DEI for developing EVP

The aerospace and defense (A&D) industry is rife with acronyms, and here are two more to learn: diversity, equity, and inclusion (DEI) and employee value proposition (EVP). The two are linked to attracting, retaining, and developing a skilled workforce to ensure a strong and capable A&D industry for the future.

The talent shortage is acute. As Baby Boomers retire and the labor force participation rate declines, employers must expand the search for employees, and it only makes sense to increase the potential pool of applicants.

A&D companies are increasingly focused on DEI, investing in various initiatives and expanding their recruiting outreach. Nearly three-quarters (73%) of respondents in a recent survey indicated that DEI is already stated in their company’s mission, vision, and/or values. And even if the goal of DEI isn’t formally noted, 87% of respondents agree that their company demonstrates a commitment to celebrating and embracing different backgrounds, ideas, and beliefs (53% strongly agree and 34% agree).

Ernst & Young LLP (EY US) conducted the survey last summer, releasing the results as the 2021 Aerospace and Defense (A&D) Workforce Study. Companies surveyed span the A&D industry, representing the supply chain, integrators, and prime contractors. Widely recognized firms on the list include original equipment manufacturers (OEMs), Tier 1 suppliers, manufacturing service providers, and six geographically distinct colleges and universities.

The organizations surveyed have more than 950,000 employees globally, with a significant U.S.-based workforce, and department chairs from universities polled represent more than 25,000 engineering students. The Aerospace Industries Association (AIA) and the American Institute of Aeronautics and Astronautics (AIAA) collaborated with EY US to conduct the survey.

According to the study, 64% of respondents indicated they’ve begun recruiting from minority-serving institutions such as historically black colleges and universities (HBCUs) to increase underrepresented groups in their talent pools. Companies that implemented DEI-focused recruiting practices at different universities reported increased diversity in applicants, increased diversity in hires, and stronger relationships with these schools.

Essential for attracting, retaining, and developing top talent is a compelling employee value proposition (EVP), which EY US defines as the perceived value employees gain by working in a particular organization. Creating a compelling EVP creates a foundation for successful recruiting, development, and retention efforts. Part of EVP is DEI. “Employees expect corporate leadership to be committed to a workplace environment shaped by diversity, equity, and inclusion (DEI), making DEI a workforce and business imperative,” the study says.

“The A&D industry must create a compelling EVP to emerge from the current talent shortage with the right talent,” the study contends, while noting, “DEI initiatives will continue to be a focus given the expectations of activist investors, shareholders, employees, and communities.”

DEI and EVP are now connected for many major A&D companies and have become part of their strategy to remain competitive – and ultimately, to survive and thrive. – Eric