US companies lose by not fully engaging Asian American employees – study
Asia Society President & CEO Josette Sheeran. ASIA SOCIETY PHOTO
NEW YORK CITY— Despite improvements, companies should do more to integrate Asian Pacific American employees in decision-making and strategy formulation, according to an Asia Society study.
“The world’s leading companies know the vital role the Asia Pacific consumer and workforce leaders will play in their future,” said Josette Sheeran, president and CEO of Asia Society. “Yet, there is a critical gap in knowledge about the growth, development and advancement of this group.”
Now in its sixth year, the society’s 2015 Asian Pacific Americans Corporate Survey asks employees from Fortune 500-level companies across different industries how they perceive their employers, and tries to learn more about the APA workforce. It was issued at the recent Diversity Leadership Forum in New York.
Survey findings indicate that compared to 2014, APAs see employers more favorably across every category. Up to 84 percent of APA employees responded favorably regarding their involvement in market strategy, a jump of 23 percent from 2014. Despite the improvement, however, findings across the survey reveal that APAs are still not fully brought into strategic conversations.
Not fully engaged
While 99 percent of surveyed APA employees report really caring about the success of their companies, not all feel fully engaged. Up to 86 percent of employees at top performing companies felt that their company encouraged the participation of APA employees in market/business development activities. At other companies, however, only 65 percent of employees on average felt encouraged. The 21 percent gap between top performers and others represents lost business opportunities and lower employee retention rates.
Lack of engagement of APA leaders also manifests itself in company board makeup–34 percent of employees at top performing companies report inadequate APA representation on the company’s board of directors versus 57 percent at other companies.
The area with largest room for improvement was “Professional Growth” — 24 percent of all APA employees declared themselves not favorable about their company in that category. In fact, professional growth is identified as one of the top engagement drivers among respondents.
When asked what drives them to give their fullest at work, APA employees responded that their three biggest drivers are 1) work-life balance, 2) professional growth, and 3) diversity and employee resource groups (ERGs).
Surprising finding
One of the survey’s most surprising findings was the universal support for ERGs among APA employees, with 99 percent of respondents favorable towards these groups. Initially formed as supportive affinity groups for individuals sharing common interests, ERGs have since evolved into channels for company leadership to personally interact with, and identify, high potential APAs whom they might never have met otherwise. The findings indicate that employers should explore the use these groups as a way to further engage APA talent.
The Asian Pacific Americans Corporate Survey also provides a snapshot of today’s APA workforce. The 2015 survey found that among APA employees at Fortune 500-level companies:
- 41 percent identify as East Asian; 38 percent South Asian; 9 percent Pacific Islander/Filipino; 8 percent as Southeast Asian; 3 percent as being from Multiple Regions
- 16 percent are aged 18-29 (Millennials/Gen Y); 34 percent are aged 30-39 (Millennials/Generation X); 33 percent are aged 40-49 (Generation X); 17 percent are aged 50-69 (Baby Boomers)
- 59 percent have been with their current employer 5 or more years
- 48 percent have Master’s degrees; 87 percent have Bachelor’s degrees
- 76 percent identify as first-generation (born abroad); 17 percent identify as second-generation (born in the U.S.)
- 59 percent of those born abroad arrived in the U.S. at age 21 or older
For more survey findings, including actionable recommendations for corporate leaders, read the full executive summary.
The survey is developed in close consultation with Asia Society’s Global Talent and Diversity Council, which is comprised of 30 diversity leaders from Fortune 500 companies. It includes direct responses from Diversity & Inclusion/HR departments as well as perceptions and opinions from thousands of APA employees.
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