The “Hispanization” of America

By Carlos A. Conejo, CSSBB

From his book “Motivating Hispanic Employees”

Population growth
By Carlos Conejo, CSSBB
From his book “Motivating Hispanic Employees”

Peak Performance Seminars

www.peakperfromanceseminars.net
There are more than 45 million Hispanics living in the United States,
representing roughly 15 percent of the nation’s population. By the year
2050, Hispanics will number 100-120 million people, comprising
approximately 25 percent of the population.

U.S. Hispanic Population 1990 to 2025

70
60 58.93
50
46.7
40 Growth in
36.06
30 31.36 Millions
26.9229.41
20 22.56

10
0
90

95

97

00

05

15

25
20
19

19

19

20

20

20

Source: U.S. Census

The chart below illustrates the growth of the Hispanic population
relative to the mainstream population (non-Hispanic whites) for the
period 1970-1990. The mainstream population grew 24 percent during
this period, while the Hispanic population increased at a rate of 253
percent.

20 Year Growth Rates 1970-1990

787%
800%
Non-Hispanic
600%

400% 253% Latino/Hispanic

200% 24% Latino/Hispanic

Firms
0%

Source: U.S. Census

The conclusion from this is simple: Hispanic families are having more
babies. Latino families average four children per household, whereas
non-Hispanic whites average 2.3 children per household.

The Hispanic market has the fastest-growing middle class growth. Last
year, Hispanics bought 70 percent of homes purchased in Los Angeles
County.

The number of Latino-owned business has increased more than 700

percent in the past 25 years. Latinos make up a significant percentage
of our nation’s workforce.

Purchasing power

The Hispanic or Latino population in the U.S. currently has a

purchasing power of more than $500 billion. This number is expected
to jump to $1 trillion dollars within ten years, making Hispanics an
attractive target group.

The discretionary income of Hispanics has almost doubled in the past

decade to total $72 million.

The number of Latino middle class households (those with more than
$40,000 in annual income) increased from just fewer than 1.5 million in
1979 to nearly 2.7 million in 1998. This represents an 80 percent
increase in just 20 years. The percentage of each subgroup that has
reached middle class incomes is as follows:

U.S.-born Cuban 63%

U.S.-born Mexican 41%
U.S. mainland-born Puerto Ricans 38%
Other U.S.-born Hispanics 46%

The Charts below illustrate the steady growth of U.S. Latino incomes
between 1979 and 1998. The charts compare the difference in income
between U.S. born Hispanics and foreign-born Hispanics. The higher
U.S.-born incomes are due to the attainment of higher education,
against the shear numbers of uneducated or under-educated
immigrants entering this country.
Income All Latino Households

3000
2500
2000 <$20K
1500
$20-$39.9K
1000
500 >$40K
0
1979 1989 1998

Income U.S. Hispanics

2000

1500
<$20K
1000
$20-$39.9K
500 >$40K
0
1979 1989 1998

Foreign-Born Hispanic Income

3000

2000 <$20K
$20-$39.9K
1000
>$40K
0
1979 1989 1998

Source: Tomás Rivera Policy Institute

These charts illustrate the importance of educating both U.S.-born and
immigrant Hispanics to the point where they can realize their
education and income potential. Both of these factors become critical
to the future vibrancy and economic development of the U.S. economy.
Additionally, as our nation experiences “Hispanization”, as an
employer, you need to prepare your organization’s future leaders,
many of whom will be, or are already Hispanic.

Sub-Segmentation

Segmentation of Hispanics varies from state to state and from region

to region. On the west coast, Mexicans, Central American and South
Americans are the largest groups of Hispanics. More than half of these
(65 percent) are of Mexican descent.

In the Midwest, the Mexican population is in its fourth generation.

Thirty-five percent of Chicago is of Mexican descent.

On the East Coast, cities like Orlando and Miami have large Cuban and
Puerto Rican populations. A large number of Puerto Ricans have also
settled in New York, New Jersey and Connecticut.

Hispanics are also widely found in cities and states not traditionally
considered “Hispanic,” such as Atlanta (GA), Madison (WI), Iowa,
Kansas and Arkansas.

Hispanic diversity

Hispanics are the fastest growing minority group in America, but they
are not a homogenous community. Some would say “splintered.”
What this means is that in some cases there is lack of unity or
cohesion or unhealthy competition which can create conflict in the
workplace. I am currently conducting a cultural transformation
coupled with process improvements at a firm where the Central
Americans are not getting along with the Mexicans. Sometimes
management becomes aware of this situation and sometimes portions
of management exacerbate the situation, or it is perceived by one
group that there is favoritism because the Human Resources folks are
of the same origin. Employers, therefore, are encouraged to audit your
systems so that you stay compliant and non-discriminatory and that all
employees get more involved in process improvement and continuous
improvement, business literacy and leadership. This then creates
unified goals and objectives which can overcome some of the negative
workplace conflict.
The U.S. Census estimates 65 percent of Hispanics are of Mexican
origin. Mexican-Americans have the lowest educational level among
Hispanics.

Approximately 12 percent of U.S. Hispanics are from Puerto Rico and

another six percent from Central America. The majority of immigrants
from Central America come from El Salvador (50 percent), Guatemala
(20 percent) and Nicaragua (15 percent). Only five percent of
Hispanics come from South America, the majority from Colombia,
Ecuador, Peru, Argentina and Chile. Five percent of U.S. Hispanics
come from Cuba and another four percent are from Spain.

Extended families – “Collective Society”

Hispanics come from a collective society. So even though, we may

sometimes have some sibling rivalry, the entire community is generally
of greater importance than is the individual. Employers that can create
this family environment or workplace culture will succeed greatly in the
long-run. La familia es todo (Family is everything) is an honorable
concept, but caries many responsibilities and burdens. Some Hispanics
must work to support their household and extended family, which may
include cousins or nephews who share the same house. Some
Hispanics must leave school to work or become caregivers.

Assimilation or Acculturation

Every “minority” person faces the identity question. It comes in a

variety of flavors but at its core is the assimilation vs acculturation
dilemma. What’s the difference?

• Assimilation is allowing one's original culture to be over-ridden

by the dominant or prevailing culture.

• Acculturation is acquiring the capability to function within the

dominant culture while retaining one's original culture. This
distinction seems very subtle but is fraught with not-so-subtle
social and psychological implications. There are several levels of
assimilation for U.S. Hispanics:

• Recent immigrants: Relate culturally to their homelands

• First generation: Understand parents’ sacrifices; may be
bicultural
• Second and consecutive generations: Middle class values; have
lower incomes and lower education levels
 • Pioneers: Mexican families that were either here when the
sunbelt states were still part of Mexico or arrived with the initial
Spanish exploration

Nationalism

The United States is often referred to as a “melting pot” of peoples,

cultures and communities. Immigrants have come to the U.S. for
generations and blended together to create the American fabric. The
Hispanic community, however, is more like a “salad” than a melting
pot. In the same bowl you have pepinos (cucumbers) who don’t want
to work with the tomates (tomatoes). The lechuga (lettuce) dislikes the
olivas (olives). There are Mexicans, Central Americans and Argentines.
One is more Indian, while another is more “pure-bred.”

How does this translate into the workplace? Nationalism among

Latinos’ diverse groups can lead to conflict, loss of productivity, lower
quality work and miscommunication. As a manager of Latino workers,
you should recognize that nationalistic pride is a motivating dynamic
and must be effectively handled to properly motivate Hispanic and
Spanish-speaking employees.

Respect and deference

There is a prevalent hierarchy or pecking order within the Hispanic

community:

1. Elders
2. Parents
3. Priest
4. Teacher
5. Academia
6. Politician
7. Businessperson

This can be beneficial when older or experienced individuals are

considered mentors. The hierarchy can also be limiting, particularly
when the elders in the community have little or no formal education. In
a business setting, there’s also the danger that these individuals will
insist on absolute homage or control, refusing to share leadership and
resisting change. I call this “burro management.”
Education

Education is a very big subject within the Hispanic community, but the
graduation attainment has not kept up with reality due to various
reasons. The following chart compares the education level attained by
U.S. Hispanics and non-Hispanic whites:

U.S. Hispanics Non-Hispanic

Whites

Less than high school 43.9% 4.5%

High school diploma 26.9 34.3
Associate’s degree 18.4 25.7
Bachelor’s degree 7.8 18.5
Master’s degree 3.1 9.1
Doctorate degree 2.3 7.9

On average, U.S.-born Hispanics have 2-3 years more schooling and 30

percent higher wages than do recent immigrants. However, U.S.-born
Cubans and Central/South Americans meet or exceed the education
levels of non-Hispanic whites.

According to the Tomás Rivera Policy Institute, the percentage of

native-born Hispanics with a college education rose from 10.7 in 1979
to 15.4 in 1998, an increase of 43.9 percent.

Approximately 44 percent of Mexican-Americans have earned a high

school diploma and another 6 percent have college degrees. While
education is considered important and stressed publicly, family (la
familia) is a higher priority. Older children are expected to support the
family, even if that means dropping out of school to do so.

The Educational Achievement Gap

What is the achievement gap?

The “achievement gap” is a matter of race and class. Across the U.S., a
gap in academic achievement persists between minority and
disadvantaged students and their white counterparts. This is one of the
most pressing education-policy challenges that states currently face.

New urgency at the federal level

Recent changes in Federal education policy have put the spotlight on
the achievement gap. The No Child Left Behind Act (NCLB) requires
states to set the same performance targets for children:

• From economically disadvantaged families

• With disabilities
• With limited English proficiency
• From all major ethnic and racial groups

Within a school, if any student subgroup persistently fails to meet

performance targets, districts must provide public school choice and
supplemental services to those students – and eventually restructure
the school's governance. This is required even if the school performs
well overall.

In other words, schools now are considered successful only if they

close the achievement gap. Many schools are struggling to meet this
benchmark.

Measuring the achievement gap

There are several ways to measure the achievement gap. One

common method is to compare academic performance among African-
American, Hispanic, and white students on standardized assessments.

Data from the National Assessment of Educational Progress (NAEP)

shows that reading scores for 17-year-olds narrowed dramatically for
both African-American and Hispanic students from 1975 through 1988.
From 1990 to 1999, however, these gaps either remained constant or
grew slightly in both reading and mathematics.

Looking at the NAEP data, the Education Trust concluded that, “By the
time [minority students] reach grade 12, if they do so at all, minority
students are about four years behind other young people. Indeed, 17
year-old African American and Latino students have skills in English,
mathematics and science similar to those of 13-year-old white
students.”

Another way to measure the achievement gap is to compare the

highest level of educational attainment for various groups. Here too
there are gaps at all levels.

Hispanic and African-American high school students are more likely to

drop out of high school in every state. Of these high school graduates,
college matriculation rates for African-American and Hispanic high-
school students remain below those of white high-school graduates –
although they have risen in recent years. Furthermore, of those
students enrolling in college, Hispanic and black young adults are only
half as likely to earn a college degree as white students.

Evidence of progress

Despite these challenges, several states have demonstrated that the

achievement gap can be reduced – if not entirely closed. For instance,
according to the Education Trust:

• Texas: Here, NAEP writing scores for eighth-grade African-

Americans are equal to or higher than the writing scores of white
students in seven states.

• Virginia: This state boasts one of the nation's smallest

achievement gaps between whites and Hispanics. Here, eighth-
grade Hispanic students had the highest NAEP writing scores for
Hispanic students in any state.

• Department of Defense (DOD) schools: Despite high

mobility, minority students in DOD schools do better on NAEP
than their counterparts, yielding a smaller achievement gap.
Fourth-grade white students in DOD schools outscored their
African-American counterparts by an average of 17 points on the
NAEP reading test – a considerably smaller gap than the national
average of 32 points.

What some states are doing

Several states have initiated various strategies to alleviate the

achievement gap. For instance:

• Texas: This state's accountability system requires schools to

show each year a minimum proficiency level (percent proficient)
in each student subgroup. In the five years since this legislation
was enacted, the percentage of African-American students
passing statewide exams rose by 31%, and the percentage of
Hispanic students passing the exam rose by 29%. Meanwhile, the
percentage of white students passing the exam grew by only
18%. This means the achievement gap in Texas closed by 13%
and 11% for African-American and Hispanic students,
respectively.
 • North Carolina: Governor Michael Easley has appointed an
Education First task force to examine best practices from high-
performing schools, in order to learn how to close the
achievement gap. The goal of state education leaders is to
eliminate the achievement gap by 2010.

• Missouri: Here too, a state task force on K-16 issues released a

report early in 2002 which concluded that improving teacher
quality is the single most important factor in eliminating the
achievement gap. The report recommends raising teacher
quality through increased accountability, better understanding of
urban issues, and financial incentives for teachers in low-
performing schools.

In addition to such comprehensive strategies, states also can take

many steps within their current policies to reduce persistent gaps in
student academic achievement.

Source: http://www.subnet.nga.org/educlear/achievement/
Hispanic population by occupation

The education gap is not the only gap that Hispanic employees
experience in the workplace.

While the number of Hispanics with management and professional

positions increased nearly 49 percent between 1990 and 1996, the
total number of upper management jobs still elude many Hispanics.
Hispanics make up only 19 percent of the total number of managers
and professionals. See chart below.

Percentage of U.S. Hispanic Population by

Occupation

Managerial 12.1%
Professional
6.8%
Technical 2.4%
Administrative Support/Clerical 9.3%
Sales 9.0%
Private Household Services 0.1%
Protection Services 0.8%
Other Services 6.7%
Farming/Forestry/Fishing 5.1%
Precision Production/Craft/Repair 13.7%
Machine Operators 24.0%
Transportation/Material Moving 5.6%
Handlers/Equipment 4.4%
Total 100.0%

Potential reasons for this gap may include language barriers or lack of
effective written communication.

One medical device company where I conducted an engagement was

St. Jude’s Heart Rhythm, in Sylmar, California. Management identified
their up-and-coming multicultural “stars” and put them through
several on-site classes in order to improve their skills levels. The
classes included: Vocational English, Communications, supervisory-
leadership, and Business Writing. The population of the class included
Hispanic, Vietnamese, Chinese, Taiwanese, Polish and Russian
employees. Yes, all at the same time. Some of these individuals were
PhD’s, but needed to work on their language, supervisory, leadership
or business writing skills. It was quite interesting, and after 20 weeks,
the results were astounding. You could physically see a new sense of
self-worth and self-confidence. Many of these “graduates” went on to
new responsibilities, better pay, etc.

© 2010 By Carlos Conejo, CSSBB

From his book “Motivating Hispanic Employees”

For More Inforamtion please contact:

Peak Performance Seminars
www.peakperformanceseminars.net
805-494-0378