McDonald's to Punish Executives if They Hire Too Many White People
Executives now face losing their bonuses
McDonald’s priorities have shifted from delivering food to hitting hiring quotas, and race and gender are the two keys for its executives' "financial success."
McDonald’s execs now face losing their bonuses if they fail to hire more minorities in senior leadership positions.
According to a press release on the McDonald’s website, part of the bonuses awarded to executives will be based on their efforts to hire women in what they term “historically underrepresented groups."
The company said:
“Beginning in 2021, the Company is incorporating quantitative human capital management-related metrics to annual incentive compensation for its Executive Vice Presidents."
“In addition to the Company’s financial performance, executives will be measured on their ability to champion our core values, improve representation within leadership roles for both women and historically underrepresented groups, and create a strong culture of inclusion within the Company,” the company added.
35 percent of the people in jobs at the senior director level will be from these underrepresented groups by 2025.
The metric was at 29 percent in 2020, the company reported.
The company has also set a target of having 45 percent of jobs at the level of senior director and above be women.
In 2020, the number was 37 percent, the company said.
By 2030, they said they would be seeking to achieve full gender parity.
The Washington Examiner reported that up to 15 percent of a bonus would be tied to these targets.
Additionally, the company has also created an “Inclusion Index” to measure its 'diversity' hires.
The index “has been designed to measure the critical components of building an inclusive culture – including whether our employees feel that they can bring their ‘whole’ selves to work and have equal opportunities. This survey measure is provided to all of our Global Staff employees from our Corporate Office, U.S., and International markets. McDonald’s aims to measure inclusion every six months to monitor our progress and identify areas of opportunity,” the company said.
According to the company’s diversity website, 70 percent of those hired in 2019 were women (54 percent) or minorities (33 percent).
Through its University program in 2019–2020, the company was even more focused on non-white, non-male applicants, with 81 percent of those admitted to being women or minorities.
Celine Ryan questioned the program and wrote in HumanEvents.com describing the move as “McQuotas.”
“But even those who place value in the concepts of ‘diversity, equity, and inclusion’ have repeatedly pointed out that these types of hiring quotas are misguided at best, and empty performances at worst, with unintended negative consequences,” Ryan wrote.
It is not just Ryan who questioned the quotas.
“Quotas may be a quick fix to boosting female representation on boards, but they do nothing in and of themselves to remove barriers preventing many women from rising up the corporate ladder in the first place. We are in need of a broader, more comprehensive approach,” Moelis & Company Vice-Chairman and Managing Director Eric Cantor wrote in 2020.
“Ultimately, to achieve greater gender diversity in leadership, company leadership must focus on the entirety of their talent pipeline, recognizing the problems are likely different at each rung of the ladder,” he wrote.
“Although this approach is harder than the quick fix of a quota, there is little doubt that it is more likely to result in success both for the cause of diversity and for the cause of improving business performance.”