2. A New Direction The ongoing increase in minority U.S. population, coupled with growth projections in the upcoming decades, present a tremendous opportunity for companies who focus their human capital on developing this quickly growing market and workforce. This presentation provides insight to the historic changes the U.S. population is experiencing.
4. Consumer Impact “The Multi-Cultural Economy 2008” a study by The Terry College of Business, University of Georgia, examines the dynamics of these new markets and provides a clear picture of the opportunity at hand. The study highlights the business impact of the ongoing demographic shift and examines the projected market share and buying power increases for each ethnic group. The results confirm Hispanics have experienced a sharp increase in buying power and market share, while African American buying power has increased at a rate substantially higher than the total buying power increase for all races.
5. Understanding the Opportunity U.S. Market Share by Race/Ethnicity* % Increase in Buying Power from 1990 to 2008* U.S. Buying Power by Race/Ethnicity (in billions)* *Selig Center for Economic Growth, Terry College of Business, University of Georgia, “The Multicultural Economy 2008”
15. Geographical Challenges 90% of Hispanics reside in just 16 states 90% of African-Americans reside in just 21 states Top African American Buying Power States (in Billions): New York (87.6) Texas (72.0) Florida (62.9) Georgia (62.6) California (61.8) Maryland (52.3) Illinois (44.0) North Carolina (40.9) Virginia (38.2) New Jersey (34.8) Top Hispanic Buying Power States (in Billions): California (249.0) Texas (171.1) Florida 101.3 New York (75.3) Illinois (41.0) New Jersey (35.6) Arizona (31.3) Colorado (21.0) New Mexico (17.9) Georgia (15.1)
17. Educational Challenges A 2006 U.S. Department of Education study found of all Caucasian children entering kindergarten, 36%will obtain a bachelor’s degree by the age of 29. The same study of African American students showed 20%will obtain a bachelor’s degree. The study also showed that of Hispanic students, only 12%will obtain a bachelor’s degree.
18. Solutions Understanding the challenges and opportunities of targeting these rapidly growing market segments cancreate a significant advantage. When executed properly, a diversity focused employee referral network, a multi-cultural employer branding strategy, and attending key diversity events are traditional ways companies compete for talent. However, many experts believe the best and most cost effective way to develop a strong diverse internal talent pool is by creating a strategic university recruiting program. Targeting multi-cultural students for internships and entry level hires, companies create a pipeline of future leaders, and tap into the largest percentage of these increasing populations.
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20. Viable solution to the upcoming workforce shortage caused by retirements
21. Targets the largest and most educated segment of the fastest growing consumer bases