Cardinal Health Expands its DE&I Efforts with Comprehensive Talent Strategy

Rhea-AI Summary

Cardinal Health (CAH) unveiled a new talent strategy aimed at enhancing diversity in leadership roles by 2030. Key goals include increasing the representation of African American and Black employees to 11% and Asian, Latinx, Indigenous, and other diverse groups to 23% among managers. Additionally, the global representation of women in leadership is set to rise to 48%. The strategy focuses on recruitment, development, and retention of diverse talent, including programs for underrepresented groups. The initiative is supported by enhanced DEI metrics in compensation plans, underscoring its significance for long-term growth.

Positive

• Increased representation goals: African American and Black employees to 11% (up from 5%), ethnically diverse groups to 23% (up from 17%), and women to 48% globally (up from 40%).
• Implementation of differentiated development programs to support the advancement of underrepresented talent.
• Expansion of DEI metrics in the compensation structure to incentivize progress towards representation goals.

Negative

• None.

DUBLIN, Ohio, Aug. 23, 2021 /PRNewswire/ -- Cardinal Health (NYSE: CAH) announced today a comprehensive talent strategy to increase representation of diverse employees at the manager level and above by 2030. This commitment is specifically aimed at increasing the company's global leadership representation of women, as well as African American and Black, Asian, Latinx, Indigenous and all other ethnically diverse groups in leadership roles in the U.S.

"Diversity, equity and inclusion are business imperatives," said Mike Kaufmann, CEO of Cardinal Health. "When the voices at our table are diverse and reflect the communities we serve, the choices we pursue and the decisions and policies we make are more inclusive, creative, and best position our company for long-term sustainable growth. We believe that an employee population with diversity of talent, experiences and ideas drives more innovation – innovation that enables us to meet our customers' changing needs today and tomorrow."

Through this commitment and specific goals, the Cardinal Health workforce makeup will change in the following ways by 2030:

• In the U.S., increased representation of African American and Black employees at the manager level and above to 11% (up from 5%).
• In the U.S., increased representation of Asian, Latinx, Indigenous and all other ethnically diverse groups at the manager level and above to 23% (up from 17%).
• Globally, increased representation of women at the manager level and above to 48% (up from 40%).

"Creating a workplace that is truly diverse, inclusive and equitable takes focused, thoughtful planning, and it doesn't happen overnight," said Ola Snow, Chief Human Resources Officer (CHRO) at Cardinal Health. "We are proud to have devoted many years to building a strong foundation, and are excited to continue refining our recruiting, development, succession and retention practices to help ensure equitable access and opportunity."

Establishing these representation goals is part of the Cardinal Health commitment to ensuring inclusion, representation, and equity across all levels of the company. To achieve these goals, the company will focus on attracting, developing, and retaining diverse talent, from entry-level to senior leadership positions.

"To build a diverse pipeline of tomorrow's leaders, we must develop and advance women and ethnic minorities," said Devray Kirkland, Chief Diversity Officer (CDO) at Cardinal Health. "We are expanding our existing differentiated development programs, and creating new offerings, to bring an equity lens to our development practices and help more effectively advance underrepresented talent."

Differentiated development programs provide professional growth opportunities, as well as increased access and awareness for women and ethnic minorities. Cardinal Health launched its first such program for women in fiscal year FY2010 and added programs for African American and Black employees in FY2021. This year (FY2022), the company will:

• Partner with Korn Ferry, a world-class, industry leader in leadership development, to create a program to enhance the development of high potential and high-performing ethnically diverse talent at the manager and director levels, and help historically underrepresented talent to advance successfully into the first levels of leadership. It is a six-month, cohort-based program that will include both the participants and their direct managers to accelerate the readiness of participants for senior roles.
• Expand our "Aspiring Leaders" program, currently in a pilot phase in the U.S. and designed for underrepresented supply chain leaders not yet at the manager level. This program, focused on helping participants grow their leadership skills, has been developed in partnership with Franklin Covey to address what McKinsey & Company calls the "broken rung" in the talent pipeline.
• Furthering our desire to address the "broken rung," we will expand the participation of minority women in the leadership programming of Women for Economic and Leadership Development (WELD) – Ohio chapter. The in-depth WELD program is designed to prepare women for their first promotion to management and to build confidence in those assuming a management role for the first time.

The company will also focus on developing diverse junior talent through its existing summer internship program and EMERGE, a three-year rotational development program for young professionals launching their careers.

Notably, the Human Resources & Compensation Committee of the Cardinal Health Board of Directors recently approved expanding diversity, equity and inclusion (DE&I) metrics in the company's FY2022 annual incentive plan at the director level and above, and performance proration of our long-term equity plan at the SVP level and above, with a portion of payouts aligned to progress toward long-term representation goals over each program's relevant performance periods. These incentives extend well beyond the executive team, reinforcing the cultural commitment within the company's leadership team.

"Increasing representation, equity and access is foundational to who we are and everything we do," Snow continued. "We believe it will have a positive impact on our employees, our business, our customers and the communities where we work and live."

About Cardinal Health
Cardinal Health is a distributor of pharmaceuticals, a global manufacturer and distributor of medical and laboratory products, and a provider of performance and data solutions for health care facilities. With 50 years in business, operations in more than 35 countries and approximately 44,000 employees globally, Cardinal Health is essential to care. Information about Cardinal Health is available at cardinalhealth.com.

Cautions concerning forward-looking statements
This release contains forward-looking statements addressing expectations, prospects, estimates and other matters with respect to Cardinal Health's diversity, equity and inclusion (DE&I) strategy that are dependent on future events or developments. These statements may be identified by words such as "expect," "anticipate," "aim," "intend," "plan," "believe," "will," "should," "could," "would," "positioned," "project," "continue," "likely," "commit to" or other words or expressions of similar meaning, although not all forward-looking statements contain such terms. Actual results may differ materially from those projected, anticipated or implied in forward-looking statements due to a variety of factors, including the risks and uncertainties described in our Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports. Forward-looking statements in this release may include, without limitation, statements regarding: (i) strategies for implementing Cardinal Health's DE&I plans, targets and goals; (ii) Cardinal Health's commitments to programs and policies; and (iii) expectations and priorities for Cardinal Health's initiatives. Forward-looking statements speak only as of the date this document is first published. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement. Forward-looking statements are aspirational and not guarantees or promises that goals, targets or projections will be met, and no assurance can be given that any commitment, expectation, initiative or plan in this release can or will be achieved or completed. Investors are cautioned not to place undue reliance on any forward-looking statements.

Contacts
Media: Andrew Stern, andrew.stern@cardinalhealth.com and (614) 339-4678; Investors: Kevin Moran, kevin.moran@cardinalhealth.com and (614) 757-7942.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/cardinal-health-expands-its-dei-efforts-with-comprehensive-talent-strategy-301360633.html

SOURCE Cardinal Health

FAQ

What is Cardinal Health's plan to increase diversity by 2030?

Cardinal Health aims to increase African American and Black representation to 11%, Asian, Latinx, and other diverse groups to 23%, and women to 48% in leadership positions by 2030.

How will Cardinal Health support underrepresented talent?

The company will implement differentiated development programs and enhance recruiting and retention strategies for underrepresented groups.

What are the diversity targets set by Cardinal Health?

Targets include 11% African American and Black, 23% for Asian, Latinx, and other diverse groups, and 48% women in leadership by 2030.

What metrics will Cardinal Health use to measure diversity progress?

Cardinal Health will expand diversity, equity, and inclusion metrics in its compensation plans for higher-level employees to monitor progress.

When was Cardinal Health's diversity initiative announced?

The diversity initiative was announced on August 23, 2021.