct care occupations. This occupational segregation reflects a legacy of slavery and domestic servanthood that continues today. Where enslaved Black women were once charged with caring for White children, Black women were then sidelined into work as domestic servants and childcare workers, and now increasingly they are called to care for the growing elderly population. 

The injustice is not the work itself, but the fact that the work continues to be deeply underpaid, even though this work is essential to the well-being of hundreds of thousands of Minnesotans. In 2020, the average wage for all direct care workers in Minnesota was $14.72 per hour. Around 40% of direct care workers have insurance through Medicaid, Medicare, or another public source.1  

Further, these professions are critical to the future of Minnesota, especially as our population continues to age. Direct Care Workers, nursing assistants and personal care assistants, are two of the fastest growing professions in Minnesota. However, low wages and challenging working conditions are already resulting in large vacancy rates. According to the Minnesota Department of Employment and Economic Development, the last estimate at the end of 2021 showed more than 9,100 job openings — a vacancy rate of 8.4%. In 2022, Minnesota nursing homes reported the largest staffing shortages in the country. These staffing shortages make the work harder for the remaining care workers, place extreme stress on family members, and are creating burdens on our hospital system.  Having committed, well-trained, and experienced workers in these roles is critical to the dignity and well-being of Minnesotans needing care.  

While some employers may want to raise wages, market failures and policy hold back what is possible. Federal Medicaid and Medicare rules constrain how much states can reimburse for direct care services. For this reason, state level leadership is critical to this issue. The agreement between SEIU Healthcare and the State of Minnesota would increase starting wages from $15.25 to $20 per hour by 2025. The deal covers more than 20,000 caregivers, about a fifth of the total direct care workers across the state. If the legislature approves and funds this contract, it will be a significant step forward for many direct care workers.  

This is a historic investment in the wages of workers who are essential to Minnesota’s economy. Not only does this benefit our homecare workers, it also goes a long way to attract committed people to these important jobs. However, you do not need to be a member of SEIU to show your support.  

• Want to know more about how we do our research? Check out our Indicators for an Inclusive Regional Economy

• Take Action: Find and call your legislator. Let them know you support this opportunity to make a difference in the lives of our workers and of all Minnesotans that need dedicated people caring for them. 

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Previewing the Racial Equity Dividends Index for the Public Sector

Nathan Arnosti

By Nathan Arnosti, Director of Analytics

Racial Equity: The New Public Priority

Forward-thinking leaders in local governments across the country recognize that many existing practices and policies stand in the way of goals to build racially equitable, inclusive, and prosperous communities.

Studies show that status quo practices – outdated job requirements that exclude candidates of color, purchasing agreements with longstanding contractors that hinder their ability to diversify their supply chains and increase regional job growth among Black, Indigenous, Hispanic, and Asian entrepreneurs,  land use planning that fails to integrate the needs and perspectives of historically marginalized communities, economic development incentives that subsidize low-wage job creation –exacerbate racial wealth gaps and restrict regional economic growth.

​​​​​​​Meanwhile, emerging practices based on research and pilot demonstrations in local governments across the country offer paths to improved service delivery, community relations, livability, and shared economic prosperity.

Many local governments have established taskforces and committees, created new permanent roles and teams, and joined peer learning networks to make progress towards becoming more racially equitable and inclusive. Yet these efforts are too often piecemeal, siloed within specific departments, and lacking broader context and peer comparison. Based on conversations we’ve had with public sector leaders and partners in recent months, we believe that those looking to take their next steps towards building racially equitable governments would benefit from a new tool developed by the Center for Economic Inclusion, the Racial Equity Dividends Index for the Public Sector.

What Gets Measured, Gets Done

This analytical tool evaluates a local government’s internal and external-facing practices across ten dimensions, including Procurement, Community and Economic Development, and Budgets, identifying more than 60 racial equity standards that research and experience affirm to support more racially equitable and inclusive outcomes. Participating organizations receive a customized score report that provides a clear, concise, quantified picture of their government’s overall current state for supporting racial equity, benchmarks progress against peers, and identifies opportunities for further progress. High-scoring entities will also be publicly recognized in an annual Racial Equity Dividends Index for the Public Sector report. The Public Sector Index structure is modeled off of the Center’s Racial Equity Dividends Index for the Private Sector, which launched in 2022 for private sector employers.

How To Participate

Registration for the first annual Racial Equity Dividends Index for the Public Sector begins at the end of April and will be available to city and county governments in Minnesota and select jurisdictions across the United States. Email me at narnosti@centerforeconomicinclusion.org if you have questions, and stay tuned for more information about registration for the Public Sector Index in the coming weeks!

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Who are your subcontractors? Why organizations at the forefront of racial equity are measuring Tier 2 supplier diversity

Maggie Dalton

By Maggie Dalton, Senior Analyst

Buying goods and services from businesses owned by Black, Indigenous, Latino, and Asian people enable companies to benefit from new ideas and access new markets. That’s why more leaders in the private and public sectors are recognizing that their organization's supplier base is a critical lever for building a racially equitable economy.

A racially diverse local supplier pool can bring greater resilience and new resources into historically underinvested communities, building individual and community wealth. But robust supplier diversity efforts go beyond valuing racial diversity among direct suppliers — these efforts recognize that a supplier's subcontractors, or Tier 2 suppliers, matter, too.

That’s why one of the racial equity standards in the forthcoming 2023 Racial Equity Dividends Index is: Does your organization measure the racial diversity of its Tier 2 suppliers?

Standards related to procurement show some of the greatest opportunity for improvement among organizations who participated in the 2022 Racial Equity Dividends Index.

Just 39% of organizations who participated in the 2022 Racial Equity Dividends Index have an enterprise-wide practice of collecting and sharing data on the racial diversity of suppliers. Measuring the racial diversity of Tier 2 suppliers is a new standard for 2023.

Supplier diversity programs, which seek to build a diverse supplier base within organizations, have existed for decades, though it remains an area of business practice that is quickly evolving. Many businesses are just beginning their supplier diversity journeys, leading to a real competitive advantage for those who focus on diversifying in this area.

Research finds that diverse suppliers increase innovation, competition, and resilience throughout the value chain and unlock additional value, both for businesses and regions through increased business activity and economic growth. Moreover, investing in minority-owned businesses is investing in building prosperity in Black, Indigenous, Hispanic, and Asian communities.

Due to historic patterns of underinvestment, Black, Indigenous, Hispanic, and Asian-led firms often have smaller revenues and staff than white-led companies and may be better positioned to start with smaller contracts and grow. Also due to their smaller size, these businesses are the ideal candidates for subcontractors or to deliver on specialized requests that primary contractors are unable to provide. Investing in minority-owned businesses as Tier 2 suppliers can provide on-ramps for suppliers of color, enabling them to grow, scale, and add capacity over time.

Beyond tracking Tier 2 spend for themselves, research from the Center for Economic Inclusion finds that procuring companies have the ability to influence Tier 1 suppliers to track and adopt measures of their own progress in subcontracting across their entire portfolio with businesses owned by people of color, therefore further expanding their influence.

For example, in 2019, Ford launched the Widening the Inclusion Network (WIN), designed to “further develop their existing supplier diversity programs through coaching, mentorship, and thoughtful partnerships with other diverse businesses.” Ford is leading the way by investing not only in businesses, but in relationships.

At the Center, we help companies implement promising practices to build racial equity for their workers and their communities. The Racial Equity Dividends Index is one tool we offer to help businesses measure their progress toward building a racially equitable and inclusive workplace.

The Index includes 43 racial equity standards across seven categories that support racial equity in workplaces: Leadership; Hiring; Culture, Retention, & Advancement; Procurement; Philanthropy & Investment; Public Policy; Products & Services.

We know many companies are leading the way in tracking Tier 2 supplier diversity as a part of growing supplier diversity initiatives.

Encourage your company to join the movement and evaluate progress towards building racially equitable and inclusive workplaces – workplaces that pay dividends for everyone.

If your company is interested in taking the next step to measure and continue building a racially equitable and inclusive workplace, be sure to register for the 2023 Index by March 10 to receive your confidential results and find out how your organization compares to others in your industry.

• Register for the 2023 Racial Equity Dividends Index

• View the 2022 Index Report

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How the Racial Equity Dividends Index Helps Companies Build Racially Equitable and Inclusive Workplaces

Index Registration Open Through March 8

In January 2021, the Center for Economic Inclusion (Center) launched the first-ever Racial Equity Dividends Index (Index), a comprehensive analytical tool to help companies assess how their current policies and practices position them to win on racial equity and advance business goals, while also identifying opportunities for improvement. Since then, more than 100 public and private organizations have used this assessment to navigate their efforts to close racial wealth gaps.

We sat down with Nathan Arnosti (Director of Analytics and Index project lead) to talk about the Index, now open for registration through March 8.

Nathan Arnosti

What is the Index?

(Nathan) The Racial Equity Dividends Index (Index) is an analytical tool designed to support private-sector businesses in their journeys to build racially equitable and inclusive workplaces. The Index offers companies an intuitive, comprehensive, and measurable roadmap for progress on racial equity.

How can my business register for the Index?

(Nathan) First, eligible companies – currently, all private-sector organizations with offices in Minnesota – register online for the Index at the Center’s website. Then, once registration closes on February 24, registered businesses will receive the 2023 Private Sector Index survey and have approximately four weeks to complete it.

What information is gathered through the Index survey?

(Nathan) Through a series of multiple-choice questions, the survey asks companies to report their progress against 43 racial equity standards spanning seven dimensions of company operations, such as hiring, procurement, leadership, and products and services. It also provides companies the opportunity to gather and share data on workforce demographics and supplier spending.

What happens next?

(Nathan) The survey responses inform two sets of analytical Index products that are delivered to participating companies. First, participants receive a customized score report that provides their full answers alongside peer comparisons and recommendations developed by the Center for Economic Inclusion, so that companies can learn what their strengths are and where opportunities lie. Next, companies are included in the Racial Equity Dividends Index Report that aggregates responses across companies, identifying trends, elevating promising practices and case studies, and celebrating leading employers in each category. The 2022 Index report is available on our website.

Why is it important for companies to participate?

(Nathan) Spurred by the murder of George Floyd by Minneapolis police officers and the largest protests in American history in 2020, businesses pledged to reshape existing practices and committed record-setting investments in historically disadvantaged Black, Indigenous, Hispanic, and Asian communities.

At the same time, we know that businesses often lack a roadmap for what racial equity can look like or clear standards against which to measure their actions. They also have very limited information about how their actions compare to peers.

The Index is a tool designed to meet these needs – to help companies make tangible, durable progress towards building racially equitable and inclusive workplaces that drive innovation, productivity, retention, and belonging.

Who is the target audience?

(Nathan) We’ve designed the Index for all private-sector companies in all industries. In our experience, companies with at least 50 employees find the Index most valuable.

In 2022, companies of all sizes participated in the Index -- executive recruiting firms with fewer than 100 employees, to manufacturing companies with several hundred or thousand employees, to Fortune 500 companies, like Best Buy or 3M.

This Index offers companies the opportunity to learn from one another, regardless of sector or size, and I see that as a key part of its value. Participating companies were particularly compelled by the opportunity to assess their results alongside similar employers in a customized sector report.

What were some of the biggest learnings from the Racial Equity Dividends Index?

(Nathan) We learned that there is a tremendous appetite among private-sector leaders for analytical tools that offer a clearly defined, measurable roadmap to build racially equitable workplaces. In its first year, 40 companies that collectively employ more than 200,000 Minnesotans participated in the Index, even though it was a novel and unprecedented initiative. We’re excited to connect with even more businesses to encourage them to participate and take advantage of the Index this year.

QUESTIONS

For more information about the Racial Equity Dividends Index, please see the registration page, FAQ page, download the Index brochure, or email us at index@centerforeconomicinclusion.

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What’s New: Introducing the 2023 Racial Equity Dividends Index for the Private Sector

Nathan Arnosti

By Nathan Arnosti, Director of Analytics

A year ago, the Center for Economic Inclusion launched the inaugural Racial Equity Dividends Index (Index). The Index surveys participating companies on their policies and practices related to 43 Center-identified racial equity standards that span seven dimensions of company activity.

Participating companies receive customized score reports that help them assess their strengths and opportunities on racial equity, understand how they compare to peers, and chart a roadmap for further action. Additionally, a public Index report identifying high-scoring businesses, trends, and case studies is published on the Center’s site as a free resource for companies.

Forty companies of all sizes – from Fortune 500s to enterprises with fewer than 100 employees, and collectively employing more than 200,000 Minnesotans – participated in the Index last year. With the results of this index in-hand, these organizations have used their unique results to focus their efforts to drive racial equity forward within their organizations.

The Center offers the Index to companies on an annual basis. We believe that to sustain excellence, the Index must adapt to reflect new research and thinking on standards that best advance racial equity within companies.

These are several of the questions that the upcoming 2023 Racial Equity Dividends Index for the Private Sector seeks to answer:

• How many businesses in Minnesota no longer use a new hire’s salary history to determine their salary?

• Do businesses provide hourly workers with consistent schedules and the ability to work full-time?

• Does your organization measure the racial diversity of its Tier 2 Suppliers (your suppliers’ suppliers)?

What’s new in 2023

After we published the 2022 Index results last June, I led a team of Center colleagues to revisit and re-evaluate our racial equity standards. Integrating feedback we received from participating companies, new research which included the Center’s own research on racially equitable procurement and policymaking practices, and emerging models from racial equity practitioners,  the 2023 Index offers the following additions:

New sections to collect data on racial equity outcomes at your organization. In these sections, participating companies report on critical datapoints related to their workforce and supplier diversity, including: 

• Racial demographics of their workforce at different levels, including senior leadership, supervisors, all full-time staff, and all part-time staff;

• Number of workers by race who earn family-sustaining wages, are hired, receive promotions, and depart; and

• Number of and total investment in Black, Indigenous, Hispanic, or Asian-owned suppliers.

These sections will not count towards an organization’s score, but we believe they will provide invaluable insight into baseline outcomes of participating companies compared with peers, which will be shared with each organization in their confidential Index score report

Seven new racial equity standards. Our team has developed new standards related to the use of salary histories during hiring processes, protocols to ensure that Black, Indigenous, Hispanic, and Asian-owned businesses are considered in requests for proposals, corporate transparency around lobbying efforts, and more. We believe these new standards will shed new light on the opportunities for building – and benefitting from – racially equitable workplaces.

Revisions to several existing Index standards. Based on feedback we received from participants, new research, and an analysis of 2022 results, we’ve revised a handful of standards so that they offer clearer, more compelling insights. The 2023 Index gathers more specific data on the action businesses take to reduce bias within the application process, benefits they offer their employees, and efforts to provide antiracist training to employees. We’re excited to share these revised standards with participating companies in the 2023 Index survey.

We believe the 2023 Racial Equity Dividends Index is the tool that companies need to strengthen and deepen their existing efforts to build racially equitable and inclusive workplaces – and benefit from the innovative ideas, increased productivity, improved retention, and higher satisfaction and engagement that can result.

The updates we’ve made to the Index over the past six months further strengthen its value. Dismantling racially inequitable systems and building organizations and economies that benefit all of us is a daunting undertaking. With tools like the Index to support and accelerate the efforts of dedicated leaders within organizations, we believe that progress is possible.

Registration for the 2023 Racial Equity Dividends Index for the Private Sector is open now through February 24. Don’t miss this opportunity to participate! bit.ly/2023-Index

Please see our FAQ page for additional information about the 2023 Racial Equity Dividends Index for the Private Sector and direct any questions about the Index to index@centerforeconomicinclusion.org.

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Center for Economic Inclusion releases innovative data, tools to measure and track Twin Cities’ economic inclusivity

Center’s Indicators for an Inclusive Regional Economy and first-ever Racial Equity Dividends Index identify areas for improvement in region’s pursuit of workplace and economic inclusion

The Center for Economic Inclusion today unveiled its 2022 Indicators for an Inclusive Regional Economy and the first-ever findings from its new Racial Equity Dividends Index during its Powering Inclusion Summit, the State of Racially Inclusive Economic Growth & Employer Action. Shared with Index participants and the Twin Cities business, government, and community leaders in attendance at the summit, together, the interactive Indicators website and Racial Equity Dividends Index can be used as powerful tools to help identify challenges and implement solutions to build an economy for everyone.

“For more than two years, businesses have made bold declarations to address racism. Those who are ultimately instrumental in Minnesota’s elevation from worst in the nation for African Americans, to best in the nation for African Americans and business growth and economic prosperity, will be those who adopt systemic frameworks rooted in anti-racism and liberation that honor the brilliance in communities of color,” said Center for Economic Inclusion Founder and CEO Tawanna A. Black.

“The Center’s first-ever Racial Equity Dividends Index gives leaders the proven standards to guide their strategies and goals and the 2022 Indicators for an Inclusive Regional Economy guides organizations in establishing goals for both internal performance, and the resulting impact on the regional economy.”

About the Racial Equity Dividends Index

The Racial Equity Dividends Index is a comprehensive tool that businesses opt into to measure their progress toward building inclusive workplaces in Minnesota. A total of 40 businesses participated in the first-ever Index this spring, which measured performance on the leading standards of racial equity, inclusion and belonging. These 40 participating companies employ more than 200,000 workers in Minnesota, and an additional 550,000 employees elsewhere in the world, meaning approximately one in every 12 non-government employees in Minnesota works for a company participating in the Index.

The Index scores participating companies on the leading standards to advance anti-racism, inclusion and belonging in seven categories including: leadership; hiring, culture, retention, and advancement; procurement; products and services; philanthropy and investments; and public policy. Participating organizations were evaluated and received scores ranging from 6 to 76 points out of a possible 100. The average company score was 38, with final totals significantly varying. On average, the larger organizations scored higher overall and in every Index category, likely reflecting their greater access to resources and staff capacity compared to smaller organizations.

Index data found participating companies scored highest in racial equity standards related to leadership, culture, and retention and advancement, with the greatest opportunities across the board for improvement in racial equity standards related to participant’s products and services, procurement, public policy, and philanthropy and investment.

Analysis of participating companies by industry indicates that manufacturing companies scored higher in hiring and leadership; organizations in finance and insurance scored higher in philanthropy and investment; and health care and social assistance organizations scored higher in public policy and products.

About the Indicators for an Inclusive Regional Economy Digital Lab

The Indicators for an Inclusive Regional Economy evaluates key measures of inclusive economic growth and competitiveness while offering profiles of data by race and income. The digital lab on the Center’s website also offers tools and case studies for closing racial wealth gaps and addressing workplace racial equity and inclusion opportunities.

This newly updated data demonstrates that Minnesota’s employers and policymakers must take more deliberate, aggressive, and sustained action and make anti-racist, systemic investments to not only close racial wealth gaps and position the state to compete in the global economy, but to ensure all people experience the racial and economic justice, inclusion and belonging we value and deserve. The data highlight the many existing barriers to quality, well-paying economic and employment opportunities for all Minnesotans, despite historic levels of job openings and the need for additional workforce labor.

Recent employment rates have significantly differed across racial, ethnic, and culture groups, with Black, American ancestry, Somali, and Indigenous residents employed at a rate of 54% compared to more than 80% for Puerto Rican, Korean, and Indian residents; further studies have revealed that workers of color are often the first to be laid off and the last to be hired for full employment. Racial discrimination in the employment process is also still prevalent, with more than three in four Black, Indigenous, Hispanic and Hmong residents having reported experiencing racial discrimination when applying for a job.

Over the past five years, the Center for Economic Inclusion has quickly grown and emerged as a regional leader in building, scaling, and institutionalizing anti-racist workplaces. By working alongside organizations to better understand and implement current research findings, the Center hopes to build a thriving, resilient regional economy where everyone can participate in markets, advance in careers and build wealth, and drive overall economic growth. Quality, consistently updated data through tools like the Indicators for an Inclusive Regional Economy and the Racial Equity Dividends Index are critical for identifying the challenges, taking note of the opportunities, and acting on tangible, research-driven solutions.

To learn more about the Racial Equity Dividends Index and to read the full report, click here.

To explore the Indicators for an Inclusive Regional Economy digital lab, click here.