Elon Musk’s electric car and renewable energy company published its first diversification report late Friday. It said Tesla “had a majority-minority” of the U.S. workforce overall, however, 83% of staff members are male and 59% are white.
Higher The Diversification, Higher The Innovation
According to a study by the Boston Consulting Group, companies with a wide range of leadership groups report high prices for innovation. And increasingly, publicly traded companies are required to disclose more details about the composition of their employees, as well as to add people from various backgrounds to their boards.
The first report of the Diversity, Equity and Inclusion Impact Report provides fewer details than reports of diversification from major technology companies including Google and Apple, which began publishing personal information about its employees in 2014. However, because Tesla manufactures cars, software and power products, it is difficult to compare it with peers in tech or autos.
Tesla’s Diversity Report
Tesla has unveiled a major demographic analysis of its American employees. Here are the highlights:
Tesla men represent approximately: 79% of employees, 83% of leadership, 75% of new appointments and 77% of promotions by 2020.
Women in Tesla represented approximately: 21% of employees, 17% of leadership, 25% of new appointments and 23% of all promotions by 2020.
Black and African American workers in Tesla represent approximately: 10% of employees, 4% of leadership, 12% of new appointments and 10% of promotions by 2020.
Asian workers in Tesla represented approximately: 21% of workers, 25% of leadership, 20% of new appointments and 23% of promotions by 2020.
Spanish and Latin or Latin workers represent approximately: 22% of employees, 4% of leadership, 27% of new appointments and 24% of promotions by 2020.
White employees represent approximately: 34% of employees, 59% of leadership, 32% of new appointments and 35% of promotions by 2020.
Tesla lists people from Pacific Islander, Native American, Native Hawaiian and Alaska communities as part of the “Additional Groups” category.
Employees in Tesla’s “Extra/Additional Groups” category represent approximately: 7% of employees and 1% of leadership.
The report added that their leadership team – which includes directors and beyond – had a “very small” percentage of all employees, less than 0.4%.
What Was Missing?
Tesla’s first diversification report did not specify how many of its employees were identified as disabled. Also, gender-specific details are limited as Tesla did not include statistics on non-gender and sex workers.
This report also does not cover employee attrition (or retention rates), nor does it include road analysis. That means, among other things, it is difficult to detect that workers in the lower classes have resigned or been fired by Tesla at a higher rate than their White counterparts. The company could not be reached for comment when contacted by CNBC on Saturday morning.
Attrition is a very important metric for Tesla. The company offers equity in Tesla as part of compensation for all operations, and uses this promise as a hiring tool. If the job lasts a long time, most stocks can buy or vote.
The lack of road analysis in Tesla’s diversity report also hinders the fact that, for example, people of color in Tesla are promoted to the same level as White people, even if people of color are veterans of war.
Overall, Tesla’s divergence report said veterans currently make up about 4% of U.S. employees.
The report follows numerous allegations of discrimination in Tesla from employees and former employees over the years. Tesla has denied any wrongdoing.
Finally, in its report Tesla set out plans to keep its employees at least as different as they are today, or to make them very different and more inclusive.
Along with other efforts, Tesla said it would work in Black colleges and universities historically, offer a wide range of vocational training courses, and conduct non-judgmental training for all human managers and employers by 2021.
Synopsis
Tesla published its first ever diversity report on Friday.
In it, the company recommended a “majority minority” of U.S. employees, although the employees in leadership positions at the executive level or higher were 83% men and 59% White.
Going forward, Tesla said that it would employ Black colleges and universities historically and train unconsciously managers and employers.
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