Better Early-Career Programs Lead to More Workplace Diversity. Here’s Why.

Most HR and Talent Acquisition leaders understand that diversity and equity lead to success.  Research from McKinsey shows the top 25% of organizations in both gender and ethnic diversity are more likely to outperform their industry peers on profitability by 33%, and the organizations in the bottom 25% in diversity underperform their peers by 29%. But if organizations understand the data, why do we still see women and People of Color, especially, vastly underrepresented at every level of the corporate pipeline? 

One of the reasons: entry-level recruiting and retention hasn’t been the priority it deserves to be based on the value it provides. Instead, many companies have focused on recruiting diverse candidates at middle and senior levels. 

Here’s why the focus on early career hiring and development is so impactful to workplace diversity:

Early career recruitment is the fastest way to make lasting change.

Recent graduate recruiting includes Gen Z, which is a much more diverse population than Gen X or baby boomers, so companies can make broad impacts more quickly by starting at the entry level of the organization. Consider this: 1 in 5 people currently employed are baby boomers (the least diverse sector in the workforce) who will be eligible for retirement in the next 10 years. That’s potentially 30 million job openings that will need to be filled, largely by Gen-Z. 

Hiring early career candidates naturally brings more underrepresented candidates through the door because they are easily the most diverse generation we’ve seen. 

Diversity attracts more diversity.

To attract and retain the best talent of any background, it stands to reason that you need to cast as wide of a net as possible to make sure you are reaching all of the most qualified people, not just those from a limited pool. You’ll also need to show proof of diversity hiring to tap into the best talent who want to work for a more DEI forward-thinking organization. 

Gen Y and Z specifically, appreciate diversity more than any generation before them. According to a Monster study, 83% of Gen-Zers surveyed said a company’s commitment to diversity practices was important when choosing an employer. They want to build a career with organizations that acknowledge and appreciate gender, race, ethnicity, neurodiversity, people with disabilities, and a diversity of ideas, experiences, and backgrounds.

Another way to attract more diversity is through referrals, which are cited as one of the most impactful sources of hires. People are often associated with and tend to be close to others who are like themselves in terms of race, gender, background, and experiences. This could lead to having a homogenous workplace if it’s not diverse to begin with; but if your underrepresented hires are referring others, that’s a great sign for your organization. It’s also an impactful way to engage more underrepresented talent. 

Early career is all about forward-thinking career growth.

If done well, investing in early career talent will set up your organization for future success. Recent data shows that 87% of workers whose first job matches their education level continue to be appropriately employed 5 years later, and 91% of those appropriately employed at 5 years were still employed 10 years later. In other words, if you match candidates based on their skills and area of study with the right opportunities, the odds say this highly diverse talent will still be making positive contributions to your organization for years to come. 

What would it mean to your diversity efforts if you hired diverse candidates early in their careers, and allowed them to grow to become the future mid and senior leaders of the organization? 

Now that we’ve examined how early career recruiting programs lead to increased workplace diversity, we’ll cover 7 focus areas to improve early career hiring and retention.