1、The Power of IE&D in the Supply Chain:Unlocking Resilience and GrowthHow effective has your company been at achieving IE&D related progress within your supply chain staff or department?While a majority of companies with supply chain departments report having IE&D initiatives(62%of supply chain manag

2、ers and 54%of HR professionals),only 29%of supply chain managers and 20%of HR professionals believe their companies are very effective at achieving IE&D goals within their supply chain workforce.Interestingly,a higher percentage of supply chain workers themselves(45%)feel their company is very effec

3、tive in this area.This data suggests a clear gap between leadership perception and employee experience regarding IE&D efforts in supply chain management departments.2Supply chain workersVery effectiveSomewhat effectiveNot at all effectiveSupply chain managersHR professionals45%29%20%45%58%65%10%13%1

4、5%The Current State of IE&D in Supply ChainIntroductionIn 2020,many companies expanded their focus toward building effective inclusion,equity,and diversity(IE&D)efforts.However,as the state of the U.S.economy and company layoffs have since dominated headlines,focus on IE&D has waned.Despite this,the

5、 business case for IE&D remains strong.As one of the workplaces most critical functions,supply chain management directs the flow of goods and services from their origin to the end consumer.Disruptions in the supply chain can have far-reaching consequences,harming individual companies and impacting g

6、lobal economic stability.Strengthening a companys supply chain workforce is key to building a resilient company to withstand national and global disruptions.Fostering a robust IE&D initiative can be a powerful tool for developing adaptable,innovative,and ultimately more successful supply chains.To e

7、xplore this critical topic,the SHRM Foundation,SHRM,and the Association for Supply Chain Management(ASCM)partnered to gather data from more than 1,400 supply chain workers,supply chain managers,and HR professionals from organizations with supply chain departments across the United States to determin

8、e the state of IE&D in supply chain,its impact on businesses bottom lines,and best practices for leveraging the power of IE&D across the supply chain and beyond.While large and publicly traded for-profit companies with supply chain departments are the most likely to have IE&D initiatives,the quality

9、 of these programs lags behind others.Unsurprisingly,larger companies and publicly traded companies are the most likely to have IE&D initiatives.More than 90%of extra-large companies(those with 5,000+employees)and 89%of publicly traded for-profit companies have IE&D initiatives.However,when assessin

10、g how effective these initiatives are,these companies were rated similar to other types of companies where IE&D initiatives were less common,demonstrating that simply having an IE&D initiative alone does not guarantee it will be effective.Extra-large companies(5,000+employees)0%20%40%60%80%100%Large

11、 companies(500-4,999 employees)Mid-size companies(100-499 employees)Small companies(21-99 employees)Privately owned for-profitNonprofitGovernmentPublicly traded for-profitPercent of companies that have IE&D initiativesPercent of those initiatives rated very effective395%63%39%34%42%70%77%89%15%21%23

12、%26%22%24%24%12%How IE&D Fuels Competitive Advantage in Supply ChainWhen IE&D is implemented effectively,supply chain managers report their company outperforms competitors.Supply chain managers from companies with very effective IE&D practices report that their supply chain department performs bette

13、r than those of their competitors.In fact,among supply chain managers who work at companies with very effective IE&D practices,73%report that their companys supply chain department performs somewhat or much better than their competitors versus only 44%of supply chain managers who work at companies w

14、ith ineffective IE&D practices.These differences highlight a significant relationship between strong IE&D practices and superior supply chain performance.Turnover and recruitment are at greater risk when supply chain lacks effective IE&D.HR professionals at companies rated very effective at achievin

15、g IE&D-related progress among their supply chain staff were significantly more likely to say their supply chain department,on average,has low turnover compared with those who rated their company as ineffective at achieving IE&D-related progress in supply chain.When asked to describe their supply cha

16、in departments turnover over the past 12 months,more than three-quarters of HR professionals at companies with very effective IE&D initiatives said they experienced low turnover.Companies with very effective IE&D initiativesCompanies with ineffective IE&D initiatives77%51%19%35%4%14%Low turnoverAver

17、age turnoverHigh turnoverof managers at companies with very effective IE&D practices say their companys supply chain performs somewhat or much better than competitors.73%44%of managers at companies with ineffective IE&D practices say their companys supply chain performs somewhat or much better than

18、competitors.Companies with very effective IE&D practices are more likely to say their supply chain department experiences low turnover,according to HR professionals.4Whats more,supply chain managers,supply chain workers,and HR professionals all agree that they are less likely to recommend their work

19、place to specific groups when they perceive their companys IE&D efforts within the supply chain department are ineffective.This sentiment is strongest regarding recommendations to members of the LGBTQ+community and those with disabilities.Results show differences between HR professionals,supply chai

20、n managers,and supply chain workers at companies rated as very effective at making IE&D progress in their supply chain department compared to those rated as not effective at all.Percentage who would recommend their companys supply chain department as a“great place to work”for various types of worker

21、s.People with disabilitiesPeople with disabilitiesPeople with disabilitiesHR ProfessionalsNot effective at IE&D progressVery effective at IE&D progressSupply Chain ManagersSupply Chain WorkersMembers of the LGBTQ+communityMembers of the LGBTQ+communityMembers of the LGBTQ+communityPeople who practic

22、e a religionPeople who practice a religionPeople who practice a religionWomen of colorWomen of colorWomen of colorMen of colorMen of colorMen of colorWhite womenWhite womenWhite womenWhite menWhite menWhite men0%0%20%20%40%40%60%60%80%80%100%100%37%53%60%62%42%54%67%63%79%88%93%80%80%84%86%72%88%90%

23、93%95%94%94%78%87%85%86%88%90%89%83%85%86%94%94%95%96%53%70%59%73%74%92%5Supply chain workers are less satisfied at companies that do not prioritize IE&D,driving burnout and turnover.Company culture plays a significant role in the employee experience.Supply chain workers who feel their company is ve

24、ry effective at making IE&D-related progress in their department report more positive workplace experiences than those who feel their company is not effective.Workers at companies rated as ineffective at making IE&D progress in their supply chain department were much less likely to agree with each s

25、tatement compared to those at companies rated as very effective.Additionally,investment in IE&D-related initiatives appears to play a role in employee retention.Supply chain workers who say their company is not effective at achieving IE&D-related progress in their department are over 4 times more li

26、kely to say they often felt they wanted to quit in the past six months compared with those in companies with strong initiatives.This trend is even more pronounced for women and workers of color.Percentage of supply chain workers who agree with each statement about their companys cultureMy work contr

27、ibutions are recognized by my leaderIm treated with respect at workI am treated as a valued member of my work groupPeople in my work group listen to me even when my views are dissimilarI am given equal access to opportunities and/or resourcesIneffective at IE&D progressVery effective at IE&D progres

28、s0%20%40%60%80%100%54%54%54%50%46%94%93%92%91%87%6Women in supply chain departments at companies that are not effective at IE&D are over 6 times more likely to say they often felt they wanted to quit in the last six months than women who are at companies that are very effective at IE&D(62%versus 10%

29、).Supply chain workers of color at companies that are not effective at IE&D are over 10 times more likely to say they often felt they wanted to quit in the last six months than workers of color at companies that are very effective at IE&D(43%versus 4%).6X more likely to say they want to quit10X more

30、 likely to say they want to quitCompared with workers who rate their company as very effective,those who feel their company is not at all effective at making IE&D-related progress in their supply chain department are:Similarly,54%of supply chain workers who report their company is not effective at m

31、aking IE&D-related progress in their department said they often felt burned out(compared with only 12%at very effective companies),33%said they felt less engaged by their daily work(compared with only 11%at very effective companies),and 25%said they often felt excluded at work(compared with just 6%a

32、t very effective companies).This finding highlights the vital importance of IE&D for building an engaged workforce.On the other hand,supply chain workers who work for companies that are very effective at IE&D are 7.5 times less likely to say they will look for a new job outside of their current comp

33、any in the next 12 months.Supply chain workers also notice when their companys senior leadership takes IE&D seriously.Sixty-eight percent of supply chain workers who agree their senior leaders care about making meaningful IE&D progress said it is unlikely that they would voluntarily quit their jobs

34、in the next year compared with 33%of workers who disagree their senior leaders care about meaningful progress who said the same.Supply chain workers are also more likely to feel engaged when their direct supervisor communicates the value of IE&D to employees often(67%),compared with only 43%when the

35、ir direct supervisor never or rarely communicates this information.In other words,when IE&D is treated like a priority,workers notice and respond.Companywide prioritization of IE&D initiatives has a significant influence on their perceived effectiveness within the supply chain department.When HR pro

36、fessionals say their company highly prioritizes IE&D,they are almost 2.5 times more likely to say their company is very effective at making IE&D-related progress in their supply chain department.Yet,just 24%of supply chain managers and 21%of HR professionals report a high companywide prioritization

37、of IE&D.Worse still,about 1 in 10 supply chain managers(13%)and HR professionals(9%)say IE&D is not a priority at all for their company.4.5X more likelyOver 4X more likely4X more likely7to say they often feel burned out.to say they often feel excluded at work.to say they often felt like they wanted

38、to quit in the past six months.Successful IE&D is Driven by Integration Across Multiple Business Operations,Leadership Involvement&Accountability,and IE&D TrainingWhile many companies IE&D initiatives focus on just a few areas,the most successful have a variety of initiatives that span multiple busi

39、ness operations and the employee experience.For many companies that currently have IE&D initiatives or are planning to introduce them in the future,recruitment is their top focus.In fact,80%of HR professionals from companies that currently have or plan to offer an IE&D initiative said their initiati

40、ve(s)have or will have a focus on recruitment.The most effective IE&D programs,however,appear to touch many business functions across the company.HR professionals who report their company is very effective at achieving IE&D-related progress in their supply chain department say their companys overall

41、 IE&D initiatives span more than twice the number of business areas than those from companies that are not effective.These results suggest that IE&D-related success in supply chain departments must extend beyond supply chain operations and permeate the entire company culture for the best results.8Bu

42、siness functions IE&D initiatives focus on,according to HR professionalsPercentages displayed represent selected business functions.Respondents could select multiple options.OverallVery effective at IE&D progressRecruitmentPay&compensationEmployee engagementLearning&developmentAdvancement/Progressio

43、nRetentionPerformance evaluationsBenefitsSupplier diversityNot effective at IE&D progress80%89%69%71%79%46%65%71%51%62%83%41%56%73%15%54%63%36%40%52%10%34%49%33%34%54%26%9Supply chain leaderships involvement is key to driving IE&D-related success.Leadership involvement is critical for making progres

44、s and achieving success in any company initiative.IE&D is no different,and supply chain managers report major differences in IE&D success at their companies when leaders are involved in IE&D-related tasks within the supply chain department.Most supply chain managers at companies rated not effective

45、at making IE&D-related progress in their supply chain departments say their companys supply chain leader or leadership team are not involved at all in supply chain IE&D activities,including tracking metrics and engaging in companywide planning to foster IE&D.In contrast,supply chain leaders at compa

46、nies rated very effective at achieving IE&D-related progress are much more involved in these efforts.Notably,three-quarters(75%)of managers at these companies say supply chain leaders are very involved in communicating the importance of IE&D to their workforce.Results shown represent supply chain ma

47、nagers ratings of their departments leadership team involvement in the following activitiesDifferences in level of supply chain leader involvement between companies rated as very effective at making IE&D-related progress in their supply chain department and those rated as not effective.Leader(s)very

48、 involvedLeader(s)somewhat involvedLeader(s)not involved at allEngaging in IE&D practices within their workgroupEngaging in IE&D practices within their workgroupVery effective IE&D progressNot effective IE&D progressCommunicating the importance of IE&D in their workgroupsCommunicating the importance

49、 of IE&D in their workgroupsStrategic planning around fostering IE&D in the supply chain department specificallyStrategic planning around fostering IE&D in the supply chain department specificallyCompanywide strategic planning to foster IE&DCompanywide strategic planning to foster IE&DTracking metri

50、cs for IE&D programs for their staffTracking metrics for IE&D programs for their staff59%35%22%32%40%33%74%67%85%89%11%15%29%21%89%17%5%5%5%5%8%7%4%5%75%61%55%50%10Fostering IE&D in a companys supply chain department may also depend on how acutely involved the department is in the companys overall I

51、E&D strategy.Supply chain managers at companies identified as making poor IE&D-related progress say that supply chain leaders are not as involved in IE&D strategic planning as leaders from other business units.In fact,63%of supply chain managers from these companies say their supply chain leaders ar

52、e less involved in companywide IE&D planning compared with leaders from other departments or teams within their company.Furthermore,companies that are struggling to make any IE&D-related progress within their supply chain department may find that their first hurdle is getting their own leadership te

53、ams support.Two major barriers to IE&D progress in supply chain departments are a lack of leadership buy-in and insufficient investment in IE&D strategy and initiatives.This is reported by both supply chain managers and HR professionals in companies with poor IE&D performance.Without strong leader s

54、upport and involvement,the chances of meaningful IE&D progress remain limited.In addition to leaders being involved in supply chain IE&D progress,companies that hold leaders accountable for IE&D are much more effective at making progress toward their goals.For example,36%of companies that hold suppl

55、y chain leaders accountable for meeting IE&D targets or goals are rated as being very effective at making IE&D-related progress in their supply chain department,compared with just 12%of companies that do not hold supply chain leaders accountable,according to HR professionals.Holding supply chain lea

56、ders accountable for IE&D-related progress can greatly increase the effectiveness of IE&D initiatives.Companies that hold supply chain leaders accountable for meeting IE&D goals are 3 times more likely to be rated very effective at making IE&D-related progress in their supply chain department when c

57、ompared with companies that do not hold supply chain leaders accountable.3X more likely to be rated very effective11Furthermore,among those who say their company is not at all effective at making IE&D-related progress in their supply chain department,a lack of leadership accountability is the No.1 b

58、arrier to fostering IE&D according to supply chain workers(29%).Twenty-seven percent of supply chain managers and 34%of HR professionals also agreed this is a major barrier at their company.Despite accountability leading to positive IE&D progress,there are many companies that do not hold their suppl

59、y chain leaders accountable.In fact,just 36%of HR professionals say their company holds supply chain leaders accountable for meeting IE&D targets or goals.Accountability mechanisms for supply chain leaders on IE&D progress can vary widely.One common practice,according to HR professionals,is tying IE

60、&D targets to performance reviews,bonuses,and promotion eligibility for supply chain managers and executives.This approach leads to greater leadership involvement in companywide IE&D efforts.When held accountable,supply chain leaders are nearly twice as likely to actively participate in IE&D plannin

61、g,as noted by both supply chain managers and HR professionals.Additionally,supply chain managers report that when their leaders are held accountable for IE&D-related progress,those leaders are more likely to engage in behaviors that push others to achieve IE&D goals,including:Nearly 4X more likelyOv

62、er 3X more likelyOver 2.5X more likelyto hold other leaders accountable for fostering workplace IE&D(51%versus 13%).to promote sponsorship and mentorship programs to help advance underrepresented employees(52%versus 17%).to integrate IE&D-related behaviors into performance evaluations(57%versus 21%)

63、.12Compared with companies that have both IE&D initiatives and training in their supply chain department,companies that only provide training are:Comparing the perceived effectiveness of IE&D training against how often this training is received shows a clear relationship between these factors for bo

64、th supply chain managers and workers.Thirty-eight percent of supply chain managers and 51%of workers say training on IE&D-related topics is very effective when it is delivered several times per year.When training is delivered once per year or less,only 18%of managers and 30%of workers say it is very

65、 effective.IE&D training is common in todays supply chain departments.In fact,just 4%of supply chain managers and 4%of HR professionals say their company does not offer any training to address IE&D-related behaviors and skills.While IE&D training is very popular,offering training alone is not the so

66、le solution to effective IE&D in supply chain today.In fact,companies offering only training without any other IE&D initiative in their supply chain department are less effective than companies that offer both training and IE&D initiatives together.HR professionals from companies with a supply chain

67、 department that has at least some IE&D training but offers no other IE&D initiatives are 3.5 times more likely to say their company is not effective at making IE&D-related progress in their supply chain department than those from companies that have both training and other initiatives.Supply chain

68、managers at similar companies are also twice as likely to say their company is not effective at making IE&D-related progress in their supply chain department than those from companies that offer both IE&D training and initiatives together.Training can be an effective tool in IE&D strategy.3.5X more

69、likely2X more likelyto be rated as not effective at achieving IE&D-related progress in supply chain by HR professionals.to be rated as not effective at achieving IE&D-related progress in supply chain by supply chain managers.13An Action Plan for Meeting IE&D GoalsAddressing IE&D-related challenges a

70、nd gaps in supply chain departments is not an easy task,especially as each business is unique in its needs and challenges.Luckily,results from this research show that this undertaking is often worth the effort as both employers and employees benefit from these investments.Using insights and examples

71、 of success identified through this research,companies may consider the following strategies to help them successfully address IE&D challenges in their supply chain departments.Leadership buy-in and prioritization are essential for the success of IE&D initiatives in supply chain departments.When buy

72、-in is hard to come by,it harms the companys ability to make progress toward IE&D targets and goals.Where senior leadership buy-in is one of the greatest barriers to making progress,both supply chain managers and HR professionals are more likely to say their company is not effective at achieving IE&

73、D-related progress in their supply chain department.Conversely,supply chain managers from companies with highly effective IE&D outcomes cite strong leadership buy-in and involvement as key differentiators.Leadership buy-in and commitment can determine success or failure no matter how much work is pu

74、t forth by the rest of the company.As with any initiative,setting goals and being held accountable is critically important for achieving success.Results from this research show that companies are 3 times more likely to be very effective at achieving IE&D-related progress in their supply chain depart

75、ments when supply chain leaders are held accountable for these achievements.Accountability can take many forms and look different depending on a companys needs and structure.Many companies that hold supply chain leaders accountable for IE&D-related progress report connecting IE&D accountability to m

76、onetary incentives(such as merit increases and bonuses),advancement opportunities,and performance metrics to help them achieve these goals.14Establish buy-in and involvement at the highest levels.Create IE&D goals and hold leaders accountable for achieving them.Strategy 1:Strategy 2:While IE&D and r

77、elated topics are often relegated to other departments such as human resources,it is crucial that supply chain departments and their leadership be involved in planning IE&D strategy.Results from this research show large departmental and company returns when supply chain leaders are involved in these

78、 planning efforts.Supply chain departments are 11 times more likely to be effective at making IE&D-related progress when supply chain leaders are involved in companywide IE&D planning,according to supply chain managers.When companies think about IE&D,they often focus first and exclusively on recruit

79、ing underrepresented groups.However,recruiting can be difficult for a variety of reasons such as low turnover at small companies,a geographic location with little diversity in the community,or other challenges.Instead of focusing exclusively on recruitment,companies can consider ways to bolster IE&D

80、 initiatives through other parts of the business.For example,by offering benefits that place greater consideration for womens needs,such as child care assistance or maternity leave options above legal requirements,companies send a signal to these workers that their experiences and needs are importan

81、t.Additionally,supporting methods that allow employees to express and celebrate their identity,such as those offered through employee resource groups(ERGs),can better allow employees to feel they are included and that they belong at the company.Despite controversies surrounding IE&D training,data de

82、monstrates its effectiveness in driving better IE&D initiatives in supply chain departments.For example,when supply chain leaders and managers receive IE&D training,they are more likely to often display behaviors that reflect IE&D best practices,such as treating all employees with respect or acting

83、to address discrimination and exclusion.Additionally,supply chain managers are nearly 3 times more likely to say their company is very effective at achieving IE&D-related progress in their supply chain department when training is offered more often than once a year.15Demand that supply chain is part

84、 of the conversation.Use training as a resource,not as the sole solution.Be creative in how IE&D can be applied across different business operations.Strategy 5:Strategy 4:Strategy 3:Methodology/DemographicsSHRM and ASCM recruited a U.S.-based sample of 1,442 participants to participate in the survey

85、 between October 2023 and December 2023.Respondents included 447 supply chain managers,298 supply chain workers,and 697 HR professionals.Supply chain managers and workers were recruited through ASCMs members and customers.HR professionals were recruited through SHRMs Voice of Work panel.HR professio

86、nals were required to work in a company with employees responsible for supply chain management for at least three years.The data is unweighted.About SHRM SHRM is a member-driven catalyst for creating better workplaces where people and businesses thrive together.As the trusted authority on all things

87、 work,SHRM is the foremost expert,researcher,advocate,and thought leader on issues and innovations impacting todays evolving workplaces.With nearly 340,000 members in 180 countries,SHRM touches the lives of more than 362 million workers and their families globally.Discover more at SHRM.org.About SHR

88、M Foundation SHRM Foundation empowers Human Resources as a force for social good.As the nonprofit arm of SHRM,the worlds largest HR professional society,the Foundation believes that HR holds a unique position to lead change in the face of complex challenges within the world of work.The organization

89、mobilizes and equips HR to ensure the prosperity and thriving of talent and workplaces.The Foundation works by widening pathways to work for more skills-first candidates and more kinds of talent;tackling societal challenges,with a current focus on workplace mental health and wellness;and strengtheni

90、ng the HR field with even more diversity,growth,and readiness to address these needs.SHRM Foundation works with SHRM,courageous partners,and bold investors to generate awareness,action,and impact to build a world of work that works for all.Discover more at SHRMFoundation.org.About ASCM The Associati

91、on for Supply Chain Management(ASCM)is the global pacesetter of organizational transformation,talent development and supply chain innovation.As the largest association for supply chain,ASCM members and worldwide alliances fuel innovation and inspire accountability for resilient,dynamic and sustainab

92、le operations.ASCM is built on a foundation of world-class APICS education,certification and career resources,which encompass award-winning workforce development,relevant content,groundbreaking industry standards and a diverse community of professionals to create a better world through supply chain.To learn more,visit ASCM.org.CPR-24046916