CFPB Report: 2015-MO-C-002 March 4, 2015
As required by the Dodd-Frank Act, the CFPB established its OMWI in January 2012 to be responsible for all matters of the agency relating to diversity in management, employment, and business activities. The Director of OMWI was appointed in April 2012 and began holding periodic meetings with the OHC, the OEEO, and senior division officials to monitor the CFPB's efforts to increase diversity throughout the agency's workforce, including senior management. Discussion topics for these meetings included demographic trends and hiring needs.
In May 2013, OMWI contracted with a consulting firm to assess the state of diversity and inclusion at the CFPB as a means to inform OMWI's strategic planning process. This assessment included analyzing CFPB demographic data, conducting interviews, and leading focus-group discussions. In September 2013, the consulting firm provided OMWI with the results of its assessment, which included findings and recommendations addressing areas such as hiring, promotions, and performance management. OMWI is tracking the status of the findings and recommendations, including details of the CFPB's responsive actions. As of June 2014, OMWI officials stated that of the 61 recommendations made by the consulting firm,
OMWI also analyzed the responses to a set of 20 survey questions on the FY 2013 Annual Employee Survey that were designed by OPM to measure employee perception as it relates to workplace inclusion. These survey questions are also included in OPM's annual Federal Employee Viewpoint Survey, which enabled OMWI to compare the CFPB's results to governmentwide results, as noted in the Employee Satisfaction Surveys, Demographic Statistics section of this report.
OMWI has provided nonmandatory diversity training for employees through periodic training sessions led by an outside diversity and inclusion expert.67 OMWI also offered hiring managers training that focused on managing unconscious bias throughout the hiring process. According to a CFPB official, diversity and inclusion were also discussed at the CFPB's all-staff meeting in July 2014. This official also stated that OMWI is considering the development of advanced-level diversity training.
The Director of the CFPB elevated OMWI from the Operations division to the Office of the Director in April 2014. In addition, the Director of the CFPB charged OMWI with leading a series of staff listening sessions to identify employee perceptions of fairness, equality, diversity, and inclusion at the CFPB and to report on findings and recommendations. The results of OMWI's listening sessions were summarized in an August 2014 report that identifies employee concerns and describes the CFPB's approach to address those concerns. The report identifies themes related to employee concerns, including the need for
In May 2014, OMWI developed a draft of its FY 2014 to FY 2017 Office of Minority and Women Inclusion Strategic Plan, which outlines the strategic goals, objectives, strategies, and action items that define OMWI's roles and responsibilities related to diversity and inclusion. The draft strategic plan defines OMWI's mission as follows:
[t]o foster a diverse and inclusive work environment that ensures equal employment and advancement opportunity for all employees, facilitates increased participation of women-owned and minority-owned businesses in Bureau procurement, and to work with regulated agencies to assess their ability to foster a diverse, inclusive and fair environment within their organizations.
OMWI also recently created the Executive Advisory Council and is in the process of creating an employee workgroup called the Diversity and Inclusion Working Group; the council and the workgroup will collaborate with each other and with OMWI on diversity and inclusion issues. The role of the Executive Advisory Council is to help integrate diversity and inclusion into the CFPB's operations and to provide guidance to the Director of the CFPB and other senior leaders. The council will also help to shape the strategic direction of the employee workgroup. The Diversity and Inclusion Working Group will include CFPB employees from all divisions and from all the regions as well as headquarters. The workgroup will provide a platform for considering employee ideas, implementing agency-wide initiatives, and providing feedback to leadership regarding diversity and inclusion efforts at the CFPB.
We assessed OMWI's compliance with relevant requirements of the Dodd-Frank Act and found that OMWI complies with 9 of the 10 requirements, as shown in table 6. Specifically, OMWI issued its annual report to Congress for calendar year 2012 and 2013, which included information required by the Dodd-Frank Act, and took affirmative steps to seek diversity in the CFPB's workforce through a variety of outreach activities. However, the Director of OMWI had not developed standards for equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the agency.
| Relevanta OMWI requirements applicable to the CFPB | Fully satisfies | Does not satisfy |
|---|---|---|
| The Director of each Office shall be appointed by, and shall report to, the agency administrator | √ | |
| Each Director shall develop standards for equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the agency | √ | |
| Each Office shall submit to Congress an annual report regarding the actions taken by the agency and the Office pursuant to this section, which shall include | ||
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the successes achieved and challenges faced by the agency in operating minority and women outreach programs |
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the challenges the agency may face in hiring qualified minority and women employees |
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any other information, findings, conclusions, and recommendations for legislative or agency action, as the Director determines appropriate |
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| Each agency shall take affirmative steps to seek diversity in the workforce of the agency at all levels of the agency in a manner consistent with applicable law. Such steps shall include | ||
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recruiting at historically black colleges and universities, Hispanic-serving institutions, women's colleges, and colleges that typically serve majority minority populations |
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sponsoring and recruiting at job fairs in urban communities |
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placing employment advertisements in newspapers and magazines oriented toward minorities and women |
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partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minorities and women in industry internships, summer employment, and full-time positions |
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any other mass media communications that the Office determines necessary |
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Source: OIG analysis of the calendar year 2012 and 2013 Office of Minority and Women Inclusion of the Consumer Financial Protection Bureau annual reports, OIG interviews with OMWI officials, and OIG review of section 342 of the Dodd-Frank Act.
aWe only analyzed Dodd-Frank Act requirements that pertained to the scope of our audit. Return to table
We found that the CFPB has not implemented OPM's Government-Wide Diversity and Inclusion Strategic Plan. OPM's strategic plan includes three goals that OPM states are necessary for the successful growth of diversity and inclusion.68 The strategic plan also includes diversity and inclusion best practices, such as leadership, accountability, measurement, and training.
Executive Order 13583, Establishing a Coordinated Government-Wide Initiative to Promote Diversity and Inclusion in the Federal Workforce, requires executive agencies to implement OPM's Government-Wide Diversity and Inclusion Strategic Plan. The OPM plan states that it provides a shared direction, encourages commitment, and creates alignment to allow agencies to approach their workplace diversity and inclusion efforts in a coordinated, collaborative, and integrated manner.
The CFPB has developed a draft diversity and inclusion strategic plan that would satisfy the requirement to implement OPM's Government-Wide Diversity and Inclusion Strategic Plan, but it has yet to be finalized. OMWI has taken some actions to support goals identified in this draft plan. For example, OMWI contracted with a consulting firm to analyze the CFPB's applicant flow data. OMWI also analyzed the CFPB's FY 2013 Annual Employee Survey results to examine how each division compares to the overall CFPB results, as well as the governmentwide average. Additionally, OMWI recently created the Executive Advisory Council and is in the process of creating an employee workgroup called the Diversity and Inclusion Working Group. Implementation of the draft diversity and inclusion strategic plan would better enable OMWI to define its roles and responsibilities related to diversity and inclusion at the CFPB. In addition, the plan can provide a base for measuring progress and can ensure the most effective use of OMWI's resources.
We recommend that the Director of OMWI
The Director of the CFPB concurs with our recommendation. In his response, the Director of the CFPB states that the draft OMWI diversity and inclusion strategic plan will be formalized by June 30, 2015, and that implementation of this plan will occur on an ongoing basis. Results will be reported in OMWI annual reports beginning in 2016.
The actions described by the Director of the CFPB appear to be responsive to our recommendation. We plan to follow up on the CFPB's actions to ensure that the recommendation is fully addressed.
We found that OMWI has engaged in several activities that address equal employment opportunity and the diversity of the CFPB's workforce. Such activities include targeted recruitment efforts and guidance to hiring managers on structured interviews, EEO hiring principles, and other best practices. However, the Director of OMWI has not developed standards for equal employment opportunity and racial, ethnic, and gender diversity of the workforce and senior management of the agency, as required by section 342(b)(2)(A) of the Dodd-Frank Act. According to an OMWI official, because of competing priorities and limited available resources, OMWI is relying on standards established by the EEOC and OPM while it meets other high-priority Dodd-Frank Act requirements.
By not establishing formal standards for equal employment opportunity and racial, ethnic, and gender diversity of the workforce and senior management, the CFPB has not fully addressed the requirements under section 342 of the Dodd-Frank Act. Additionally, OMWI may be unable to evaluate its effectiveness in promoting equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management.
We recommend that the Director of OMWI
The Director of the CFPB concurs with our recommendation. In his response, the Director of the CFPB states that a policy statement on the standards will be formalized by June 30, 2015. The CFPB follows baseline standards established by the EEOC for equal employment opportunity, as well as baseline standards and guidance for workforce diversity established by OPM.
The actions described by the Director of the CFPB appear to be responsive to our recommendation. We plan to follow up on the CFPB's actions to ensure that the recommendation is fully addressed.
We found that CFPB employees were not required to attend diversity and inclusion training. OMWI has provided nonmandatory diversity training for employees through periodic training sessions led by an outside diversity and inclusion expert. OMWI also provides hiring managers with nonmandatory training that focuses on managing unconscious bias throughout the hiring process. According to a CFPB official, OMWI is developing advanced-level diversity training for supervisors and senior managers, which will be deployed in 2015.
GAO's Diversity Management: Expert-Identified Leading Practices and Agency Examples identifies diversity training as a leading diversity management best practice. This training can help an organization's management and staff increase their awareness and understanding of diversity as well as help them develop concrete skills to assist them in communicating, increasing productivity, and working effectively in a diverse organization. The GAO report states that the effectiveness of diversity training efforts should be evaluated to help decisionmakers manage scarce resources and help agencies improve results.
An OMWI official indicated that diversity and inclusion training would continue to be provided, but a decision has not been made to make the training mandatory. Given the nonmandatory nature of diversity training sessions, employees may not learn how diverse perspectives can improve organizational performance or learn ways to communicate effectively with diverse groups.
An OMWI official stated that the CFPB has made additional efforts to address diversity and inclusion training. Specifically, the agency included the topics of diversity and inclusion in its mandatory all-staff meeting. Additionally, a diversity and inclusion workshop training program has been initiated for all supervisors and senior managers based on the findings and recommendations resulting from OMWI's listening sessions. Finally, the CFPB is exploring options for more advanced diversity training that will be offered to all employees.
We recommend that the Director of OMWI
The Director of the CFPB concurs with our recommendation. In his response, the Director of the CFPB states that in January 2015, he signed a decision memorandum that requires mandatory diversity training for all employees. The Director of the CFPB also states that diversity and inclusion training for managers and supervisors is available and that attendance at these sessions will continue to be strongly encouraged. OMWI is also planning to provide additional diversity and inclusion training for all employees. The CFPB plans to evaluate all diversity and inclusion training through questionnaires and surveys, as well as performance metrics in the annual employee survey, strategic plan, and individual performance plans. The CFPB plans to incorporate the results of these evaluations into the training as appropriate. Results will be reported in OMWI annual reports beginning in 2016.
The actions described by the Director of the CFPB appear to be responsive to our recommendation. We plan to follow up on the CFPB's actions to ensure that the recommendation is fully addressed.
