November 29th, 2023

Commitment to DEI initiatives under question after report

Many companies refuse to share data on minority hiring in Massachusetts

Local leaders appeared disappointed that major businesses in Massachusetts blocked the release of their data on racial diversity for use in a recent report that appeared in the Banner last week, saying the lack of transparency hurts equity and inclusion efforts.

The report was based on data from large companies that agreed to share information about the racial makeup of their employees. But a vast number of Massachusetts companies did not share their data.

“It raises serious questions and concerns about the companies that didn’t consent to their data and information being released,” said Rahsaan Hall, president and CEO of the Urban League of Eastern Massachusetts. “I think, unfortunately, we’re unable to get an accurate picture of where things stand in Massachusetts.”

According to the data the Banner was able to obtain through a Freedom of Information Act request, most major Massachusetts companies that allowed their data to be released hired Black and Hispanic employees at a lower rate than those group’s combined percentage of residents in Massachusetts.

Of the 17 companies analyzed, only three had a workforce that included Black and Hispanic employees at more than 31% — their combined share in the state population according to the 2020 census.

The Banner requested data through the U.S. Department of Labor from 55 companies with at least 100 employees or that are federal contractors with more than 50 employees. Many of those companies blocked the release of their data.

Nicole Obi, president and CEO of the Black Economic Council of Massachusetts (BECMA), said the findings speak to the importance of making this data more available to better track progress being made around commitments to equity.

“It’s not to be punitive, but it is to really understand more about where we still have work to be done around equity in the workforce,” Obi said.

Some of the companies that blocked the release of their employment data through the Freedom of Information Act request submitted by the Banner publish workforce demographic data online, like General Electric, MassMutual, Staples, Vertex Pharmaceuticals and Wayfair. Thermo Fisher Scientific, on its “Diversity and Inclusion” webpage, included a link to its EEO-1 report — the same form that it blocked access to in the Banner’s FOIA request.

While self-published data provides a level of transparency, Ted Landsmark, a public policy professor at Northeastern who collaborated with the Banner on the research, said it lacks the same standard of authentication that data submitted to a federal agency does.

“Federal agencies have a way of authenticating data that individual companies may publish online, and enabling researchers to review objective data in ways that self-publishing may obscure,” he said.

Hall said the idea of companies choosing only to self-publish data online gives him pause.

“If the numbers are the same, there shouldn’t be any issues, so why not release what’s been reported to the federal government?” Hall said.

The data that was released to the Banner painted a picture that Landsmark said showed that Massachusetts companies haven’t lived up to promises around diversity in the workforce.

“We pride ourselves across New England on being very progressive and inclusive in our employment practices, but the reality is we have a lot more work to do to open private-sector jobs and career paths,” Landsmark said.

Even within the published numbers, however, questions remain around salary ranges, as well as where within a company’s structure — for instance, entry-level jobs compared to higher management and leadership positions — Black and Latino employees are working.

“We want to see not only representation proportionally across all of these companies, we also want to see it proportional within the companies as well,” Hall said.

With higher levels of unemployment in the state’s Black and Hispanic populations — 4.5% and 3.9% respectively, compared to the overall 2.6%, according to the Economic Policy Institute — Obi said it’s important for corporations to work with every able worker in the state.

“There are things that we can do to try to force more accountability and transparency and the corporation should want to do better, for their own interests,” Obi said.

She said she sees a gap in the workforce needed for the state to continue to be successful.

“This lack of transparency and the lack of action to address this with the local workforce is counterproductive,” Obi said.

When companies release their data, it allows them to better invest in outreach with both individuals and organizations that can help change those numbers and reach parity.

“Even if their numbers are low, if they would reveal their numbers, instead of being concerned that they would come under scrutiny or criticism for having such low numbers, it creates the very unique opportunity for them to partner or collaborate with organizations like the Urban League to address some of those deficiencies in representational hiring and retention of staff,” Hall said.

Looking at the data, Landsmark said work in reaction to it needs to happen in an organized way, with purpose.

“Our colleges, universities and industries can be working much more closely together to create career ladders into various aspects of the private sector,” he said. “The challenges revealed by this research have to be dealt with in a systematic way, including education, training, recruitment and retention policies.”

But this data offers an opportunity for both the companies that are at parity and those that are not, Hall said.

“For the ones that are below the median and below the population average, I think it is incumbent on them to create initiatives to address diversity in hiring,” Hall said. “For those who are already doing that work, it’s a great opportunity to double down. This is a benchmark now, so they should be working to increase their efforts.”

Black and Hispanic employees, DEI, minority hiring