This past year, the ongoing global pandemic, divisive election and civil unrest dramatically changed the way we live and work. Yet, our community of solvers remained steadfast—unwavering—in our commitment to building a culture of belonging. As part of this, we took a natural step forward by formally evolving from Diversity & Inclusion to Diversity, Equity and Inclusion (DEI). This evolution to DEI elevates our long history of working toward more equitable workplaces and communities. While we’ve seen great momentum, there is much work to be done. We are doubling down on our commitment to continue to build trust, with a sharpened focus on supporting underrepresented communities, while advancing meaningful progress within our own firm.
Advancing our strategy is as nuanced as the career journey itself. We continue to evolve from a series of programs to targeted interventions at key moments in our people’s career trajectory to increase the diversity of our firm. Our first-ever D&I Transparency report in August 2020 brought our DEI strategy to life and served as an opportunity for honest self-reflection. We looked critically at our journey, work, progress and transparency. In this year’s Purpose Report, we are peeling back the layers by disclosing a total of 18 indicators relevant to our business, rather than limiting data to only show representation of our total workforce and leadership. This year, we also want to be more concrete with short-term goals to better hold ourselves accountable as we measure and track our year-over-year changes and our progress toward our long-term goals.
As a firm of solvers it is in our nature to be bold, courageous and relentlessly focused on systemic change in society to positively impact our people today and generations to come. We created a DEI Staff Advisory Council to guide our Leadership Team along the way by bringing diverse thinking and insights to the execution of our DEI strategy. A central part of our DEI commitment is our desire for our leadership to better represent the diversity of our organization as well as the diversity in the communities where we live and work. Starting with our Board and our Leadership teams, we know that creating diverse and inclusive teams can, in turn, help to influence and inspire a culture of belonging from within and ultimately drive greater representation at the highest levels.
We believe it is vital that all of our people feel seen and heard. Representation in the workforce creates equity and encourages us to learn about those who we may not understand, or who are different from us. Our ten Inclusion Networks are dynamic communities of PwC professionals based on shared backgrounds, experiences or interests. With 15,000 employees participating in our Inclusion Networks, they are a great way to celebrate diverse representation and help to deepen our DEI efforts.
Our Inclusion Networks are open to all, including allies. We define an ally as someone willing to use their power and privilege to advocate for and support people in less advantaged positions. The white majority at our firm have an important role to play in advancing allyship at the firm and sustaining a culture of belonging.
Through our digital platform, My Story, Your Story, our people can explore and express aspects of their identity, what makes them unique - and how the layers of who they are intersect at work. By crafting a profile that’s much more than name and title, we can inspire deeper connections, grow relationships and communities and be better allies.
Rob has Spinal Muscular Atrophy and uses a wheelchair. He started a chapter of the Abilities and Allies Inclusion Network in his hometown of Charlotte and is an advocate for how managers can foster leadership development for team members with a disability. "There can be misconceptions about a disability hindering someone’s ability to make strategic decisions in the workplace or simply fulfill daily work tasks,” Rob says. “There’s nothing more powerful than hearing an alternative viewpoint in order to learn about the experiences and challenges someone else faces. Empowering people with different abilities to share their experiences opens dialogue, fosters empathy and highlights talents and unique traits and accentuates shared experiences.”
One of the most meaningful ways to continue to advance DEI is by listening. A deeper level of understanding helps to support equity, break down barriers and enables us to understand and better support the varying needs of our people. Representation matters and data provides a glimpse into the lived experiences of our people so that we can provide more resources to support them.
With the voluntary submission of self-identification data, we gain a more dynamic understanding of our employee workforce across our many forms of diversity and lived experiences. In the midst of countless headlines about the pandemic’s disproportionate impact on women’s employment, we experienced a slight uptick in our female workforce representation. We also saw an increase from 2.6% to 4% of our people identifying as having a disability, which includes mental health and a slight increase in representation across LGBTQ+ individuals and veterans. Overall, we want to see more progress. We suspect this data underrepresents the actual numbers of our people as only 64% of our people opted to self-identify. As we build upon our inclusive culture, we recognize the importance of creating trust to encourage participation in our voluntary self-identification campaigns.
36% of our partners and employees have not self-identified across any of the 3 reported indicators: veteran status, disability/accommodation status, sexual orientation.
PEI is an indicator pulled from our Global People Survey, where we asked a series of questions designed to help us better discern where employees need help in their careers, whether the work they're doing aligns with their personal values and their sense of belonging and pride in the firm. With insights gleaned we can uncover patterns in how our people are engaged and the sentiment around their day-to-day experiences.
Our Global People Survey includes additional options for race / ethnicities for our employees to self-identify than our human capital system.
Beginning July 1, our medical plan lifetime maximum for certain transgender-related healthcare procedures increased from $25,000 to $75,000 for our people and their loved ones. Our enhanced transgender health benefits were developed with feedback and input from our people, including Art Zavala and his daughter Ariel Monroe Zavala. Art was key in providing personal insight into expanding our transgender-related health care coverage for PwC family members. “My daughter Ariel is 23 and began her transition at age 14. The increase to the lifetime limit and the expanded services will allow Ariel to continue her transition with much less stress and burden, which means the world to me as her dad.”
As we view our data through an intersectional lens, it reminds us of the vibrant diversity of our people—and the humanity behind each number. Each data point is a person or group of people, with no singular lived experience defining them. Our 18 indicators set the stage, informing our strategic approach to accelerate increased representation of diverse groups at PwC.
Pay equity is a demonstration of how we look inwards to confirm our own practices reflect our values. Last year, we were proud to announce that we were at pay equity across our US firm. Since then, we’ve continued regularly reviewing a number of factors when looking at compensation—including gender, race, geographic location, level—among others—and we’ve developed systems to maintain pay equity, including digital tools to help us analyze this data in real-time. Whenever necessary, we make pay adjustments in order to maintain equitable compensation.
Fostering, communicating and promoting a culture of belonging is central to how we attract and retain talent—including diverse talent. To improve representation at the firm, we’re recruiting talent in new ways while recognizing that enhancing diversity within our entire organization starts from the outside-in, with recruiting. For internships and entry-level roles, we have increased our recruiting at historically Black colleges and universities (HBCUs) and are now recruiting at more than 35 schools, up from seven schools in 2017.
As we continually enhance initiatives for identifying talent, we look holistically at the talent journey—from obtaining internships through equipping students with the skills needed to help them succeed in the workforce.
Our While You Work program breaks down societal barriers and entry into the accounting profession for rising Black and Latinx college seniors or graduates of an accredited college or university. They have the opportunity to earn their master’s degree and the final 30 credit hours to meet the 150 credit hour requirement for a CPA license, while working at PwC.
In April 2021, we announced our extension of Access Your Potential by committing an additional $125M to support a more equitable future for 25,000 Black and Latinx college students to prepare for and begin an in-demand career. Access Your Potential will provide students with access to high-demand digital and career readiness training and upskilling, mentorship and additional pathways to their future careers. Through Access Your Potential, we aspire to hire 10,000 Black and Latinx students into roles at the firm by 2026.
We aspire to see 35% Black and Latinx representation among our experienced hires, entry-level hires and interns. By FY26, we hope to achieve a 50% increase in our Black & Latinx workforce
Target is set from our 2020 baseline, includes interns, excludes partners.
From interns to entry-level and experienced hires, identifying well-qualified, diverse candidates is critical. This is an area where we’ve seen significant growth over the years and we want to continue that growth.
The COVID-19 pandemic exacerbated the disparities in where and how people work, creating major shifts in workplaces and industries across the country. The alarming impact of COVID-19 on women in the workforce compelled PwC to take early action to demonstrate that we were there for our people. As studies showed that the pandemic placed a great burden on working mothers, single/solo parents and caregivers, we strived to support the varied and evolving needs of our professionals. And, voluntary turnover among females was lower than it was for males. Relative to the firmwide workforce, Black turnover in FY21 was lower than the average and Latinx turnover was only slightly above the firmwide average. This demonstrates that the efforts we have been making to retain our people and to set them up for success are showing some positive results. We will continue to provide all of our people the flexibility, development and resources to thrive at our firm.
Racial/Ethnic groups that make up <3% of PwC’s US employee workforce are not displayed.
Kimberly has taken advantage of working on a 70% schedule for 13 years. After giving birth to her second daughter, she realized she loved her career, but also wanted the flexibility to pick up her daughters from school each afternoon, set aside time for cooking family meals and tuck in her girls each night. So, she approached her Partner lead to discuss working reduced hours as a way to bring harmony into all areas of her life. “It was a personal decision to set these boundaries. I needed something different and my Partner lead didn’t hesitate to support me in that,” Kimberly says. “PwC is where I grew up, I entered the firm out of college and it has supported me through many life stages. Now, I coach a lot of women who are heading into flexible working arrangements. When the pandemic began, I was still able to work flexibly, becoming a Partner at the firm while supporting my kids through virtual schooling -- I love having this extra time as a family.”
The first 24 months at the firm are typically predictive of success and for us, they serve as a reflection of how we are delivering on our commitment to DEI and advancing our culture of belonging. To set new and recent hires up for success from day one, we launched Thrive, an innovative two-year experience for Black and Latinx entry-level new joiners that helps lay the foundation for a successful career through culture workshops, networking, connectivity and leadership engagement. While Thrive targets Black and Latinx new hires, our programs work to confirm that all new joiners have an equitable experience and a sense of belonging from day one and throughout their career journey.
Now part of our overall onboarding experience, we welcomed 819 new associates and experienced associates through Thrive in FY21, including Arianna Washington. “Thrive has given me another support system at the firm. I have even more people outside of my team that look like me, understand my struggles and can relate to my experience. It’s a safe space and to have others who have a vested interest in me and can give me outside advice makes a difference.”
In the first two years and beyond, all PwC employees are grounded by The PwC Professional—our global leadership development framework that provides a single set of expectations across our sectors, roles and territories. In FY21, the PwC Professional framework was enhanced to emphasize the importance of inclusive leadership, digital skills and well-being as staff progress and develop at each level.
Each of our people is aligned to a Development Team composed of a Relationship Leader, Coach and Talent Consultant. Relationship Leaders play a primary role in the professional growth of our people by providing mentoring and career support through the lens of the PwC Professional framework.
Becoming a partner is a major career milestone, an opportunity that all of our most promising, up-and-coming leaders who want to shape the future of this firm should have a shot at. To augment the pipeline, we launched Enrich, a multi-dimensional experience designed to enrich the potential and leadership skills of high potential female and racially/ethnically diverse senior managers and directors. To increase representation at the leadership level, it is also important that we provide the support and opportunities for our managers and senior managers to advance their careers. One way we are accomplishing this is through Advance Your Development (AYD). AYD is open to all experienced managers and above with a special focus on our female and racially/ethnically diverse population. These opportunities help us to engage, motivate and retain diverse talent, while driving innovation and leadership in our field.
In FY20, we set an aspiration to see our overall partnership at 50% women and racially/ethnically diverse partners. This year, we’ve decoupled this aspiration to better complement the diversity we want to see in our partnership and we now aspire to a partnership makeup of 50% women and 35% racially/ethnically diverse. Based on our progress, we acknowledge the importance of being even more focused on changing the makeup of our partnership in the short-term. By FY26, we hope to increase our female pipeline of potential partners by 50% and racially/ethnically diverse pipeline of potential partners by 50%.
Increases in our female and racially/ethnically diverse pipelines of potential partners are measured from our FY21 baseline.
We are taking a partner-led approach to map and grow responsibility, rewards and accountability across the business. myMetrics is a platform that provides a range of data and actionable insights to partners to better lead our business and our workforce. To continue enhancing our efforts to support parity in experience and opportunities for all of our people, we added increased transparency to myMetrics, allowing partners to see gender, race and ethnicity composition of the teams they oversee and relevant related insights.
As we assess our partnership data, the numbers aren’t only about the diversity we see today, but also must reflect the pipeline we’re creating to build more diverse partner classes in the years ahead.
We are continually exploring how we can use leading practices and transparency not only to advance DEI within our firm, but also to be a changemaker outside of our firm. In a year where many faced immense mental and emotional tolls, our people rose to the challenge by putting their own resources, time and, skills to aid organizations fighting for social justice. More than 5,000 partners and employees helped contribute more than $3M focused on racial justice through a crowdfunder program that included matching gifts on employee donations and grants to qualifying organizations. From pro bono projects to nonprofit board seat service, the insights we bring every day to our client work are being used to help nonprofit organizations address injustice at scale.
To help drive change outside our firm, we also leverage the connections and learnings we gain through CEO Action for Diversity & Inclusion™, a coalition we co-founded, which shares our commitment to advancing DEI in the workplace. Throughout the pandemic, the coalition has continued to serve as a go-to resource for DEI leaders at 2,000 of the world’s leading companies and universities, growing more than 40% in size in a single year, while helping to navigate unprecedented changes in how we work, take care of our people and address social injustices.
CEO Action for Racial Equity is a fellowship that drives policy change across eight issues that disproportionately impact Black Americans. With 30 Fellows from PwC committed to this effort, we united business leaders from more than 100 companies to address societal systemic racism and social injustice. We connected with decision-makers in the policy landscape and among participating companies to advance legislation that will help bridge the digital divide. We also wrote letters to Congress declaring meaningful, bipartisan police reform, advocated for a permanent expansion of Supplemental Nutrition Assistance Program (SNAP) benefits and more.
In June 2020, Tim Ryan announced six commitments for how PwC is standing up against societal systemic racism, including a Fellowship to advance racial equity through public policy. Avery Joshua is one of the 30 PwC employees who rose to the challenge and joined CEO Action for Racial Equity. “I was certain that working to promote the causes of the poor and oppressed was one of the most important things I could do with my time, skills and experiences. We brought nearly 200 people together from different organizations, created processes and culture, developed new relationships, navigated emotionally charged conversations about race, managed conflicts and figured out how a business coalition could effectively advocate for policies that lead to racial equity. But even with the challenges we've faced, I'm continually encouraged by the responses to our work from people across the firm, from other advocacy organizations and even from lawmakers. I'm so honored to be a CEO Action for Racial Equity Fellow. Creating equitable policy is hard but it's an effort worth our time.”
Just as important as how we do our business is those with whom we do business. We believe it’s our ethical responsibility to consider diversity in our procurement decisions, across the portfolio. In FY21, we increased our spend with diverse suppliers to 31% of reportable spend, a nine percentage point increase from the year prior. We also took steps internally to increase our investment in the growth and development of diverse businesses, including investing in 12 diverse suppliers by providing support to our clients and engagement teams.
We hope to have 40% of our reportable spend with diverse suppliers by FY26. Through this goal, we aspire to increase diverse spending, further diversify the supplier program and increase our investment in the growth and development of diverse businesses.
We are accelerating action inside and outside of our firm, particularly in underserved communities disproportionately impacted by systemic societal issues, while managing our environmental footprint to create a more equitable society.
We are equipping our digitally savvy community of solvers, to bring together our better selves with the greatest aspects of technology to turn today’s ideas into tomorrow’s solutions.
In our FY21 Purpose Report, we share where we are in our commitment to diversity, equity and inclusion, our journey as a responsible business and how we combine the best of people and technology to deliver on our purpose.