Diversity and inclusion are foundational to our culture and vital to our continued success as an organization. As a company operating in more than 80 markets, we’re committed to advancing inclusion, representation, accessibility, and equality within our workplace, our business practices, and the communities in which our 18,000 employees and 32 million customers live and work. This collective focus is the lifeblood of our global purpose: to foster a world where financial security is accessible to all.
We’re committed to accountability in these efforts. By tracking our progress, we can ensure appropriate attention and resources behind the policies and actions with the greatest potential to make a difference.
We hired our first female officer nearly 50 years ago, and we’ve been committed to diversity ever since. 50% of our C-Suite are women, and women and minorities comprise 55% of the independent members of our Board.
Every employee deserves the opportunity to achieve their full potential. We offer dozens of tools and resources to help foster success, collaboration, and innovation. These are just a few:
- Community partnerships
- Cultural events
- Domestic partner benefits
- Employee resource/affinity groups
- Flexible work schedules
- Formal development programs
- Ideation assistance
- Onsite childcare center
- Pay equity
- Prenatal care programs
- Supplier diversity program
Executive Inclusion Council
Our commitment to diversity and inclusion starts at the top. Dan Houston, our chairman, president and CEO, serves as sponsor of our Executive Inclusion Council. This team, comprised of cross-functional business leaders, are the guardians of our global inclusion strategy. Principal senior management and Human Resources Committee of the Board of Directors make diversity and inclusion a priority and are updated regularly on our progress.
Compensation and pay equity
Principal is committed to providing a workplace that is built on principles of fairness and equity. We believe that all employees should have a safe and inclusive work environment – one in which everyone is treated fairly, with the high standards of professionalism and in full compliance with the law.
We provide competitive compensation for our employees around the world. Our Human Resources department uses third-party market data, obtained through our annual participation in salary surveys administered by unaffiliated consulting firms, to help ensure base salary and incentives are appropriately aligned in the markets where we compete for talent. Employees receive an annual compensation statement that explains the components of their pay and how their performance influences the awards they receive. Learn more about our global pay philosophy.
We review our pay practices each year for any potential unexplained differences in pay by gender or race. To this end, Principal has internal processes, analyses and monitoring in place to assist in identifying and addressing any gaps by gender or race. We are confident that these robust processes and analyses are an important guard against any statistically significant pay gap.
In addition, an annual internal employee survey includes pay-related questions which allow employees to raise concerns and issues about their compensation. Employees also can raise concerns regarding pay equity by use of an Ethics Hotline, or directly with the Principal Human Resources Department or their leader.
Affinity groups connect employees based on similar interests or aspects of diversity and are key enablers for employees to feel valued, respected and included, while enabling them to perform at their peak. They foster understanding of the interests and needs of employees in their groups and provide Principal with assistance in attracting, retaining and developing a diverse workforce and an inclusive culture.
Our Connected Community includes employee resource groups (ERGs) and women’s networks. The ERGs represent areas of focus that matter both to our employees and to our customers, including gender equality, LGBTQ+ issues, racial equality, enabling all abilities, and valuing military experience. More than 4,000 employees are engaged in our ERGs and women’s networks. With global events each year, these offer opportunities to increase the capabilities and connection within our employee population. Learn more about our Connected Community.
Principal is consistently recognized as a great place to work. Many of our honors are included in the company profile (PDF). These are just a few that stand out:
- Ranked No. 5 on Forbes 2019 list of America’s Best Employers for Women.
- Earned the 2019 Military Friendly Employer designation by Victory Media.
- Named one of the 2019 National Association for Female Executives Top Companies for Executive Women, the 18th time that Principal has been so honored.
- Named one of the 2019 Working Mother 100 Best Companies for Women, the 17th consecutive year in which Principal has received this award.
- Named among America's top companies for lesbian, gay, bisexual and transgender (LGBT) equality, by earning a perfect 100 percent score on the Human Rights Campaign Foundation's Equality Index (CEI) in 2019 and 2020.
- Named one of the World's Most Ethical Companies for the ninth time by Ethisphere Institute (2019).
- Certified as a Great Workplace by Great Places to Work (2018).
- Named among the best places to work by Pensions & Investments annual survey of "Best Places to Work in Money Management" (2018).
- Named one of America’s Most Just Companies by Forbes and Just Capital (2020).
Supplier diversity efforts
Principal recognizes value in doing business with diverse suppliers. Through our supplier diversity program, Principal actively supports and facilitates the purchase of products and services from diverse businesses. Our approach supports the growth and development of the communities we serve and delivers value to shareholders by tapping into the widest possible selection of suppliers, innovative solutions, and creative thinking. We strive to include diverse suppliers in all bidding opportunities and seek partners that contribute to our strategic business objectives and financial performance. You can find out more about our supplier diversity program.
We believe in giving back and strengthening the communities in which we operate.
We provide people from a variety of socioeconomic backgrounds with affordable, accessible, and user-friendly products and services. No matter where they live or where they are in life, people can depend on us to help them reach their financial goals.
And in addition to the not-for-profit Principal® Foundation3, we also promote financial security in our communities through financial education, volunteerism, grant-making, sponsorships, and other activities—often with a focus on serving global youth and disadvantaged communities through Principal® Community Relations.4
Learn more about how Principal fosters inclusion among our customers and within our communities.
1 As of March 31, 2020
2 As of May 1, 2020
3 The Principal Financial Group Foundation, Inc. (the “Principal® Foundation”) is a distinct, not for profit, undertaking separate from the Principal Financial Group, Inc. (“Principal”). The major focus of the Principal Foundation is to build financial security in the communities where Principal operates. The Principal Foundation has $200M assets under management and directs its returns to helping people learn, earn, and save. While the Principal Foundation receives funding from Principal, the Principal Foundation is an independent organization. The Principal Foundation does not practice any form of investment advisory services and is not authorized to do so.
4 Principal® Community Relations has a focus to build financial security in communities where Principal Life Insurance Company operates. Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392.