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Change is possible if we work together, and that change is up to all of us. So joining me today about how companies can build more inclusive and equitable workplaces is Dan Glaser president and CEO of Marsh McLennan.
Dan, these challenges are not new. So let me start by asking you this question, how can companies really make a difference?
Well, employers can make a difference. And collectively, we have the opportunity to take actions that will help close the health, wealth, and career gaps affecting Black employees. Evidence shows companies that take steps to advance equality not only make a difference to their people and to the communities they serve, but also to their own business.
Diverse organizations are healthier. They're more productive. They're better able to solve problems, creating more thoughtful and innovative solutions that serve a wider base of customers.
And I'm very proud of the work that Mercer does. I mean, Mercer does a great deal of research that confirms this fact. It's a positive flywheel, better organizations, better solutions, happier clients, all the while creating individual and societal benefits.
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The positive benefits that come with helping closing these gaps, that changed we are creating, they're clear. But it starts from within. You have to start from somewhere within the company. So can you share some of the milestones and activities that Marsh McLennan has taken on the journey?
Sure, I'd be happy to. At Marsh McLennan, we've begun our journey of leading the change we want to see. Our purpose is to make a difference in the moments that matter. This is definitely one of those moments, and we've committed to make a difference in closing the gaps.
We've made some initial commitments. We allocated $5 million to various organizations. Its aim is to improve the quality of life and opportunities of Black people in areas that span education to human rights. We created opportunities through targeted development programs designed to facilitate the visibility, career progression, and day-to-day experience of Black colleagues in our firm.
And, Dan, I'm involved with you on this. We also provide mentoring and sponsorship program for Black colleagues. Can you tell us a bit more about those?
Absolutely. We launched a Black leadership development program for high-performing Black colleagues, and it will provide mentoring and sponsorship programs, connecting those high-performing Black colleagues with some of our most senior leaders within the firm. So I'm very excited about the program. You and I and other members of the executive committee participated in listening sessions as part of our partnership with Fisk to help us more fully embrace our roles as inclusive leaders.
I'm absolutely convinced that this will help build momentum in our journey to a more inclusive and equitable organization. There's another thing that we've set up in the last year or so, is the Race Advisory Council. That has also been helpful. In your view, what has been the impact of the council?
To give us direction, provide regular input and advice on the Marsh McLennan race inclusiveness and equality agenda. They're making specific actionable recommendations on areas that concern them and where they see opportunities. To me, it's our guiding coalition.
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Let's turn to the work Mercer is doing to identify the actions that make a difference. What are the levers of change available to corporate leaders today?
Employers can be a significant part of the solution. They can look within and assess how they can close the health, the wealth, the career gaps that their Black employees experience. It's about taking a critical look at their pay, the benefits, the career development programs, which are powerful tools for creating deep, sustained change. And if enough companies address this together, we will begin to see real progress.
For many organizations, the challenge is where to start. And the good news is, companies have a lot of data to uncover the sources and the extent of the gaps. You look at that, and you can target your action in the right spot.
Can you give us a few examples?
Yes, of course. We use advanced analytics to show how diverse talent is flowing through the workforce, for example. Leaders tend to think that hiring is the solution to creating a more diverse workforce. Hiring is important, but often promotion and retention are just as important and sometimes even more critical.
So to ensure an equal opportunities for advancement, companies can also conduct pay equity analysis. They can review their talent management programs for biases and also engagement score. Averages lie. So if you look globally, you might have a good picture. But looking into the various segments and digging in, you'll find how to really change the experience for everyone on the ground every day.
And finally, you can also make an impact by closing the health and financial wellness gaps. These are critical milestone on that journey. You can use data, for example, to diagnose where program participation or individual choice gaps occur, and you can apply targeted solution to improve Black employees' quality of life that way.
And these are just a few of the steps that we're taking to help employers reach their diversity and inclusion goals. Of course, we don't have all the answers yet. And for most organizations, there is still a long way to go, as you mentioned. But what we do know is there isn't a single solution. It takes an integrated set of solutions working together and sustain the change.
So, Dan, we've talked about the upside of taking actions. What are the risks of inaction? What are the consequences of organization failing to embrace this change?
So I get it. It can be a complex and challenging effort to identify and correct the root causes of workforce inequities. It's a significant task. But those who do not engage in this journey will be left behind and will miss out on the benefits that come with improving inclusion and diversity. This is a moment where firms need to act.
That's why it's so critical for companies to start their journey with a clear, comprehensive, and impactful roadmap. The time for action is now. Thank you so much, Dan, for sharing your insights and the work that Marsh McLennan is doing to address racial inequities that impact our Black colleagues. For me, change is possible, and we can make a difference.
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