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DIVERSITY & INCLUSION AT THE WORLD BANK GROUP
November 2005
THE BUSINESS CASE FOR DIVERSITY AND INCLUSION. Over the last several years, the WBG has come to view the
process of development through an increasing number of new lenses, including those provided by our clients. The business case, which
finds resonance not just in the WBG but among international organizations and continues to be affirmed by staff and managers, is:
The way we look, sound and think matters to our clients, and our teams and country presence increasingly need to mirror them
Our success in fostering respect and inclusion among diverse colleagues will lead to success in the same areas with our clients
Managers who bring out the best in a diverse team have the greatest chance of delivering on the challenges of development
Staff are more productive when their contributions are fully valued
STAFF, AN UNDER-UTILIZED ASSET Race. Discussions of racial discrimination have been
On its face, the WBG is a paragon of diversity – noted since 1971. Anecdotes highlighted in a 1978
women and men from 168 nationalities posted in 121 Washington Post article led to a report through which
countries, from a wide range of cultures, ethnic and WBG black African staff expressed their belief that
language groups, academic and professional back- only discrimination could explain low recruitment,
grounds. These differences are part of our comparative slow advancement and lack of Africans in senior
advantage, but our organizational culture has tended to positions. In 1997, the Dewey-Ballantine audit report
ignore or suppress them. As our work has become on allegations of racial discrimination in the
more complex and multi-dimensional, our clients more Controller’s VPU talked about “differing perceptions
demanding, our stakeholders more numerous and of reality” between black staff who felt discriminated
vocal, and our own staff more diverse, the way in against and managers who did not agree, believing
which we select, develop, and engage our staff must their personnel actions were based solely on merit.
also evolve to leverage our varied strengths. These perceptions continue today, as documented in
a recent Staff Association newsletter.
EVIDENCE OF BIAS Gender. The 1987 reorganization increased drama-
The current diversity strategy evolved in response to tically the ranks of women first-line managers.
cumulative evidence of bias along several dimensions, However, it did not take these women long to feel
notably race, gender, and Part I/Part II nationalities. that they had hit a ceiling and that they were being
DIVERSITY & INCLUSION MILESTONES, 1970-PRESENT
1996 1999
1995 Catalyst gender Disabilities working
First woman MD barriers study group created
1978 2000
1993
Washington Post article 1980 First African/woman MD
Africa Issues
on WBG racial issues First African VP Committee report; 1998
GLOBE created 2001
Racial equality
initiative launched WBG Diversity Director
1975
1992 appointed
First woman Director 1982
Stern report;
First woman VP 2003
Gender equality
initiative launched 1997 Inclusion study
1973
Status of women First woman RVP; 2004
working group created 1991 Dewey-Ballantine report First diversity & inclusion
by SA Task force on awards
higher level women
Focus on Constituencies
1970 Beyond 2006
Diversity
Diversity &
Inclusion
1987 1997
Reorganization Reorganization 1998
HR Reform;
Diversity indicators set
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judged differently than men (where men were wide targets for HQ-appointed professional (GF+)
deemed assertive, women were perceived to be staff. The longstanding Part II target was reaffirmed.
abrasive). A 1996 study by Catalyst consultants New stretch targets were established for gender and
showed subtle but unmistakable differences in the race, originally set for June 2003 and eventually
way performance appraisals were done: men were deferred to 2005. To account for increased
described in more enthusiastic terms (“he had a great decentralization, the Part II and gender targets were
year” vs. “she had a solid year”) and high-performing later recalibrated to account for both HQ and
men were more clearly positioned for the future (“he Country Office professional staff, and they are still in
should be a Director within three years”) while effect pending a new strategy.
women of similar performance were grounded in the Accountability framework. In an attempt to hold
present (“we couldn’t do without her”). managers more accountable, VP-level diversity
Other studies. Pay-and-grade studies have been agreements were done, first in 1998 then again in
carried out periodically since 1992, confirming dis- 2000. The agreements were instrumental in raising
parities in pay both between Part I and Part II staff awareness but actual results were mixed, and there
and along gender lines. In 1998, a study of YPs by were no evident consequences (good or bad) for
DEC showed that after ten years, career outcomes managers’ performance.
diverged along the same Part I/Part II and gender Broadening concept of diversity. Over the years,
lines; a 2001 study added an SSA/CR analysis (proxy the demand for recognition and inclusion of other
for black staff), with similar results. In 2003, an groups increased, leading to, inter alia, creation of the
inclusion study (Bendick & Egan consultants) high- Disabilities Working Group and cooperation with the
lighted differentials in career outcomes for in- and gay and lesbian group (GLOBE) on specific issues
out-groups, based on a number of demographic such as domestic partner benefits. Through this
variables. Anecdotal evidence collected through process, the institution came to realize it could not
focus groups, workshops, team-building exercises, keep adding programs and creating silos to respond
etc. also supports the view that the WBG can do a lot to specific constituencies and started to think about
more to create a level playing field for all its staff. how to address underlying causes of discrimination
and intolerance more profoundly.
INSTITUTIONAL RESPONSE, 1992-2000: FOCUS ON
CONSTITUENCIES INSTITUTIONAL RESPONSE, 2001-2005: BEYOND
Early approaches. Until the early 1990s, diversity DIVERSITY
issues were raised mainly by staff groups, with The evolution of the diversity strategy beyond a
support from the Staff Association. Management constituency-based approach received a boost with the
responded with studies and reports, but little mean- creation of a Director of Diversity position for the
ingful progress was achieved. Things changed, WBG in 2001. The basic components of the strategy
however, with the 1992 Stern Report on gender, which (mainly, institutional and VPU targets) remained
provided a blueprint for a more proactive approach unchanged. In 2003, Diversity Compacts replaced the
and set concrete five-year targets to redress imbal- previous agreements, with VPU commitments that
ances in key professional and management positions. were more specific (e.g., recruitment plans, career
A supporting infrastructure eventually emerged, development strategies, improvements in the work
including a Sr. Adviser position for gender issues, environment, etc.) and accountability that was broader,
voluntary action plans, VPU coordinators, a mentor- tying entire management teams. The compacts are still
ing program and awareness-raising programs. The operative pending development of a new strategy, but
Dewey-Ballantine recommendations drew on the real accountability remains elusive. Emphasis was put
gender model to address racial inequality in a similar on subtler but more deep-seated behavioral issues, such
fashion (e.g., Sr. Adviser, targets, mentoring program, as creating a more respectful and inclusive work
targeted recruitment). In the absence of a true race environment through workshops and training for intact
indicator, SSA/CR nationality was adopted as a proxy teams and management teams.
for black staff. To provide recognition for positive behavior and
Diversity targets. The HR Reform which followed results, the WBG initiated diversion & inclusion
the 1997 reorganization brought different diversity
dimensions under a single umbrella, leading to WBG-
“HQ-appointed staff” are those with an appointment issued in
Washington or other developed countries. See Glossary for a brief
description of appointment categories.
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leadership awards in 2004; past winners include both as, if not more than, recruitment.
managers and staff. Changes in systems, processes and behaviors.
As it became increasingly apparent that some of the Major gains have been made in raising awareness, and
targets would not be met by the end-FY05 deadline, diversity considerations have been increasingly main-
additional effort was expended to address root causes streamed into recruitment, promotion, and staff
by identifying the cultural, systemic and organizational development decisions. Each year, HR analyzes pay-
reasons for the lack of progress in certain areas. The and-grade and performance rating data to identify
Bendick & Egan inclusion study (2003) brings to the outliers and address outsized pay disparities. Staff
WBG the latest thinking on inclusion issues, zeroing in survey results on diversity have been solidly positive.
unconscious biases that lead to differentiation between Selection shortlists are routinely scanned for diver-
in-groups (the typical or modal employee) and out- sity. Targeted recruitment programs and outreach
groups (staff differing from the modal archetype), missions are organized regularly. Partnership pro-
which typically results in less-favorable career outcomes grams bring in staff whose background and experi-
for out-groups. Differences in grading, salary, promo- ence may not always be an obvious fit, who yet
tion, etc., are often small enough not to be noticed or contribute in unexpected and creative ways.
challenged, but their accumulation can generate very More to be done. However, few would deny that
different career outcomes for equally-qualified staff. problems persist. Biases may be more subtle and
cannot be measured systematically, and there is
SUMMARY OF PROGRESS TO DATE always room for a more proactive approach to
Progress against targets. The WBG has achieved recruitment, both externally and internally. As an
mixed results against the numerical targets. By June example, a recent HR study noted the increased
2005, the targets for Part II nationals were fully met; “regionalization” of staff, with growing numbers of
Part II nationals now make up almost half of all Latin Americans in LCR, Eastern Europeans and
WBG staff, compared to less than 40 percent ten Central Asians in ECA, Asians in EAP, etc., reflect-
years ago. Gains against gender equality indicators ing legitimate language and business development
were significant early on but have started to level off. and effectiveness issues, but at the same time risking
Progress against the SSA/CR target stalled, stuck at 8 creation of enclaves that limit cross-Regional
percent the last three years versus a 10 percent target. experience.
Progress has been uneven across WBG organizations
and across VPUs. Except for brief periods of staff GAP ANALYSIS
growth, low turnover in the WBG has limited the Changes in the diversity indicators are affected by (a)
scope of meaningful change and has also skewed recruitment, (b) promotions into the measured ranks,
managers’ incentives to focus on transfers as much (c) exits of staff from the non-preferred groups, and (d)
DIVERSITY INDICATORS, GF+ STAFF, FY98-FY05
Part I/II Women, GF-GG & GH+ SSA/CR
55% 55% 12%
Part II target, Women GF-GG
50% SSA/CR HQ
target, 45% 11%
48.5% target, 10%
50% 45%
10%
40%
45%
35% 9%
Part II HQ
target, 40% 30% 8%
40% Women GH+
25% target, 30%
7%
35% 20%
6%
15%
30% 10% 5%
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY98
FY99
FY00
FY01
FY02
FY03
FY04
FY05
Part II staff Part II, HQ staff only Women, GF-GG staff Women, GH+ staff SSA/CR, HQ staff only
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at the unit level, in- and out-flows from one unit to the also acknowledged the need for an objective way to
next. Under current staffing patterns, attrition of older, prioritize our recruitment and retention strategies to
Part I males have been key to the gains in the promote having a balanced and diverse mix of staff.
indicators. Nonetheless, recruitment can be an Diversity in the pipeline. Consultants and
important tool with great leverage if used judiciously. temporaries form a natural pipeline for staffing.
Gap analysis yields the following possible scenarios Experience shows that managing diversity at the early
for reaching the targets over a two-year horizon. stages yields more diverse candidates for selection.
Racial Equality. The share of SSA/CR nationals This is also true of other recruitment programs,
among new HQ-GF+ recruits would need to triple including the flagship YP program.
(from 7.5 to 20 percent), and their GE-to-GF Central guidance & local autonomy. While
promotion rates would need to increase from 6.3 to recognizing that the strength of the institution lies in
10 percent. empowering staff and managers, there is the need to
Women @GF-GG. The share of women recruits into balance local autonomy with collective strategic
GF and GG would need to double (from 33 to 60 thinking about the institution and, in this context, to
percent), while keeping the GE-to-GF promotion infuse a sense of collective ownership of diversity and
rate constant at 65 percent. inclusion objectives in staffing decisions. Clarity
Women @GH+. The share of women recruits at around the respective roles of various agents in the
GH+ would need to double (from 27 to 50 percent), strategic staffing process (managers, Sector Boards,
and their GG-to-GH promotion rate would also have HR, the Diversity Unit, etc.) is critical.
to double (from 28 to 50 percent). Need for better data. Our analytical capabilities
continue to be hampered by poor or incomplete data.
NEW INSIGHTS, ISSUES, STAKEHOLDERS While HR and ISG can fix the systems problems,
As the WBG has changed, its appreciation of the some data issues are at their core cultural or political
depth and complexity of diversity and inclusion issues in nature. For example, we measure nationality
has grown. Some of the issues being considered are diversity only through passport, thus understating the
described briefly below. diversity of staff who have adopted U.S. citizenship.
Global staffing and decentralization. Most We identify blacks through a highly imperfect proxy
diversity initiatives to date have focused on HQ of SSA/CR nationals, whereby African-Americans
(Washington) staff, but Country Office staff now are not counted and non-black Africans are counted.
make up one-third of the WBG. The institution HR has debated instituting a detailed demographic
needs to fully consider their needs and ambitions – census, but has backed off due to feedback that some
different from, but no less equal to those of HQ staff cultures consider it inappropriate to ask for data on
– under a new inclusion strategy. Other possible race, ethnicity, disabilities, etc. and also because of
inclusion issues within Country Offices include the the technical difficulty in designing a taxonomy that
interaction between international and local staff and would fully capture the cultural richness of the
potential ethnic and class divisions which reflect the WBG’s staff.
local environment.
Women in senior positions. The share of women INSTITUTIONAL RESPONSE, 2006 & BEYOND:
in the professional ranks decreases steadily at each DIVERSITY & INCLUSION
higher grade, from 47.5 percent at GF to 37 percent We are moving ahead with a two-pronged strategy
at GG, 27 percent at GH, and 24 percent at GI+. for the medium-term: (a) a renewed commitment to a
While this is a substantial improvement from before diversity approach, based on relevant indicators; and
and is evidence of a robust pipeline (since most GH- (b) the adoption of a more fully developed inclusion
and-above positions are filled internally), more can be strategy that will shift our emphasis from numbers to
done to accelerate the pace of change and anchor the behavior changes. The first prong reflects recognition
gains within a critical mass. It should be noted that that there is still work to be done in specific areas of
other groups (Part II, SSA/CR) are generally more diversity. Experience over the past decade has given us
evenly distributed across professional grade levels. a better understanding of the challenges related to
Nationalities of concern. Shareholders have those areas, and the prism through which we now
become increasingly vocal in seeking greater “repre- address issues of nationality, gender, race, disabilities,
sentation” within the staff, often using voting shares etc. The second prong takes us to a higher level.
as approximation. The WBG has consistently Learning will become one of the major areas of activity.
resisted any semblance of a quota system, but has Building managerial competencies to better leverage the
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DIVERSITY & INCLUSION: COMPLEMENTARITIES
An inclusion approach addresses
A diversity approach focuses on…
diversity but focuses on…
Staff – having better representation of different The employer – having the culture and practices that
groups enable different groups to contribute
Numbers – representation of staff on board is an end The actions behind the numbers – the hiring,
in itself development and advancement decisions reflected in
the numbers
Correcting outliers – ad hoc programs to address Removing systemic barriers – creating more transparent
inequities for certain groups systems and raising awareness about biases
Changing staff – to “fit” organizational norms Changing the organizational culture – to see differences as
(removing the liability of difference) assets
Bank’s diversity as a strategic asset will become more Lynk, Myles V. et. al. Report of the Dewey-Ballantine Audit
important, and measuring our progress on inclusion in Team: An Analysis of Discrimination within the CTR Vice
a manner conducive to positive behavioral changes Presidency in the hiring, career development and compensation of
becomes a major challenge. managers and professional and support staff who are Black African
A task force, led by Shigeo Katsu of ECA, is in the nationals or are of African origin (June 1997)
middle of fleshing out the specifics of this new strategy, Oaxaca, Ronald L. and Ransom, Michael. An Analysis
and is is organized around four areas of change: of Gender and Nationality Differentials Among Higher Level Staff
Accountability. How do we create shared responsibility at the World Bank: 1988-92 (November 1992)
for promoting diversity and inclusion, and how do __________________________. Salary and Promotion
Differences between Gender and Nationality Groups for Specific
we make results matter?
Grade Levels (April 1993).
Metrics. What do we measure to reflect our diversity Raspberry, William. “Blacks and Whites at the World
and capture the degree to which our workplace is Bank,” The Washington Post (November 8, 1978).
inclusive? Stern, Ernest et al. Excellence through Equality: An
Behavior change. What types of assessment, learning, Increased Role for Women in the World Bank: A Report of the
incentives, sanctions, etc. are needed to address bias Advisory Group on Higher-Level Women’s Issues (April, 1992).
and leverage our diversity? Townsend, Bickley (Catalyst Vice President).
Strategic staffing. How do we ensure that actions “Performance Review Analysis (Memorandum to Anette
around recruitment, selection, pay/grade, reward and Pedersen, Sr. Adviser on Gender Equality; January 1997).
recognition, and career development support a Unknown authors, Report of the Africa Issues Committee
diverse workforce with equal chances for positive (July 1993).
career outcomes for all?
The task force is currently engaging in a consultative GLOSSARY OF SELECTED TERMS
process across the WBG to surface issues, expand HQ staff refers to staff appointed in the U.S., Belgium,
dialogue and promote buy-in. Its recommendations, France, Great Britain, Germany, Italy, Japan, and
expected in the spring of 2006, will take into consid- Switzerland (“HQ” locations). Country Office staff
eration the structure, systems, and incentives which refers to all other staff – i.e., staff appointed in non-HQ
may foster or hinder the pursuit of diversity and locations.
inclusion. Internationally recruited staff (IRS) are a subset of
HQ staff at grades GF or above, based on their
REFERENCES recruitment modality; they can be located in HQ or
Bendick, Marc Jr., Egan, Mary Lou and Miller, John J. posted in a Country Office. Locally recruited staff
Enhancing Inclusion at the World Bank Group: Diagnosis and (LRS) refers to all other staff. Country Office staff,
Solutions (December 2003). irrespective of level, are locally recruited, but may subse-
Filmer, Deon and King, Elizabeth M. Differences in Pay quently apply for an internationally recruited position.
and Grade at the World Bank: 2001 Study (December 2001).
King, Elizabeth, et. al. Assessing Bias in Pay and Grade at
the World Bank: A Summary of Quantitative and Qualitative
Analyses (July 1998).
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