Adopting diversity in the workplace seems not to be top priority of U.S. business leaders since the tragic killing of George Floyd in police custody a year ago, spurring protests in cities across the nation. Consequently, such action[s] prompted pledges from U.S. business leaders to fight racism and work to recruit and promote Black and other minority employees. America has been in denial far too long as many Americans witness in real time how racism is deeply embedded in American history.
As reality begin to set in, people are beginning to fight back against racial injustice. Companies are now putting money behind those pledges by tying executive compensation to specific goals.
Starbucks Corp for example, announced in January, it would give top executive more shares if the coffee chain’s managerial ranks would grow more diverse over the next three year McDonald ‘s Corp in February gave executives annual incentives to increase the share of women and racial minorities in leadership roles by 2025. In March, Nike Inc. said it would for the first tie some executive pay to five-year goals for improving racial and gender diversity in its workforce including hiring diversity in leadership positions.
Dick Hernandez comments on the matter,” Metrics like these seem to be new, a kind of new evolution in what’s expected of executives. Hernandez is the chairman of McDonald’s who was involved in the fast-food chain’s compensation changes. He adds, “ It’s really a growth, a maturation of thinking about what’s really good for a company and what a company’s role is in society, how you serve your customers and at the same time serving your investors.”
For many years, some directors and executives have encouraged colleagues to recruit more women and minorities, observers say the discussions have become more prevalent and explicit. Pressure from constitutional investors, employees and customers has helped drive companies to establish financial incentives for improving what is referred to as diversity, equity and inclusion.
President Biden American Jobs Plan and the American Families Plan seems to propose policy on bring back the middle class, to hire diversity especially women dropped out of the workforce. His policies would help bring along everyone: inclusive of gender and race and equality.