Reflections on Intel’s Diversity & Inclusion Journey: 2016 Diversity & Inclusion Annual Report

By Danielle Brown, Chief Diversity & Inclusion Officer, VP of Human Resources

Intel is evolving, and diversity and inclusion are among the most important forces driving that evolution and reinvention. Meeting our diversity hiring and retention goals in 2016 demanded a continued dedication to inclusive hiring practices, introduction of innovative, research-based programs such as the WarmLine and multicultural retention and progression study, and establishing equity across the company through evaluating pay, progression and advancement of women and underrepresented minorities.  Progress toward our goals includes:

  1. Intel exceeded the 2016 hiring target with 45.1 percent diverse hiring and is committed to surpassing this in 2017.
  2. Positive gains were also made in the overall representation of women, which rose 2.3 points since 2014 to 25.8 percent.
  3. We hit our year-end goal of achieving 100 percent pay parity for both women and underrepresented minorities and achieved promotion parity for females and underrepresented minorities as well.
  4. We met our overall diverse retention goal, retaining diverse employees better than parity, which means that we retained the overall diverse population at a higher rate than the counterpart majority.

Each of these milestones is worth celebrating and represents the tangible results of our efforts toward real change and inclusion. However, there is still much work to be done to achieve our 2020 goal of full representation, namely with increasing the number of underrepresented minorities and countering the retention issue. Representation of underrepresented minorities in Intel’s U.S. workforce has increased modestly from 12.3 percent in 2014 to 12.5 percent in 2016, leaving room for improvement in 2017 and informing our focus over the next three years. We endeavor toward our goal of full representation, as Intel firmly believes that reaching a critical mass of women and underrepresented minorities in our workforce through creating an environment where everyone can thrive, brings ample benefits not only to Intel but the entire tech industry.

Here are a few of the key accomplishments we achieved in 2016:

 

WarmLine data and multicultural retention & progression study reveals insights and actions for 2017

Retaining key talent is vital to a strong and high performing work culture.  In our two years on this journey, we have learned that retaining our diverse talent is equally or even more important as hiring and represents a key obstacle that we must overcome in order to achieve full representation. We introduced two key initiatives in 2016 to better address retention:  The WarmLine and a comprehensive multicultural retention and progression study.

First, Intel introduced a retention-focused program in spring 2016 called the WarmLine, a service that provides a support channel for U.S. employees to explore different options with a personal advisor before they consider leaving the company. Choosing to leave a company is an individual decision, and we believe offering tailored and customized support and guidance to address employees’ concerns and issues helps us keep great talent. Since its launch in 2016, more than 1,200 employees have used the service.

In addition, we undertook Intel’s largest-ever study of retention and progression for our multicultural employees.  This study, presented in Q2 to Intel’s executive leadership team used quantitative analysis, qualitative interviews, and surveyed over 15,000 Intel employees.  It provided us a thorough look into the challenges our employees of color face and brought us many key insights for improvement that we have put into action.

In 2017, data and learnings from our multicultural retention and progression study and the WarmLine will be used to create tailored playbooks to improve our diverse representation, and improve inclusion within each business unit.  The playbooks will be delivered to each business unit and illustrate data-based trends, aggregate learnings, and key focus areas to improve retention, progression and representation. Our aim is to engage business leaders and managers in diversity and inclusion efforts more directly so that we can collectively work toward meeting hiring, retention, and progression goals.

 

Intel achieves U.S. pay and promotion parity for females and underrepresented minorities

We view pay and promotion parity as signals of the overall health of our company as well as a means of ensuring equity for all employees. We are proud to share that we have achieved 100% pay parity for females and underrepresented minorities in the U.S.

Intel first announced that it achieved gender pay parity in our 2015 Diversity and Inclusion Annual Report, and we have maintained gender pay parity through 2016. We announced that we achieved 99 percent pay equity for underrepresented minorities in the 2016 Diversity and Inclusion Mid-Year Report and were able to close this gap, reaching full pay parity for underrepresented minorities, by year-end.

Intel continually pays close attention to promotion parity, which means that promotions are distributed fairly and equitably between diverse and non-diverse populations, and strategically works to close any identified gaps on an ongoing basis. For the first time we are announcing that we achieved promotion parity for women and URMs for our U.S. operations in 2016.

We will continue analyzing our data to ensure fairness in our pay and promotion systems, as equity is a key contributing factor to make Intel a truly inclusive place.

 

Progression and leaps in leadership

Intel is committed to creating a culture of inclusion that represents the changing demographics of our world and shaping an environment where our diverse leaders thrive and progress.  This year, Intel promoted five women – one-third of this year’s inductees — to the level of Fellow, a distinguished technical leadership position that represents the highest level of technical achievement within the company. Fellows are an elite group at Intel that participate in strategic technical planning, decision-making, and research and development activities and their application to Intel’s technological initiatives.

In addition, we have made great strides on improving representation in our VP ranks this year.  From our newly appointed U.S. Vice Presidents, 41 percent are women or underrepresented minorities.

Finally, we’ve seen positive trends in progression at all levels of the company and made improvements in diverse representation across early, middle, senior, and leadership levels for both gender and ethnicity.

While there is still much work to be done, these advances in our leadership pipeline as well as all levels of the company signify our commitment and recognition that diverse representation at all levels and particularly leadership, are key to a diverse and inclusive workforce.

 

Investing in underserved populations: disabled, veterans, and the LGBTQ community

In accordance with our far-reaching Diversity and Inclusion goals, Intel Capital announced in November the expansion of its ICAP Diversity Fund beyond startups led by women and underrepresented minorities.  The Fund will now include startups led by people with disabilities, U.S. military veterans or members of the LGBTQ community. Intel Capital President Wendell Brooks also announced the expectation that all members of his investment bring forward diverse startups for investment consideration. The $125 million fund is the largest diversity-focused fund in the venture capital industry.

 

Creating an inclusive supply chain

Creating an inclusive supply chain is an important way to extend our diversity efforts to the global communities where we operate. In 2016, we surpassed our goal to spend $400 million with diverse owned suppliers, reaching $555 million in diverse spending. Intel was the first company to launch supplier diversity in Germany where we matched NGOs to bring certification for women-owned businesses. This year, we expanded our program to five more countries, bringing our global program to a total of 24 countries.

 

One year of hacking harassment

It’s been a little over one year since introducing Hack Harassment, a collective initiative seeking to promote a safer, more inclusive internet for everyone.

This year we amplified the conversation and promoted positive behavior change through our Hack Harassment pledge, a Campus Ambassador program to bring this message to college communities nationwide, and over 90 Major League Hacking hackathons to empower college students to create solutions to combat online harassment.

In December, we welcomed Olympic gold medalist, Gabby Douglas, to Hack Harassment as our first-ever Change Ambassador following her personal experience with online harassment during the Rio Olympic Games. We look forward to continuing our progress in 2017 and hope you’ll join us by signing the Hack Harassment Pledge at www.hackharassment.com/pledge.

 

Developing Intel’s Engineers of the Future

Intel already knows the names of future engineers that may be hired in the next 5-7 years. How? By investing in strategic STEM programs at both the high-school and college levels to pave the way for greater participation of underrepresented minority students in STEM education.

 

OUSD yields impressive results in just one year

We achieved impressive results in just one year of our Oakland Education initiative, designed to see students from Oakland Unified School District (OUSD) high schools through college to jobs at Intel or in the tech sector. From the start, we’ve taken a comprehensive approach to focus on students, teachers, parents, and the community.  Before Intel’s investment, OUSD:

  • Had ~700 students across the district enrolled in CS, and now has 2,800 students enrolled (a 400 percent increase)
  • Had only 33 students enrolled in an AP computer science course, and now has 361 students (an 11x increase).

 

Expanding access to STEM for Native American students

As part of a partnership between Intel and the American Indian Science and Engineering Society (AISES) to create pathways for Native American students, Intel is contributing $1.32 million to AISES’ “Growing the Legacy” scholarship program for Native American undergraduate and graduate students. This initiative will support 40 Native American university students every year for four years by providing them with financial support, Intel mentors, and opportunities for paid internships or jobs at Intel upon graduation. Intel and AISES are also collaborating on a culturally-appropriate computer science curriculum for Native American high school students.

This partnership extends our commitment and our investment in the Native American community following the Next Generation of Native American Coders project launched last year at the Navajo Nation in Arizona, where we introduced computer classes, trained teachers and provided a computer lab for three Navajo high schools. This fall, computer science classes were taught at these schools for the first time and 176 students signed up for the classes.

Seeing the tangible impact of what we’ve already achieved validates our investment of money, time, and expertise in our future workforce.

 

Looking ahead

Moving into 2017, Intel will continue to improve the representation of underrepresented minorities and women within its U.S. workforce and establish challenging hiring, retention and progression goals.

Additionally, we will continue to foster an inclusive culture. Key to that culture is ensuring we focus on continuously improving our manager capability, which includes managers who are effectively trained in building and leading diverse and inclusive teams.  This will be a major focus for Intel in 2017, as we aim to have 100 percent of our managers go through manager capability training this year. We will also begin to address the issue of intersectionality, starting with a focused and targeted strategy around improving the retention and progression of Intel’s women of color.

We look forward to continuing to share our challenges and successes as we progress on our journey to a more diverse and inclusive workforce and industry in 2017.

Below is our full current demographic data (note: graphs will rotate through a gallery at the bottom of the blog text and data parameters and definitions below the graphs)

 

DATA PARAMETERS AND DEFINITIONS

  1. Changes in percentages are calculated using the following formula:

Annual Report 2016 to Annual Report 2014 Comparison:

(% in Dec 2016 – % in Dec 2014) / % in Dec 2014

  • Example, Dec 2016 African American Hiring = 5.00% of hires and Dec 2014 African American Hiring = 3.07% of hires. (5.00% – 3.07%) / 3.07% = 0.628 = 63% increase.
  1. Full workforce representation is the point at which Intel’s workforce in the United States matches the supply of skilled talent available for current roles at Intel
  2. Employees with unreported ethnicity chose not to self-identify their race on the date that representation data was pulled. Intel complies with federal regulations and uses post-employment records to identify the gender, race and ethnicity of individuals who do not self-identify. These updates are done on a monthly basis
  3. Underrepresented Minorities (URM) = African Americans, Hispanic, and Native Americans
  4. Counterpart to Underrepresented minorities = White and Asians
  5. Counterpart to Female = Male and unknown gender
  6. Exits consists of employees that leave Intel for any and all reasons including VSP, retirement, RDP, and death.

For more data specifics, including details about the data and the raw data set used in this blog: refer to the Intel Diversity & Inclusion Addendum to 2016 Annual Report at http://www.intel.com/content/www/us/en/diversity/diversity-2016-annual-report.html

Danielle Brown

About Danielle Brown

Danielle Brown is Intel’s Chief Diversity & Inclusion Officer. She is responsible for leading Intel’s Diversity & Inclusion strategy and progress toward Intel’s 2020 goal of reaching full representation in its workforce. In addition, Danielle serves as the Chief of Staff and Technical Assistant for Brian Krzanich, CEO, Intel Corporation.

5 Responses to Reflections on Intel’s Diversity & Inclusion Journey: 2016 Diversity & Inclusion Annual Report

  1. Dawud says:

    How did they close the gap, did people get mid year pay raises? For the people who did get them, were the notified that they received a pay increase due to possible gender or racial bias?

  2. Thomas says:

    I have to ask, are you hiring on merit or based on skin color. If merit, then these statistics simply shows that either education is finally balancing out properly among ethnic groups, or that more people of the minority ethnicities are taking an interest in Intel. However, if this is not based on merit, then the increase could be seen as racist, if you are hiring someone based on skin color when a more skilled potential employee has also applied for the same position. Similar things could be said of female hires, if the hiring process is not merit based, but based on gender. Again the same could be said of the pay raises and promotions.

    I feel that pay rate, promotion, hiring, etc. should all be done based on the skill of the employee. Any other consideration is a form of discrimination and is disrespectful to all involved parties. I hope this is not what Intel has been doing, since that would put them on a slippery slope that could lead to legal issues in their future.

  3. Cruz says:

    Thomas, I believe the promotions are based on merit , and a very well deserved one. Finally INTEL star acknowledging their bias as a company and try to corrected. That is fair game. It will take some time until we removed our prejudices but Intel is committed to work on eradicate prejudices and paid/promoted/empower people regardless of race/gender/age/…. Hope that you have a little patience and empathy with the process since the group in the category that Intel try to recognize, very well deserved the spot light for few years. In my opinion that is nor discrimination, but recognize past errors and work toward eradicated them, so everybody could reach their full potential. Thank you for the comment, we need to keep the dialog open.

  4. John says:

    Hiring should be based on merit and merit alone. Positive discrimination is still a form of discrimination. While the intention behind this practice is noble, it will still – and always will – lead to groups of people being disenfranchised.

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