There hasn’t been a lot of rain so far this winter, but Gov. Jerry Brown had the wet stuff on his mind this week (Jan. 11) when he released a $190 billion budget proposal that ups the state’s “Rainy Day Fund” by $5 billion to $13.5 billion. The reserve is designed to protect California against future economic downturns, which Brown believes is coming sooner rather than later. Still, the budget represents a record for California and includes a $7 billion increase over the previous spending plan. The Bay Area Council applauded many of the spending priorities, which include $4.6 billion for commute improvement projects from last year’s SB1 (Beall) legislation that the Council supported.
The plan invests $245 million to expand and protect affordable housing under SB2 (Atkins), another bill the Council supported last year. Brown proposed another $277 million for housing in anticipation of the passage of a statewide housing bond measure expected to appear on the November 2018 ballot. The spending plan also continues the Governor’s efforts to pay down the overall state debt and makes a small dent in the state’s massive pension liability shortfall. The Council is continuing to analyze the plan and will be weighing in directly as it now moves to the legislature, which has a June deadline to approve it.
Behind the Bay Area Council’s continuing advocacy, the California legislature this year took its first (albeit modest) actions to address the state’s historic housing crisis. Much, much more needs to be done, and the Council’s Executive Committee and Board of Directors, under the leadership of Chair and Kaiser Permanente CEO Bernard J. Tyson, this week approved a 2018 policy agenda that calls for escalating our work to achieve deeper, stronger and more effective reforms for spurring the tsunami of new housing the state so badly needs. Already, the Council is identifying new legislation for 2018 that can speed the approval and bring down the cost of new housing.
The 2018 agenda also prioritizes ridding the scourge of traffic fom the Bay Area’s roads and highways and getting more commuters out of their vehicles and into ferries, carpools, shuttles and other forms of transit. The Council is gearing up now for a campaign to win passage of Regional Measure 3, a $4.4 billion transportation investment plan that is expected to hit the June 2018 ballot. Rounding out the Council’s top policy priorities for 2018 is building a stronger workforce pipeline to meet the future needs of the region’s employers. The Council’s Workforce of the Future Committee is making immense strides to better align educators and employers to close the region’s yawning middle skills and talent gap, as well as creating new career opportunities for underserved youth.
Along with the top three policy priority areas, the 2018 agenda includes gender equity and workforce diversity, healthcare, advanced communication infrastructure, China and global innovation, carbon reduction and renewables, and water and climate resiliency.
The policy agenda was approved Thursday (Dec. 7) during a meeting hosted by new member Santa Clara University. The Board also welcomed state Sen. Jim Beall Jr. and applauded him for his incredible leadership as the author this year of SB 1, which invests $52 billion in statewide transportation improvements, and SB 595, which authorized the vote on Regional Measure 3. Beall talked about both measures and outlined his plans for new legislation for delivering transportation projects faster and at lower cost. The Council will be working closely with Sen. Beall on that project delivery legislation.
The issue of sexual harassment has burst into the open in recent months as a growing number of women across the country have shared graphic and painful stories of abuse, assault and other inappropriate workplace behavior by male leaders, colleagues and others. The stories have exposed an insidious and systemic culture of abuse that women—across all industries and representing all socio-economic groups—have felt powerless to confront because of shame, embarrassment, fear of retribution, and legitimate concerns that their careers would be jeopardized, among many other reasons.
Time Magazine this week honored a handful of women as its “Person of the Year” for their courage in making their stories public, shining a light on the issue and empowering other women to come forward. Dubbed “The Silence Breakers,” this group of five women included Adama Iwu, a top government relations executive for Bay Area Council member Visa.
Iwu in October co-founded We Said Enough, a group that is working to expose a culture of abuse and harassment in California government and hold accountable perpertrators and enablers. More than 140 women, including legislators, penned an oped in the Los Angeles Times that announced “we’re done with this” and calling on both women and men to join in finding solutions. The Council applauds the courage and actions of leaders like Iwu in breaking the silence on sexual harassment. Through our Gender Equity Committee, we have been working with member companies to get more women into higher positions of leadership, address issues of gender bias and develop policies and practices for creating workplace cultures that take a zero tolerance stance against all forms of sexual abuse and harassment. To learn more about the Council’s gender equity work, please contact Policy Director Emily Loper.
Joined by leaders from industry, academia and philanthropy, the Bay Area Council’s Workforce of the Future Committee on Monday (Oct. 2) explored new approaches to addressing the burgeoning skills and talent gaps affecting employers’ bottom lines and workers’ livelihoods. AT&T California President and Council Executive Committee member Ken McNeely joined Mitchell Stevens, Director of Stanford University’s Center for Advanced Research through Online Learning, Don Howard, President and CEO of the Irvine Foundation, and Felix Ortiz, Founder, Chairman and CEO of Viridis Learning, for a discussion on the roles of employers, educators and job seekers in keeping up with our changing economy. The discussion also emphasized the need for interconnectedness and alignment between these entities, expanded career pathways and work-based learning opportunities, and funding of innovative efforts. Our thanks to Council member Salesforce for hosting the event.
Those in the room agreed that our region urgently needs to collaboratively implement solutions, such as industry-led partnerships with school districts, community colleges, and four-year universities, in order to see long-lasting outcomes and systems change. With the guidance of Bay Area Council members and thought leaders like those that participated in Monday’s meeting, the Workforce of the Future Committee is pursuing efforts like the Occupational Councils and the Bay Area Young Men of Color Employment Partnership to support systems change by aligning hiring needs with educational offerings, and addressing barriers to entry faced by specific historically underrepresented populations, respectively. To participate in the Workforce of the Future Committee, please contact Senior Vice President Linda Bidrossian.
“Casting a wide net” was agreed upon as a top priority by Bay Area Council member participants at the Workforce of the Future Committee’s third Employer Best Practices Workshop this week (Sept. 6) focused on Talent Pipeline Partnerships. Participants agreed that in order to connect with the talent they need to fill their open jobs, expanded outreach and relationship-building with a wide array of training and education partners would be required on their part. Best practices regarding partnership models, internal organization of pipelines, and long-term investment in future workers bubbled up as key takeaway items. Companies across industries, including utilities, transportation, and banking are facing growing needs for diverse, qualified, and loyal workers and must get creative in their workforce planning strategies. To learn more about how the Bay Area Council is supporting this creativity through our various programs such as the Best Practices Workshop series, please contact Senior Vice President Linda Bidrossian.
Gender differences in communications styles can often adversely affect women in the workplace, as men are more likely to talk more and suggest ideas in meetings while women are more likely to be interrupted and given less credit for their ideas. In fact, male executives who speak more are viewed as 10 percent more competent, while women who do the same are viewed as 14 percent less competent by their peers. To address this issue, the Bay Area Council’s Gender Equity Committee hosted an interactive Executive Presence Workshop led by member company Mandel Communications. The workshop focused on communication skills that will help women cut through this bias and position themselves as confident leaders within their companies. The Council’s Best Practices Resources Guide, released last year, highlighted executive presence and other training programs as important strategies for building gender equity within companies.
The Committee also heard about San Francisco Supervisor Mark Farrell’s new legislative proposal to boost female representation in elected office, on corporate boards, in public art, and anywhere else in public view. Only 2 out of 87 public statues in San Francisco represent real women, and this ordinance would enact a new statue of Maya Angelou as a first step in getting to 30 percent female representation by 2020. To engage in the Council’s Gender Equity work, please contact Policy Director Emily Loper.
On Tuesday (June 27), Bay Area Council Workforce of the Future Committee Chair Julius Robinson, Managing Director & Group Head, Corporate Social Responsibilities for the Americas for MUFG Union Bank, led the second peer-to-peer employer workshop focused on improve regional workforce diversity. Complementing the Bay Area Council’s Bay Area Young Men of Color Employment Partnership (BAYEP), a program to expand workforce opportunity to young men of color across the region, this workshop brought employers from Bayer, Recology, Bank of the West, Uber, and Dolby to name a few, to share best practices and develop solutions to improve workforce diversity in the Bay Area.
During the workshop, members discussed the importance of holding leadership accountable, mitigating unconscious bias, and sharing their best practices with other organizations. These companies recognize that their continued success in part lies in the diversity of thought that candidates bring to their jobs. A recent survey published by Deloitte revealed that companies with higher diversity across their workforce are 35 percent more likely to see returns above national industry medians. To further the impact of diversity, 80 percent of candidates in the US and the Bay Area consider inclusion as an “important factor to choosing an employer.”
This workshop was the second in a three-part series designed to generate best practices across industry sectors facing similar challenges to increase worked based learning, diversity, and community partnerships that all drive more talent from our communities into livable wage jobs. To engage in Workforce of the Future Committee and be part of the next workshop, please contact Senior Vice President Linda Bidrossian.
Time is running out to secure your seat at the Bay Area Council’s 2017 Outlook Conference: The Pacific Summit presented by Kaiser Permanente on Tuesday, May 23. We have assembled an incredible dais of leaders who will provide invaluable insights on the dramatic political and economic changes that are dominating the regional, state and national landscapes. Former Secretary of State Colin Powell and CNN host and global thinker Dr. Fareed Zakaria will talk about the populist forces that propelled Donald Trump into the White House and what it means for the Bay Area and California. Los Angeles Mayor Eric Garcetti will share his thoughts on how large metropolitan regions can address the massive challenges of housing and transportation. And San Francisco Chronicle Editor in Chief Audrey Cooper will lead a fascinating discussion on the great flight of millennials from our region and the trouble it bodes for our economy. In addition to hearing from these leaders, attendees will also have an opportunity to talk directly with them in small group discussions that are new to the conference this year. The conference will be held at The Presidio, affording attendees a beautiful, retreat-like setting to hear top thinking and interact with a high-level audience.
Learn about sponsorship opportunities and register today at www.bayareacouncil.org/outlook.
As the world watched the inauguration of President Donald Trump, the Bay Area Council Economic Institute’s 10th Annual Economic Forecast presented by McKinsey & Company and hosted by the Federal Reserve Bank of San Francisco convened leading economists and top experts to give their economic forecast for the Bay Area, California, and the nation.
The prognosis was clear. As we usher in the new administration, we are on stable footing. Dr. Christopher Thornberg, Founding Partner of Beacon Economics and a leading expert on the California economy, presented on a set of economic indicators, showing that much of the national political rhetoric around stagnant wages, the impact of trade, and unemployment is not borne out in the economic data. Labor markets are tight and becoming tighter across most of the United States. This is particularly true in California where the housing supply problem is one of the biggest challenges to continued growth. He also assessed that, while GDP is growing relatively slowly, it is growing and economic fundamentals, such as consumer spending, remain strong. Among the challenges cited for slow growth were self-inflcted wounds and political gridlock, a weak global economy, and the shift to an information economy among others. And, while there is little chance for a recession (for now), uncertainty surrounding the new administration’s policy agenda clouds the view forward. There are broad ramifications for potential change in policy in healthcare, immigration, social insurance, trade, manufacturing, and more.
San Francisco Fed President and Council Executive Committee member John Williams offered an exclusive perspective on the U.S. economy and federal monetary policy. Williams talked about the dynamics surrounding the U.S. labor market and how the Fed is likely to gradually increase its interest rate targets over time so that the economy grows without risking a bubble. Williams emphasized how the central bank is not influenced by partisan politics, staying politically independent, data-driven and focused on its narrow goals to promote low inflation, full employment and financial stability.
Bay Area Council Economic Institute Chair and McKinsey & Company Western Region Managing Partner Kausik Rajgopal and Aspen Institute Fellow Natalie Foster explored the “Future of the Worker” in the new age of automation and the growing gig economy. In the Bay Area, the independent workforce is 30 percent of the working age population with most digital independents working in order to earn when traditional jobs falter, to provide extra income for high cost of living or to buffer uneven income streams. One of the key points discussed was how automation is focused on specific activities rather than entire jobs, and can spur more job growth.
The Gender Equity Committee met this week to participate in an interactive discussion with Shavon Lindley, CEO of Women Evolution, which creates innovative mentorship and training programs designed to strengthen the growth potential of female employees in companies. While women make up more than half of entry level positions in Fortune 500 companies, that number quickly drops to 39 percent at mid-level, 26 percent at senior level, and only 5 percent at the CEO level. Peer mentorship programs can greatly improve employee retention rates and convert high potential women into senior roles at the company.
The Bay Area Council’s Best Practices Resource Guide, released earlier this year, identified mentorship programs as an important strategy for promoting gender equity within companies. The Gender Equity Committee — led by co-chairs Peg McAllister (Lee Hecht Harrison), Christopher Ruhl (PwC LLP), and Stuart Newton (Deloitte) — will be hosting more workshops to help companies implement the other strategies identified in the Guide, including equalizing pay, building career development opportunities, addressing unconscious bias, and more. Special thanks to PwC for hosting this meeting. To engage in the Council’s Gender Equity work, please contact Policy Manager Emily Loper.