Policies for Non-discrimination, Recruitment, Childcare Leave, Mentorship, Affinity Groups and Flexible Work Included in Model Document
WASHINGTON, DC – The National Venture Capital Association (NVCA) today unveiled sample human resources (“H.R.”) policies—titled “Sample H.R. Policies for Attracting and Retaining Diverse Talent” (“the Policies”)—to assist venture capital firms in fostering diverse and inclusive cultures. Prepared by Proskauer Rose and Miller Law Group with support from Silicon Valley Bank, the Policies are an extension of the work of the NVCA Diversity Task Force and will be made available on nvca.org with all the other model legal documents NVCA shares with the venture community.
Included in the document are sample policies for a firm mission statement, non-discrimination, recruitment, childcare leave, mentorship, participation in outside affinity groups and activities, and flexible work arrangements. While not an exhaustive list, the Policies serve as a springboard for firms to develop cultures that will send a positive signal to people of diverse backgrounds. No two firms are alike, and NVCA encourages venture firms to adopt and/or adapt the Policies in a way that fits the business reality and culture of individual firms. NVCA also encourages venture firms to share these Policies with their portfolio companies to help entrepreneurs build more competitive, diverse teams.
“Based on the results of the NVCA-Deloitte Human Capital Survey, we know the venture industry is not representative of the overall U.S. population. We also know that the presence of a human capital strategy and talent programs lead to more diverse teams,” said Bobby Franklin, President and CEO of NVCA. “Diversity is core to competitiveness, which is why we have collaborated with our partners Proskauer, Miller Law Group and Silicon Valley Bank to create sample H.R. policies to help more firms attract, invest in, and develop the talents of diverse people. These sample policies will now stand alongside the widely-used NVCA Model Legal Documents as a resource for the innovation ecosystem. By utilizing these policies and other resources, more firms can take action to create a more inclusive, more competitive venture industry.”
The Policies are not intended to serve as a replacement for and do not constitute a comprehensive set of H.R. policies or an employee handbook – they are geared more towards attracting and retaining diverse talent at firms.
“Sample H.R. Policies for Attracting and Retaining Diverse Talent” can be downloaded with the other NVCA Model Legal Documents HERE.
Impact of Talent Strategies
Survey findings from the NVCA-Deloitte Human Capital Survey show a strong correlation between the existence of human capital strategies at venture firms and the representation of women and minorities at those firms. Firms that have a human capital strategy have an average of 54 percent female and non-white employees overall, while firms without a human capital strategy have an average of only 41 percent female and non-white employees.
Moreover, findings suggest that the existence of a human capital strategy translates to better representation of women in senior positions across all functions. Firms with a human capital strategy have 4 percentage points more women in leadership than those without a strategy, firms with a diversity strategy have 10 percentage points more women in leadership than those without a strategy and firms with an inclusion strategy have 7 percentage points more women in leadership than those without a strategy. Similarly, firms with a human capital strategy have 13 percentage points more minority employees than those without, firms with a diversity strategy have 12 percentage points more minority employees than those without and firms with an inclusion strategy have 14 percentage points more minorities than those without.
Examinations of relationships between formal mentorship and recruitment programs and the representation of women in senior leadership positions at venture firms revealed that firms with formal mentorship programs have 16 percentage points greater representation of women in leadership and firms with formal recruitment programs have 9 percentage points greater representation of women in leadership.
Download the NVCA-Deloitte Human Capital Survey HERE.