Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Annelise Capossela/Axios

Systemic racism is leading to a turnover problem in corporate America: Companies have a hard time holding on to Black employees.

Why it matters: Beyond affecting individual professionals and teams, a corporate culture that causes attrition can spread rot through entire companies.

Driving the news: If companies don't pay attention to their corporate culture, the pandemic and remote work could drive the Black turnover rate even higher, experts say.

  • "Remote work can exacerbate the problem because there’s less person-to-person contact," says Patrick McKay, a professor of human resource management at Temple University.
  • In-person encounters with colleagues who don't look like you chip away at your biases, but those biases can stay strong when we're all working from home, he says.

By the numbers:

  • 33% of Black professionals don't feel respected or valued at work, per a recent survey from the Society for Human Resource Management. Compare that with 18% of their white counterparts.
  • That pushes people out the door. According to a report from the Center for Talent Innovation, more than one-third of Black employees intend to leave their companies within two years, and Black professionals are 30% more likely to intend to leave than their white counterparts.
  • At Google, which releases turnover statistics, Black employees make up less than 3% of the workforce and have an attrition rate that is 13% higher than the national average.

"There's a progression model," Derek Avery, a business professor at the University of Houston, tells Axios.

  • "Things like microaggressions and harassment lead people to withdraw psychologically, which causes higher levels of burnout and lower levels of engagement. Then there's physical withdrawal: tardiness, absenteeism and ultimately turnover," Avery says.

What's happening: While many companies are trying to address the issues through implicit bias trainings or recruiting initiatives, these efforts can feel like "slapping a Band-Aid on a tumor," says McKay.

  • "Deep down, organizations are highly inertial," he adds.
  • Steps that could actually chip away at the turnover problem include adding transparency to recruiting and promotion processes, setting up ways in which employees can report discrimination, and holding aggressors accountable, McKay says. "But organizational policy infrastructures are rarely changed to support diversity."
  • There are even stark differences in how workplace racism is viewed within HR departments — the very bodies tasked with addressing it. In the SHRM survey, 49% of Black HR professionals reported observing racial discrimination at work, compared with 13% of white HR professionals.

The stakes: Black employees who get fed up and leave might have trouble finding their next job.

  • "You look like a job hopper to potential employers," says McKay. "And they’re not aware of the job climate you dealt with previously."
  • And for the companies themselves, there's a lingering "secondhand smoke effect," Avery says. White employees who aren't experiencing the discrimination themselves but are routinely witnessing it are likely to feel burnout and even quit over the frayed company culture themselves.

The bottom line: It's simple. "If your organization is doing things that systemically run off talented people, you will, by definition, be left with less talented people," says Avery.

Go deeper:

Go deeper

Stark reminder for America's corporate leaders

Rosalind "Roz" Brewer is about to become only the second Black woman to permanently lead a Fortune 500 company. She starts as Walgreens CEO on March 15.

Why it matters: It's a stark reminder of how far corporate America's top decision-makers have to go during an unprecedented push by politicians, employees and even a stock exchange to diversify their top ranks.

DOJ announces sweeping probe into Minneapolis policing practices

Attorney General Merrick Garland. Photo: Kevin Dietsch-Pool/Getty Images

Attorney General Merrick Garland on Wednesday announced that the Justice Department will open a sweeping investigation into whether the Minneapolis Police Department has a "pattern or practice" of discriminatory policing practices.

Why it matters: The federal probe, which will also examine MPD's handling of misconduct allegations, could result in significant changes to policing in Minneapolis in the wake of George Floyd's murder.

37 mins ago - World

South Korean president: Trump "beat around the bush and failed" on North Korea

South Korean President Moon Jae-in speaking in Seoul in March 2021. Photo: Jeon Heon-Kyun/POOL/AFP via Getty Images

South Korean President Moon Jae-in criticized former President Trump's attempts to denuclearize the Korean Peninsula, telling the New York Times he "beat around the bush" with North Korea and "failed to pull it through."

Why it matters: Moon, now in his final year in office, called denuclearization a "matter of survival" for South Korea and urged President Biden to resume negotiations with North Korean leader Kim Jong-un after a standstill of nearly two years.