How a Giant Consulting Firm Opened Its Eyes about Gender Diversity

BY Stephen Koepp | June 06, 2019

McKinsey & Co., the prestigious management-consulting firm, takes pride in giving advice to the world’s largest corporations about the smartest business practices. But a few years ago, McKinsey discovered it had a blind spot in its own workplace. At a time when companies are valuing diversity more than ever, the firm had a notable gender imbalance: far too few female hires and promotions.

McKinsey resolved not only to bring its own practices up to date, but also to become a leading authority on the issue. Since 2015, working with LeanIn.Org, the firm has published Women in the Workplace, a benchmark study. (For the 2018 report, 279 companies and 64,000 employees were surveyed.) A champion of McKinsey’s crusade for gender diversity happens to be a male executive, Kausik Rajgopal, the managing partner for the western U.S., whose office leads the firm’s work on the issue. He spoke with From Day One about the firm’s progress on the issue and the life experiences that made him an advocate. Excerpts:

Kausik Rajgopal is the Managing Partner for McKinsey & Company’s Western U.S. Region; his office leads the the firm's work on gender diversity

FD1: When did the firm’s recent path to gender diversity begin?

Rajgopal:  We were having conversations about how do we grow the representation of women in the partnership.  And I remember many years before that, one of my mentees was a woman who came to me and told me that she was leaving the firm.  And she said something that stuck with me because she was about to become a mother.  She said, “Management consulting and motherhood are mutually exclusive.” I just remember being shocked by that. And that led me and several others to think about how we can build a profession, and certainly an institution, that not just attracts women but retains them at greater rates.

But then you fast forward to 2012-13, that’s when we started looking at the questions of representation systematically. And we said—quite logically, right?—if you want greater representation, you need to have it in our incoming recruiting classes. And we found that it was actually quite a bit below where we needed to be.  So that conversation on recruiting classes was probably the catalyst for a lot of the work that we’ve done on this.

Once you realized the situation, what were the next steps toward action?  

I think three big ones. One was to get our recruiting teams to be aware and make this a priority  reach out to women more systematically. So, for example, at Stanford, instead of just doing a single information session, which we had done historically, we said, “Why don’t we go do an event as well with the with the [dual-degree] women engineers?” So you reach out in a much more intimate, narrowcast way, as opposed to, “Here is a big company and show up to a single session and apply,” which has more of a factory feel to it.  And so that was one: using multiple venues to reach out to women who might be interested.

The second thing was to understand our own unconscious biases in recruiting. As an example, after interviewing candidates, we have a decision meeting where the partners who conduct interviews discuss all the candidates together. We began designating one of the partners in the room as the “debiasing advocate.” So everybody else in the room then expected them to push back on the questions. If somebody said, “Well, I found Jane to be very sharp and her resume’s impressive, but I’m not sure about her presence,” the debiasing advocate would then say, “Are you saying that because she’s a woman?”

And that led to a much more overt discussion, putting the bias on the table and being able to do that without judgment because we all have unconscious biases about lots of things. It doesn’t mean that we’re bad people.  But having the awareness and giving someone else the permission to name it and tease it out, and then have a discussion about what that means for what we’re trying to accomplish, was very powerful.  It was a real unlock for us.

The third factor was in reflecting on the face we present in recruiting, like who shows up from the firm to recruit. Getting that to be much more gender-balanced was a key part of that.  Do you look like a firm that welcomes gender diversity?  So we encouraged women to be ambassadors, to be more visible in the cultivation of candidates.

When did you start to see tangible results, to feel like, “Okay, we’re getting traction”? 

I would say it took a couple of years for all three of these pieces to come together. But once it did, the power of all three of these integrating created a multiplier effect, a sort of virtuous cycle. This year, the incoming class has reached virtual gender parity.

Along the way to that milestone, did your clients help push you in that direction?

Quite early on.  I would say culturally we are a very client-centric firm. We kind of wake up in the morning with benefits for them on our minds. I think culturally it’s very anticipant and appropriate, whenever we’re starting out to do something new and different, to get our clients’ advice and feedback. And for many of our clients, better diversity was already a priority.

So we were already starting to get feedback like, “In your team rooms, we’d like to see more women, like in the teams that you bring to serve us.” So our clients are typically not shy about giving out that feedback and when we posited the idea of doing the research with them, their advice to us was, “If you’re going to do it, just make sure that you are also institutionally committed to this as a priority and making that [representative] of your own commitments.”

 How did you decide to go about making this report—and making it a definitive one?

Three quick thoughts on that.  One is we quickly said we can’t do this on our own.  So we do this in partnership with LeanIn.Org and the Wall Street Journal. And Lean In, independently, obviously, had been thinking about this and advocating for gender diversity and parity in the workplace. So that was a natural notion.

The second thing we said was that we need to make this a multiyear commitment. This can’t be a one-and-done. So we expect it will be an indefinite commitment, really, which was our clients’ early feedback to us.  And then the third piece was we wanted to make sure that it was grounded in real data and not in anecdote.  So the methodology of the report is very much empirical.  We go out, we now survey more than 300 companies in Corporate America. We get data from them at every level, on everything from recruiting to performance evaluation to promotions, representation at different levels. It’s a pretty exhaustive look.

We’re very thoughtful about privacy of personal information, but on our blinded database we actually get a pretty detailed and rich dataset that we can then look at for patterns and trends year over year. And over time, as we build that methodology and approach, we’ve also overlaid on it specific questions in areas of interest. For example, the most recent report goes quite deep into women of color and their experience in the workplace, the particular challenges they face.  And in each report. I think we’ll do something like that, where we go deep on a particular question.

What trends have you found over several years now?

Longitudinally we see very little movement in the percentage of women who rise to the top. So when we look at representation of women in the C-suite, that number doesn’t really raise significantly over time.  The other thing that’s quite striking is there is, I think, a loose cultural assumption that some of the lack of representation is actually a choice by women.  That women, for example, after they have children, become less ambitious. Or they don’t want to make it to the top.  And we found quite recently in our research that that is not true. That they want to progress, they want to make it to the top. So those were striking assumptions.

The most recent report shows that the first promotion is actually quite significant. Women are falling behind early, because first promotions are most inequitable. Women are 21% less likely than men to be promoted to manager. Black women are particularly disadvantaged, as they are 40% less likely than men to be promoted to manager. Then you can imagine how it compounds from there.

What other kinds of connections that you were able to make?

One of the critical things that the report validated is the importance of sponsorship. And we often talk about the distinction between a mentor and a sponsor. A mentor is somebody who may occasionally give you advice, who sort of cares about you. A sponsor is somebody who really creates opportunity for you and is committed to your career and to your success. We saw quite frequently in the research that women who had been successful in rising to the top had a much greater and more consistent preponderance of sponsors—and not just mentors.  As somebody said to me, advice is cheap.  Consistent support is what matters.

The other really striking observation, which is a little sad, is that a stunningly large percentage of men believe that this is not a problem.  In a company where only one in ten senior leaders is a woman, nearly 45% of men think women are well represented in the leadership. Even more stunningly, a significant percentage of women, 28%, agree. To us, that suggests a little bit about the anchoring bias and the visibility bias, when you look at a leadership team and say, “Oh, there’s ten people there and there’s two women on there, so clearly women can make it.” So that was kind of an eye opener for us. The mindset was much more pervasive than we expected.

One other one: We’re doing a fair amount of research on what I call the “only” phenomenon, which is often in a room, or a team at any level, there’s only one woman in the mix. And that can be a lonely experience. So far, a lot of what we’ve talked about [in Corporate America] is diversity. The more powerful and more important bit over time is inclusion. And this dynamic where we’re going to have one woman at every level can actually a quite isolating experience for the woman.

Have experiences in your life inspired you to feel strongly about this issue?

It’s very personal for me. I’m the only child of an Indian mother who has a college degree.  She graduated from college in 1962 and she’s one of the smartest, most thoughtful, most proactive people I know. And for cultural reasons she stayed home to take care of me and raise me. It would be a mistake to say she never worked—she worked a lot—but she never worked in the workforce. And I always thought that that was a stunning waste of human capital for the world.

My wife, I’d say, is another role model for me.  She’s a software engineer, has worked in Silicon Valley for most of her career. And I remember when I shared with her some of the insights we had on unconscious bias, kind of in the early days of the journey that I was describing to you, she said to me, “It’s great that you are now admiring the problem. Are you actually going to solve it?” I think both of those are quite personal motivations for me. So I’ve personally been a pretty active sponsor and supporter of women.

Another part of your job is co-leading the firm’s global efforts in financial technology. What patterns do you see regarding the role of women in technology?

Around the world, there’s a stunning lack of adequate female representation in the workplace. In my travels globally, yeah, there are cultural differences, some nuance. But in general the patterns that I describe, which are based on research in an American context—I think they’re all true. This is a global issue.

Steve Koepp is a co-founder of From Day One. Previously, he was editorial director of Time Inc. Books, executive editor of Fortune and deputy managing editor of Time


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Workers Want Weight-Loss Drugs, But How Can Employers Pay the Bills?

When consumers see splashy TV commercials for weight-loss drugs, they often find the the pitch irresistible. But for HR and benefits executives, they may trigger an uneasy feeling. That's because the revolutionary weight-loss drugs like Wegovy bring with them both magic and mystery–the magic is how well they can work; the mystery is how to pay for them.GLP-1, or glucagon-like peptide-1, drugs have historically been used to treat diabetes. But the development of stronger drugs like Novo Nordisk’s Ozempic in recent years, and now the approval of Wegovy and Eli Lilly’s Zepbound specifically for weight management, has led to a sharp increase in demand. That’s particularly true as more research emerges showing the drugs may also reduce the risk of cardiovascular disease, stroke, and potentially bring other long-term health benefits. Yet the medications can cost as much as $1,000 to $1,500 per month–a price that few Americans can afford unless they have generous health-insurance coverage.And unlike expensive drugs for rare conditions, the potential number of patients for GLP-1s is vast. More than 40% of Americans have obesity, according to the Centers for Disease Control and Prevention, and that is expected to reach 50% by 2030.Many doctors are thrilled about the potential for GLP-1s to change how obesity is treated, but that puts employers–where nearly half of Americans get their health insurance–in a tricky position. Here’s what employers need to know as they consider coverage for these drugs in the quickly changing landscape:High Costs, Low CoverageWhile employer health plans widely cover GLP-1s for the purpose of treating diabetes, coverage for weight-loss purposes is much more spotty right now. A survey last fall by the International Foundation of Employee Benefit Plans found that 27% of 205 employers covered GLP-1s for weight loss and another 13% did not yet cover them but were considering adding coverage. Meanwhile, Willis Towers Watson (WTW), a global insurance benefits-consulting company that serves many large employers, found about 38% of employers it surveyed cover the weight-loss drugs. Those that do cover them are seeing significant cost increases. The retail price for Wegovy comes out to $15,000 to $16,000 per year, and after rebates and discounts from manufacturers, health plans still pay about $9,000 per year, says Cody Midlam, a director at WTW’s pharmacy practice. The cost per member per month for GLP-1s has doubled each of the last three years, according to WTW’s analysis, amounting to an extra $11 per member per month last year, or about 9% of all pharmacy costs.Companies are aware of the research showing the drugs’ effectiveness at tackling obesity. Yet while doctors say that helping people lose weight could lead to less cardiovascular disease, fewer mental health issues, and savings from avoiding knee replacements or other surgeries related to obesity, long-term data on clinical outcomes remains limited. With high employee turnover in many industries, it’s tough for these employers to factor in potential future savings in healthcare costs over the life of the employee.“Those outcomes take a very long time to manifest,” says Midlam. “It’s not something that’s easily measurable on a short timescale when plan decisions are being made.” Andrew Witty, CEO of UnitedHealth Group, the largest U.S. insurer, said his corporate clients see the benefits, but first have to deal with the short-term costs. “We’re very positive about the potential for another tool in the toolbox to help folks manage their weight. We recognize that has potential benefits,” Witty said in the third-quarter earnings call last year. “But we’re struggling.”Employers Meet the DemandDespite the high costs and headlines about some insurance plans scrapping GLP-1 coverage, plenty of employers see the upside to covering the new obesity medications. Ninety-nine percent of companies already covering GLP-1s said they planned to continue doing so next year, according to a fall survey from Accolade, a healthcare navigation and advocacy company. Employers reported that after they added GLP-1 coverage, they saw higher employee satisfaction, increased engagement in other well-being programs, and improvements in other or comorbid health conditions. Midlam of WTW says his firm’s corporate clients want to “avoid member disruption” wherever possible.Doctors agree that should be a priority. 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If they add those limits, she warns that employers should be aware that could change or jeopardize the rebates they get from the drug manufacturers, so they need to predict whether the savings they get from limiting the drugs’ use will offset the loss of the rebates.Benefits consultants like Aon and WTW are also seeing employers shift the way they look at GLP-1 drugs to view them as one piece in a broader strategy to address cardio-metabolic issues.That might mean employers choose to cover the drugs for targeted indications, such as covering Wegovy not for weight loss on its own, but for people with increased risk of cardiovascular disease, which Medicare recently announced it would do. It can also mean pairing GLP-1 coverage with required lifestyle modifications or participation in a virtual weight-loss or coaching program. Employers often have access to virtual health programs through their pharmacy benefit managers, and many have tried these to target diabetes in recent years. The biopharmaceutical company Moderna, which offers coverage of GLP-1s for diabetes and weight management, is one company that has tried this strategy. “In 2023 we saw a spike related to weight-loss management: We looked at claims data, and after mental health, obesity and weight management were the second drivers,” Jeffrey Stohlberg, Moderna’s director of corporate benefits, said at a From Day One conference earlier this year. So the company started using the virtual weight-loss management program Wondr Health, where an employee can work with a physician specializing in weight loss. “It’s not a path to GLP-1s, but [the physicians] can provide medication for that person,” Stohlberg said. Labcorp also announced in February that it would provide U.S. employees on GLP-1s with virtual care and medication management through WeightWatchers for Business. Other companies such as Omada Health and telehealth providers like Teladoc and Ro have launched similar offerings over the last year. Medical providers agree that a holistic approach is needed, but Angela Fitch, M.D., president of the Obesity Medicine Association and co-founder and chief medical officer of the obesity-focused primary care startup knownwell, worries that requiring a standard weight-management program for every person is another barrier and potentially a waste of money if the program doesn’t have solid evidence behind it.“You can offer lifestyle [strategies] in addition to medication,” she said, “but it should be driven by that shared decision making discussion with the clinician.” If insurers want to make sure patients are getting holistic care, she would rather have them require patients to get their prescriptions from a qualified physician who does a true evaluation so that solutions can be personalized. In her role with the Obesity Medicine Association, Fitch often advises employers on their health plan designs, so she understands that costs are a major concern for companies. But in her primary-care practice and others like it, she says her staff are “burning out” as they spend hours each day trying to navigate all the new and often strict and confusing insurance requirements for these medications. “We have got to deal with costs,” Fitch said. “But it should be transparent and flexible.” She worries that overly rigid restrictions are “adding to the bias and stigma of obesity” by signaling to patients that their weight is their responsibility to treat on their own. Her major advice is to view obesity with the nuance that people view other chronic conditions. “You do not need a GLP-1 management solution. You need a comprehensive obesity-care solution.”Abigail Abrams is a health writer and editor. Currently she is the senior manager of content operations for Atria. Previously, she was a staff writer on health and politics for TIME magazine. Her freelance work has appeared in the Washington Post, the Guardian, and other publications.

Abigail Abrams | April 15, 2024

What Transparency Can Expose: an Obvious Need for Organizational Change

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It shows up in these glossy sustainability reports about all the wonderful things [the company] is doing,” Taylor told From Day One. “The thing that has changed is that those defenses don’t work anymore.”The Age of Clarity and CandorThe theory is that if you bare it all, the company will be rewarded for its candor. “If a single concept drives today’s businesses, regulators, journalists, and NGO activists, it’s that transparency is the route to accountability,” Taylor writes in her book. Yet all this new data-dumping, press-releasing, and report-publishing hasn’t necessarily reconciled what companies say vs. what they do, though trust in business has generally grown over the years, especially when compared with trust in government. Yet company after company, ranging from Boeing to Wells Fargo, have taken a shellacking for saying that they’ve fixed problems when they haven’t actually changed the culture or system that caused harm in the first place.In fact, disclosure is easily weaponized, Taylor argues. The companies that release details of their ethical transgressions or corporate misconduct can put the target on their own backs. In her book, Taylor tells of the story of a clothing company, operating in an industry known for its negative environmental effects and human-rights violations, that published a list of its suppliers in the spirit of transparency. They were among the first picked off as the target of a class-action lawsuit alleging forced labor. “The retailer making a good faith effort to be responsible and accountable was first in line for denunciation and punishment,” Taylor writes.Contending with a Public Wary of Good IntentionsAs companies see that their attempt at transparency can get them in trouble, many flatten their reporting into glossy packets and palatable stories. Some disclosures are required by law, yet by and large, these reports are voluntary. To steel themselves against criticism, especially involved tricky issues, many organizations appoint leaders charged with improving company culture and creating a more equitable workplace: chief culture officers, heads of compliance and integrity, and leaders of diversity, equity, and inclusion (DEI). To be sure, many who sit in these offices are formidable forces. Figures like Yelp’s chief diversity officer, Miriam Warren, and Bumble’s founder Whitney Wolfe Herd set high bars for the influence executives can have on equity and integrity inside and outside an organization.But some of the leaders installed in these roles are faced with the uncomfortable truth that their position is corporate PR. Taylor sees this often: People take jobs and think of themselves as organizational change agents, only to find that senior leaders think of them as defense mechanisms to protect corporate reputation and, in the case of compliance teams, to deflect regulators.For instance, the chief diversity officer is typically charged with making the business more demographically diverse and equitable for people across every department at every level of the business, yet many of them work with very limited resources. It's no wonder that turnover for the job is high.From Token Hire to Meaningful InfluenceOnce a company decides that it won’t favor transparency more than change, good things start to happen. This is when those leaders originally appointed as tokens can use their positions. If Taylor were to find herself in a role and learn that her presence was manipulative PR, she said, “I would make an argument about transparency needing to adapt the organization to a new generation. You can’t control the narrative, so hiring a load of people to do window dressing has become a waste of money. We can’t rely on confidentiality agreements, and we can’t rely on telling a good story.”Companies have to assume that young workers in particular are ready to undercut nice, neat stories and pounce on corporate misdirection, she says. Where a glossy report no longer suffices, those once-impotent appointees can play a valuable role, holding the company accountable from the inside before an angry public holds them accountable in the open air.Now that the public is suspicious of public declarations of corporate goodness, “no one believes it. There’s a total ‘gotcha’ mindset. Everyone rolls their eyes, and now there’s all this greenwashing and woke-washing litigation,” Taylor said. “It’s a pointless investment. You need to stop treating these as messaging challenges and treat them as organizational strategy challenges.”‘A Less Varnished Assessment of Activities’Taylor’s Higher Ground is loaded with case studies, action outlines, and advice. Not only for avoiding corporate blunders, but also correcting the bad habits and outright crookedness that cause them. Be a “first mover,” setting the example for peers, she writes. Companies often wait until a public scandal to start talking, but this tends to create chaos. She cites the example of Google releasing its transparency report on how it works with law enforcement in 2010. “This was not the result of a specific scandal but an effort to correct widespread misunderstanding.” Its success was due in part to the company being clear about what it can and cannot influence.Sure, there will be companies that invite scrutiny with their reporting, but that’s why Taylor warns against bending too deeply to public opinion and impatience that lures firms into dangerous waters. Don’t succumb to the pressures of social media, which turn companies into reaction engines, she advises. Wait long enough, and sensationalized social-media storms pass. 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Her work has appeared in the BBC, the Washington Post, Quartz, and Fast Company.(Featured illustration by Fermate/iStock by Getty Images)

Emily McCrary-Ruiz-Esparza | March 24, 2024

Apprenticeships: a Classic Solution to the Modern Problem of Worker Shortages

The U.S. labor market has become like a crazy quilt: mass layoffs in certain industries, along with dire shortages of workers in businesses ranging from accounting to trucking. To close the critical gaps, industries are turning to modern versions of an age-old institution: the apprenticeship. “Apprenticeships are the most promising solution to addressing the current labor shortage. Why? Because apprenticeships are jobs first and foremost–jobs that pay a living wage–not just training programs,” Ryan Craig, author of Apprentice Nation: How the Earn and Learn Alternative to Higher Education Will Create a Stronger and Fairer America, told From Day One. “They’re accessible to anyone with the potential and willingness to work hard–and much more accessible than tuition-based, debt-based college, or other training programs.”Causes of the labor shortage are many: A workforce quickly aging into retirement, the slowing of population growth, the burdensome cost of post-secondary education, lack of access to affordable childcare, and an increase in entrepreneurship. All of these have contributed to a shrinking workforce. As of January, the U.S. labor force participation rate is 62.5%. A couple decades ago, at the beginning of 2001, it was 67.2%.Employers are attacking the problem on many fronts. Some are pulling out the stops to retain older workers who might otherwise retire, and some are coaxing the semi-retired back to the office with flexible new arrangements. Others are dropping four-year degree requirements to broaden their talent pools, or bulking up benefits packages to include childcare, paid leave, and fertility benefits to attract and retain workers. Apprenticeships have joined that medley of solutions, with employers, advocacy organizations, and policymakers exploring and investing in the “earn-and-learn” model to fill talent pipelines from hospitality to healthcare to finance. Apprenticeships Beyond Blue CollarsApprenticeships represent a mutually beneficial way of hiring and training workers. Apprentices get on-the-job training, related instruction (often in a classroom or virtual classroom), and a paycheck all at the same time. Employers get the workers they need, trained to their specifications. In the U.S., apprenticeships are most often associated with skilled trades–it’s normal for plumbers, electricians, construction workers to complete apprenticeships–yet white-collar professions are only beginning to forge a connection with earn-and-learn programs. In 2020, professional services firm Aon announced that it would invest $30 million in its apprenticeship program over the next five years, with a goal of creating 10,000 apprenticeships in the U.S. within Aon and its partner organizations by 2030. In 2022, IBM committed to putting $250 million toward apprenticeships and other “new collar” programs by 2025.Aon’s program includes three tracks: insurance, HR, and IT. Apprentices take courses in insurance and business administration at partner colleges. Francheska Feliciano, the director of Aon’s apprenticeship program, told From Day One that career changers have found a home there. “We have found that those that thrive in our program tend to be career changers, but our program has a wide range of candidates with varied backgrounds, customer service, hospitality, or other service type roles.”Last year, the Biden Administration announced that it will invest $330 million to expand federally registered apprenticeships programs. 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Rather than recruiting the skilled talent from elsewhere, employers can use apprenticeships to develop the talent in their community. As housing inventory trails demand, employers who can tap their local talent markets will have the advantage, said Renee Haltom, the VP of research communications at the Federal Reserve Bank of Richmond, during a panel discussion last month at the Richmond Economic Forecast  “The regions that figure out housing are going to be ahead of the curve in terms of dealing with the coming demographic shifts,” Haltom said, referring to the aging U.S. workforce. Annelies Goger, who studies how to scale earn-and-learn models at the Brookings Institution, sees the advantages for local employers. Apprenticeships are a way to draw on local talent, and employers are more likely to retain locals than workers who have relocated, she told From Day One. “Rising rents have made it hard for employers to find and retain people only with the normal ways they’ve recruited people, so they’re looking into a lot of other ways and channels for finding talent,” Goger said. Apprentices Enter Finance and AccountingIn accounting and finance, more workers are retiring than are entering the field. According to a 2024 analysis by the U.S. Chamber of Commerce, “even if every unemployed person with experience in the financial activities or professional and business service sectors were employed,” the report reads, “only 42% and 44% of the existing job vacancies in these industries would be filled, respectively.”In 2022, the Association of International Certified Professional Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA) launched the first federally registered apprenticeship for finance and accounting professionals, and in its first year signed up 17 employers from 15 industries, including healthcare, industrial gas, banking, and manufacturing. One hundred apprentices have registered with the program in its first year.When AICPA and CIMA set out to create apprenticeships, the aim was to address the worker shortage in the accounting and finance field with early career talent. “When we started talking to employers who would want to hire people from these programs, we found that they were more interested in reskilling workers,” said Joanne Fiore, AICPA’s VP of pipeline and apprenticeships. Rather than recruit new talent, employers wanted to use apprenticeships  to retain their current workforce and train them as strategically minded contributors. The purpose of the Registered Apprenticeship for Finance Business Partners is to develop management accountants for the finance function of the future–not just number-crunchers, but “key players in strategic decision-making and broader business transformation,” said Fiore.Even if this program is able to shrink the skills gap, the labor shortage is likely to persist. There just aren’t enough young people entering the field to balance out their retiring elders. One problem: the profession has a reputation for being, well, dull.To fill the talent pipeline, and help rebrand the profession, AICPA and CIMA have piloted a youth apprenticeship program in Maryland high schools, aiming to drum up excitement and interest in the field among young people.Customizing the Programs Organizations, employers, and educators have found ways to tailor apprenticeship programs to their needs. They’re not just for recruiting, they can be deployed for talent development as well. “With the digital transformation of our economy, tens of millions of jobs now require workers to use tools to build things–only the tools are digital and workers no longer need to wear hardhats,” said Craig, author of Apprentice Nation.Often, those skills are software related. Where hospitals and healthcare providers use Epic, marketers use HubSpot, and HR uses Workday. “Companies are increasingly demanding that applicants for these jobs already have these platform skills–skills which are much harder to learn in a classroom than on-the-job via an apprenticeship,” Craig said.“Apprenticeship brings an organic culture of learning into any workplace and helps business perform better,” writes Jean Eddy in Crisis-Proofing Today’s Learners: Reimagining Career Education to Prepare Kids for Tomorrow’s World. “An apprenticeship program breathes new life into workplaces and lets employers quickly tap into a culture of learning that so many now are desperate to build.”Scaling Earn-and-Learn to Quell the Labor ShortageApprenticeships are difficult to start, and they’re difficult to scale. Few employers have the infrastructure to both employ and train unskilled workers at the same time, and most require the help of intermediaries like the AICPA and CIMA, which provide the instruction and the infrastructure.While it may be a while before apprenticeships alone make a dent in the labor shortage, analysis of the success of existing programs is promising. Not only are retention rates high–Aon, for instance, retains 80% of its apprentices–the Department of Labor estimates that employers get a 44.3% return on investment for apprenticeship programs.“While traditional apprenticeships emphasized hands-on skill acquisition under a mentor, modern apprenticeships often integrate technology-based learning, including virtual simulations and online coursework, to complement on-site training,” said Katie Breault, SVP of growth and impact at YUPRO Placement, a recruiting firm focused on skills-based hiring. Finance and tech roles are particularly suited to apprenticeships, she told From Day One. “Industries undergoing digital transformation, for example, greatly benefit from such programs. They offer real-time learning opportunities, crucial for staying relevant in dynamic fields.”The problem with apprenticeships as a solution to the labor shortage is that we just don’t have enough of them yet, said Craig. Plus, in his estimation, they’re under-funded and under-marketed on both the demand and supply side. “Many young people and their parents think of apprenticeships as a ‘second tier’ option–if they think of them at all,” he laments in Apprentice Nation. White collar employers may be thinking much the same. Yet as investment continues and apprentices pop up in surprising places, like the finance department, enthusiasm may spread. “It certainly fits the accounting profession,” Fiore said. “And if it fits the accounting profession, my sense is that it will fit many professions.”Emily McCrary-Ruiz-Esparza is a freelance journalist and From Day One contributing editor who writes about work, the job market, and women’s experiences in the workplace. Her work has appeared in the BBC, The Washington Post, Quartz, Fast Company, and Digiday’s Worklife.(Featured photo by Amorn Suriyan/iStock by Getty Images)

Emily McCrary-Ruiz-Esparza | February 14, 2024