Board of Governors of the Federal Reserve System

Report to the Congress on the Office of Minority and Women Inclusion - March 2022

Preface

The Board of Governors of the Federal Reserve System (Board) established an Office of Diversity and Inclusion (ODI) in January 2011 to promote diversity and inclusion throughout the agency and in the financial services industry. ODI administers and directs the Board's Equal Employment Opportunity (EEO) compliance policies and programs and includes the Office of Minority and Women Inclusion (OMWI). ODI works to assess the Board's diversity policies, programs, and performance to determine progress and increase transparency. ODI's ongoing efforts to foster an informed dialogue on diversity best practices include participation in Equal Employment Opportunity Commission (EEOC) technical workshops, participation in conferences and events held by professional organizations, and financial industry groups addressing diversity issues.

OMWI, created under section 342 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), develops standards, procedures, and initiatives to ensure fair inclusion of minorities, women, and minority-owned and women-owned businesses in all activities of the Board, including workforce diversity and procurement.¹ Additionally, OMWI performs assessments of diversity policies and practices of regulated entities. Sheila Clark is the director of ODI and OMWI at the Board.

More information about diversity and inclusion at the Board is available at https://www.federalreserve.gov/aboutthefed/diversityinclusion.htm.

Overview

The Board is committed to fostering an inclusive workplace and diverse workforce, as well as to fostering diversity in our procurement practices and at the institutions we regulate. The Board believes that diverse perspectives inspire the best ideas, decisionmaking, and—ultimately—service to the public.

As required by the Dodd-Frank Act, OMWI submits an annual report to Congress outlining actions, successes, and challenges. This is the Board's OMWI report for calendar-year 2021. Each Federal Reserve Bank OMWI also submits a separate report to Congress summarizing its efforts and achievements.

This report highlights the Board's successes and challenges in these key areas:

• equal employment of minorities and women, as well as diversity and inclusion at the Board
• inclusion of minority-owned and women-owned businesses in the Board's acquisition process
• financial literacy activities aimed at minorities and women; and
• assessment of the diversity policies and practices of regulated entities

The appendixes of this report provide the Board's Employer Information EEO-1 Report (EEO-1 Report) for 2021 (appendix A); the combined Federal Reserve System (System) data for official staff demographics of the Board and Reserve Banks for 2020–21 (appendix B); the demographics of System boards of directors (appendix C); and the total contract payments by the Board and Reserve Banks to minority- and women-owned businesses for 2020–21 (appendix D).

Equal Employment and Diversity, Equity, and Inclusion at the Board

The Board is committed to EEO in all aspects of employment and to fostering diversity and inclusion in the workplace. In support of this commitment, the Board has in place strategic objectives to attract, hire, develop, promote, and retain a highly skilled and diverse workforce.² The Board also allocates significant resources to ensure the success of EEO and diversity and inclusion initiatives, which help enable the Board to compete with other federal agencies and the private sector for talented individuals.

Equal Employment Opportunity

Section 342 of the Dodd-Frank Act charged the Board with responsibility for developing internal standards for EEO and the racial, ethnic, and gender diversity in the workforce and senior management of the agency. The Board's EEO Standards and Diversity and Inclusion Standards are posted on the Board's website at https://www.federalreserve.gov/aboutthefed/diversityinclusion.htm.

EEO Standards at the Board

The standards for EEO at the Board are aligned with the EEOC's Management Directive 715
(MD-715) and Management Directive 110 (MD-110), the Notification and Federal Employee Antidiscrimination and Retaliation Act (No FEAR Act) of 2002, as amended by the Elijah E. Cummings Federal Employee Antidiscrimination Act of 2020, and the Board's Rules Regarding Equal Opportunity (12 C.F.R. part 268). Each of these is summarized below.

• MD-715 contains policy guidance and standards for establishing and maintaining an effective affirmative program for EEO.³
• MD-110 contains procedures that must be followed when processing complaints of discrimination filed by federal employees and by applicants for federal employment alleging employment discrimination.⁴
• The No FEAR Act improves accountability for antidiscrimination and whistleblower protection.⁵ The Office of Personnel Management has implemented rules regarding the reporting and training requirements under the No FEAR Act.
• The Board's Rules Regarding Equal Opportunity set forth the requirements and procedures relating to the Board's policies to promote equal opportunity.⁶

The Board's EEO program is based on the six essential elements of a "Model EEO Agency" identified by the EEOC: (1) leadership commitment, (2) integration of EEO into the agency's strategic mission, (3) management and program accountability, (4) efficiency, (5) responsiveness and legal compliance, and (6) proactive prevention of discriminatory actions. These essential elements provide the framework to achieve the goal of a discrimination-free work environment, characterized by a culture of inclusion.

EEO Program Activities

ODI administers a variety of programs to address discrimination and harassment, including managing the Board EEO complaints process, encouraging alternative dispute resolution, conducting an anti-harassment program, overseeing implementation of the Affirmative Action Plan for Persons with Disabilities of section 501 of the Rehabilitation Act of 1973, and providing guidance on reasonable accommodations.

ODI also delivers education and training to Board employees on a variety of topics, including diversity, inclusion, inclusive leadership, unconscious bias, harassment, and the No FEAR Act of 2002 and its requirements. In addition, ODI collaborates across the agency with People, Strategy and Operations (PSO) (formerly Human Resources), Employee Resource Groups (ERGs), and internal stakeholders to ensure the integration of diversity, equity, and inclusion (DEI) principles into the Board's strategic planning, policies, and practices.

Board leaders work to ensure that EEO is viewed as a fundamental part of the Board's mission and critical to strategic planning and workforce decisionmaking. Throughout 2021, Board leadership demonstrated commitment to EEO in a variety of ways, including affirming EEO policies, discussing DEI topics at town halls, and functioning as executive sponsors of ERGs.

ODI undertook many activities in 2021 to advance EEO in the Board workforce. These included

• providing input and advice to management officials on fair and equitable decisions and practices regarding performance ratings, promotions, awards, and leadership development
  programs;
• processing and resolving complaints of discrimination or harassment;
• advising on requests for reasonable accommodations for individuals with disabilities;
• developing and delivering a variety of outreach and education initiatives;
• revising the Board's Reasonable Accommodations Policy to establish procedures in accordance with the Rehabilitation Act of 1973 and the Board's Rules Regarding Equal Opportunity;
• offering four "Civil Treatment for Leaders" workshops to provide senior leaders and managers with the tools and resources to appropriately respond to issues and problems they may encounter in the workplace;
• developing and briefing division leaders on an anti-harassment toolkit, which focuses on creating a more collaborative, healthy, and inclusive work environment for all Board employees; and
• initiating a paper-to-digital transformation initiative to streamline EEO complaint processing and improve program effectiveness and stakeholder satisfaction in light of the COVID-19 pandemic and the Board's mandatory telework posture since mid-March 2020.

In addition, ODI works closely with the various stakeholders to advance the principles of equal opportunity; ensure that EEO policies and procedures are current; and to identify workplace policies, practices, procedures, and conditions that may be barriers to equal employment.

With support from the Board's Chair, the ODI program director meets quarterly with the Board's Executive Committee, comprised of division directors, to discuss issues related to accountability in achieving the Board's EEO goals and objectives. ODI, through the EEO program, continues to build and maintain positive relationships with Board employees, senior leaders, and managers. In 2021, this effort included assisting staff at all levels through coaching on workplace disputes and providing guidance to management officials on EEO workplace initiatives. This engagement helps position the EEO program as a proactive resource for employees, senior leaders, and managers.

The ODI program director regularly informs the Board's Chair, the Board members, and other senior leaders about the office's activities and accomplishments. Through these briefing sessions, the program director ensures that the Chair and Board members remain informed of the development and implementation of potential strategies ODI could use to address and correct challenges to DEI. During these sessions and throughout the year, the program director also presents any additional concerns or problem areas that have been identified.

The ODI program director also participates in recurring strategic activities to provide insight and guidance regarding EEO and diversity and inclusion. Chief among these includes interaction with the Executive Committee, Senior Officer Committee, and the Diversity and Economics Inclusion Workgroup, as well as other high-level meetings.

The ODI program director also is actively involved in expanding opportunities to integrate EEO into all Board policies, procedures, and practices. The program director and the Board's chief human capital officer (CHCO) meet throughout the year to discuss topics and issues of mutual interest to the Board at-large. As a result of this collaborative relationship, the program director and the CHCO have developed strategies to improve the agency's culture and advance the Board's human capital and diversity and inclusion management priorities.

ODI continues to work collaboratively across the Board to ensure that the agency remains in full compliance with all applicable EEO laws and regulations. In partnership with the Employee Relations section of the PSO, ODI offered training to management and staff throughout the year to promote an inclusive workplace culture and worked collaboratively with Employee Relations to address workplace concerns as they arose.

In addition to providing senior leaders with information and tools to address DEI, ODI and PSO continue to consult with leading national professional and research organizations, such as the Society for Human Resource Management, the Federal Interagency Diversity Partnership, Mercer Global, Gartner, the Conference Board, the Institute for Corporate Productivity, and the NeuroLeadership Institute. Information obtained from these resources enables ODI to provide input to Board management around leading practices and benchmarking against diversity and inclusion programs and activities.

ODI prepares EEO and diversity reports on behalf of the Board, including the Annual EEO Plan and Program Status Report; the Annual Federal EEO Statistical Report on Discrimination Complaints; and the Annual No FEAR Act Report to Congress. ODI also prepares an EEO-1 Report, which is published at https://www.federalreserve.gov/aboutthefed/diversityinclusionrpt.htm. The Board's 2021 EEO-1 Report is included in appendix A of this report.

Fostering a Diverse Workforce

Board leaders in 2021 continued to demonstrate their commitment to improving DEI at the agency by supporting the development of outreach and recruitment strategies that enhanced the Board's capacity to recruit, attract, develop, advance, and retain a high-performing workforce regardless of race, gender, or ethnicity.

The Board continuously reviews and assesses employment policies, procedures, and practices to ensure EEO compliance and the full utilization of a diverse and talented workforce. For example, the Board formulates quarterly analytical reports to closely monitor the hiring, promotion, development, and retention of staff. Results of the Board's assessments are considered when deciding how to address issues and trends.

Highlights of the Board's 2020 and 2021 reported total workforce demographics are shown in table 1. The Board's total workforce in 2021 was 43 percent minority and 43 percent female. The overall minority workforce increased by a net of 6 employees, while the female workforce had a net increase of 10.

The Board's EEO-1 Management categories are 1.1 Executive, Sr. Level Officers and Governors (grade FR-00); 1.2 Sr. Level Managers (grades FR-28 through FR-31); and 1.3 1st/Mid. Level Managers. Selected data for EEO-1 categories in 2021 are shown in table 2, and the detailed EEO-1 Report is available in appendix A.

Table 1. Federal Reserve Board reported total workforce demographics, 2020 and 2021

Table 2. Federal Reserve Board workforce profile 2021, selected data

The percentage of minorities in the Executive, Sr. Level Officers category (excluding Board members) increased from 26 percent in 2020 to 27 percent in 2021. The percentage of minorities in the Sr. Level Managers category increased from 34 percent in 2020 to 35 percent in 2021. The minority representation in the 1st/Mid. Level Managers category saw a decrease of 8 percentage points compared to 2020, from 62 percent minority representation to 54 percent.

Recruitment and Retention

The Board recognizes that a work environment that attracts and retains top talent is essential to fulfilling our mission. ODI and PSO collaborate continuously to enhance a culture of inclusion at the Board for all employees.

In 2021, the Board filled 509 positions (see table 3). Seventy-three percent of the positions, including 123 interns, were filled by new hires. Forty-eight percent of all positions filled were in the Board's five major job families: attorney, computer professional, economist, financial analyst, and research assistant. Among external non-intern hires, 40 percent were minorities, a decrease of 2 percentage points from the previous year, and 47 percent were female, an increase of 1 percentage point from the previous year. Among interns, 54 percent were minorities, up 11 percentage points from the previous year. Female interns decreased from 59 percent in 2020 to 54 percent in 2021.

Table 3. Federal Reserve Board hiring statistics, 2021

The Board takes several steps to ensure that minorities and women are represented in the applicant and candidate pools for hires and promotions. These include using a variety of recruitment sources (see box 1) to attract a diverse pool of well-qualified candidates, targeted outreach to colleges and universities that include Hispanic-serving institutions (HSIs) and historically Black colleges and universities (HBCUs), a program that utilizes current staff as ambassadors at recruiting events and sessions, and a dedicated internship program, among others. (For a discussion of efforts to recruit minority and women economists, see the "External Outreach and Recruitment Activities Targeting Minority and Women Economists" section of this report.) The Board also offers internal training and career development options to help foster professional growth opportunities for existing staff.

To complement the use of traditional recruitment sources such as job boards, employee referrals, publications, search firms, and career fairs, the Board continued to make significant use of social media to attract diverse candidates, including

• ongoing contracting with LinkedIn to ensure all Board jobs are posted on that site;
• ongoing automatic dissemination of all Board positions to major aggregators such as Indeed, Glassdoor, and Google Jobs; and
• ongoing promotion of the Board's open positions on social media.

In addition, the Board targeted career opportunities to several diverse audiences through a variety of means, including the following:

• ongoing contracting with eQuest Diversity Network (formerly, the Advantage Diversity Network), a service that disseminates the Board's job postings to a wide range of diversity and inclusion associations, schools, organizations, and job boards, with particular focus on the following
  communities:

  • minority groups (African American, Hispanic, Asian American, Native American, and others)
  • women
  • Lesbian, Gay, Bisexual, Transgender, and Queer (LGBTQA+) individuals
  • veterans and wounded veterans
  • people with disabilities
  • seniors
• continued utilization of job boards and LinkedIn groups associated with 100 Women in Technology, the Women's Bar Association, Financial Women's Association, and InHerSight
• additional vacancy announcements shared with the Association of Latino Professionals for America, Black Enterprise Network, Diversity Professionals, Diversity Woman, and Latino Professionals LinkedIn groups
• continued presence—increased over time—with the National Black MBA Association, National Society of Black Engineers, and Prospanica by posting all relevant vacancies on each association job board while also conducting direct sourcing of candidates via each associations' resume database
• continued utilization and development of a diversity sourcing and outreach database that lists professional organizations; student organizations; and local, state, and national affinity groups that Board employees are members of and/or maintain relationships with for the purposes of recruitment

The Board has continued to recruit directly from many different colleges and universities for both full-time employees and interns. Due to the pandemic, however, all information sessions, career fair attendance, classroom Q&As, and on-campus interviews were conducted virtually in 2021.

In addition, the Board utilized the web-based career services programs Handshake and Symplicity to automate the job posting process with colleges and universities. The Board posted all entry-level and internship vacancy announcements to schools with relevant academic programs and a presence on the platforms. This permitted the Board to extend our job posting reach to
249 schools, located in all regions of the country—significantly improving campus engagement.

The Board hosted virtual information sessions for 106 targeted schools, an increase of 38 schools in 2021, compared to 2020. The schools engaged for these sessions included 42 HSIs and 19 HBCUs, and the remainder were identified as having highly diverse student body populations with strong academic programs associated with the skillsets sought at the Board for internships and early career opportunities (see table 4). However, through the use of social media, the Talent Acquisition team was able to register students from 156 different colleges and universities for information sessions in 2021, reaching an audience well beyond our targeted 106 schools. Through these sourcing mechanisms, we were able to hire our first majority minority (52 percent) and majority female (54 percent) summer intern class. Minority females made up the highest percentage of intern hires (29 percent), up 6 percent from last year.

Table 4. Colleges and universities engaged for virtual recruiting events (info session and/or career fair)

In 2021, the Board's Talent Acquisition unit continued leading the Board Ambassador Program in which employees represent the Board while attending professional networking engagements, campus recruiting/alumni events, and community outreach engagements. This program is designed to attract candidates by connecting them with Board employees from diverse backgrounds who represent a variety of job families. Ambassadors attended virtual recruiting events and information sessions and provided cultural insights about their work environment and experience at the Board. Throughout the year, 115 ambassadors participated in recruiting outreach and/or intern-related programs. Most ambassadors participated in more than one event, equating to 207 unique opportunities for outreach and connection.

The Board Ambassador Program has allowed Talent Acquisition to focus efforts on building new strategic relationships with colleges and universities nationwide. As a result of our outreach, the Board received 1,060 applications from students attending the 106 schools. In 2021, the Board hired candidates representing 93 different colleges and universities it engaged with during the year. Of those schools, 19 were represented through two or more hires.

The Board also hired multiple individuals who were originally identified through partnerships with eight professional affinity associations. Box 2 lists all 33 professional affinity organizations that the Board engaged with in 2021.

The Board will continue to make these schools and organizations aware of employment opportunities at the Board, which should lead to increased interest and application volume from candidates of all backgrounds.

The Board also continued to offer "Effectively Hiring Top Talent without Bias" sessions to increase awareness among hiring managers about unconscious bias in the hiring process and to create a positive, inclusive candidate experience. Hiring managers and officers from four divisions completed the training in 2021, achieving a majority of divisions, hiring managers, and officers who have completed the training in full.

To help foster retention and support internal hiring, Talent Acquisition continued lunch-and-learn sessions in 2021 titled "A Look at Talent across the Board." The facilitated panel discussions are designed to highlight the various job functions, projects, and developmental opportunities available for internal staff as they consider next steps in their career progression.

"Conveying Your Best Self" training also continued throughout 2021 with three sessions offered. Talent Acquisition offers the training to help prepare internal employees of varying experience levels for the application and interview process within the Board. This training provides guidance to staff on resume and cover letter writing techniques as well as how to prepare for behavioral- and competency-based interviews. Talent Acquisition also continued offering mock interviews and resume review sessions in follow-up. In 2021, a total of 69 staff members attended, and
15 sought additional assistance from facilitators to prepare for their next career opportunity. Three attendees pursued and received new positions internally within six months of course attendance.

Training, Mentoring, and Career Development

As organizations re-examine their workforce strategies in light of the unprecedented ways work has been performed and economic challenges in the last few years, the Board wants to be innovative and inclusive in our approach to attracting and developing talent. We aspire to have an employee population that reflects the populations we serve in terms of the representation of women and minorities, particularly at the leadership level.

To help realize this important goal, the Board continues to offer leadership programs for managers and officers to build the skills required to develop current and future Board leaders. These programs are designed to build a common understanding of the expectations of Board leaders and build behaviors that strengthen the overall leadership culture at the Board. The Board's leadership development programs are critical given the central role that effective leadership plays in the Board's ability to achieve our mission.

"Manager QuickStart," an eight-session, cohort-based leadership development program, is designed to help new managers develop critical skills needed to be effective in their role. Three cohorts of the program were offered in 2021 with a total enrollment of 39 managers. Eighteen participants (46 percent) were female and 15 (38 percent) were minorities.

"Leading at the Board," a cohort-based, multi-session program for Board officers, focuses on three core areas: leading self, leading others, and leading the organization. One cohort began their program in 2020 with a total enrollment of 17 officers. Due to the pandemic, the 2020 program was delayed and shifted to virtual delivery. As such, the 2020 participants continued and completed the program in 2021. No session was offered in 2021. Of the total, seven participants (41 percent) were female and six (35 percent) were minorities. Both programs receive consistently high ratings from participants for supporting their development as leaders.

In 2021, the Board continued the Executive Coaching Program and provided this development opportunity to 177 officers, managers, and senior-level staff. Of the total, 95 participants (54 percent) were female and 51 (29 percent) were minorities. The Executive Coaching Program provides a collaborative, individualized learning opportunity for Board leaders to focus on their current and/or next role development with an external coach in a manner that builds competencies necessary for the Board to achieve our strategic objectives.

Additional courses supporting professional and leadership development were provided to employees through the Board's core curriculum. Virtual courses, such as "Embracing Generational Differences," "How to Be Inclusive in This New Virtual Workplace," and "Adapting to Change," were also offered to support the Board's efforts to foster an inclusive culture. In addition to the core curriculum, the Board provided targeted training to support division-specific initiatives related to diversity and inclusion and employee engagement. Course offerings included "Unconscious Bias," "MicroTriggers," "The Language of Inclusion in Government," and "Building Work Relationships in a Virtual Workplace."

In addition to programs and courses targeted to managers and officers, the Board offers several professional development programs for Board and System staff that help foster diversity and inclusion:

• Boardwide Mentoring Program. This professional development program provides a forum for Board employees at all levels to focus on their long-term learning in a manner that builds cross-divisional collaboration and develops the skill sets necessary for the Board to achieve our business goals. The annual program has one cohort of mentors matched with mentee partners. In 2021, 21 mentors participated in the cohort. Among mentors, 10 (48 percent) were female and 6 (29 percent) were minorities. The cohort also included 20 mentees. Among mentees, 11 (55 percent) were female and 7 (35 percent) were minorities (the discrepancy between the number of mentors and mentees is due to one mentor being partnered with two mentees).

• System Leadership Initiative (SLI) programs. SLI is a suite of leadership development conferences and rotational developmental opportunities that are available to employees across the System. As noted below, there are four tiers of leadership development offered through SLI's programs and one rotational program.

  • Thrive: This annual conference exposes selected managers and/or new officers to the challenges and realities of leading in the System and helps them develop the capabilities needed to lead in a dynamic environment. In 2021, six Board leaders participated in the Systemwide conference, delayed from 2020 and held virtually due to the pandemic. The cohort continues to meet through midyear 2022. Five (83 percent) of the six participants are female and one (17 percent) is a minority female.
  • Trailblazers: This conference exposes officers to leadership competencies such as influencing decisionmaking. It also helps them develop their skills to more effectively lead within their functions, develop a broader perspective on Reserve Bank District and System strategies that they are asked to support, and build networks with peers and senior leaders. The program was postponed in 2021 due to the pandemic and is scheduled to resume in 2022.
  • System Leadership Conference (SLC): This highly immersive program for high-potential, strong-performing, influential officers features a combination of case studies, academic experts, and dialogue with other System leaders. The program was postponed in 2021 due to the pandemic and is scheduled to resume in 2022.

  • Navigate: Launched in 2021, Navigate is a fully virtual program created for System leaders to gain exposure to System executives. The program comprises thoughtfully curated content and opportunities for experiential learning that includes connecting with System colleagues. It marries technology with the latest thinking in learning and leadership so leaders can gain timely, applicable, and inspirational leadership insights.

    The inaugural 2021 program hosted 117 System leaders representing all Reserve Banks, National IT, the Office of Employee Benefits, and the Board. Ten Board leaders participated in the program. Four (40 percent) of the ten participants were female and four (40 percent) were minorities.

System Leadership Exchange (SLE): This rotational program, which is open to all System staff, supports job shadowing, critical work assignments, customized/knowledge development, and advisory role opportunities. SLE opportunities are unique in nearly every aspect (location, subject matter, time commitment, duration, etc.) and promote workforce and development efforts that help improve the strength and diversity of the System's talent. In 2021, 21 Board employees participated in the SLE, with 18 exchanges continuing in 2022. Of the 21 participants, 10 (48 percent) were females and 13 (62 percent) were minorities.

The Board also offered several rotational assignments throughout 2021. Rotational assignments provide opportunities for employees to develop knowledge, new skills, and a broader understanding of the operations and programs of the Board. They involve a temporary assignment in a different work unit performing the duties of a different position for a specified period, typically 6 to 12 months.

Diversity, Equity, and Inclusion at the Board

Although 2021 was an unprecedented year, the Board remained agile and solidified our continued commitment to affirm an inclusive culture and connection.

We seek to become more intentional in our actions to advance inclusive behaviors and fair and equitable practices that support employees in the workplace. This commitment extends to providing resources designed to augment and support Board talent; leveraging our ERGs to foster a work culture where employees feel welcomed, supported, and valued; strengthening diversity within the professional pipeline for progression to official staff; providing continuous learning and dialogue of diversity, equity, and inclusion topics; and reassessing current recruitment strategies and hiring, promotion, and retention practices.

The Board continues to implement the Diversity and Inclusion Strategic Plan to advance efforts to create and sustain a high-performing workforce that embraces diversity and empowers all employees to achieve their full potential to develop and advance. The current plan details specific objectives, strategic goals, and actions that align with the Board's DEI standards in the areas of organizational commitment, workforce diversity, workplace inclusion, equity, and supplier diversity.

Throughout the year, ODI initiated several actions to advance DEI at the Board. Some of the initiatives include the following:

• Published a DEI quarterly newsletter. In January 2021, ODI published the first quarterly issue of DEI Matters, a newsletter providing articles, videos, books, and information to foster understanding, dialogue, and actions pertaining to diversity, equity, empathy, and belonging in the workplace.
• Updated the Diversity, Equity, and Inclusion Strategic Plan 2022–25. The proposed DEI strategic plan will serve as a framework for the Board's ongoing efforts to increase diversity, advance equity, and foster inclusion within the Board community over the next four years. The plan incorporates input provided from the Board's Senior Officer Committee, the Executive Committee, ERGs, and qualitative data from staff focus groups, including benchmarks against global diversity and inclusion practices. The plan will be issued by the second quarter of 2022.
• Promoted intersectional collaboration among the Board ERGs. The Board established an ERG Council (council), comprised of the ERG chairs and ERG sponsors, to collectively share and advocate best practices in hiring, retention, and development to advance DEI within the organization. Currently, the council is led by the ODI program director (chair) and the CHCO (co-chair).
• Integrated new DEI learnings to drive inclusion and cultural competence. The Board integrated new DEI learnings to create an opportunity for greater engagement on topics of allyship, conscious inclusion, and intersectionality.
• Hosted and organized the Conference on Diversity and Inclusion in Economics, Finance, and Central Banking. In collaboration with the G-7 central banks, the Board hosted and organized the third Conference on Diversity and Inclusion in Economics, Finance, and Central Banking. The conference brought together DEI and Human Resources leaders and practitioners from G-7 central banks and U.S. federal financial agencies. During the meeting, participants shared DEI best practices within their respective organizations and identified opportunities to collectively promote diversity and inclusion in the broader economics and finance community.

In 2022, the Board's efforts will focus on implementing the new Diversity, Equity and Inclusion Strategic Plan, embedding equity into our diversity and inclusion framework, and leveraging our data to assess the impact of our initiatives.

As detailed earlier in this report, the Board continues to make strides in increasing diversity and strengthening our culture of inclusion. Under the discussion of "Successes" below, we detail the actions and initiatives undertaken in 2021 in six distinct areas of focus, and—most importantly—where improvement is needed. These successes should be viewed as the foundation upon which we will continue to build toward sustainable change.

Successes

Diversity in Official Staff Pipeline and Major Job Family Hires

In 2021, there were 27 appointments to the official staff,⁷ of which 9 (33 percent) were minorities. Ten (37 percent) were women, and 2 of the 10 (20 percent) were minority women.

The Board's long-term and short-term outreach and recruitment strategies continue to produce diverse applicant pools for major job families (see table 5).

Table 5. Federal Reserve Board hires in major job families, 2021

The number of women hired into the economist job family increased from 16 in 2020 to 18 in 2021, and the hiring rate for this group increased from 28 percent in 2020 to 39 percent in 2021. The number of minorities hired into the economist job family decreased from 14 in 2020 to 9 in 2021, and the hiring rate also decreased from 25 percent in 2020 to 20 percent in 2021. The percentage of women hired into the attorney job family increased from 27 percent in 2020 to 50 percent in 2021, while the number of minorities hired into the attorney job family decreased 6 percentage points, from 36 percent in 2020 to 30 percent in 2021. The computer professional job family had a 20 percentage point decrease in minority hires, from 59 percent in 2020 to 39 percent in 2021, and the number of women hired decreased 12 percentage points, from 46 percent to 34 percent. The number of women hired into the financial analyst job family increased 4 percentage points, from 51 percent in 2020 to 55 percent in 2021, and the number of minority hires increased 3 percentage points, from 38 percent to 41 percent. The research assistant job family had a 3 percentage point increase in minority hires, from 26 percent in 2020 to 29 percent in 2021.

Employee Engagement and Inclusion

The Board is committed to creating and sustaining a workplace culture that promotes internal inclusion and engagement by creating a safe place for employees to share their experiences and by helping leaders and other employees deepen their understanding of DEI issues and concerns.

One of the primary goals of our inclusion strategy is to provide a variety of ways for employees to meaningfully share their unique experiences. We recognize that Board ERGs play an essential part in ensuring everyone's voice is heard and their contributions equally valued. Our ERGs are voluntary, employee-led groups that provide colleagues with valuable support and raise awareness of issues and challenges for their members.

There are currently seven ERGs: Advocacy for the DiVerse Abilities, Need, and Contributions of Employees ERG (ADVANCE); the African American ERG (AAERG); the Asian American Pacific Islander ERG (APIERG); the Hispanic ERG (HERG); the Lesbian, Gay, Bisexual, Transgender, Queer, and Allies+ ERG (LGBTQA+); the Veterans ERG; and the Women's ERG (WERG). Each has the autonomy to define its purpose and programming around four key pillars: recruitment and retention, career development, workforce engagement, and equitable policies and practices. The ERGs operate under charters to ensure they are creating a strong sense of community and identifying cultural change. ERGs are assigned an executive sponsor who provides support in the implementation of the ERG annual operating plans and assessment of initiatives and objectives.

In 2021, the Board's ERGs continued to support efforts to show solidarity in fostering dialogue that promoted understanding of others' perspectives on and experiences of race and racial injustice and allyship. In support of the APIERG, the ERGs released a statement condemning violence against Asian American and Pacific Islanders during a significant increase of anti-Asian sentiment and violence in the country.

At the Board, we see an opportunity to use allyship as a strategic catalyst for strengthening a culture of inclusion through building on ongoing conversations and learnings. In January 2021, the ERGs and ODI organized the first annual Unity Month program, a series of multicultural programs that further reinforce celebration of our heritage, backgrounds, and contributions, all of which make the Board a better place to work and grow. The Unity Month events empower staff to learn more about the power of allyship and interconnectedness in our workplace.

The ERGs have become increasingly integral to the employee experience at the Board. Highlighted below are a few initiatives that demonstrate their contribution to the Board's DEI efforts:

• LGBTQA+ ERG implemented weekly group lunch-and-learn social hours to build community among members, foster inclusion during the isolating COVID-19 telework mandate, and educate members about the relevant legal, historic, current, and diverse intersectional LGBTQ+ issues. In addition, the group hosted a virtual fireside chat on cultivating diversity and inclusion throughout the Board.
• HERG hosted a Hispanic Heritage Month Panel Question & Answer virtual event focused on science, technology, engineering, and mathematics (STEM) careers at the Board.
• APIERG hosted a listening session and conversation on the rising violence against the Asian American and Pacific Islander community.
• ADVANCE ERG continued to work with the Mental Health subcommittee to provide support to Board staff through the challenges of the COVID-19 pandemic. Further, ADVANCE organized a National Disability Employment Awareness Month (NDEAM) panel event to highlight diversity within the disability experience.

Measuring Board staff engagement plays a critical role in gaining insight into employees' thoughts and attitudes toward their work and the overall environment. The Board is increasingly informed by our systems for listening to feedback from staff and analyzing feedback to better understand sentiment and take action that will encourage change. Over the past year, in the midst of the COVID-19 pandemic, the Board sought to strengthen and sustain an inclusive work culture to ensure employees felt engaged and heard. We assessed staff responses to our 2021 Engagement Survey and used that data to identify employee engagement and workplace sentiment. The survey measured employee sentiment on topics including the COVID-19 pandemic, transitioning back to the office, DEI, and work-life balance. Based on the results, most employees felt strongly connected to the Board's mission. However, there is an opportunity for growth and improvement in several areas. We will continue to refine our systems and measurements, whether that includes incorporating a new model, a new approach, or new technology to generate high-quality engagement survey data.

In addition to the engagement surveys, the Board continues to use several other channels, such as ERG membership feedback, employee lifecycle surveys (for example, onboarding and exit surveys), and human capital ad-hoc surveys to help understand key influencers or drivers of employee experience.

In the context of workplace diversity and inclusion, obtaining a successful balance in work-life integration is essential. The Board recognizes that having flexible workplace policies and benefits helps support inclusion and sustainability initiatives, attract and retain talent, increase productivity, and support employee well-being. The Board continues to offer flexible leave policies and programs and to embrace a culture of work-life balance.

In addition to offering workplace flexibility for employees, the Board also ensured access to a variety of tools and resources to support their well-being and mental health. The Board's Employee Assistance Program (EAP) provides many resources to support the physical, mental, and emotional well-being of our employees as well as their immediate family. In 2021, the EAP continued to assist employees and their immediate family members in coping with stress and anxiety related to COVID-19, including social isolation and mental health or emotional difficulties resulting from shelter-in-place; transitioning to a telework environment; increased childcare obligations; and educating children at home.

The Board continues to identify resources and benefits to support our employees. Recognizing family caregiving needs as a part of a Board employee's life, we identified resources and benefits that are available for parents with childcare and education concerns through services provided by our third-party vendor.

Throughout the pandemic, conferencing and collaboration services kept Board staff connected and productive. To transition back to the office, the Board created an interdivisional Return to Office (RTO) Technology Planning Workgroup to identify technology needs likely to arise as more staff return to the office while others continue to work remotely in order to facilitate a seamless transition.

Leadership Engagement and Accountability in Diversity, Equity, and Inclusion

Ensuring diversity and inclusion at the Board requires a long-term, holistic approach that focuses on doing the utmost to bring people in and provide them paths for success. Doing so requires having an overall culture and organization that is keenly focused on diversity and demonstrates ongoing commitment at all levels, starting with leadership.

Board leaders demonstrated their commitment through a variety of means in 2021. Several examples include the following:

• The Chair and other Board members participated in various public events focused on addressing workforce diversity, economic inclusion, and the economic impact of coronavirus on underserved communities.
• The Chair and the chief operating officer met with the leaders of the ERGs in December 2021. The meeting enabled the ERG leaders to inform the Board about each ERG's mission, activities, and annual operating plans. The meeting also included discussion regarding diverse hiring, retention, development, promotion, and workforce and succession planning.
• During the year, the Board also advanced the Diversity and Economic Inclusion Workgroup to discuss diversity and economic inclusion concerns and activities. The Chair leads the workgroup, with participation by other Board members, division directors, and policy staff. The workgroup meets quarterly with a focus on activities, research and status of diversity, and economic initiatives. The OMWI director participates in all meetings.
• To drive greater accountability for advancing DEI at the Board, division directors identified opportunities to improve diversity representation and diverse talent in their divisions through establishing objectives and setting action measures in their Diversity and Inclusion Scorecards. These scorecards focus on leadership engagement, talent acquisition, talent development, and supplier diversity. The scorecards are used for measuring both progress and results against the Board's diversity and inclusion standards, objectives, and actions. ODI conducts quarterly assessments of divisions' scorecard progress against the Board's strategic diversity and inclusion goals. The ODI program director meets regularly with division leaders to discuss the division's DEI efforts, progress, and challenges.

• Board leadership continues to promote open and honest dialogue to drive greater inclusion. These conversations have provided important forums for learning, confronting difficult issues, and cultivating belonging.

  • Senior leaders shared messages of solidarity to foster belonging among staff and encourage an open dialogue about race.
  • On April 15, 2021, ODI co-sponsored a listening session event on anti-Asian hate —"Anti-Asian Violence, Xenophobia, and Bias"— with the other federal financial agencies.
  • On May 27, 2021, as part of our ongoing efforts to foster community and conversation at the Board, the Chair hosted a town hall discussion for Board staff. The event provided an opportunity for staff to engage on a broad array of important issues.
• Diversity-focused councils exist within Board divisions. The councils advise their division leadership on the development and implementation of strategies and solutions to address the advancement of DEI.

At the Board, our commitment to furthering DEI is part of the community development focus. The following are a few examples:

• The Board launched the Federal Reserve Community Development Research Seminar Series. The series is a forum for exploring the intersection of research, policy, and practice in the community development field. It expands access to high-quality research that informs stakeholders who are working to support low- and moderate-income communities and communities of color.
• In collaboration with the Federal Reserve Banks, the Board developed the Guiding Principles for Racial Equity, which is implemented across the System's community development function. The goal of these principles is to adopt racial equity into community development work. In addition to the principles that were developed, a Racial Equity Learning Community (RELC) was also launched across the community development function. The RELC seeks to empower staff to think about issues of equity, systemic racism, and how to better engage with communities of color.
• On November 8, the Board hosted the Federal Reserve's "Gender and the Economy" conference. The symposium brought together researchers, policy analysts, and community development practitioners to discuss economic disparities between genders with respect to financial well-being and economic outcomes and consider evidence-based strategies that remove the barriers to promote social equity and inclusion.

Strategic Communication of Diversity, Equity, and Inclusion

The Board continues to use multiple communication channels to disseminate information about our diversity and inclusion strategies and initiatives. Examples of actions taken in 2021 include the following:

• To support ongoing communication that is critical to inclusion, ODI provided articles, books, videos, webinars, and training highlighting diversity and inclusion initiatives to create and maintain a culture of belonging for employees (via DEI Matters).
• To ensure their members felt supported and connected during the Board's fully remote telework posture due to the COVID-19 pandemic, ERGs engaged their membership using Microsoft Teams, Zoom, and WebEX platforms.
• To convey diversity and inclusion messages, the Board used diverse internal communication methods and channels, such as town halls, intranet sites, podcasts, staff meetings, and discussion groups.
• To promote the Board's commitment to culture and diversity and inclusion initiatives, during virtual onboarding, all new employees have been given information on the Board's EEO policies and support groups such as the ERGs.

Education and Training to Support Diversity, Equity, and Inclusion

Education is the key driver of progress, inclusion, and equity. That is why DEI training is embedded in our core learning and development opportunities of employees and leaders. We continue to invest in training that empowers our senior leaders and managers to model the behaviors of inclusive leadership in their day-to-day interactions with their employees, as they have a direct impact on employee experiences.

In 2021, ODI introduced new courses to its DEI curriculum to include "DEI 101—An Introduction to Diversity, Equity, and Inclusion"; "Allyship"; "Privilege"; and "Inclusion Starts with I and Happens with Us." The courses offer interactive content that is designed to support behavioral awareness and change.

To align with our focus on accountability, we aim to empower our leaders with skills and competencies to lead and develop diverse talent. This includes ongoing inclusive leadership training to help ensure we are actively mitigating the impact of potential bias. In 2021, the Board offered five virtual sessions focusing on the mindset and behaviors required of leaders to lead inclusively, the organizational impact of personal bias on a leader's behaviors and decisions, and how to recognize and address micro-aggressions.

Incivility in the workplace has a direct impact on an organization's culture. This underscores the importance of equipping our senior leaders and managers with the tools and resources needed to respond appropriately to issues and problems they may encounter in the workplace. In 2021, the Board delivered four sessions of the "Civil Treatment for Leaders" course, intended to educate leaders in building more inclusive, productive, and compliant workplaces. Since 2020, 164 Board senior leaders and managers have completed this training.

To reinforce the Board's no-tolerance policy that supports an equitable workplace, ODI developed a harassment prevention toolkit in 2021. The toolkit provides resources to assist employees and managers in preventing and responding to any discriminatory harassment or inappropriate workplace conduct that they may experience or observe. The toolkit also defines improper behaviors constituting discriminatory harassment, distinguishes discriminatory harassment from other inappropriate workplace conduct, and explains what types of conduct violated Board policy and federal laws. The toolkit was made available for all Board staff to read via the DEI Matters newsletter.

External Outreach and Recruitment Activities Targeting Minority and Women Economists

The Board engaged in several significant outreach and recruitment initiatives in 2021 to address diversity in the economics profession.

The Board's economics divisions (Research and Statistics, Monetary Affairs, International Finance, and Financial Stability) continue to collaborate on a variety of diversity and inclusion initiatives to support and encourage increased representation of women and minority groups in the economics profession. These initiatives involve partnerships with other divisions at the Board and the Federal Reserve Banks; and extend to outside organizations, including the American Economic Association (AEA), the National Economic Association (NEA), and the American Society of Hispanic Economists (ASHE).

In 2021, the Board collaborated with the AEA in several ways to address the state of diversity in the economics profession, including participating in the AEA's committees and expanding support to the AEA Summer Training Program (AEASP). The AEASP aims to increase diversity in the economics profession by preparing talented undergraduates who are seriously considering PhD programs in economics.

Board economists served on key committees such as the Committee on the Status of Women in Economics Profession (CSWEP) and the Committee on the Status of Minority Groups in the Economics Profession (CSMGEP) and assisted with the associated fellowship program. Other engagements have included Board economists' guest-editing CSWEP News and mentorship activities at the PhD level.

During the AEA Summer Training Program, two Board economists served as instructors and several Board research assistants and analysts served as teaching assistants for a "Statistical Programming and Financial Literacy in R" course. In addition to teaching, they also served as mentors to students from underrepresented communities within the economics profession. To identify potential candidates more often, the economics divisions continued to track and engage AEASP participants with the goal of systematically considering eligible, high-performing students for interns and research assistants (RAs). The Board hosted a virtual workshop with AEASP students focused on the Board's RA application process. As a result of these efforts and engagements, four AEASP alumni applied to our RA program and one was hired.

The teaching and mentoring partnership with Howard University's Department of Economics continued in 2021. Thirty-five Board staff were involved as instructors, teaching assistants, and research mentors for the Financial Literacy/R-Programming course offered at the Board through Howard's Department of Economics, listed as Econ 181. Fourteen students completed the course in 2021. The goals are to help students build the critical skills and knowledge required for postgraduate and professional success in the economics field, to establish mentoring relationships between students and Board economists, and to expand interest in the economics field. The Board collaborated with the Federal Reserve Bank of Atlanta to share best practices around the creation of their own Econ 181 course. As a result of this activity, two Howard University Econ 181 students applied to the Board's RA program.

Federal Reserve RAs continued teaching the AP macroeconomics course remotely at Benjamin Banneker high school over the 2020–21 school year, which concluded with 10 students sitting for the AP exam in June 2021. For the 2021–22 school year, which started in September 2021, interest in the course doubled from 10 to 20 students. Two additional RAs were recruited as instructors to accommodate the increased demand. A total of four RAs served as the primary instructors for two sections of 10 students each, with lessons held in-person twice a week at the new Benjamin Banneker campus in Washington, D.C.

Through formalizing the Board's Economics Outreach Program (Econ Outreach), the economic outreach specialist and team members continued to collaborate and partner with internal and external stakeholders to mentor, counsel, and encourage students to pursue a career in the field of economics. The Econ Outreach team has strategically identified HBCUs, HSIs, and colleges and universities with high enrollments of women and minority students in economics majors to reach a broad array of students across the country. Through virtual engagements with students and academic departments from across the United States, the team reached over 450 students.

In April and November 2021, the Board hosted the "Exploring Careers in Economics" (ECE) event. Due to the ongoing pandemic both events remained completely virtual. Collaboration within the System provided viewers the opportunity to learn about career opportunities and discuss diversity in economics and career paths within the field. The videos of the event were viewed more than 5,313 times in 2021, and approximately 130 resumes were received via the ECE Careers Pipeline link in the Board's application system. Applicants were contacted by Talent Acquisition and Econ Outreach for further engagement and career exploration.

In addition, Board staff were involved in the third annual conference of the Sadie Collective, an organization that encourages and supports young Black women in pursuing careers in economics and related fields. We staffed a virtual booth with the assistance of Board RAs and Talent
Acquisition.

The Board hosted the seminar "Meet the Fed: Board Economists and the Job Market" for the second year in a row. In 2021, the Board enhanced the seminar by offering multiple sessions for outreach, adding a diverse panel of research topics, and utilizing breakout rooms to engage with potential candidates. As a result, attendance for this event increased 144 percent. The seminar was widely promoted through professional organizations including the Association for Economic Research of Indigenous People (AERIP), ASHE, Diversity Initiative for Tenure in Economics (DITE), NEA, and several AEA committees including the Committee on the Status of LGBTQ+ Individuals in the Economics Profession, CSMGEP, CSMGEP Mentoring Program, and CSWEP.

In collaboration with the Bank of Canada, the Bank of England, and the European Central Bank, the Board hosted the third conference on "Diversity and Inclusion in Economics, Finance, and Central Banking. "The conference focused primarily on issues encountered by underrepresented groups in economics, finance, and central banks. Areas of particular interest included addressing how the fields of economics, finance, and central banking can better attract and retain members of underrepresented groups and the obstacles to greater diversity and inclusion in these fields as well as the steps that can be taken to overcome the obstacles.

The Board's Economics Divisions Diversity Council met regularly to discuss various topics related to diversity and inclusion, including ways to address the issue of inclusion of minorities and women in the economics profession. Implicit-bias awareness training is required for all staff involved in recruiting activities. The following are a few examples of the council's work:

• The Inclusion Working Group of the council was expanded to allow dedicated, ongoing support of staff-initiated inclusion projects. Project examples include transparent and equitable allocation of work assignments, correct name pronunciation across nationalities and backgrounds, and greater recognition of staff contributions across job families.
• The economics divisions continued to maintain state-of-the-art, evidence-based recruiting processes and training for all involved staff.
• Staff performance evaluations in all four of the economics divisions were updated to contain evaluation criteria to define and encourage behaviors that build and support a diverse, equitable, and inclusive community.
• A new program called the "Workplace Ally" was instituted. The program allows staff to speak to a trained colleague about a concern or challenge they are having in the workplace. Staff can get advice and assistance through this program to help resolve issues and concerns they are experiencing in the workplace.
• A System seminar series "Race, Racism, and Economics" continued to host research presentations and discussions exploring how issues of race and racism interact with the field of
  economics.

Challenges and Next Steps

The Board will continue to focus on identifying challenges and implementing actions to address enhance diversity, equity, and inclusion at Board.

Increasing Hispanic Representation in Board Workforce

The Hispanic participation rate in our workforce has remained steady at 5 percent. The Board hires Hispanic employees each year, and although there are minimal separations within this group, the separations are enough to offset the number of hires. Additionally, Hispanic applicants are hired at a rate comparable to other minority groups at the Board. However, the number of Hispanic applicants is much lower than other minorities, resulting in a lower number of Hispanic hires. Hispanic representation has been an ongoing challenge that we are working actively to address. We recognize that our prior efforts, especially in outreach and recruitment have resulted in minimal progress in increasing the representation of Hispanics.

To address these ongoing challenges, the Board initiated the following activities in 2021 to address key priorities identified in 2020:

• In our effort to enhance sourcing strategies and develop innovative outreach programs to personally connect with Hispanic students and professionals beyond the traditional scope, Talent Acquisition and Board ambassadors participated in the first Hispanic Serving Institute Summit hosted by the HSI Career Collaborative. The collaborative is a consortium of 14 HSIs working together to help employers better understand the needs and interests of students attending these institutions and to better engage on campuses and virtually. Talent Acquisition also participated in the career fair associated with the event.
• Leveraging input from the Hispanic ERG to optimize recruitment and outreach strategies, Talent Acquisition and members of the HERG hosted a Hispanic Heritage Month Panel Question & Answer virtual event focused on STEM careers at the Board.
• The Board strengthened our partnership with Prospanica to post/market all relevant positions, with unlimited access to the membership database to directly source candidates for Board vacancies, including participation in the organization's career fair in July.
• Executive sponsors of the Board's Hispanic ERG conducted a workshop introducing the Board's mission and providing leadership lessons for Hispanic federal employees at the Federal Training Institute, sponsored by the League of United Latin American Citizens.
• The Board will continue to focus on identifying and implementing effective outreach and recruitment strategies, identifying barriers, and continuously assessing actions through metrics for progress on increasing the representation of Hispanics.

Availability of Minority and Women Economists

The availability of minority and women economists in the national educational and professional pipeline remains persistently low, which continues to present ongoing recruitment challenges for the Board.

Blacks, Hispanics, and women are underrepresented in the Board economist job family primarily due to these groups' availability in the economist labor force. The minimum educational requirement for Board economist positions is a doctorate in economics.

According to the National Science Foundation's most recent published data in the 2020 Survey of Earned Doctorates, of the 1,216 doctorates in economics awarded by U.S. colleges and universities, women accounted for 33 percent (407). Blacks received 4.8 percent (22) of the degrees and Hispanics 7.0 percent (32). There was one Native American recipient. As a result, the historically low participation of Black, Hispanic, and women economists in the national educational and professional pipeline creates ongoing recruitment challenges for the Board. These challenges are further intensified as private companies, academia, and government agencies seek to diversify their workforces, resulting in competition for the limited supply of Black, Hispanic, and women PhD economists.

Despite these challenges, the Board has been able to make small gains to increase the diversity of our economist workforce for women and some minority groups. The number of women PhD economist hires increased from 16 in 2020 to 18 in 2021; however, the number of minority PhD economist hires decreased from 14 in 2020 to 9 in 2021. Of the nine minority economists hired in 2021, seven were Asian American and two were Hispanic; none were Black. Despite many well-intentioned recruitment efforts, it is clear we have work to do in the hiring of Black PhD economists, and as with any business imperative, accountability will be key to achieving progress. In order to bring about systemic change, we will need to reassess our current targeted recruitment and our hiring and retentions strategies and practices for minority economists.

The Board will continue to engage in the following activities in support of increasing the pipeline of underrepresented minority economists:

• Continue the teaching and mentoring partnership with Howard University's Department of
  Economics.
• Serve on the AEA's CSMGEP and the CSMGEP and support the new AEA Committee on Equity, Diversity, and Professional Conduct.
• Under the purview of the AEA's CSMGEP and CSWEP, continue to organize, oversee, and participate in the three programs intended to foster a long-term strategy in the recruitment of minority economists: (1) the Summer Economics Fellows Program, (2) the Summer Training Program, and (3) the Mentoring Program. To identify potential RA candidates and sustain relationships, the Board plans to track and engage AEASP participants with the goal of converting eligible, high-performing interns to RAs.
• To recruit more minority PhD economists, the Board will continue to host the seminar "Meet the Fed: Board Economists and the Job Market" to identify PhD economists for employment opportunities. The event will be promoted through diversity professional organizations, including AERIP; ASHE; DITE; NEA; and several AEA committees, including the Committee on the Status of LGBTQ+ Individuals in the Economics Profession, CSMGEP, CSMGEP Mentoring Program, and CSWEP.

Increasing Minority Representation among Official Staff

The Board is committed to developing and retaining diversity within all levels, and in particular, at the leadership level. Diversity of leadership increases our ability to ensure that decisions reflect a wide array of perspectives. It also leads to greater diversity overall, as talented, diverse candidates see a clearer path to leadership.

At the officer level, while we have seen some diversity gains with Asians and Blacks, we acknowledge that we still have much work to do in improving Hispanic representation.

The representation of minorities in the pipeline to official staff continues to trend positively. Minority representation in the official staff pipeline increased by 1 percentage point, from 34 percent (106) in 2020 to 35 percent (116) in 2021.

Similarly, overall minority participation levels in the official staff are showing progress with an increase of 5 percentage points, from 22 percent in 2018 to 27 percent in 2021. The following is a further breakdown of the numbers:

• Black representation increased 2 percentage points from 9 percent (23) in 2018 to 11 percent (29) in 2021.
• Asian representation increased 2 percentage points from 8 percent (21) in 2018 to 10 percent (26) in 2021.
• Hispanic representation increased 1 percentage point from 3 percent (8) in 2018 to 4 percent (11). As the data suggest, the rate of change for Hispanics is slower.

Increases of a few percentage points year-over-year in representation levels are meaningful, given the size of the Board workforce and the incremental number of officer appointments in a given year based on the number of opportunities. These data points continue to help us assess the efficacy of our efforts, providing insights on where we need to improve.

We are focused on continuing to grow our efforts to attract and retain minority talent by leveraging what has been successful heretofore and identifying new strategies along the way.

Key actions of this effort moving forward will include

• identifying and removing biases in hiring decisions, as well as identifying major job families for our minority employees to develop their careers;
• using executive search firms and expanding outreach and recruitment sources, which have already resulted in more diverse applicant pools;
• expanding leadership development efforts at the Board, including coaching, mentoring, and job-shadowing;
• continuing the OMWI director's participation in the official staff recruitment process and leadership development programs; and
• evaluating our retention and inclusion talent processes to help foster career growth.

Inclusion of Minority-Owned and Women-Owned Businesses

The Board operates a robust Supplier Diversity Program with standards and procedures to ensure, to the maximum extent possible, the fair inclusion and utilization of minority- and women-owned businesses (M/WOBs) in the Board's acquisition process. The program strives to increase the pool of eligible M/WOB suppliers to compete for Board contract opportunities by focusing on outreach and business development strategies with unique opportunities for M/WOBs to network and build relationships with various Board stakeholders and partners.

This report highlights the Board's achievements in 2021, another challenging year. Despite the ongoing uncertainties and challenges of COVID-19, the Board sought new and innovative ways to stay connected and engage M/WOBs in the Board's acquisition process. The team continued to foster diversity and inclusion within our supplier base by supporting a proactive and sustainable Supplier Diversity Program.

In 2021, the Supplier Diversity Program focused on five strategic priorities, with the aim of achieving a world-class Supplier Diversity Program:

1. Opportunity and engagement

   • Collaborated and coordinated efforts with advocacy groups representing M/WOBs to expand their access to and participation in the Board's acquisition process.
   • Utilized the Acquisition Planning Forecast, which serves as a roadmap for M/WOBs to participate in the acquisition process and find Board contracting opportunities. This information is published on the Procurement section of the Board's website (www.federalreserve.gov/aboutthefed/procurement/procuring-the-future.htm), distributed at outreach events, and included in correspondence to vendor inquiries.
   • Hosted Supplier Diversity Vendor Showcases that enabled M/WOBs to present their capabilities to Board staff.

2. Program awareness through education, training, and collaboration

   • Increased awareness among Board staff of the Board's Supplier Diversity Program through an internal communications campaign—"Be Intentional"—to support the participation of M/WOBs in the acquisition process.
   • Provided technical assistance to vendors to enhance their ability to qualify for and successfully compete in the Board's acquisition process.
   • Collaborated with advocacy groups representing M/WOBs about upcoming contracting opportunities.

3. Performance metrics and processes

   • Enhanced the supplier diversity performance metrics reporting tool—the Supplier Diversity Dossier—to better promote accountability, assess progress, and enable comprehensive reporting programs that provide timely and meaningful information to internal stakeholders and partners.

4. Diverse supplier participation in bidding for all major procurements

   • Integrated the "Be Intentional" messaging campaign and the "Supplier Diversity Toolkit" within Board divisions to maximize the opportunity for M/WOBs to participate in the Board's acquisition process.

5. Strong collaborations across the Federal Reserve System and with federal agencies

   • Partnered with the System's supplier diversity professionals and participated in the System Supplier Diversity Working Group. This group meets regularly to discuss the System's High Priority Objectives with the aim of establishing guidelines and procedures to meet the legislative mandates of Section 342 (c) (1) of the Dodd-Frank Act.
   • Participated in meetings—attended by the Supplier Diversity Program manager— with the federal Office of Small and Disadvantaged Business Utilization Directors Interagency Council, the federal financial regulatory agencies, and other federal agencies to share knowledge and stay abreast of changes in laws and requirements concerning supplier diversity and small and disadvantaged businesses.⁸

Contracts Awarded to M/WOBs

The Supplier Diversity Program achievements reflect the Board's continuing commitment to offer opportunities for M/WOBs, as shown in the 2021 results for contracts awarded. The Board's contract expenditures totaled $302,545,916 for goods and services.⁹ Of this total, $55,554,391, or 18.4 percent, was awarded to M/WOBs in 2021. This represents the highest contract dollar value awarded to M/WOBs since the program's inception in January 2011. This amount includes $36,309,916, or 12 percent, to minority-owned businesses and $19,244,475, or 6.4 percent, to women-owned businesses. The total dollar value of contracts awarded to M/WOBs represents an increase of 18.3 percent of the dollar value awarded in 2020.

Five-Year Performance Trend in Awards to M/WOBs

The Board is steadfast in our commitment to incorporating minority- and women-owned businesses into the procurement process. The Board's contract awards over the last five years (2017–21) demonstrate the Board's commitment to effective outreach to M/WOBs and economic inclusion. Table 6 shows the amounts and percentages of contract dollars awarded to M/WOBs.

Table 6. Contract awards to minority- or women-owned businesses, 2017–21

Trends in Contract Dollars Awarded by Demographic Group

In addition to reporting the percentage of contract dollars awarded to M/WOBs, the Board also tracks awards to minority-owned businesses by demographic groups. This percentage is compared to the total contract dollars awarded by the Board. The Board reports contract awards to Asian American, Black or African American, Hispanic or Latino, American Indian or Alaska Native, Native Hawaiian or other Pacific Islander, and other (nonspecific) minority-owned businesses.¹⁰

Figure 1 shows the percentage of total contracts awarded to different demographic groups for 2017–21.

Trend in Awards by Board Summary Account

To better understand the types of contract awards and to aid in developing targeted outreach strategies, the Board tracks awards by summary account codes as well. In 2021, contractual and professional services; capital (land, building, software and vehicles); news, data, and research; other capital (furniture and equipment, leasehold improvements, intangible); and software (non-capital) purchases accounted for more than 90 percent of the Board's total dollars awarded (see figure 2).

Prime Supplier Second-Tier Sourcing Program

The Supplier Diversity team actively worked with prime suppliers to increase subcontracting opportunities with diverse businesses. As a result of these efforts, prime suppliers awarded more than $46,000,000 in subcontracting to M/WOBs in 2021 compared to $41,000,000 in 2020.

To increase subcontracting opportunities, the Board continued our good faith effort by

• requesting prime suppliers to submit a subcontracting plan during the Solicitation Offer and Award (SOA) process,
• supporting and providing technical assistance to M/WOB subcontractors, and
• providing M/WOB subcontractors opportunities to compete on Board projects by introducing them to prime suppliers through vendor outreach events.

In addition, Procurement enhanced its Procurement Instructions and the contract language for the Prime Supplier Second-Tier Sourcing Program as it relates to the subcontracting plan and reporting. The prime supplier can report "all subcontracting tiers" in its contract awards instead of being limited to the first tier.

For cumulative subcontract awards through December 31, 2021, prime suppliers reported the
following:

• Hensel Phelps Construction Company (HP): The Board awarded $335,848,100 to HP-related construction for the Martin building renovation. Of this total, $42,684,567, or 12.7 percent, was awarded to M/WOBs, including $24,757,470, or 7.4 percent, to minority-owned businesses and $17,927,097, or 5.3 percent, to women-owned businesses.
• FORTUS-Excellence in Design-Callison RTKL-Quinn Evans JV (FORTUS): The Board awarded $72,509,759 to FORTUS related to the design of the Eccles–1951 Constitution Avenue building renovation. Of this total, $2,929,539, or 4.0 percent, was awarded to M/WOBs, including $1,209,169, or 1.7 percent, to minority-owned businesses and $1,475,539, or 2.0 percent, to women-owned businesses.
• Ogilvy Public Relations Worldwide, LLC (OPRW): The Board awarded $7,005,000 to OPRW related to the Board's Currency Education Program. Of this total, $122,316, or 1.8 percent, was awarded to women-owned businesses.
• Hill International (Hill): The Board awarded $9,566,637 to Hill related to construction projects. Of this total, $128,000, or 1.3 percent, was awarded to women-owned businesses.

This indirect spend has been beneficial to the Board's overall supplier diversity spend initiatives.

Contract Payments to M/WOBs

In addition to tracking total contracts awarded to M/WOBs, the Board also tracks contract payments made to M/WOBs during the calendar year. "Contract payments" are the actual funds the Board pays out to contractors for goods and services provided.

In 2021, the Board paid a total of $312,845,631 to contractors. Of this total, $39,735,776, or 12.70 percent, was paid to M/WOBs, including $26,097,471, or 8.34 percent, to minority-owned businesses and $13,638,305, or 4.36 percent, to women-owned businesses. In 2021, the dollar value of contract payments to M/WOBs increased by $2,642,439 compared with 2020, with an increase of $832,138 in payments to minority-owned businesses and an increase of $1,810,300 in payments to non-minority women-owned businesses. Table 7 shows the amounts and percentages of payments to M/WOBs over the past five years.

Table 7. Contract payments to minority- and women-owned businesses, 2017–21

Successes

The Board has long been committed to the inclusion of M/WOBs in our acquisition process. This commitment supports the Board's mission of promoting a healthy economy. The Supplier Diversity Program's success is the result of a collaborative effort among internal and external partners. Furthermore, the team engages employees throughout the agency to drive the desired supplier diversity results and partners with external advocacy organizations—locally, statewide, and nationally—that champion supplier diversity excellence and support the competitive success of M/WOBs.

Program Highlights

The Board continues to collaborate with business and community organizations to help M/WOB's grow and become more successful. Working with division partners, the Supplier Diversity team leads our supplier diversity initiatives, engaging with internal and external groups to promote M/WOBs. The team is included in strategic sourcing and major solicitations to help ensure the inclusion of M/WOBs in the Board's contracting opportunities.

In 2021, the Supplier Diversity Program

• continued to promote a previously noted messaging campaign, "Be Intentional," that promotes Boardwide supplier diversity initiatives and aims to keep supplier diversity at the top of employees' minds;
• developed the annual Acquisition Planning Forecast, a list of upcoming expiring contracts of the Board's goods and services;
• led cross-functional teams to achieve desired supplier diversity results;
• tracked, monitored, and reported quarterly supplier diversity performance;
• communicated upcoming contract opportunities to the M/WOB vendor community;
• collaborated with prospective suppliers interested in doing business with the Board;
• managed technical assistance and supplier development initiatives;
• offered hybrid training and resources to suppliers due to COVID-19 to promote safe and sustainable outreach efforts;
• conducted supplier diversity presentations for Board staff; and
• organized virtual supplier showcase forums to introduce diverse contractors to the Board's buying community.

External Engagement and Collaboration

Supplier Continuous Education

The Board is committed to the growth and development of M/WOBs and provides a continuing education to the vendor community. As part of the "Be Intentional" campaign, the Board's procurement section has hosted Post-Award Kickoff Forums for prime contractors to ensure stakeholders and contractors achieved a clear and mutual understanding of all contract requirements. The forums focused on the following topics:

• contract overview: understanding the technical aspects of the contract
• badging and task orders process
• subcontracting goals
• good faith effort requirements with regards to diversity in the contractor's workforce

Vendor Outreach Highlights

Despite challenges related to the pandemic, the Procurement section participated in numerous events that allowed potential M/WOBs an opportunity to showcase their capabilities. Participating in these events helped the Board build strong alliances with the supplier communities while delivering quality goods, services, and cost-value to all divisions. These events were primarily hosted by local and national chambers of commerce, advocacy groups, and other federal government agencies. See box 3 for a list of supplier diversity outreach events the Board participated in during the year.

Minority Business Development Agency (MBDA), National Minority Enterprise Development (MED) Week Conference. MBDA hosted its annual National MED Week conference. The conference celebrated the outstanding accomplishments of minority-owned companies and presented informational sessions and programming, while offering interactive networking sessions to generate new connections.

National 8(a) Association 2021 Virtual Day. The National 8(a) Association 2021 Virtual Day offered participants educational sessions, matchmaking, and resources for small, M/WOBs. As panelists for the educational session "Where Is the Money? Agency Forecasts for 2021," Board staff discussed available procurement opportunities and how to navigate the Board's acquisition process.

National 8(a) Association Regional Small Business Conference. The Board participated in Industry Day at the National 8(a) Association's Regional Conference. The conference connected potential vendors with information about the Board's upcoming solicitations and tips on navigating the acquisition process. During the lively, interactive webcast, the panelists explored critical elements of doing business with the Board, and participants had an opportunity to engage with procurement staff and ask questions.

Key highlights from the Board's panel discussion included

• differences between a FAR agency and non-FAR agency, tips on responding to the Board's SOA,
• successful approaches and key strategies when submitting a proposal,
• navigating the Board's acquisition process, and
• looking ahead to the 2022 "Procuring the Future" (Acquisition Forecast).

U.S. Women's Chamber of Commerce and the American Small Business Chamber of Commerce. The National Small Business Federal Contracting Summit was jointly hosted by the U.S. Women's Chamber of Commerce and the American Small Business Chamber of Commerce. The event provided a virtual platform for small businesses to meet procurement professionals to discuss contracting opportunities in various federal government agencies and provided information about current trends and risks in the marketplace that may severely impact the small business community.

The United States Hispanic Chamber of Commerce (USHCC) Annual National Conference. USHCC hosted its annual national conference aimed at creating a platform with solutions to help stimulate and grow the economy. USHCC actively promotes the growth, development, and interests of the 4.37 million Hispanic-owned businesses in the U.S. The Board participated in vendor showcase meetings to provide vendors an opportunity to have direct discussions with the Board's procurement professionals about the agency's acquisition process, how to register in the Vendor Management System, and current and future procurement opportunities.

U.S. Pan Asian American Chamber of Commerce (USPAACC) CelebrASIAN Conference: Together Tomorrow. USPAACC provides a unified voice for equal opportunity in business and procurement for Pan Asian Americans and minority-owned businesses. This year's CelebrASIAN virtual event focused on helping minority and diverse enterprises explore business opportunities in the post-pandemic revival. The conference featured lectures and presentations from today's thought leaders, engaging panel discussions, and one-on-one matchmaker sessions. The Supplier Diversity Program manager discussed doing business with the System with participants.

Internal Engagement

Supplier Diversity Awareness and Employee Education

The Board continued to engage, coach, and educate staff about the Supplier Diversity Program through meetings with program managers, webcasts, and inclusion of the Supplier Diversity newsletter in the Board's Quarterly Performance Report.¹¹ The Supplier Diversity Program manager briefed the agency's Chair, Board members, and division directors on the Supplier Diversity Program's accomplishments, challenges, and future objectives. In addition, as new buying personnel onboard, they are provided shared tools and resources to help new employees drive supplier diversity initiatives.

Board staff is also trained on policies, procedures, the Supplier Diversity Dossier, and related supplier diversity processes.¹² The Supplier Diversity Program manager works closely with the divisions to help them accomplish their Diversity and Inclusion Scorecard objectives by including M/WOBs in their procurements.

Resources and Tools

Being intentional about prioritizing supplier diversity with our partners helps promote the inclusion of M/WOBs in the Board's acquisition process and promotes a healthy economy. A variety of resources and strategies are used to accomplish this mission:

• market research
• early engagement with industry
• strong acquisition partnerships
• participation in supplier diversity vendor showcases
• identification of subcontracting opportunities
• utilization of National Procurement Office contracts

The following tools assisted our internal partners with increasing contract awards with M/WOBs:

• Supplier Diversity Program – internal webpage
• Supplier Diversity Policy
• Supplier Diversity Dossier
• Vendor Management System

The Board's online Vendor Management System allows Contracting Officer Representatives (CORS) and Procurement staff to identify M/WOBs through market research. To aid Board staff in this research, the system received several enhancements to improve search and view functionality. In addition, the supplier form was updated to allow vendors to provide additional relevant information, such as their federal supply schedule status.

Internal and Public Websites

The Board continued to maintain external and internal websites for the Supplier Diversity Program. The internal webpage continued to serve as a centralized resource for supplier diversity information for all employees. The site provides resources including policy, procedures, supplier diversity newsletters, and toolkits to help divisions increase their spend with M/WOBs.

In addition, the agency's internal website for employees provides a range of agency news and officer messages. During 2021, the Board's internal communication channels regularly highlighted supplier diversity articles, achievements, and employee participation.

The Board's public website continued to offer a range of updated resources regarding the Supplier Diversity Program, including a page devoted to "Tips on Winning Contracts with the Board" that also is shared with potential vendors during outreach events and vendor showcases.¹³ These resources also include the acquisition forecast, "Procuring the Future"; webcasts; the System's team contact information; supplier registration; and a comprehensive set of supplier frequently asked questions.

Technical Assistance and Capacity Building

The Board's Supplier Diversity Program continued to collaborate with community partners, advocacy groups, and internal partners to provide our Technical Assistance Program (TAP) a broad range of capacity building initiatives for potential suppliers. In 2021, the Supplier Diversity Program developed instructor-led and on-demand learning material. The aim of these initiatives focused on five key areas:

• overview of the upcoming acquisition needs from the respective CORS
• general qualifications and expertise the Board is looking for in contractor partners
• discussion of mandatory requirements for the solicitation
• tips on responding to the SOA
• successful approaches and key strategies when submitting a proposal

These programs were well attended and well received. This training platform will be expanded in 2022 to enhance the Boards TAP training efforts. Each webcast is described in more detail below.

Martin Facilities, Furniture and Equipment: Partnering with Supplier Diversity. The Supplier Diversity Program partnered with the Division of Management's Facility Planning and Space Management section to host a live webcast for the Martin building's furniture, furnishings, and equipment project. The webcast was designed to provide information on acquisitions for the Martin building and, specifically, to encourage participation of small businesses from diverse backgrounds. M/WOBs were able to engage with program managers from the Facility Planning and Space Management team and members of the Board's Procurement section.

People, Strategy & Operations' Organization Development and Learning (OD&L). Procurement partnered with the OD&L section to host an information session regarding its Consulting and Training Basic Ordering Agreement contracting opportunities.

Meet the Project Manager and the Contract Representatives for Construction Services. The Procurement section hosted a virtual Construction Services Industry Day. The one-hour webcast connected M/WOBs with information regarding the Board's upcoming construction services solicitation and tips on navigating the acquisition process. During the interactive webcast, the panelists explored critical elements of the solicitation, and attendees had an opportunity to engage with the panelists and ask questions. See https://www.youtube.com/watch?v=zfMdHjamMU4.

This webcast garnered significant traffic on the Board's social media platforms. Table 8 shows the reach on Twitter, Facebook, and LinkedIn as well as views on the Board's website and YouTube channel.

Table 8. Social media reach

Looking Ahead/Next Steps

As the Board looks forward, the agency will continue to be instrumental in fostering relationships with M/WOBs. To that end, the Board will support the effort to expand contracting opportunities for underserved small businesses across the country. The objective is to increase the share of federal contracting with small, disadvantaged businesses by 50 percent by 2026. The Board is committed to increasing the share of contracts going to small and disadvantaged businesses and will focus on the following key activities to enhance our programs:

• engage in outreach including expos, matchmaking sessions, seminars, workshops, and annual conferences designed to educate small and disadvantaged businesses on doing business with the federal government
• host educational sessions about how to do business with the Board, in which small and disadvantaged businesses will learn about the Board's acquisition process and how to identify upcoming contracting opportunities
• explore and review policies and procedures to ensure barriers do not exist that may affect these businesses from participating in the acquisition process, as well as enhance our policies and procedures to be more inclusive of diverse businesses

In addition, the Board will establish a Supplier Diversity Champion's Program within the agency. The aim of this initiative will focus on

• strengthening the agency's objective to increase contract awards for diverse businesses,
• increasing awareness of the Board's Supplier Diversity Program objectives and report progress,
• planning strategic acquisitions to identify appropriate vehicles and diverse businesses to meet the Board's acquisition needs, and
• supporting small business contracting as a catalyst for expanding the supplier base in meeting the agency's acquisition needs.

These efforts will help prepare diverse businesses to participate in the Board's acquisition process and allow the Board's Procurement section to successfully search and find competitive small and disadvantaged businesses that can meet the Board's procurement needs.

Financial Literacy Activities

Each year, the Board participates in outreach events and programs designed to enhance financial literacy for a wide variety of audiences. Due to the pandemic, in 2021, the Board was not able to participate in the Congressional Black Caucus Annual Legislative Conference Expo or hold the Stem x Economics program. However, descriptions of these activities are included below and participation will be resumed in person when possible. The Board was able to sustain the Federal Reserve Outreach Program (FedEd) event virtually, which is described below.

• Federal Reserve Outreach Program (FedEd): In 2021, the FedEd continued efforts to teach personal finance and economics to high school students. Forty-four volunteers from the Board successfully delivered over 60 presentations across 18 schools. Furthermore, FedEd expanded their suite of materials to provide schools a variety of topics from which to choose, ranging from the role of the Federal Reserve to the economics of major sporting events. Since schools often requested multiple topics, volunteers were able to establish stronger relationships with students via the repetition and reinforcement of important economic and financial concepts. Additionally, the new virtual delivery of presentations has allowed FedEd to expand its reach beyond the Washington, D.C. area to include schools nationwide.
• Congressional Black Caucus Foundation Annual Legislative Conference: The Board, representing the System, regularly participates in the legislative conference. As part of our participation, we distribute financial education information and materials to conference attendees. In 2021, the conference was held virtually.
• STEM x Economics: Over 10 years, the Board has hosted an annual STEM x Economics program for high school students (juniors and seniors) from the Washington, D.C., area who have an interest and aptitude for mathematics. The goals of the program are to introduce economics and STEM as a degree of study in college, to help students explore economics and other STEM professions that utilize mathematics disciplines, and to increase interest and participation of females and minorities in STEM careers. Attendees participate in interactive sessions that introduced them to the fields of economics, mathematics, and technology. At past events, economists from the Board's economic research divisions and IT professionals have conducted panel discussions on the relationship between mathematics and research; career paths in economics and technology; and relevant coursework for both STEM and economics. Research assistants also typically share insights into their career choices and what influenced their decisions. We hope to resume this program in person in 2022.

Diversity Policies and Practices of Regulated Entities

Since the establishment of interagency standards, the Federal Reserve Board has requested and collected diversity self-assessments from entities regulated by the Board pursuant to section 342 of the Dodd-Frank Act. In January 2021, ODI/OMWI sent 1,178 letters to institutions requesting submission of their calendar-year 2020 Diversity and Inclusion Self-Assessments. In response, 136 institutions provided submissions in 2021, up from 104 submissions in 2020.

The majority of institutions that submitted assessments used the Board's electronic Diversity Self-Assessment Template, available on the Board's website at https://www.federalreserve.gov/aboutthefed/files/omwi_policy_template.pdf.

With regard to the low response rate, some regulated entities continue to express concerns that the confidential and proprietary information they would be sharing could be made public. To that end, we continue to address these concerns through ongoing communications emphasizing the the benefits of diversity within the financial industry and prioritizing the efforts to make positive intentional and sustainable moves toward equity in diversity at all levels of the organization.

The companies that submitted assessments in 2021 represented approximately $19 trillion in assets and 1.7 million employees. Table 9 shows the number of self-assessment submissions by institution category. Table 10 shows a breakdown of the 2021 submissions by policy standards addressed in the self-assessments.

Table 9. Number of regulated entity self-assessment submissions, by institution category, 2021

Table 10. Policy standards addressed in regulated entities' Diversity and Inclusion Self-Assessments, 2021

OMWI reviewed data from the diversity assessments to determine a baseline of submission data and to identify diversity and inclusion leading practices.

Assessment highlights include the following:

• Narrative descriptions of executed actions and outcomes strongly aligned with leading practices, analytics, and organizational commitment, such as diversity and inclusion policies, establishment of executive diversity and inclusion councils, and establishment of metrics.
• Respondents' workforce profile and employment practices provided evidence of recruitment efforts and active outreach with external diversity and inclusion professional organizations and educational institutions.
• The most senior role responsible for diversity and inclusion among submitting companies has a range of titles: chief diversity officer, senior vice president, executive vice president, and managing director.
• Meetings to discuss diversity and inclusion initiatives, policies, and practices were held with business leaders to address accountability.
• A leading reporting effort among companies is to communicate quarterly to the leadership and the workforce, though many are reporting only on an annual basis.
• The majority of submissions reflected their commitment to inclusion by stating their values in alignment with their general employment, code of conduct, and ethics policies. Their CEOs sign pledges cementing the sponsorship and support of diversity and inclusion initiatives that are available on public-facing websites.
• Companies continue to identify interventions to address cultural changes.
• Companies with ERGs have broadened their groups, some up to 11 distinct groups.
• As it relates to benefit enhancements, organizations are addressing needs elevated by their ERGs, changing health coverage to include covering domestic partners, and providing paid parental leave. There has been an emergence of annually paid volunteer hours that can be used in developing/enhancing community relations and parent-positive policies.
• More than 80 percent of respondents have ERGs that play a role in recruitment at college and professional career fairs and in employee engagement activities such as mentoring, skill-building workshops, and financial education programs.
• A majority of the respondents (90 percent) reported regularly conducting training on workplace civil treatment, equal opportunity, unconscious bias, and diversity inclusion.
• Respondents are utilizing external professional executive organizations for talent management, including but not limited to the National Association of Female Executives, Executive Leadership Council, Hispanic Association on Corporate Responsibility, National Organization on Disability, Out & Equal, and OUT Leadership.
• Submission on Procurement and Business Practices for Supplier Diversity reflect various levels of maturity. While there are established policies and captured metrics, many track dollars spent rather than the number of contractors.
• Eighteen large financial institutions participate in the Corporate Call for Action-Coalition for Equity and Opportunity.
• Submission on workforce profile shows 21 percent of board of directors are female and 14 percent are minorities.
• Companies are making significant strides to advance racial equity and economic opportunities in diverse communities. By investing in underserved communities and supporting communities through philanthropy.

Submissions reflect that the organizations are at different maturity levels with their efforts. What is consistent are relative changes in support levels, community reporting and outreach, policy development, and education.

OMWI has identified the following areas for priority focus:

• development and implementation of internal auditing and reporting systems that ensure effectiveness of diversity, equity, and inclusion policies and practices
• enhancement of diversity reporting to board of directors and executive committee members to include workforce representation, hiring, promotion, and/or attrition data as well as survey results on employee engagement by demographics
• continued use of metrics in benchmarking ways to address executive pipeline issues
• procurement reporting to include a tracking system for diversity spend for goods, services, and business enterprise contracts
• transparency of supplier diversity reporting for accountability

Appendix A: Board of Governors EEO-1 Report

Table A1. Employer Information Report EEO-1

Appendix B: Federal Reserve System Official Staff Demographics

Table B1. Federal Reserve Board and Banks official staff demographics, 2020 and 2021

Appendix C: Federal Reserve System Boards of Directors Demographics

Table C1. Federal Reserve System Boards of Directors: Bank and Branch Directors as of January 1, 2022

Appendix D: Contract Payments to Minority- and Women-Owned Businesses by the Federal Reserve System

Table D1. Federal Reserve System payments to minority- and women-owned businesses, 2020 and 2021

Footnotes