Principal Financial Group 2023 Sustainability Report: Advancing Global Inclusion
Inclusion in the workplace
Originally published in Principal Financial Group 2023 Sustainability Report
Advancing global inclusion
Global inclusion in the workplace
We strive to create and maintain a work environment where all employees feel valued, respected, and included, enabling them to do their best work.
Our approach
We believe that a culture of inclusion is foundational to who we are, the change we have driven, and the future we are creating. Our global inclusion strategy contributes to accelerating business outcomes and innovation by creating a more diverse, equitable, and inclusive workplace, embedding inclusion in our business practices, and giving back and strengthening the communities in which we operate.
This commitment to global inclusion starts at the top. Our Chairman, President, and CEO serves as sponsor of our Executive Inclusion Council, which comprises cross-functional business leaders and is the custodian of our global inclusion strategy.
Read more about our Global Inclusion strategy
Our global inclusion strategy in our workplace outlines our multi-year path toward these objectives and is informed by three key results:
- Our Global People Inclusion Index (GPII) measures a culture of belonging, respect, learning, and trying new things. Conducted three times per year, the GPII tells us how employees are experiencing Principal.
- In turn, the results enable leaders and teams to quickly respond to challenges and identify areas of opportunity, ultimately driving real- time, positive change.
- Through our U.S. Affirmative Action Program (AAP)1 we provide equal opportunity to qualified applicants and employees, in alignment with our talent strategy and regulatory obligations. Our AAP includes annual affirmative action training for all involved in people selection processes, with ongoing monitoring spanning outreach, recruitment, job descriptions, applicants, hires, promotions, terminations, performance ratings, compensation, accommodations, and recordkeeping. The program is overseen by our dedicated senior AAP manager, and our Executive Management Group ensures its successful implementation.
- Our U.S. Diversity Index measures diversity using 17 metrics that measure progress and areas of opportunity across the business. It serves as a pivotal component within our enterprise balance scorecard, a comprehensive metric assessing our organization’s overall well-being.
2023 Corporate Equality Index (CEI) recognition for support of lesbian, gay, bisexual, transgender, and queer equality in the workplace: Human Rights Campaign Foundation (November 2023)
We set and monitor goals using key insights and industry benchmarks, and measure and act upon employee sentiment related to a culture of inclusion, respect, experimentation, and innovation.
Our actions and performance in 2023
We joined the CFA DEI Code, a set of six metric-based principles to foster action for diversity, equity, and inclusion in the investment industry.
Global People Inclusion Index (GPII)
In 2023, we exceeded our annual GPII goal of 80% with a score of 82%. We also saw a record-high 85% participation from employees across the globe and made progress on all questions. Our GPII goal increased to 82% for 2024 based on past performance and a desire for continuous improvement.
- 2024 goal: 82%
- 2023 goal: 82%
- 2022 goal: 82%
- 2021 goal: 79%
- 2021 goal: 81%
U.S. Affirmative Action Program (AAP)
In 2023, we transitioned to functional-based affirmative action plans to mirror our operating model, ensuring more accountability, efficiency, and effectiveness.
Read more: 2022 (EEOC) Report
U.S. Diversity Index
In 2023, we exceeded our U.S. Diversity Index goal with a score of 104.9%.
Employee representation makes up 85% of the weighted metric with the remaining weight focused on areas like employee education and supplier diversity. We monitor and track our progress annually against past performance as well as market availability benchmarks. Additionally, our corporate incentive pay calculation for all eligible employees includes our diversity index performance.
- 2024 goal: 100%
- 2023 goal: 104.9%
- 2022 goal: 103.1%
- 2021 goal: 92.8%
"Rooted in respect, our commitment to creating an inclusive work environment fuels a collaborative and innovative future for all.”
Miriam Lewis
Chief Inclusion Officer
To learn more, read the Principal Financial Group 2023 Sustainability Report.
Additional information on our commitments to advance inclusion, representation, accessibility, and equity within our workplace, business practices, and communities can be found in the 2023 Global Inclusion Report.
1Federal law and related OFCCP regulations require federal contractors and subcontractors to implement AAPs to ensure equal opportunities for qualified applicants and employees. AAP goals are used to measure progress against affirmative action requirements.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Company®. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.
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