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THE ROI OF DEI

WHY DIVERSITY, EQUITY AND INCLUSION MATTER It’s been said that organizations with best-in-class diversity, equity and inclusion (DEI) programs deliver a better ROI, and perform better than those without them. There’s also evidence to show that a strong DEI program helps to de-risk an organization. Three Chicago-area leaders involved with DEI initiatives shared their insights and best practices with Crain’s Content Studio.

What are the main social concerns that your organization is focusing on? Camilo Escalante: As a lender, Guaranteed Rate is focused on access to capital and helping close the wealth gap through homeownership. According to a study from Northwestern University, which used data on consumer finances from the Federal Reserve to track changes in family wealth from 2004 to 2016, for every dollar of accumulated wealth that white families have, Black families have just one cent. These statistics must change. Purchasing a home is an opportunity more families need to have to build equity to achieve their future financial goals. By performing our role and following our core company value to “Grow for Good,” we can help make sure more diverse families have better access to the financing they need to purchase a home. D. Nigel Green: The communities we serve have been impacted by so much over the last year. We recognize and understand that before almost any other cause, our students and families’ concerns and struggles are rooted in racism. Therefore, Noble has taken the important and critical

issue in communities of color. When children are repeatedly exposed to lead in their drinking water, it can lead to profound long-term learning disabilities. We established a nonprofit called Fountains for Youth to help combat this issue in underserved communities across the United States. How do DEI concerns and priorities shape your organization’s focus? Green: We focus on creating opportunities for our students to live choice-filled lives, primarily through college success. While 98% of the children and families we serve are people of color, the institutions that our children and families will ultimately navigate—including colleges—are not. We function and perform under the belief that our children will be ready to navigate the deficits of those institutions, and ultimately alter those institutions to create generational change. Our beliefs, our interactions and our support must create circumstances where our children can live choicefilled lives. So, we’re unapologetically prioritizing a positive and equitable student experience that prepares our students for college completion.

“WE STRIVE TO ACCURATELY RESEMBLE THE DEMOGRAPHIC BREAKDOWN OF THE MAJOR METROPOLITAN AREAS WE SERVE NATIONWIDE.”

CAMILO ESCALANTE

Exec. Director - Diverse Segments Guaranteed Rate camilo.escalante@rate.com 312-736-9583

D. NIGEL GREEN

KIM KING

Director - Equity, Inclusion & Diversity Noble Schools dngreen@nobleschools.org 312-521-5287

Sr. Director - Global Sourcing DEI Council Leader Elkay Manufacturing Co. kim.king@elkay.com 630-574-8559

King: Last year’s events inspired us to adopt an active listening and learning stance concerning DEI. At Elkay, one of our core values is “our strength is in our people.” We’ve always recognized the importance of treating people with respect and fairness; we now realize that the expectations may not only

differ by race but also by generation. In addition, different priorities exist in various regions of the country. Directly engaging in a two-way dialogue with employees has led us to embark upon a renewed DEI journey, led by the recently formed DEI Council, which worked months to

understand the demographic baseline as well as employees’ expectations. The Council then prepared a set of recommendations approved by our leadership, ranging from educational workshops, communications and branding, community engagement, supplier diversity program and

“

It’s about saying to every community, to every homebuyer: your dream matters. Camilo Escalante Executive Director Diverse Segments

— CAMILO ESCALANTE, GUARANTEED RATE

G U A R A N T E E D R AT E

stance of committing to functioning and progressing as an antiracist organization. We’ve stated our commitment to antiracism and are working within that journey as we speak. This is radical work, and the concerns of our community are both evergreen and constantly shifting in urgency. Our effort is always to invest in the full dignity of our community members.

We’re committed to reflecting the diverse communities we’re proud to serve. By expanding our bilingual support staff nationwide, ramping up our homebuying education programs and hiring in diverse communities, we’re living our core values and holding ourselves accountable for the transformation we want to see in our industry.

Kim King: One social issue that’s particularly near and dear to our hearts at Elkay is access to safe drinking water. Domestically this means ensuring clean, fresh, potable water free from impurities like lead in public spaces such as schools. Lead in drinking water is a particularly pernicious problem because it’s linked to environmental justice and is more frequently an

Escalante: Making DEI a priority has allowed us to look inward and better understand the positions throughout the company that impact our ability to increase our lending in diverse communities. We strive to accurately resemble the demographic breakdown of the major metropolitan areas we serve nationwide. It’s a lofty goal, but we want to lead the industry. We want our company to reflect the communities we serve, and we believe that bringing more diverse employees to the company and helping them expand their reach through their networks will result in more access to loans for borrowers in diverse neighborhoods. That path allows us to better serve diverse communities and help create a more inclusive and equitable environment for our employees.

Let’s talk about how we can help you serve your communities.

R AT E . C O M / C A R E E R S NMLS ID #2611 (Nationwide Mortgage Licensing System, www.nmlsconsumeraccess.org) • Guaranteed Rate, Inc. is an Equal Opportunity Employer that welcomes and encourages all applicants to apply regardless of age, race, sex, religion, color, national origin, disability, veteran status, sexual orientation, gender identity and/or expression, marital or parental status, ancestry, citizenship status, pregnancy or other reason prohibited by law.

THE ROI OF DEI

WHY DIVERSITY, EQUITY AND INCLUSION MATTER establishing new guidelines for employee recruitment and development efforts. What role does DEI play in your product and service brand positioning? King: Whether it’s developing ADA-compliant products such as our award-winning Dart Canyon sinks or the accurate representation of the people we feature in our marketing materials, we’ve always aligned our messaging to the diversity of the markets we serve. Our enhanced internal DEI focus has inspired our marketing team to reimage the role that our brand positioning can and should play in effecting change and encouraging greater acceptance and understanding in our nation and our world. Escalante: Over the past few years, we’ve grown tremendously, both from an employee count and closed loan volume. During that time, we’ve enhanced our brand equity across the country by staying focused on our “Grow for Good” core value and metric that measures the impact we have on our customers, business partners, employees and

the communities we serve. DEI initiatives have pushed our company to look even closer at how we build brand awareness and engage diverse communities at the local levels. We’ve built an entire community engagement strategy focused around better connecting with local diverse communities nationwide. This means prioritizing resources to support local partners and staffing accordingly to authentically foster those important relationships. We’re working to align with other partners that value homeownership, financial literacy and neighborhood stabilization. What are some examples of your organization’s DEI objectives? Escalante: One of our main objectives is to recruit more diverse loan originators. We want to provide and build career paths through all sides of the company to attract more diverse candidates. When we think of the future, we have to think about how to attract people to the company who are new to our industry. This also connects directly to our efforts to continue to expand and improve our employee resource groups— which have incredible programming,

mentoring, networking and cultural components—to foster a more inclusive company culture. Another example is our language access program, which is a large companywide effort designed to better service customers who prefer to conduct business in foreign languages such as Spanish. This latter initiative will set us apart in our industry. We’re working hard to resolve the challenges

that exist with implementation so we can lead the mortgage industry in providing funding in more languages.

have the space to be their authentic selves and ensure their voices are heard.

Green: Our equity index formula ensures fair funding at our campuses and creates access to college opportunities for our undocumented/ Dreamer community members. We’ve also been nurturing a leadership talent pool that has yielded senior leadership that reflects the backgrounds of our students and families. We’re

King: We’re focused on integrating DEI more firmly into our company culture. This will be achieved through a visible commitment from our leadership; by attracting, retaining and promoting more diverse talent at all levels; establishing a deep awareness of how critical DEI is to the success of our business; and continuing to attract increasingly diverse customer markets while increasing the diversity of our suppliers. We also recognize the opportunity to serve as a thought leader within our industry to lead the way in attracting and leveraging diverse talent. In the spirit of continuous improvement, we’ve set ambitious internal targets for creating a welcoming, comfortable and supportive environment for diverse employees, promoting our DEI efforts outside the company. How do you measure, monitor progress and report on DEI performance?

98%

17,500

Black/Latinx

students

alumni

84%

King: We’re developing a DEI scorecard based on the recommendations of our DEI Council. For example, we’re driving to increase the percentage of diverse candidates presented to our hiring managers for

— D. NIGEL GREEN, NOBLE SCHOOLS

Noble alumni are graduating from college at rates 3x that of their peers from similar backgrounds in Chicago.

First-Generation College Students

will be tasked with creating the accountability structures, measures and progress monitors for our antiracism goals.

“OUR SENIOR LEADERSHIP AND BOARD ARE MORE DIVERSE THAN EVER, AND OUR PATHWAY PROGRAMMING HAS SUPPORTED OVER 40 LEADERS OF COLOR TO NEW POSITIONS.”

Noble’s nation-leading focus on DEI and anti-racism has resulted in more than 60% of staff identifying as a Person of Color

12,700

institutionalizing continual and critical self-reflection that promotes ownership and culturally responsive and sustaining practices at every level of our organization. We’re building our individual and collective consciousness about race and racism, and examining our implicit biases and areas of privilege and ensuring that all of our community members, including students, families and staff,

87%

Free/Reduced Lunch

Learn more at NobleSchools.org

Green: We’ve been fortunate to partner with Promise54, a talent solutions provider specializing in supporting organizational DEI efforts. Using their data, we’ve been able to quantify the experiences of the varied intersectional identities within our organization. More importantly, we’ve been able to identify the greatest gaps within student and family experiences, allowing campuses and our entire organization to narrow the focus on where we must improve, while also cultivating the strengths we currently exhibit. We have an internal DEI steering committee composed of more than 20 crossfunctional individuals, including parents, focusing on our antiracism work. Once our reimagining has produced the final product that will shift our approach to education and community partnership, the group

professional roles in office locations to 25%, while also increasing the rate of diverse hires for these professional opportunities to 25%. For both of these target metrics, we define diversity according to ethnicity. We’re also seeking to increase non-male representation. Our recruiting team is actively monitoring and evaluating performance data to identify and implement specific continuous improvement opportunities as we go forward. These metrics are part of our enterprise-level strategic scorecard, reported to senior leadership and the board of directors every quarter. How do you engage your employees in your DEI efforts? King: Videos, newsletters, interactive workshops and webinars allow our people to learn and engage in dialogues about DEI, enabling them to share their points of view in a safe environment while gaining deeper insights. They can also participate in our DEI Council, which is made up of 12 employees from across the company. Employees can also volunteer as DEI ambassadors to promote, facilitate and support the implementation of corporate diversity initiatives at the business level. Escalante: Our executive leadership team is creating and supporting more in-depth careerpathing opportunities with internal organizations such as Leadership, Equality and Development; PROUD, aimed at promoting LGBTQ+ inclusion in the workplace; and the Guaranteed Rate Organization of Women. We’re working hard to hit our ultimate hiring goals and keep up the pace, while remaining focused on retaining our diverse employees. As COVID restrictions are lifting, we’re also encouraging our employees to participate in local events hosted by the company or our community engagement partners. Employee participation is critical for these

SPONSORED CONTENT efforts to resonate authentically within the company and the communities we serve. Green: Our antiracist journey is a higher bar and a newer organizational commitment. We created pathways for desired but optional input to allow our team members to contribute as their capacity allows. Our team members have also sat on organization-wide committees providing direction and feedback on our antiracist reimagining. All totaled, about 300 stakeholders played an active role in our decisionmaking. We continue to hold events, developments and forums for engagement, surveying and information sharing for all DEI and antiracism efforts. What results have you seen from previous DEI initiatives? King: Two areas where we’ve made measurable impacts include access to clean drinking water and ADA accessibility. While we can’t change access to clean drinking water at the infrastructure level, our nonprofit, Fountains for Youth, has made a significant difference in some areas by donating products to underserved communities dealing with clean water issues. On the ADA front, we have a longstanding track record for designing products that provide easy access to sinks, faucets, drinking fountains and bottle fillers for the disabled. Green: Our senior leadership and board are more diverse than ever, and our pathway programming has supported over 40 leaders of color to new positions. We’ve made a conscious effort to create a community that reflects who we serve, and provides a seat at the table for voices that were previously excluded from decision-making. But the true success has been in our questioning. We process and challenge thoughts in alignment with DEI and antiracism. We view data differently. We shifted from solely looking at the average to disaggregating the numbers for subgroup experience and results. Then, before making a decision, we question whether we’ve spoken—and listened to—the folks that will be impacted. Our thinking is the result and success. Has your organization evolved in how it views DEI? Green: We’re constantly learning and adjusting to new information. When we first introduced our core values, DEI was glossed over as “diversity of perspective,” accounting solely for the low-branched fruit of difference or distinction. In 2016, we shifted to the directionally clear core value of DEI we have today. This adds to our responsibility to create spaces

that welcome and affirm our unique individuals and establish structures and strategies where all individuals have a just experience regardless of their intersectional identities. While DEI is our core value, we’re also now holding ourselves to the higher bar of antiracist organizational progression. While we’re one year into this commitment, we’ve moved forward with care and intentionality to accelerate our understanding and growth. King: I’m inspired by our new DEI Council and the programs that have taken shape over the past year to fast-track DEI efforts and move these issues more central within our culture. In light of evolving public DEI expectations and the increasing focus that our customers are placing on the subject, this evolution and our company’s proactive response are well-timed. I’m exceedingly hopeful about where this effort is leading our company and our nation as a whole, and I’m very proud of our progress. What advice would you give to organizations that want to launch DEI initiatives? Escalante: It starts at the top. For meaningful and impactful change, leadership must buy into the strategies. It’s important to create leadership roles that have impact throughout the company and most importantly, to set tangible and clear goals that resonate with employees and customers. The message has to be authentic, and the DEI vision should be clear to the entire company. King: My best advice is to listen closely to your most critical stakeholders—employees, customers, partners and consumers—as well as to public sentiments. Take the time to understand their expectations and let them know you’re listening. Then take an honest, open-hearted look at your own organization. How diverse are you across locations, levels, job categories? Does your diversity decrease as you move up the management ranks? An impartial internal audit can help identify opportunities for improvement. With those in hand, share your results and intentions with your stakeholders. Your people will appreciate the transparency and efforts to effect positive change aligned with the feedback provided. If it all becomes too overwhelming and you don’t know where to start, bring in an expert. We were fortunate to have great support along the way. Green: Rely on passionate experts, not just passionate people, to be your guides. Invite diverse members of your community to the table with the expectation and understanding

“. . . LISTEN CLOSELY TO YOUR MOST CRITICAL STAKEHOLDERS—EMPLOYEES, CUSTOMERS, PARTNERS AND CONSUMERS— AS WELL AS TO PUBLIC SENTIMENTS.” — KIM KING, ELKAY MANUFACTURING CO.

ABOUT THE PANELISTS CAMILO ESCALANTE is executive director – diverse segments, for Guaranteed Rate, one of the top five retail mortgage lenders in the United States, where he ensures that its loan officers are equipped to serve all borrowers. With over 16 years of industry experience, he has earned recognition as one of the top loan producers in the country while helping thousands of families achieve homeownership in neighborhoods nationwide. He has been recognized as a Top 1% Mortgage Originator by Mortgage Executive Magazine (2015 to 2018) and the National Association of Minority Mortgage Bankers (2017 and 2018). D. NIGEL GREEN is director - equity, inclusion and diversity for Noble Schools, a nonprofit organization that runs 17 charter public high schools and one middle school in Chicago serving more than 12,700 students from every neighborhood in the city. He joined Noble in 2010, serving as a history instructor, dean of instruction and assistant principal before assuming his current role in July 2020. His energy is dedicated to creating justice-aligned outcomes for students, families and staff; eliminating racist policies and practices; and ensuring that all students have equitable and positive school experiences. KIM KING is senior director - global sourcing and procurement for Elkay Manufacturing Co., a Downers Grove-based,101-year-old manufacturing firm with more than 3,000 employees and 17 locations worldwide. She has over 20 years of sourcing/procurement experience, and in July 2020, she assumed the role of DEI Council chair, with strategic accountability for the company’s diversity efforts. She is an advisory board member for Governors State University’s Supply Chain Innovation Center and Business Incubator, which promotes innovation and contribute to the economic and workforce development of the greater Chicagoland area.

that their perspective matters and may even matter more given their contextual knowledge and understanding. Don’t exploit the brilliance of the diverse members of your community; pay people for their time, energy and dedication.

Don’t be performative; it’s in vogue to say you’re doing equity work right now, but you should go in with the heart and mind of true transformation for your organization to better serve the humans within and those that

interact with it. Own the work; the centered (dominant) community must do this work. The leaders must do the work. The marginalized should not also have to bear the burden of teaching everyone about justice and equity.

Water, cooler. That’s

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Elkay.com/smartwell