Diversity Management:

Trends and Practices in the Financial Services Industry and Agencies after the Recent Financial Crisis

GAO-13-238: Published: Apr 16, 2013. Publicly Released: May 16, 2013.

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What GAO Found

Management-level representation of minorities and women in the financial services industry and among federal financial agencies and Federal Reserve Banks (Reserve Banks) has not changed substantially from 2007 through 2011. Industry representation of minorities in 2011 was higher in lower-level management positions--about 20 percent--compared to about 11 percent of senior-level manager positions. Industry representation of women at the overall management level remained at about 45 percent. Agency representation of minorities at the senior management level in 2011 ranged from 6 percent to 17 percent and from 0 percent to 44 percent at the Reserve Banks. Women's representation ranged from 31 to 47 percent at the agencies and from 15 to 58 percent at the Reserve Banks. Officials said the main challenge to improving diversity was identifying candidates, noting that minorities and women are often underrepresented in both internal and external candidate pools.

In response to the requirements in the Dodd-Frank Wall Street and Consumer Protection Act (Dodd-Frank Act), in 2011 federal financial agencies and Reserve Banks began to report annually on the recruitment and retention of minorities and women and other diversity practices. They all have established Offices of Minority and Women Inclusion (OMWI) as required. Many agencies and Reserve Banks indicated they had recruited from minority-serving institutions and partnered with organizations focused on developing opportunities for minorities and women, and most described plans to expand these activities. Some used employee surveys or recruiting metrics to measure the progress of their initiatives, as suggested by leading diversity practices, but OMWIs are not required to include this type of information in the annual reports to Congress. Better reporting of measurement efforts will provide Congress, agency officials, and other stakeholders additional insights on the effectiveness of diversity practices and demonstrate how agencies and Reserve Banks are following a leading diversity practice. Most federal financial agencies and Reserve Banks are in the early stages of implementing the contracting requirements required under the act. For example, most now include a provision in contracts for services requiring contractors to make efforts to ensure the fair inclusion of women and minorities in their workforce and subcontracted workforce and have established ways to evaluate compliance. The proportion of an agency's dollars awarded or a Reserve Bank's dollars paid to minority- or woman-owned businesses reported in 2011 OMWI reports ranged between 3 percent and 38 percent.

Why GAO Did This Study

As the U.S. workforce has become increasingly diverse, many private- and public-sector entities recognize the importance of recruiting and retaining minorities and women for management-level positions to improve their business. The 2007-2009 financial crisis has renewed questions about commitment within the financial services industry (e.g., banking and securities) to workforce diversity. The Dodd-Frank Act required that eight federal financial agencies and the Federal Reserve Banks implement provisions to support workforce and contractor diversity. GAO was asked to review trends and practices since the beginning of the financial crisis. This report examines (1) workforce diversity in the financial services industry, the federal financial agencies, and Reserve Banks, from 2007 through 2011 and (2) efforts of the agencies and Reserve Banks to implement workforce diversity practices under the Dodd-Frank Act, including contracting. GAO analyzed federal datasets and documents and interviewed industry representatives and officials from the federal financial agencies and Reserve Banks.

What GAO Recommends

Each agency and Reserve Bank should include in its annual OMWI report to Congress efforts to measure the progress of its diversity practices. The agencies and Reserve Banks agreed to include this information in the annual OMWI reports. Additionally, some agencies and the Reserve Banks described steps they have taken or plan to take to address the recommendation.

For more information, contact Daniel Garcia-Diaz at (202) 512-8678 or GarciaDiazD@gao.gov.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Federal Housing Finance Agency (FHFA) included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, FHFA is developing a human resources information system to collect additional demographic data to support workforce diversity and inclusion efforts. Using this system, FHFA's OMWI will evaluate the effects of its direct and other special hiring authorities, including gaining a better understanding of the demographic make-up of candidates who may be interested in working at FHFA. According to the report, this will enable the agency to enhance recruitment and hiring practices and improve workforce diversity and inclusion. Additionally, in 2016 FHFA approved the issuance of a Diversity and Inclusion Climate Survey to gauge employee perceptions about their work environment, equal employment opportunity, support for diversity, and workplace inclusiveness. The survey is designed to help identify any gaps between the agency's approach to and employees' perception of diversity and inclusion. The results will enable FHFA to set benchmarks to track the progress of its diversity and inclusion programs in the future.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Housing Finance Agency

  2. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Consumer Financial Protection Bureau (CFPB) included in its 2015 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the annual report describes CFPB's measurement of managers' perceptions of the effectiveness of diversity and inclusion training received. In the report, evaluations of annual employee survey data, as well as new employee and exit survey data related to diversity and inclusion practices were discussed. Finally, CFPB evaluated diversity and inclusion training the agency required supervisory staff to complete, deemed the training effective, and on the basis of this evaluation, expanded the requirement to complete the training to all nonsupervisory employees. CFPB continues to analyze participants' perceptions of the training to assess its usefulness in the CFPB environment.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Consumer Financial Protection Bureau

  3. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Department of the Treasury (Treasury) included in its 2014 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the report describes an examination of employee perceptions of the Treasury Departmental Offices workplace environment relative to inclusion, which according to OMWI, informs its work going forward. The report discusses OMWI's analysis of the Office of Personnel Management's Inclusive Environment Assessment, which includes questions associated with diversity and inclusion and provides an Inclusive Environment Index score, which can be used to compare to the government-wide score for five characteristics of inclusion. The report also describes Treasury's applicant flow analysis, through which its OMWI determined that more targeted recruitment actions could be beneficial to increasing the numbers of highly qualified minority and women applicants for upper- and senior-level employment opportunities.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Department of the Treasury

  4. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Office of the Comptroller of the Currency (OCC) included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the annual report describes an applicant flow data analysis by gender, ethnicity (Hispanic and non-Hispanic), and a combination of gender and ethnicity of all of OCC's vacancy announcements closed in the first three quarters of fiscal year 2016. The OCC concluded that decision points along the hiring process do not pose barriers to the hiring of Hispanics. The results were consistent with those from 2013 through 2015 for all vacancies and the entry-level bank examiner recruitment process, according to OCC. In the annual report, OCC stated that efforts were underway to establish regular monitoring and analyses of applicant flow data. Additionally, the report describes an analysis to improve diversity and promote inclusion in supervisory and leadership positions and their pipeline positions. According to OCC, the Diversity and Development Working Group analyzed data, conducted root cause analyses, reviewed agency policies and practices, researched best practices, identified potential solutions, and developed an implementation framework to support the increase of women and minorities in supervisory-level positions.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Department of the Treasury: Office of the Comptroller of the Currency

  5. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Federal Deposit Insurance Corporation (FDIC) included in its 2015 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the annual report describes FDIC's development and use of a workforce analytics dashboard, designed to provide actionable data on the FDIC workforce by gender and minority status, among other characteristics to support diversity and inclusion efforts in hiring, promotion and retention, and to identify ways to make improvements over time. The dashboard data are updated quarterly and give management the ability to measure progress of its diversity and inclusion efforts and adjust strategies where needed, according to the report. FDIC's OMWI discusses division and office level strategic planning efforts to evaluate actions to promote diversity and inclusion in order to identify those that are working well or those that need revision. The annual report also provides information on FDIC's recruitment and retention of a diverse examiner workforce, including a new method to evaluate and report the progress of its efforts in this area.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Deposit Insurance Corporation

  6. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Board of Governors of the Federal Reserve System (Federal Reserve) included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the annual report describes the use of a Diversity and Inclusion Scorecard to identify objectives, actions, and outcomes covering four performance areas: Leadership Engagement, Talent Acquisition, Talent Management, and Supplier Diversity. The Federal Reserve also describes using its employee engagement survey to determine whether actions it has taken since its previous annual survey have helped meet the agency's diversity goals. As a result of survey feedback, the Federal Reserve launched a mentoring program in 2016.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Board of Governors

  7. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Boston Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank began a pilot program to leverage diverse professional organizations to identify diverse passive candidates (i.e., candidates not actively seeking a new job) for positions in its bank supervision department. It will monitor and measure the results of this pilot and possibly expand to other departments in the Bank. The Bank also reported on its ongoing monitoring of representation and hiring of women, a gap it has continued to address through a variety of practices.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Boston, MA

  8. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Chicago Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank formed a working group to develop a diversity and inclusion strategic plan that includes the goal of improving how the Bank will measure success and gaps in diversity and inclusion through the development and monitoring of relevant quantitative and qualitative metrics. The report also described how the Bank's listening tours conducted in 2015 to obtain employee input and views on diversity and inclusion at the Bank has led to enhancements in how it measures its progress in developing an inclusive culture. The Bank made some changes to its employee engagement survey and analyzes the results to track progress and identify issues to focus on. The Bank has also analyzed data through its talent pipeline initiative that has led to efforts to better market developmental opportunities and has led to increased participation of women and minority staff.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Chicago, IL

  9. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Minneapolis Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the report described how the Bank had begun implementing its strategic plan for diversity and inclusion in 2016. In 2015, a group was formed to assess the Bank's practices and conduct focus groups, which helped to inform the strategic plan, such as implementing new candidate interviewing practices. The 2016 report also describes its ongoing monitoring of the Bank's representation of minorities in the mid-level manager role, which continues to lag behind that of the community it serves, and turnover of minority employees--two areas the Bank plans to focus its attention.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Minneapolis, MN

  10. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the New York Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the report describes its efforts to assess its recruitment strategies. Specifically, the Bank uses metrics and reports to track progress of candidate pools from formation to hiring decisions and uses the results to discuss diversity goals with the business units. One outcome of analyzing its recruitment process was that the Bank's talent acquisition team encouraged diverse slates of interviewers to help support its overall hiring practices. The report also noted that the Bank hired a new vendor for its employee engagement survey that produced better metrics and added 11 questions to its employee engagement survey related to diversity and inclusion, work/life balance, and employee resource groups.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, New York, NY

  11. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Philadelphia Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank developed and implemented an internal assessment and reporting system to measure its diversity activities. This includes a dashboard of metrics that Bank management review on a quarterly basis. The Bank also conducted a diversity and inclusion impact survey that was disseminated to its employees, conducted focus groups, and interviewed a random selection of employees to identify strengths and opportunities for improvement in its diversity and inclusion practices.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Philadelphia, PA

  12. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Richmond Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank's OMWI worked with senior leaders to develop a metrics report. The report is used to track and measure progress, identify opportunities for improving organizational effectiveness, and develop a clearer understanding of how business actions impact the Bank's overall diversity and inclusion outcomes. The Bank also analyzes the results of its internal employee surveys to assess employee engagement and measure its performance in achieving a diverse and inclusive culture.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Richmond, VA

  13. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the San Francisco Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank's OMWI and executive committee regularly review a key set of workforce and diversity metrics to identify representation gaps and discuss opportunities for improvement. The diversity of the Bank's leadership pipeline is also actively monitored. The report also describes how it tracks hiring statistics and conducts post-hire reviews of diverse candidate availability to inform its recruiting and interviewing practices.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, San Francisco, CA

  14. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the St. Louis Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, it implemented additional metrics to assess its talent acquisition and diversity efforts so that it can bring greater awareness of the diversity of its hires, declinations, and turnover.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, St. Louis, MO

  15. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Dallas Federal Reserve Bank included in its 2015 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank described how it has tracked trends in its intern hiring in terms of minorities and women and used this information to better target its strategies for recruiting diverse interns.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Dallas, TX

  16. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Atlanta Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank refined its annual workforce utilization analysis and action plan for women and minorities and reviewed the results with senior executive management and appropriate leaders in its human resources office. The Bank reported that the refinements to the process allowed for greater precision in the analytics, which will influence more focused efforts on the recruitment and retention of women and minorities. The report also discussed how the Federal Reserve banks track and report on minority and female participation in the System Leadership Initiative (a development program for Federal Reserve System key talent), to assure that development opportunities are reaching a diverse pool of leaders.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Atlanta, GA

  17. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Cleveland Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the Bank implemented improved internal metrics and reporting capabilities that allows for senior management to assess progress in their respective areas and make improvements as appropriate. The report also described how the Bank's analysis of its employee engagement survey results has led to some successful initiatives that addressed employee concerns that previous surveys had surfaced.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Cleveland, OH

  18. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Kansas City Federal Reserve Bank included in its 2016 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the report describes the Bank's use of a quarterly report that includes various metrics to track progress in meeting its diversity and inclusion objectives. In addition to monitoring workforce demographics, the Bank also monitors retention by analyzing separation rates, participation in mentoring programs, and employee engagement survey results that can help it identify ways to improve its diversity and inclusion efforts. In 2016, the Bank implemented a new employee engagement survey to obtain timely and actionable feedback.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: Federal Reserve System: Federal Reserve Bank, Kansas City, MO

  19. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the National Credit Union Association (NCUA) included in its 2015 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, NCUA's OMWI hired a diversity consultant to obtain feedback from focus groups conducted to assess how the workforce viewed the agency's diversity efforts. According to the report, focus group feedback revealed several challenges among employees and managers that need to be addressed to strengthen staff's understanding of NCUA's commitment to diversity and inclusion. The report also discusses NCUA's efforts to conduct barrier analyses to ensure that disparate treatment or impact were not contributing to the low representation of Hispanics, African American males, and individuals with disabilities at the agency. Related studies covered fiscal year 2011 through fiscal year 2014 and provided conclusions regarding benchmarking against other financial regulatory agencies; barrier and root cause analyses; and an examination of internal personnel actions of current employees.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: National Credit Union Administration

  20. Status: Closed - Implemented

    Comments: The Office of Minority and Women Inclusion (OMWI) for the Security and Exchange Commission (SEC) included in its 2015 annual report to Congress actions taken to measure the progress of its diversity and inclusion practices. For example, the annual report describes the SEC OMWI's Guide to Performance Measurements and Evaluation Methods, which sets forth SEC's process for monitoring and evaluating the effectiveness of its programmatic efforts. The guide addresses efforts related to workforce diversity in three key performance areas: outreach and recruitment, cultivating and maintaining an inclusive work environment, and leadership commitment. In its annual report to Congress, SEC's OMWI also discusses performance dashboards that include metrics such as the representation of minorities and women among new hires, promotions, separations, and senior management.

    Recommendation: To enhance the availability of information on the progress and impact of agency and Reserve Bank diversity practices, the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Board of Governors of the Federal Reserve System), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Securities and Exchange Commission (SEC), Departmental Offices of the Department of the Treasury (Treasury), and the Reserve Banks that each OMWI report on efforts should measure the progress of its employment diversity and inclusion practices, including measurement outcomes as appropriate, to indicate areas for improvement as part of their annual reports to Congress.

    Agency Affected: United States Securities and Exchange Commission

 

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