Korn Ferry: Pay for Performance and Diversity
Companies have posted messages on social media. They’ve hosted internal listening sessions with employees. They’ve made pledges to buy more from Black-owned businesses. Now, some companies are considering going a step further to show how much they want to increase diversity and inclusion: paying its executives to do it or cutting their total compensation if they don’t.
Some experts say that pay-for-diversity plans, if they are going to work, need to focus on creating pipelines—targeting lower levels of the company, incentivizing mid-level managers to recruit and develop high-potential diverse talent. “All organizations need to develop their talent for promotion to executives, and they have to start early on,” Don Lowman, global leader of Korn Ferry’s Rewards and Benefits practice says.