Four Barriers to Equal Representation for Hispanic Workers in the US
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As we enter Hispanic Heritage Month in the US (September 15–October 15), I have dedicated today’s newsletter to the recruitment and employment challenges faced by our country’s Hispanic communities. These groups are expected to provide the vast majority of net new workers by 2030, meaning that it is more important than ever to engage with them effectively when recruiting.
So, how can you position your organization to do this?
To begin with, I think it is vital to understand the current situation for Hispanics, and that includes their history of underrepresentation. I also consider it important to clarify which groups I am referring to here, since there is sometimes confusion over the terms “Hispanic,” “Latino,” “Latina,” and “Latinx.”
As explained by one Mexican American author, the term Hispanic embraces all peoples who speak Spanish or are descended from Spanish-speaking communities. In contrast, Latino/a/x describe people specifically with ancestry in Latin America, which is usually defined as Central and South America (as well as some of the Caribbean islands). Therefore, “Hispanic” is a broader term, and that is why I have chosen to use it in this article. As of 2021, Hispanics accounted for 18.9% of the US population and 18.0% of the overall workforce.
Today, I would like to highlight four key employment challenges these communities are facing, with the aim of assisting you as you look to increasingly include Hispanic employees in your DEI efforts.
1. Hispanic communities were severely and disproportionately impacted by COVID-19.
Early in the pandemic, employment income losses were higher for Hispanics than for any other ethnic group. In fact, half of Hispanic adults said that either they or someone in their household experienced a job loss or a pay cut at that time.
We should note that the concentration of Hispanic employees in part-time and seasonal work may help explain this high rate of job losses. In addition, the severe economic impact on these communities was exacerbated by the fact that on average, Hispanic workers earn only 73 cents for every dollar paid to White employees.
Pay equity is therefore a critical issue for Hispanic employees, given the large wage gap they currently face. Organizations that are prepared to lead on this (for example, through pay transparency) may be able to quickly establish themselves as employers of choice among those communities.
2. Hispanic employees frequently experience workplace discrimination.
In a survey conducted by Harvard in 2017, one third of Hispanics reported discrimination when applying for jobs or being considered for promotion. Based on other data from Hispanic employees, it was recently argued that workplace discrimination against this group is prevalent but often overlooked.
On top of this persistent bias, the situation gets worse for individuals with darker skin tones (a phenomenon often termed “colorism”). For instance, a 2021 questionnaire by Pew Research Center found that while various forms of discrimination affect all Hispanics, they are experienced more often by those with darker skin.
Academic studies have pleasingly suggested a modest fall in hiring discrimination against Hispanics over the past few decades, but nonetheless, they remain at a disadvantage compared with Whites. Even among professionals, half of Hispanics have reportedly experienced workplace discrimination or bias, suggesting an embedded and long-established “obstacle course” that continues to affect these communities.
Given this history, employers that clearly communicate they are working to eliminate bias from their application and selection processes may prove more attractive to Hispanic candidates.
3. Hispanic workers are concentrated in lower-paid jobs.
Recent research by the Economic Policy Institute found that Hispanic workers are seriously underrepresented in professional jobs, and even more so than Black Americans. According to official BLS statistics, Hispanic workers are highly concentrated in specific occupations including farming, fishing, and forestry (43.0%), building and grounds cleaning and maintenance (37.9%), and construction/extraction (35.7%).
Additionally, analysis of data from S&P 100 companies showed that Hispanics are generally overrepresented in other lower-level roles such as laborers, technicians, and administrative assistants.
Emphasizing the scale of this problem, the Washington Center for Equitable Growth reported in October 2022 that Hispanic workers (both men and women) are more occupationally segregated than for any other ethnic group. One possible explanation may be that fewer Hispanics have a college degree than for other groups (although the proportion has been increasing in recent years). It has been suggested that “arbitrary” (i.e., unnecessary) degree requirements may disqualify many Hispanic workers from jobs where they otherwise have the necessary skills, creating artificial barriers for these communities.
As we have noted before, the trend for some employers to drop the college degree requirement in favor of a more skills-based hiring approach can benefit historically underrepresented groups; and of course, Hispanic candidates are no exception.
4. Workplace inclusion for Hispanic employees is lacking.
A study conducted by Harvard Business Review revealed that three quarters of Hispanic workers are not able to “bring their whole selves to work.” Rather, 33% of men and 43% of women felt obliged to “compromise their authenticity” to align with expectations for workplace conduct. Other research discovered that Hispanic employees were almost 50% less likely than non-Hispanics to agree that all people could succeed in their organizations. Only 20% had positive opinions on inclusion where they worked.
These findings largely speak for themselves, save to say that even though Hispanic employees make up a large proportion of the US workforce, they should not be overlooked when aiming to build an inclusive workplace culture.
Given the four key areas above, it is perhaps no surprise that the Center for American Progress has asserted that systemic factors continue to prevent Hispanics from achieving equal employment outcomes to Whites.
JOIN US IN THE COMMENTS: Did any of the above factors surprise you, given that Hispanic communities make up such a large and well-established part of American society? Have you seen any notable success stories, or developed impactful programs to increase diversity, as you have sought to engage these candidates in your organization’s DEI initiatives?