Key factors that support Hispanic advancement in organizations
Untapped potential: The Hispanic talent advantage
There is arguably no more compelling—or obvious—opportunity in the realm of human capital than the untapped talent of the Hispanic community in the United States.
There is arguably no more compelling—or obvious—opportunity in the realm of human capital than the untapped talent of the Hispanic community in the United States.
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Businesses today are looking for every advantage they can find. Economic and regulatory uncertainty is high. Competition is fierce. COVID continues to dominate the headlines and our lives. The battle for an edge is never ending.
Yet significant opportunities remain, from leveraging exponential technologies to better deploying human capital. And there is arguably no more compelling – or obvious – opportunity in the realm of human capital than the untapped talent of the Hispanic community in the United States.
A new survey from the IBM Institute for Business Value (IBV) both underscores this untapped potential and identifies actions that businesses can take to close the talent gap. An associated Virtual Hispanic Jam, hosted by the IBV and We Are All Human, provides additional insights: Over the course of 33 hours on November 10-11, 2020, nearly 1,000 Hispanic leaders offered their perceptions of the opportunities – or lack thereof – for Hispanics in the workplace. For purposes of this study, we use the terms Hispanic and Latino to describe the group of people who identify as Hispanic, Latino, Latina, Latinx, or Spanish.
Hispanics, representing nearly 1 out of every 5 US residents, are estimated to drive almost 25% of the country’s GDP growth. During the coronavirus pandemic, Hispanics and other people of color have been both disproportionately impacted by and contributors to frontline efforts, as reported by The New York Times and others. That is a reflection of Hispanics’ power in the workforce. Since the global financial crisis, Latinos have accounted for more than three-quarters of US labor force growth. And that relative importance is by no means a temporary aberration. Positive impacts of America’s Hispanics are likely to continue well into the future, with 6 in 10 Hispanics in the US aged 35 and younger.
Yet among corporate executives, Hispanic representation is remarkably low: just 4%. Taking action to close the Hispanic leadership gap is not just about leveling the playing field; it is about unlocking the performance potential of a critical and growing segment of the workforce.
Our new IBV study explores four critical areas:
How discrimination in US society limits Hispanic advancement
How specific personal experiences with discrimination blunt the potential and motivation of Hispanic talent
How and why Hispanic women face particularly challenging hurdles
Among the key findings:
Key findings confirm that professional advancement opportunities have played a significant role in helping senior Hispanic executives achieve their success. But the survey also identifies challenges:
The opportunity challenge:
Younger Hispanic leaders are not getting the same advancement opportunities as their more senior colleagues. 41% of the Hispanic executives surveyed say they have benefitted from formal mentoring and on-the-job training, but only 26% of junior managers say they have access to these mentorship programs and only 31% say they have access to workplace training. Perhaps as a result, only 1 in 5 junior managers say they feel empowered to overcome professional challenges.
The discrimination challenge:
87% of Hispanics say they have experienced prejudice because of their race. And 70% of junior leaders say they have to work harder to succeed because of their identity. That doesn’t change much over the course of a career, with 63% of all Hispanics saying they continue to work harder because of their identity, no matter how high they climb on the leadership ladder.
The gender challenge:
For Latinas, all of the hurdles faced by Hispanics – and by women – are amplified. Among other things, they are paid significantly less than other groups, and 82% of poll respondents say Latinas don’t get the respect they deserve.
Hispanics in the workplace
The IBV surveyed four groups of Hispanics across the U.S. workplace: senior executives, senior managers, junior managers, and entrepreneurs. These individuals were identified because they are, in effect, role models for the wider community of leaders who defied the odds: breaking through into positions of authority or on the path to get there. The goal of the survey was to identify which behaviors, tools, and motivations most fueled these success stories.
The behaviors Hispanics say contribute to their success
50%
Goal setting
45%
Flexibility and staying positive
38%
Team building
How do Hispanic leaders define success?
39%
Achieving financial security
39%
Creating positive change
As to which behaviors most contributed to respondents’ success, the top answers were “setting goals” at 50% and “flexibility and staying positive” at 45%. Team building, which was selected by 38% of all respondents, is one of the practices – along with curiosity and calculated risk taking – that seems to gain importance over the course of a leader’s career.
The survey highlights key leadership capabilities. Senior Hispanic leaders credit strong communication skills, personal organizational skills, and business savvy among the capabilities most essential to their success. Junior managers most often identify their own passion followed by access to tools and technology as the attributes that contribute most to their advancement. Interestingly, junior leaders are far more likely to identify supportive colleagues as essential to their success than those in other levels of leadership.
In terms of defining success, the highest-rated motivations are both practical and purpose-driven: 39% cite “achieving financial security” and 39% also identify “creating positive change.” In an era when the societal impact of businesses is increasingly tied to economic performance and brand character, this combination indicates the fertile potential of this community. Among senior Hispanic executives, in fact, “creating positive change” and “maintaining personal integrity” are cited at even higher rates, while far more junior managers identify “achieving financial security,” “owning a home,” and “being employed full-time” as clearly differentiating features among the four sub-groups.
The IBV survey also explored where, and from whom, Hispanic leaders find their inspiration. Among senior executives, the top answer, cited by 50% of respondents, is other business leaders – perhaps unsurprising, since they look for role models as they continue their ascent. Senior managers are more likely to cite community members in addition to business leaders (34% each), and junior managers below them are more likely to identify their parents as key influences (36%). Parents are also cited two times more often as the most influential group among Jam attendees (58%).
Mentorship plays an important part in senior executive and senior management success, but junior managers are not yet seeing this benefit in their careers, which points to a significant opportunity for organizations wishing to find a competitive hiring advantage. Mentorship was a major focus of discussion in the Jam as well, with two-thirds of poll respondents saying they currently mentor a Hispanic junior leader. Sponsorship, as distinct from mentorship, also generated robust conversation in the Jam, with one participant asserting that Hispanics are over-mentored and under-sponsored. 83% of participants in a Jam poll say business executives are not doing enough to pave the way for the success of the next generation of Hispanic leaders.
“As we all know, mentors can help provide valuable insights and advice. But mentors talk to you; sponsors talk about you. (Hispanic) professionals need sponsors who will advocate on our behalf, particularly when promotion and appointment decisions are being made. While we can pick our mentors, sponsors have to pick us.”
- Virtual Hispanic Jam participant
- Virtual Hispanic Jam participant
We asked Virtual Hispanic Jammers to give their organizations a letter grade on diversity and inclusion (D&I) efforts. The good news is that more than 70% award an A or B. The opportunity is with the 29% of organizations that earn a grade of C, D, or F. Fortunately, only 3% of polled Jammers give their organization a failing grade.
Most Hispanics give their organizations high marks for diversity and inclusion
To improve their organizations’ grades, many Jammers suggest an emphasis on Employee Resource Groups that focus on the Latino experience. 52% already belong to one and another 8% are planning to join.
“Listening is absolutely crucial to establishing a more inclusive environment,” one participant said. “In my opinion, we should push for a more central conversation of diversity within organizations, from which you ensure representation and outlets can be created to address the specific issues affecting the various communities.”
“Listening is absolutely crucial to establishing a more inclusive environment,” one participant said. “In my opinion, we should push for a more central conversation of diversity within organizations, from which you ensure representation and outlets can be created to address the specific issues affecting the various communities.”
"The (Hispanic community) fragmentation/ diversity is an asset, not a source of concern. Any successful solution leverages what unites us, while still respecting and amplifying our differences as a group."
- Virtual Hispanic Jam participant
Hispanic identity and discrimination in the United States
According to Hispanic business leaders surveyed by the IBV, obstacles facing Hispanics are not just difficult – they’re often even worse than those faced by other racial and ethnic groups in the US. 88% of the Hispanic leaders surveyed say discrimination against Hispanics exists to at least some extent. 87% also say they have experienced it personally. In fact, respondents identify more discrimination in US society stemming from Hispanic identity than they do around gender or any other attribute.
Pervasive discrimination against Hispanics seems to impact other areas of discrimination as well. Hispanic LGBT+ people report discrimination on sexual orientation across US society to a greater extent than white LGBT+ respondents do. Similarly, 78% of Hispanic female respondents cite high levels of discrimination against women, while only 67% of white women feel the same.
More Hispanic women than white women say they have experienced discrimination based on gender
78%
of Hispanic female respondents cite discrimination against women
67%
of white female respondents cite discrimination against women
Jam participants identified multiple misperceptions about the Hispanic community – some perpetuated by the community itself – that create persistent biases and hamper growth. Only 16% of Jam poll respondents agree that the Hispanic community is unified, and hundreds of comments magnify the outcomes of this community fragmentation. First among them is disagreement over a community “label” and, in fact, whether trying to find one only further masks other important issues. In a poll, 41% of respondents identify most as Latino/a, 29% prefer Hispanic, 18% have no preference, 7% choose Latinx, and 5% choose “other.”
In another poll, almost no one (2.5%) felt that the perception of the Hispanic community reflects its reality, despite the fact that traditions, culture, shared family values, and Spanish language are factors that unite the community. Hispanic identity is an ever-evolving concept and is playing an ever more important role in shaping America. Said one Virtual Hispanic Jam participant: “Amidst our differences racially, regionally, religiously, and politically, identifying as Hispanic/Latinx empowers individuals to seek out the commonalities between everyone who belongs to this identity. In many occasions, I have learned more about myself and our culture through celebrating our various differences. Although fragmentation is not particular to the Hispanic/Latinx community, we tend to highlight these issues as it affects our perspectives directly.”
The societal environment is not something businesses can control directly, but it should be considered in assessing, training, and managing Hispanic talent. Leaders should pay special attention to the difficulty and perhaps futility of trying to categorize a diverse and multifaceted group; rather, they should consider recognizing and supporting all of its uniqueness. Leaders should also recognize the associated opportunities in the areas of hiring and promotion. Even among the successful cohort of Hispanic respondents, personal experiences of discrimination are alarmingly and disappointingly prevalent. Organizations that can overcome them with “bias-busting” initiatives will benefit.
In another poll, almost no one (2.5%) felt that the perception of the Hispanic community reflects its reality, despite the fact that traditions, culture, shared family values, and Spanish language are factors that unite the community. Hispanic identity is an ever-evolving concept and is playing an ever more important role in shaping America. Said one Virtual Hispanic Jam participant: “Amidst our differences racially, regionally, religiously, and politically, identifying as Hispanic/Latinx empowers individuals to seek out the commonalities between everyone who belongs to this identity. In many occasions, I have learned more about myself and our culture through celebrating our various differences. Although fragmentation is not particular to the Hispanic/Latinx community, we tend to highlight these issues as it affects our perspectives directly.”
The societal environment is not something businesses can control directly, but it should be considered in assessing, training, and managing Hispanic talent. Leaders should pay special attention to the difficulty and perhaps futility of trying to categorize a diverse and multifaceted group; rather, they should consider recognizing and supporting all of its uniqueness. Leaders should also recognize the associated opportunities in the areas of hiring and promotion. Even among the successful cohort of Hispanic respondents, personal experiences of discrimination are alarmingly and disappointingly prevalent. Organizations that can overcome them with “bias-busting” initiatives will benefit.
Personal experiences
Hispanics say they experience multiple types of discrimination
87%
Race and/or ethnicity
63%
Accent, language, or speech pattern
58%
Looks or body type
For the 4% of Hispanics in highest ranks of senior executives in the US, personal experience of discrimination was less of an obstacle in reaching their success. But our survey suggests this good fortune was less available to the wider Hispanic population. For all four of the roles we surveyed against, and across gender and sexual orientation, discrimination has been a lived experience. Hispanic leaders have often succeeded not in the absence of discrimination but despite it.
87% of respondents report personally experiencing discrimination because of their race and/or ethnicity. 63% cite specific discrimination based on their accent, language, or speech pattern. And 58% say they have experienced discrimination based on their looks or body type. All three measures outpace discrimination resulting from religious views, gender, socioeconomic status, sexual identity, sexual orientation, and age.
There is some good news, though. Just 5% of Jam poll respondents say bias was purely intentional, while 17% say it was unconscious and nearly 75% identify some combination of both. And in another poll, respondents overwhelmingly report feeling comfortable talking about issues of discrimination with their colleagues and management at work (63%).
“I experienced discrimination and had to walk away for self-respect. It takes a lot of self-love, self-awareness, and confidence to overcome all of that and make sure you earn the respect of others”
- Virtual Hispanic Jam participant
Latina experience
On average, Latinas in the US are paid 45% less than white men and 30% less than white women. They have the dubious distinction as the group that works longer than every other racial and ethnic group – 23 months – to earn what white men earn in 12 months. According to Lean In, some researchers believe that bias is to blame for over half of the pay gap for Latinas. Our research supports that perspective, with 70% of Hispanic women saying they have experienced discrimination because of their gender and 86% because of their ethnicity. It’s a double impact that results in extremely high hurdles for Latinas. We call this “the gap within the gap.”'
This disparity hurts Hispanic families and communities and also leaves opportunity on the table for employers willing to double down on equity efforts. Latinas and their allies who participated in the Virtual Hispanic Jam have some ideas:
Build awareness
Build awareness of “cultural scripts” and affiliated discrimination that can disadvantage Latinas in the workplace and work to overcome them.
Leverage the power
Leverage the power of role models, mentors, sponsors, and allies. The benefits of seeing Latina women, and all women of color, in power positions cannot be overstated.
Emphasize
Emphasize STE(A)M program awareness and enrollment for young Hispanic women.
Additional research on Latinas will be included in an upcoming IBM Institute for Business Value study to be published in celebration of International Women’s Day in March 2021.
Working toward a better future
The opportunity offered by Hispanic talent is considerable. Despite whatever progress has been made in US society over recent years to ease discrimination and provide equal pathways for success, much work remains. Investing to help the Hispanic community thrive is an investment in our collective prosperity.
Organizations that assert a leadership role in Hispanic equality will be advantaged in accessing top talent to drive performance, bringing with them a diversity of ideas, experiences, and perspectives. But as with any new initiative, to have sustained success, the commitment must begin at the top and extend through an organization.
Here are three ways organizations can help close the gap:
1. Make Hispanic advocacy a business priority.
Hispanic leadership representation should be an articulated priority with goals set at the same level as other business objectives, assigned to leaders who are held accountable for achieving them. These goals could include both leadership pipeline and progression. Organizations will make progress only if wishes are transformed into action plans with clear accountability. Making this a business priority and ensuring that mentoring initiatives are balanced with active advocacy is essential to make progress in Hispanic leadership representation at all levels.
2. Prepare Hispanics for the future of work.
Digitization and automation will disproportionately impact the services industries in the next five years, which is where Hispanics are most exposed. These factors will also create jobs in sectors such as technology, where Hispanics are currently under indexed. Unless we urgently prepare both entry-level and experienced Hispanics to navigate this shift, we will see a double negative impact: a) job displacement and economic hardship and b) scarcity of qualified resources for the new digital jobs unlikely to be filled by other demographics.
The options of how and where to engage are broad; what’s required is the commitment to engage. One approach is to activate public-private partnerships at state and local levels that focus on implementing new pathways for Hispanics. These pathways should focus on skills development and open access to apprenticeship opportunities that will help Hispanics develop capabilities for the new class of jobs being created.
Organizations must also evolve their mindset and hire for skills and not for degrees, as well as create economic opportunity by leveraging sourcing policies with diversity suppliers. The P-TECH framework is a good reference model that can be expanded at scale, with urgency in the six states with the highest density of Hispanic talent (Arizona, California, Florida, Illinois, New York, and Texas).
The options of how and where to engage are broad; what’s required is the commitment to engage. One approach is to activate public-private partnerships at state and local levels that focus on implementing new pathways for Hispanics. These pathways should focus on skills development and open access to apprenticeship opportunities that will help Hispanics develop capabilities for the new class of jobs being created.
Organizations must also evolve their mindset and hire for skills and not for degrees, as well as create economic opportunity by leveraging sourcing policies with diversity suppliers. The P-TECH framework is a good reference model that can be expanded at scale, with urgency in the six states with the highest density of Hispanic talent (Arizona, California, Florida, Illinois, New York, and Texas).
3. Focus on personalization.
Generic Hispanic programs will have limited effectiveness if they are not personalized to the diversity of experiences, values, and behaviors that the very diverse Hispanic community represents in the US. Inside the so called “Hispanic community,” we can find many archetypes – some of whom embrace their heritage and some of whom prefer to blend in. Intervention programs must reflect the deep richness and cultural diversity of the community and meet people where they are – engaging them in context – to be effective. Only programs that are designed with that deeper empathy level will succeed at making impacts at scale, whether targeted toward education, economic development, or representation goals.
A Jam participant may have summarized it best, calling on both Hispanic individuals and business leaders to take action: "Actually with the demographic shift occuring in the workforce right NOW, Hispanics and Leaders have no time to waste. Leaders must embrace the large minority representation in the population and Hispanics have to start claiming and asking for their rightful place in their organization."
Authors
Jesus Mantas
Managing Partner
IBM Consulting
Maria Bartolome Winans
Chief Marketing Officer
IBM Americas Marketing
Cindy Anderson
Global Lead, Editorial, Engagement, and Eminence
IBM Institute for Business Value
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