The changing demographics of the United States are transforming the culture and buying habits of this nation. This metamorphosis is occurring more rapidly than anticipated. Companies that intend to be competitive going forward must understand and actively court merging-market customers, including people of color, gays/lesbians and people with disabilities.

1. Presented by Georgia Coffey Deputy Assistant Secretary for Diversity and Inclusion U.S. Department of Veterans Affairs CAPITALIZING ON DIVERSITY MAXIMIZING PERFORMANCE THE BUSINESS CASE FOR DIVERSITY & INCLUSION

2. HISTORICAL PERSPECTIVE 1960s : Civil Rights Enforcement 1970s : Affirmative Action 1980s : Respecting Diversity 1990s : Diversity Management 2000+ : The Business Case for Diversity & Inclusion; Diversity of Thought

3. Equal Employment Opportunity (EEO) The set of laws, regulations, and policies that guarantee every individual’s right to EEO in the workplace, irrespective of race, color, religion, national origin, sex, sexual orientation, age, or disability (reactive, legally driven). Affirmative Action The requirement under Executive Orders 11246 and 11478 to measure the representation of certain demographic groups in the workforce in comparison with the available labor market, in order to identify potential barriers to equal opportunity and take affirmative steps to correct manifest imbalances through expanded outreach (assimilation). DEFINITIONS

4. Diversity Management A proactive effort that responds to the changing demographic profile of the workforce through the implementation of programs and services that support and empower a diverse workforce through multicultural approaches (program-oriented). Business Case for Diversity & Inclusion The return on investment (ROI) in terms of performance and economic outcomes that results from leveraging the variant knowledge, skills, abilities, talents, intellectual capital, perspectives, working styles, etc. of a diverse workforce (process-oriented). DEFINITIONS

5. DIVERSITY is about valuing and promoting differences, similarities and unique characteristics of groups and individuals in the workforce. INCLUSION is about empowering and leveraging diversity in the workforce by enabling individuals to contribute to their fullest potential through individual development, retention, and pluralistic work processes. EEO COMPLIANCE is about ensuring that we comply with all the laws, regulations, and policies prohibiting discrimination and requiring affirmative employment in the Federal workplace. WORKING DEFINITIONS

6. Business Imperative Does workforce diversity have a quantifiable effect on business/performance outcomes? Economic Imperative Is there a financial/economic benefit to workforce diversity? Human Imperative What is the human cost? How does organizational culture impact one’s contributions to the mission? What does the research show? WHY DIVERSITY & INCLUSION? We know there is a legal imperative, but is there a…

15. Gallup Survey : Employee engagement is a validated predictor of organizational performance; diverse workplaces with culturally competent workforces have the highest employee engagement.* Sirota Survey : Key motivators for employees are equity, achievement, and camaraderie.** Conclusion : Empirical data show a quantifiable link between diversity and employee engagement and performance outcomes. * Gallup Organization. Q12 Employee Engagement Survey , performed in the Food and Drug Administration, February 2005. ** David Sirota et al. The Enthusiastic Employee: How Companies Profit by Giving Employees What They Want , 2005. THE HUMAN IMPERATIVE

22. Performance Organizational Inclusion Equity Workforce Diversity SYNERGY FOR A HIGH-PERFORMING ORGANIZATION

23. U.S. Department of Veterans Affairs Office of Diversity and Inclusion Web site www.diversity.hr.va.gov E-mail [email_address] CONTACT INFORMATION