Business Results Through Diversity
In today’s global economy, it is evident that the skills needed for success can only be developed through exposure to diverse cultures and ideas. More than 90 percent of Fortune 500 companies have employee affinity groups, and Caterpillar is no exception. These employer-recognized groups of employees share common concerns and tend to focus on those who have been historically under-represented in the workplace. And when they work well, they can help companies attract and retain employee talent.
The Merriam-Webster dictionary defines diversity as “the condition of being diverse, especially the inclusion of diverse people (as people of different races or cultures) in a group or organization.”
For Caterpillar, diversity has many meanings. “Certainly it’s important that we’re diverse in how we look as a company, especially as we work to attract the best talent around the world to serve our customers,” said Chairman and CEO Jim Owens last year. “But it’s even more important that we’re diverse in how we think.”
Meet Caterpillar's Employee Affinity Groups
So how does this Fortune 50 company incorporate diversity into its workforce? One way is through its eight employee affinity groups that focus on different races, ethnicities, genders and cultures. These eight groups are:
- Caterpillar African American Network (CAAN). Caterpillar’s oldest affinity group was established in 2002 to improve its ability to attract, develop and retain African American professionals.
- Caterpillar Armed Forces Support Network (CAFSN). Established in 2007 to promote and support personal and career development for Caterpillar military veterans and to serve employees and their families during times of re-activation and deployment.
- Caterpillar Asian Indian Community (C-AIC). Established in 2008 to attract, retain and engage Asian-Indian employees, while serving as a corporate resource on issues related to Asian-Indian culture.
- Caterpillar Chinese Affinity Group (CCAG). Established in 2008 to drive positive employee engagement and assist Caterpillar to succeed in China and around the world, while assisting employees in reaching their full potential, and anticipating and responding to Caterpillar's needs in Chinese-related opportunities.
- Caterpillar Experienced Professional Direct Hire Affinity Group (EPDH). Established in 2008 to provide career enhancement for experienced professionals hired into Caterpillar and to attract and retain key talent while leveraging the diversity of skills and perspectives each person brings to the organization.
- Caterpillar Lambda Network (CLN). Established in 2006 to create an inclusive environment for Caterpillar's gay, lesbian, bisexual and transgendered employees, along with their allies (GLBTA) in support of Caterpillar's non-discrimination policy, and to educate employees on the perspective of the GLBT community.
- Caterpillar Latino Connection (CLC). Established in 2005 to build Caterpillar's global excellence by leveraging Latino culture as a competitive advantage.
- Women’s Initiatives Network (WIN). Established in 2006 to play a significant role in helping Caterpillar achieve its strategic goals and to support Caterpillar's PEOPLE initiatives and global diversity goals.
Why Diversity Is Important
At Caterpillar, diversity is a driving force that helps the company evolve and grow. When the affinity groups were formed, Caterpillar “wanted to provide an opportunity for employees to have a place where they could get together with people like themselves,” explained Kelli Stokes, director of global diversity and talent acquisition. “[Affinity groups] give people of like situations an opportunity to come together to interact and help the organization, to provide information for Caterpillar’s leaders, to mentor each other, and also to provide information about ways they can make the company better.”
Ranked first in its industry among Fortune 50 companies, Caterpillar is mindful of its appeal within the global marketplace. “We are a global company, and we have to embrace the differences in terms of ideas and different things people can offer,” said Amy Ip Tran of the Caterpillar Chinese Affinity Group. “Unless we have a diverse and inclusive environment, I don’t think people will feel comfortable opening up to offer other ideas. Through these affinity groups and through promoting cultural awareness, we will definitely make an improvement.”
While Caterpillar’s affinity groups have different areas of focus, they all work in similar ways. Each group is made up of committees, holds membership meetings, and hosts lectures they feel are important to their members. Almost all have incorporated some kind of mentoring program, and all are active within the Peoria community. “Once you participate in the group, you get opportunities to develop skills you might not be able to until later on in your career,” noted Jose Lopez Dominguez of the Caterpillar Latino Connection.
Each group operates slightly differently when it comes to its committees. Several of the groups’ committees cover broad, overarching themes, such as communication, education or administration. Others are set up with more specific purposes, such as WIN’s Work-Life Balance focus group or EPDH’s Onboarding committee. According to Mary Vick of the Women’s Initiatives Network, the committees “make sure we’re hitting the mark and addressing what our members feel are important issues.” No matter their purpose, the committees serve to enhance their group’s ability to appeal to its members, encourage participation, and help [members] become better leaders and employees.
Each of the affinity groups offers some kind of mentoring program, although some are not formal in nature. For the Caterpillar Experienced Direct Hires Affinity Group, the mentoring program is very informal. “We don’t want to overstep what’s already been created, so what we’re trying to do now is fill in the gaps,” said Monique Liard. “We’re trying to go after a less formal structure and more of a ‘buddy system’ to help new experienced Caterpillar hires get used to the Caterpillar landscape and the new area they’re coming to live in.”
Other mentoring programs are more formal. The Caterpillar Armed Forces Support Network uses its website to host a survey. Those interested in receiving or becoming a mentor must first answer some questions about their background. “We have a couple people that get together and look at those, match them up and make that initial connection by contacting those two people,” said J. Ryan Hubbard. “At their first meeting they discuss what they’re expecting to get out of a mentor relationship.”
Rolling Out the Welcome Wagon
Adjusting to the Caterpillar culture as a new hire is no easy task. The affinity groups do their part to ensure each hire’s transition into life in Peoria goes smoothly. “We don’t just help new hires, but people who are new to Peoria,” said Lopez Dominguez. “Often times, it feels like they’re in a different country.” To help ease their worries, most affinity groups offer a buddy system to ensure each new employee has someone to whom he/she can reach out with any questions. “Our group has established a guide of things in the Peoria area—like where to go to the doctor and where to go shopping,” added Tran.
The Caterpillar Experienced Professional Direct Hire Affinity Group supplies its members with a checklist to help new employees navigate the company. Mary Vick has found that the best way for an employee to start feeling at home within the company is to meet and network with others. “WIN hosts a speed networking event where we have four or five panelists come in and introduce themselves. Then everyone breaks into small groups with one of the panelists and just asks questions. It’s a great way to meet 75 people in an hour.”
Lending a Helping Hand
Not only do the affinity groups reach out to their members, but “just by the sheer fact that Caterpillar understands how important diversity is to our business, as well as our community,” said Stokes, “our employees are encouraged to be very active in our communities.” Most affinity groups partnered with a Peoria-area organization this year:
- CAAN: Heart of Illinois Big Brothers Big Sisters
- CAFSN: Citizen S.A.M.
- CCAG: Peoria Chinese Association
- CLN: Heartland Safe Schools Initiative
- CLC: Heart of Illinois Big Brothers Big Sisters
- WIN: Dress for Success.
With the help of the affinity groups, thousands of dollars have been raised on behalf of these organizations. The Caterpillar Chinese Affinity group worked with the Peoria Chinese Association to raise money for the victims of China’s earthquake in May. According to Dominic Nimpson of the Caterpillar African American Network, their group generated $12,500 to promote African American heritage via the placement of the African American Hall of Fame in the Peoria Riverfront Museum. The Women’s Initiatives Network coordinated 30 members to serve food and take tickets at an event for Dress for Success, generating more than $1,500 of the organization’s $5,000 goal.
Besides fundraising, there are a myriad of other ways in which these groups reach out to the community. The members of the Caterpillar Latino Connection serve as role models and mentors for young children with Big Brothers Big Sisters. The Caterpillar Lambda Network hosts panel discussions for high school students to discuss concerns that many face in regard to GLBT issues that may make them feel excluded or vulnerable. The Caterpillar Armed Forces Support Network hosts collection drives and makes stockings for Citizen S.A.M.’s (Support for America's Military) Operation Santa. Last year, they sent 35,000 stockings to troops overseas.
Impact on Big Yellow
Not only have Caterpillar’s affinity groups improved the work environments and lives of its employees, they are key factors in the company’s success in an ever-changing, global marketplace. “Diversity helps us to facilitate our ability to deal with change in different ways,” said Stokes. “Everybody has a different opinion, and when you have people with different experiences coming to the table, we get much richer solutions.”
“While each member of Team Caterpillar is different, we are all committed to a common goal and a common set of values,” she added. “We believe focusing on diversity and inclusion will result in better market insight, increased customer loyalty and stronger employee commitment.” iBi