Viewpoint Discussion: Latino Talent Pool and Consumer Market
Wednesday, April 19 12 p.m. - 1 p.m. EST
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Tapping into the Latino Talent Pool and Consumer Market

U.S. Census data show that Latinos are the fastest-growing ethnic group, representing the largest minority in the country. Today, there are approximately 42 million Latinos in the United States, which represents approximately 1 in every 8 residents – by 2008, 1 in every 5 will be Latino. The buying power of Latinos in the United States today stands at more than $800 billion. This will rise to more than $1 trillion by 2008. Dr. Robert Rodriguez, Chairman of the Board for the Hispanic Alliance for Career Enhancement, was online to answer questions about how businesses can best respond to this demographic shift and the growing economic power of Latinos.

Dr. Robert Rodriguez has been with Capella University’s School of Business since February 2003. His responsibilities as a faculty chair include overall management for the Leadership and Human Resource MS programs. He has also held human resource leadership roles at several Fortune 500 firms, including 3M, BP Amoco and RR Donnelley & Sons. Along with teaching at Capella, Dr. Rodriguez is the managing partner at Astira Group, a human capital services firm based in Chicago, and is actively involved in several nonprofit organizations, including his position as Chairman of the Board for the Hispanic Alliance for Career Enhancement.

The transcript follows.

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Moderator: Welcome to Viewpoint discussions on washingtonpost.com. Today our topic is the Latino consumer market with our guest Dr. Robert Rodriguez of Capella University’s School of Business. Let's get started!

Dr. Robert: I’m excited to participate in this interactive chat and to share some of my experience and expertise. I looking forward to answering as many of your questions as I can. This is a very hot topic currently in the US as the Latino population continues as well as their growth in purchasing power. There has been much coverage lately regarding immigration issues and undocumented workers in the US. I want to focus on the other face of the Latino community, namely the millions of professional Latinos in the workplace – the ones holding advanced degrees and working for top organizations, government bodies and institutional employers. Also, I hope to learn from you based on your questions. So let’s begin indeed – ask away!!!

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New York, N.Y.: Are companies recruiting more Latino talent as this demo becomes a deeper part of the talent pool? If so are there best practices for doing so?

Dr. Robert: Yes – companies are raising the sense of urgency regarding the acquisition of top Latino talent for several reasons. One, Latino purchasing power is approaching $800 billion in the US. Organizations want to tap into this consumer based and they are realizing that the best way to effective market and sell to Latinos is to have Latinos within the organization to help them better understand the market. That is why there is a high demand currently for Latinos with expertise in sales and marketing. A second reason organizations are focusing more effort on Latino’s is that they are beginning to realize that their traditional recruiting methods don’t effectively reach the Latino talent pool. They are thus spending more time understanding Latinos so that they can adjust their recruiting practices to make them more effective. Employers want to ensure that they are not missing out on top talent that resides in this demographic group. That is why the upcoming Career Conference hosted by The Hispanic Alliance for Career Enhancement (www.hace-usa.org) in New York City on Wednesday, April 26th draws so many corporations.

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St. Paul, Minn.: Once a company has hired a Latino candidate into an organization that is not very diverse, please advise as to how the organization can support this candidate so he does not feel alienated.

Thank you.

Dr. Robert: Companies must realize that many of the professional Latinos in the workplace today have had very little exposure and access to corporate America from their parents. Only recently have Latinos entered into the professional ranks in large numbers. Because of this, organizations would be well served connecting newly hired Latino’s with any Latino employee affinity groups that may exist in the organization. Even better, organizations should match new Latino talent with senior leaders in a mentoring relationship. Research shows that such mentoring programs for Latino employees bring tremendous benefits.

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Milwaukee, Wis.: In a B2B environment, what are some of the untapped marketing areas that need consideration?

Dr. Robert: Multicultural marketing firms are doing very well currently. They are selling their services not only to corporations who wish to do a better job of marketing their products & services to Latinos, but also universities who want to better attract top Latino students to their colleges.

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Yonkers, N.Y.: Dr. Rodriguez,

Thank you for taking some time for my question today. As a Caucasian male I am very happy to see such positive growth and diversity in the workplace. How should those of us, now in the majority, diversify and build our skill set to accommodate people of different races? Do you foresee a time in the near future when companies will pay for us to receive language training in order to better serve our employees?

Thanks again.

Dr. Robert: I think the best advice I could give regarding the Latino community is to enhance your level of understanding of just how complex the Latino community is. There is tremendous diversity within the Latino community itself. Many people believe that since we all speak Spanish, we are all alike. You will be doing yourself a great service if you begin to see the community as individual parts. For example, Mexicans are quite different in their cultural aspects from Puerto Ricans. Puerto Ricans are quite different then those from Cuba. Let me give you an example, recently an organization created a Spanish speaking add to reach Latino's for a job fair. They aired the same add on all the Spanish speaking stations in a large city. What they didn't realize is that some of those stations catered to Mexicans, others to Dominicans, and so forth. Their recruiting campaign wasn't as effective because they didn't take into consideration of the complexity of cultures within the Latino community.

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Philadelphia, Pa.: I always hear from my friends and family members that I should learn Spanish in order to stay competitive in the job market. Do you think learning a second language is necessary here in the US?

Dr. Robert: Yes -- I believe learning any second language is a huge benefit. Since the Latino demographic is now the largest minority group in the US, I would agree that the ability to speak Spanish will serve you well.

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San Francisco, Calif.: What is your view on the immigration debate going on right now?

How will the decisions we make as a country going forward on immigration effect the economy?

Dr. Robert: The immigration issue is one that is very near and dear to my heart. My father immigrated to the US when he was young and eventually became a US citizen. I do think the immigration issue is important, but I really don't have a view on how to fix the current situation. There are strong feelings on both sides of the issue. My main goal is to help raise the awareness of Americans that there is a huge population of professional Latinos who are US citizens and how can we make the most out of their contributions.

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San Diego, Calif.: I have seen more and more advertising messages directed specifically at the Latino market recently, namely auto, restaurants, beer, etc.

Do you think it is important for large brands to specifically target and message the Latino market? Do brands that do this show better performance in reaching the Latino market than those who do not?

Dr. Robert: We are finding that Latinos tend to be very brand loyal. In some situations, Latinos will leverage brands to help signify their prestige and place in society. Those organizations that do an effective job of creating a brand within the Latino community will reap many benefits. Not only from increased purchases from the Latino community, but they will also be better situated to recruit Latinos because of the familiarity with their brand.

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Austin, Tex.: Do you see online education as a way to level the playing field and give Latinos and other minorities a better chance to obtain higher education?

Dr. Robert: I see online education as a great option for working adults in general, regardless of their ethnic background. There is a large population of working adults who simply are not in a position where they can attend a traditional university or college due to their work schedule, travel or limited local options. This is where online universities can provide a very attractive option. Last I saw, online education has been growing at a rate of approximately 20% year over year. As for Latinos and other minorities, they too just like other groups are realizing the value of an education and are leveraging online institutions, as well as traditional universities to pursue their educational dreams.

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Silver Spring, Md.: Do you think it is important for fortune 500 companies to hire and train more Spanish speaking workers because of the demographic changes we are seeing with regard to the Latino population?

Dr. Robert: The ability to speak Spanish is definitely a plus in the workplace and organizations are seeking such individuals. However, there is a huge percentage of Latinos in the US that do not speak Spanish. For this reason, companies seem to value someone who is multi-cultural just as much as someone who is bi-lingual. Individuals who have a deep understanding of the Latino community, heritage and cultural bring tremendous value to an organization, almost more so then someone who simply can speak Spanish but doesn’t understand the Latino community.

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Brooklyn, N.Y.: You mention traditional recruiting methods don't effectively reach the Latino population -- what is the reason for this?

Dr. Robert: There are several. One, Latinos often haven't had exposure or access to the ways others have secured jobs because they are often the first generation to enter the professional workforce. Therefore, they tend to not be aware of how such programs work. Also, there are some cultural aspects at play. It is not uncommon for Latinos to not be very aggressive and outspoken during an interview, it's not really part of their culture to boast or brag about their accomplishments. Some recruiters see this and assume that the person is timid and may not work well in a certain organization. What I encourage employers to do is to look at the substance, not the style of Latino recruits. Word-of-mouth and referral recruiting practices seem to be by far the most effective recruiting strategies within the Latino demographic. Organizations looking to tap into this community should truly work to understand the cultural aspects in order to increase their recruiting effectiveness.

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Seattle, Wash.: Hello Dr. Rodriguez,

I know this is a little off topic, but I am considering pursuing an MBA in the very near future. What is your advice to someone in the process of evaluating the pursuit of this education via a traditional brick and mortar institution, compared with an online institution such as Capella University?

Thank you,

Prospective Learner
Seattle, WA

Dr. Robert: You need to select the program that best meets your needs, regardless of whether it is online or a traditional university. One thing that online universities do offer is an added sense of flexibility which often works best for working adults. Some wonder about the credibility of online institutions -- well I think that question has been answered by the traditional universities themselves as they increasingly are offering online degree options. To make your decision, look at the quality of the curriculum you are considering, look at the backgrounds of faculty, definitely look at accreditation and finally, see if the program fits in with your current lifestyle.

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Vienna, Austria: What is the percentage of Latinos in the top management jobs of Fortune's 500 US top firms? And how many Latino women are in the top 500?
What has kept Latinos from moving up to positions commensurate with their proportion of the population (1 to 8)? Is their something equivalent to the 'glass ceiling' pertaining to Latinos?
Thanks
John J. V.

Dr. Robert: The percentage of Latinos in top management jobs is still relatively low. Lasted figures I saw indicated a percentage of about 5%. Of this percent, very few are women. In my opinion, there are two reasons Latinos are more represented in top positions. 1) Education -- this continues to be the Achilles heal of the Latino community. Some figures estimate that only about 50% of adult Latinos in the US currently have a high school diploma. Of those that graduate, only about 11% go on to pursue a bachelors. Until the Latino community increases their educational attainment, it will be difficult for them to raise their profile in executive positions. 2) Exposure -- like I may have mentioned earlier, many Latinos (myself included) are the first generation in their family to hold a professional career. Because of this, they often don't know how corporate America works. They don't know the in's and out's of how to manage a career. This is why mentoring programs are so critical.

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New York, N.Y.: What companies in your opinion have addressed and met the needs of the growing latino population in the US?

Dr. Robert: A couple of companies come to mind. Caterpillar in Illinois has done a great job of building a strong brand in the Latino community. They also have partnered with the right Latino organizations to seek guidance. They are very active in colleges and universities with high Latino populations. Target Corporation in Minneapolis is also another strong company with regards to Latino's. They do a great job of outreach to the community and are strong with working with top Latino talent once they are on board. A few others that come to mind are Walgreens, USG, JP Morgan Chase, Goldman Sachs, Exelon and Johnson & Johnson.

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Dallas, Tex.: I recently saw an article that stated African American-owned businesses are growing at four times the national rate.

Are Latino-owned businesses seeing similar growth?

Dr. Robert: Latino-owned businesses are indeed growing at a very high rate. According to one recent study by the Bureau of Labor Statistics, Hispanic-owned businesses grew 30 percent from 1999 to 2004 … versus a growth rate of only seven percent for all U.S. businesses during the same time period.

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Dallas, Texas: Good Day, Doctor: I am a Latin America businessman living in Dallas, Texas. I would like to get your input on executive firms that specialize in job searches for individuals who bring 20+ years of experience to the marketplace and are looking for new career opportunities targeting Latino executives. My experience is in business development, sales and marketing in Latin America but I would like to now use my experience in the domestic (American ) market as opposed to the Latin-American marketplace. Thank you for taking my question! Mike L.

Dr. Robert: Most of the top tier firms have diversity practices including Heidrick & Struggles, Spencer Stuart, Russell Reynolds, etc. The key is that you don't want a firm to hire you simply because you are Latino -- you want they to hire you for the experience and perspective you bring to the table. Companies use such executive search firms to help them reach talented individuals like yourself who they may have missed using traditional recruiting methods. You also need to get connected with Latino organization such as HACE (www.hace-usa.org) who are often great at connecting top Latino talent with world-class organizations.

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Scottsdale, Ariz.: How do you see Latinos coming in to their own in the political realm?

We have some Latino Governors, an Attorney General etc...

Do you see Latinos becoming more of a force in national and state politics moving forward?

Dr. Robert: Yes -- the shear size of the Latino population means they will have increased political power. However, to leverage this power, Latinos need to do a better job of coming together as a community. For example, we have much to learn from the African American community on how to organization and leverage each other for political gains. Also, as I may have mentioned earlier, we need to increase educational attainment within the Latino community if the community wants to increase their political clout.

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Milwaukee, Wis.: I am originally from Costa Rica and have been in the corporate training industry for a while. It seems to me that there are not enough training resources focusing on both Spanish language AND Latino culture. Furthermore, we lack resources to tell us how language and culture apply to marketing or talent retention. What strategies can organizations develop to take gain comprehensive training and to strategize for the use of all these skills?

Dr. Robert: One trend I see is that corporate training & development departments are partnering more often with their counterparts in the diversity department. Such partnership are producing valuable results with regards to better training and development of Latino talent with regards to skills and culture. Diversity departments are helping with regards to diversity training, mentoring programs, succession planning, talent management, etc. For example, I have been brought in on several occasions by an organizations diversity department to speak with top executives and leaders from the learning departments. I have shared insights that have helped them increase their ability to attract, retain, and develop top Latino talent.

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Seguin, Tex.: Mexican Nationals who are in the US illegally are probably the most law-abiding group of citizens we have in this country. Most of them are admirable men who use the money they make to rescue their families.

With this being so very obvious to anyone who explores the issue, why isn't the American media clearly exposing to Americans the plight of both Mexican National aliens and the families they are hoping to rescue from abject destitution?

Sincerely,
Tanya

P.S. And Seguin is indeed named after our Mexican/Texian American hero Juan Seguin, whom, of course, no one in this country (outside of Texas) seems to know anything about, although he was one of the most heroic figures present at the Alamo on its figurative D-day (sigh).

Dr. Robert: Tanya, I agree, as a community we need to do a better job of building our awareness and reputation to the general population. We need to better be able to leverage media and other outlets to do this. Efforts such as this with the Washington Post are a start but hopefully over time we'll get better at it. We need to just keep plugging away. Via La Alamo!!

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Phoenix, Ariz.: What sectors of the economy do Latinos have the greatest effect on? Agriculture, service, manufactoring, high tech, etc.?

Do you see this changing as Latinos grow in influence in the coming years?

Dr. Robert: I see more and more Latinos going into education and academia. This provides an added advantage in that those who do can serve as role models for other Latinos and hopefully increase educational attainment. As for fields, we are seeing increased representation in financial services, engineering, human resources, marketing, retail and sales.

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Moderator: Unfortunately, our hour is up. Thanks, Dr. Robert Rodriguez, for answering our questions. Thanks to all for participating.

Dr. Robert: Thanks for the opportunity. I can be reached at robert.rodriguez@capella.edu for those who have additional questions.

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