Competition for human capital is looming, and skilled Hispanic executives throughout the world are highly coveted.
By Jessica Haro, Assistant Editor
Globalization has expanded markets and changed American corporate culture through the inclusion of international professionals. It is proving beneficial to margins, but is it coming at the expense of U.S. minorities who struggle to gain access to management, executive, and board positions? It’s a question worth asking, and not everyone agrees on the answer.
Victor Arias, a senior partner at Korn Ferry International, one of the world’s largest executive recruitment agencies, believes globalization is harming efforts to improve domestic corporate diversity. Corporate America is as apt to recruit candidates from Latin America today as it is U.S. Hispanics, according to Mr. Arias.
Hispanic Business magazine reported recently that in 2006, about one percent of corporate executive officers were U.S. Hispanics, while representation on corporate boards was slightly better at about three percent. According to Louis E. V. Nevaer, director of a diversity consulting company, Hispanic Economics, an author of HR and the New Hispanic Workforce, corporations are increasingly choosing Latin Americans, and Hispanic executives are becoming disproportionately Latin American. “The lack of well-educated [U.S.] Hispanic candidates who are bilingual is fueling demand by corporate America to hire high-level, recent immigrants from Latin America,” Mr. Nevaer said.
David Arenas is a recruiter and consultant in the diversity practice of Spencer Stuart, an executive search consulting firm. He describes these international executives as “well-educated Latin Americans who have been learning English all their lives and are very proficient.”
Amplifying this trend, if it is that, is the perception that this international talent is seen as fulfilling domestic diversity efforts. In this fashion, diversity’s original goals are altered. “If you think about diversity,” Mr. Arias suggested, “it’s about creating a level playing field for everyone in this country…. But when you start bringing people in who typically come from very privileged backgrounds and you count them as part of that, it’s just not right.”
Redefining Diversity?
Not everybody believes diversity through globalization is necessarily a bad thing, however. Subha Barry, who since 2002 has served as Merrill Lynch’s head of global diversity and inclusion, says the concept of diversity has grown since the days of affirmative action.
“My team and I work toward helping Merrill Lynch create the most inclusive environment for people who come from all different walks of life,” she said. “It’s not just gender. It’s not just race. It’s not just sexual orientation. It is generation. It is abilities and disabilities. It is really around creating a richness of diversity of thought and ideas….”
Included in Ms. Barry’s definition of diversity is nationality. As global markets develop, she said, “we need to have people who are from other parts of the world make their way to Merrill Lynch’s offices here in the United States.”
Ms. Barry contends that international hiring is not hindering opportunities for U.S. Hispanics: “We are looking for the brightest and the best. And I will tell you we have a robust mix and there is plenty, plenty room for all.”
Mr. Arenas carefully agreed, noting that only a small percentage of Latin Americans are executives in the United States. “The percentage of Latin American executives is a small part of the U.S. Hispanic population,” he said. “The number of opportunities that are senior enough are very selective and careful in how they bring people on board,” he said. “Hispanics trained in the U.S. have the benefit of proving themselves before an international assignment and have a better chance of getting that opportunity.”
A Two-Way Street
Others point to the fact that the global exchange of executives is a two-way street. While foreign-born talent competes for positions within American companies, U.S. Hispanics can compete for positions abroad. Ms. Barry shared that as global markets develop, U.S. managers at Merrill Lynch “need to be better prepared to take on leadership roles outside.”
By most accounts, it isn’t a lack of positions or opportunities that are hampering U.S. Hispanic efforts; it is more likely the lack of qualified executives and employees. Some believe it isn’t the marketplace that is to blame for the lack of U.S. Hispanic managers and board members, but rather the rocky pathway many young Hispanics face in trying to gain a superior education.
In fact, according to Mr. Arenas and others, there is a human capital war brewing globally, and skilled Hispanic executives throughout the world are becoming highly coveted. Many Latin American countries are fighting brain drain and will compete for any Hispanic executive with an education from a U.S. university.
“It’s not just in Latin America,” said Mr. Arenas. “Hispanic executives are also going to Europe, Australia and China. Because they are used to dealing with other cultures, they have an edge on the competition.”
“Linguistic Glass Ceiling”
Some observers feel that while foreign-born executives do compete with U.S. Hispanics to fill American corporations’ diversity goals, another competition looms between bilingual U.S. Hispanics and those who only speak English.
“Latinos who are not fluent in Spanish are hitting a ‘linguistic glass ceiling,” said Mr. Vavear. “If you don’t know how to say ‘email’ and ‘worldwide Web’ in Spanish, you have no hope of escaping the ranks of middle management.”
Despite increasing global opportunities for U.S. Hispanics, the fact remains that American corporations are using executives from other countries to diversify their companies. Experts interviewed by Hispanic Business magazine in this issue indicated that U.S. Hispanics are indeed making progress within American corporations. Activists feel the effects of globalization should be carefully monitored so they don’t derail this momentum.
*Originally published in the September 2008 issue of Hispanic Business.*