With valuable inputs from Charu Sharma of NextPlay.ai, we simplify this conversation with insights into: Three diversity metrics you should be keeping an eye on Check out this article for inspiration: Best Diversity and Inclusion Videos. We discussed how to define the dimensions for diversity. For example, findings are analysed by Human Resources and reported to the Diversity Committee who are tasked with responding to the findings with an action and accountability plan. Improvements: Analyse pay and rewards across rank and function. Diversity in ideas is a leading factor for innovations. And since operationalizing data is a normal function for measuring key performance indicators, companies default to it as a method for measuring D&I. Strength: Focus groups complement workforce analytics, providing additional information that cannot be acquired from quantitative analysis alone. 10. Felicity also holds a Bachelor of Commerce and a Bachelor of Arts in Psychology. For these reasons, the Civil Service is committed to reflecting the country that we serve, and is taking targeted action to tackle underrepresentation, especially in the Senior Civil Service. Building a company without workplace diversity is like weaving a tapestry with only one thread: ineffective and probably a little boring. Description: Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent. When rank is not indicative of management responsibility (for example, rank reflects technical expertise as well as management responsibility), organisations may measure the number of people reporting to members of monitored groups because it offers a more accurate measure of leadership representation than representation by rank. To evaluate the effectiveness and success of this strategy and the achievement our goals for diversity and inclusion in Defence, we will look through the three lenses as utilised in Defence’s ‘People in Defence’ strategy. It is important to have a formal plan for measuring your progress—what metrics will be calculated, by whom, and how often? 1 Farrer Place • Each DG Group to identify equality, diversity & inclusionaims & key performance indicators for their directorate using consultations with staff. We found 25 examples of diversity goals from top companies aiming to boost diversity, inclusion and belonging in the workplace. KPI Units: % Return on investment metrics translate soft skills into hard returns that align with business goals and the concerns of leaders. What is obvious now is that organizations that aim for diversity and inclusion should revise their processes of board recruitment/succession planning. Goals. Training on: The training goal for the strategy map can be formulated as: In terms of performance measurement, the efforts part can be quantified and measured by: As for the results, it’s interesting to look beyond the basic test scores and analyze if the actual behaviour patterns have changed. Gender inequality is a global concern. The diversity of talents results in a diversity of ideas. It is impossible to track progress unless you have a baseline measure. The steps are: (1) Determine the measures involved in the pillar’s calculation (see Appendix: ESG measures used for a mapping of measures to pillar). Instead of complex metrics, focus on just one: Instead of a formal innovation pipeline, create an innovation sandbox where members of your team can try new ideas without the need to rationalize their potential value. Strength: Helpful for identifying consumer segments are not being served by your business and groups that are experiencing sub-optimal, prejudiced or discriminatory service. The unique legal, historical, political, and cultural environments of different nations and regions determine which diversity issues are relevant. D&I is not just the job of the CEO or Chief Diversity Officer – anyone in the organization should be accountable for building and supporting proper inclusive culture. Empirical studies support this hypothesis. For example, we can focus the measurement of diversity on one of the following dimensions: How to select these dimensions? However, merely tracking and reporting diversity and inclusion metrics is not sufficient. In recognition of Diversity Month, we asked our own Employee Resource Group leaders for some tips and action items for managers and HR leaders to help build a diverse and inclusive culture at work. In the best case, it becomes a part of the company’s culture. However, in order to determine whether a diversity program is working, you need to clearly define success for said program. Diversity and Inclusion Having created a slogan to “love the differences,” Shiseido endeavors to build a corporate culture that respects the diversity of its workforce, irrespective of gender, age, nationality and any other individual attribute, and encourages dynamic discussions aimed at creating new value. Some HR experts suggest that the job posts need to be adjusted to be more diversity-friendly: Another point of view[6] is that this bias doesn’t actually exist, and what employers should really do is to inform better about the hiring process. Examples of business-specific diversity dimensions include: Diversity metrics must be relevant to the local context and business leaders. Strength: Useful for identifying bias in compensation and reward schemes. Strength: Helpful for identifying which groups are more likely to be targets of prejudice, discrimination, and harassment. For diversity dimensions that are not tracked by an organisation, because of historical or legal reasons, focus groups are a key tool for gathering information on the challenges facing members of those groups. Profiles in Diversity Journal ® is dedicated to promoting and advancing diversity and inclusion in the corporate, government, nonprofit, higher education, and military sectors. An intuitive hypothesis is that a more diverse talent pool will approach the challenges of the organization from different, sometimes unexpected perspectives. Weakness: Although useful for highlighting which groups of employees leave the organisation sooner than others, measures of retention, per se, do not provide information regarding the reasons why some groups of people leave before others. One of the strategies behind quotas is about solving D&I problems from the top: The acceptance of quotas varies across the countries with actual inclusion being one of the main challenges. Companies must review their data policies to ensure information voluntarily disclosed is stored in a manner that obscures identifying information (not reporting on groups of smaller than five employees, ensuring IP addresses are not stored with data, etc.). Weakness: Existing engagement surveys may not include specific questions relating to diversity and inclusion. Further analysis of survey data is available in the Student Climate for Diversity Report and additional information about university constituencies can be found in the University Factbook . While we are now equipped with KPIs and a strategy map, it always makes sense to put those business tools aside and ask a simple question: Do the indicators and the initiatives that we introduced actually create a positive change that we expected? The digital organization of today, which operates as a network of teams, thrives on empowerment, open dialogue, and inclusive working styles. However, diversity extends much further than gender, and an organisation should not limit its metrics to data captured by existing systems. First of all, it is a feeling. Culture, Diversity & Inclusion Manager 02/2011 to Current Vanguard Malvern, PA. Drive the agenda forward to increase employee engagement and make the Company a best place to work. If the answer is yes, there is a bias against women in your organisation, even if on a role-for-role basis, women earn the same as men. diversity and be accountable for the results 1. Review policies and practices to identify and remove systemic barriers to inclusion 2. To make the list, the diversity goals had to be written on their web site or spoken goal by their leadership (e.g. For example, studies have shown that women are less likely than men to put their hand up for a promotion. That is not to suggest goal setting is easy, however. Track and compare development opportunities offered to members of monitored groups and compare with development opportunities offered to individuals who are not members of a monitored group (refer below). like VMware’s CEO on CNBC (see below)). When setting goals, consideration must be given to barriers that can be addressed in the short-term (objective interviewing to minimise affinity bias) and those that will take longer to dismantle (pipeline weakness for women in some professions). An organisation’s diversity and inclusion metrics should serve three purposes: diagnose risk areas and opportunities, track the progress of initiatives, calculate return on investment. Defining diversity broadly will likely necessitate the establishment of new data analytics, and companies should consider the legal and ethical requirements regarding the storing of sensitive information. With homosexuality illegal in some countries, tracking lesbian, gay, bisexual and transgender employees as well as creating inclusive environments for them, is challenging in various parts of the world. For example, for the procurement scorecard, we agreed that the success of the procurement department depends on the diversity of skills (internal diversity) and on the diversity of suppliers (external diversity). The answer to this question can be a good starting point to improve things. On our strategy map, we can formulate this hypothesis as: With this idea in mind, we can define some leadership-related keystones and focus on these indicators: There are a lot of training and workshop products offered on the market. As for the mission statement, on the D&I strategy scorecard, you can reuse the company’s global mission statement or formulate something more specific and more inspiring for your team, for example: As we discussed above, studies confirm that there is a correlation between the D&I and the financial results. Another idea in the context of automation is to visualize such indicators on the performance dashboards. Another measurement strategy is based on the hypothesis that inclusive companies are able to retain diverse talents for a longer time. Still, its application range is limited, as talents stay in an organization for different reasons, and the time lag between hiring and leaving an organization might be several years. Whether you are looking for a professional Balanced Scorecard software, or just researching information about Balanced Scorecard and business strategies, we recommend you to download and try our BSC Designer software (no credit card is required). This website uses cookies to improve your experience. Ltd. A company can ensure diversity (for example, by the quotas), but what actually matters is if people stay and get promoted in the organization. When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. Felicity Menzies is CEO and Principal Consultant at Include-Empower.Com, a diversity and inclusion consultancy with expertise in inclusive leadership, unconscious bias, cultural intelligence and inclusion, gender equity, empowering diverse talent. For the organization, it means an opportunity to adjust internal diversity and serve those customers better. Governor Macquarie Tower Also, does not track whether members of monitored groups are being developed or promoted at the same rate as non-monitored individuals. For example; Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. Diversity and inclusion: 8 best practices for changing your culture A strong diversity and inclusion strategy can help your organization attract top talent and drive innovative results. For example, women-owned, or Indigenous-owned businesses. Organisations that are focused on diversity and inclusion as a talent retention strategy should translate the results of their effort on retention into cost savings. The findings of such study can reveal that some important customer groups don’t have an internal “advocate” in your organization. Concerns of confidentiality and low psychological safety may also limit attendance. There are at least three goals that resonate with the D&I initiatives: Before, we were talking about the way to align an organization’s strategy with the SDGS goals. Improvements: Exit interviews are beneficial only if there is a system in place for reporting on and responding to findings. When we are talking about a diversity of talents (internal diversity), we are talking about the representation of different groups of population in the workforce of an organization. Strength: Potentially candid source of information on the lived experiences of employees who are voluntarily leaving the organisation. As a part of tracking external diversity, track the diversity of your customers. Presenting hard-data financial evidence of costs and benefits fosters a more objective, rational, and productive consideration of diversity challenges and opportunities. However, gender diversity is at different stages of maturity in different parts of the world and across industries and metrics must reflect that. For example, for the external customers, we can take some marketing metrics: For internal customers, we can align the D&I scorecard with, for example, a procurement scorecard by linking to these indicators: Looking at the expected benefits of diverse and inclusive business environments, we can formulate these goals: Let’s start with the indicators for inclusion. To measure this goal, we can use metrics from the innovations scorecard: If you are looking for some more light-weight innovation framework, check out my recommendations in the “Agile Scorecard” article. Examples of business-specific diversity dimensions include: A government department seeking to deliver policy solutions to improve the lives of members of an ethnically and linguistically diverse community extends its diversity metrics to include individuals from culturally and linguistically diverse (CALD) backgrounds I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. A metric in this case can be formulated as: While this approach gives some numbers, it is far from being perfect. Employees sense when an organisation is hiding something. Setting diversity targets and goals is difficult and needs to be done with caution. Many organizations prefer to report their achievements according to the Sustainable Development Goals 2030 by the UN. A noticeable difference in engagement scores among different identity groups can be indicative of biased mindsets and practices that favour one group of employees over others. We support our clients with education for management and employees, advice on how to assure the quality of the recruitment process from a diversity and inclusion perspective, develop policies, make compensation surveys, KPI’s for gender equality and diversity, and support you in your work with the Active measures of the Discrimination Act. If there is no specific strategic goal behind diversity, then use demographic and other statistical data to make sure that the diversity targets reflect equal representation. Let’s discuss how to combine various ideas about diversity and inclusion into a coherent strategy. Also, existing surveys may not record diversity dimensions, and so comparisons across identity groups are not possible. Goals should be ambitious enough to encourage effort and commitment but realistic enough so as not to trigger negative emotions such as resistance or fear. Description: An interview held with an employee about to leave an organisation, typically to discuss the employee’s reasons for leaving and their experience of working for the organisation. Identifying metrics that define “why” is the first step.” This approach is foundational for a high-performance D&I program. Our Performance Indicators of Diversity and Inclusion in Defence. Diversityand inclusion has become a CEO-level issue around the world. Another important idea is that the diversity targets should be realistic. When we are talking about a diversity of partners (external diversity), we want to have different types of companies among our partners. The overarching consideration when setting meaningful metrics is that they must map progress towards the achievement of your program goals. Cognitive disabilities, also known as intellectual functioning, are recognized by the EEOC when an individual meets this criteria: 1. If an organization wants to leverage the benefits of diversity and inclusion, it needs to align diversity dimensions with their strategy. A difference may be indicative of a performance vs. potential bias that favours members of the dominant group. With these ideas in mind, we can define another proxy metric of inclusion: With this metric, we could quickly find some extreme сases. Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. Check out these two reports by McKinsey’s: While there is a correlation, be careful setting the targets for the D&I KPIs – as the 2018 report underlines, the correlation doesn’t yet mean causality. The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. It makes a lot of sense as the diversity part of the equation is what the HR department can influence directly. You would be surprised the answers and looks we often get. Diversity doesn’t make a lot of sense without inclusion: The best talents that don’t feel included will not contribute and won’t’ stay in the organization for a long time. As for the inclusion, HR contributes in the form of training and better representation of minorities on the management roles, but the final results depend on people from other departments that will or will not create a feeling of inclusion for their colleagues. Improvements: Segmenting attrition data into voluntary and involuntary is useful for identifying whether monitored groups are more likely to self-select or be pushed out of an organisation. In this sense, it’s not enough to define the high-level D&I strategy; the company’s management needs to understand how defined goals can be cascaded throughout the organization. We’ve discussed some KPIs for diversity and inclusion, we also talked about certain strategies that an organization can follow to achieve better diversity and make sure that it is converted into actual inclusion. Metrics evidencing the financial return on investment in diversity and inclusion programs are used to engage stakeholders, strengthen leadership commitment, secure additional resources, and advocate for further change. While there are a lot of diversity (representation) metrics, the inclusion part is hard to measure. Organisations can waste valuable resources by targeting the wrong diversity problems and by implementing the wrong solutions. Over the last decade, many governments introduced[7] mandatory or voluntary diversity quotas for the members of the board. This indicator is for measuring the Diversity aspect of our Recruitment process; To measure current Diversity of our workforce in terms of Gender, Nationality, Religion, Age, Culture and Language. The labour market is becoming more diverse[1]. Specific- Your goal should be unambiguous and communicate what is expected, why it is important, w… The metrics can be: The strategy scorecard that we discussed above is just a starting point for your own strategy. In the context of a strategy scorecard, it means that all indicators should be updated and analyzed periodically. Description: Comparing average tenure for employees from monitored groups to average tenure across the workforce or average tenure of members of the dominant group. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. Robin Pedrelli is the co-founder and partner of VisionSpring, Inc. VisionSpring, Inc. is a WBENC certified, women owned and operated diversity and inclusion consulting firm offering fully integrated strategy development, workforce planning, training and continuous learning solutions to leverage diversity and inclusion to drive innovation and improved business outcomes. Description: Tracking promotions awarded to individuals from monitored groups compared with promotions awarded to individuals who are not members of a monitored group. Having a more diverse workforce is a leading factor for better understanding the needs of different groups of customers. In China, there is an urban versus rural division as well as a Western-educated dominance in leadership teams. Disability began before age 18 Different functioning may affect an individual’smemory, problem-solving abilities, attention, communication, linguistics, a… It is subjective and less tangible than diversity. In certain jurisdictions, it is illegal to capture sensitive information without an individual’s consent. Tracking diversity metrics, therefore, can be equally complex. The correlation between the financial bottom line and D&I was demonstrated empirically. In this perspective, we’ll talk about the skills and the infrastructure needed to make the diversity and inclusion strategy possible. Metrics that help organisations to identity bias blind spots include: Description: Percentage of employees from monitored groups compared with company, labour market or industry benchmarks. Some will be dictated by the local regulations (see the part about quotas), some will be part of a reporting framework commonly used in the company’s business domain. Sharing results externally can also be valuable for industry benchmarking and strengthening employer brand and an organisation’s reputation in the marketplace. Surveys are the perfect tool for measuring the feelings and opinions of your workforce at scale. Weakness: Does not indicate whether members of monitored groups are self-selecting out of promotion opportunities. Because every organisation faces unique diversity and inclusion challenges in the context of its business strategy, no two employers will utilise the same metrics. To step change Inclusion & Diversity KPIs, define the leading and lagging indicators for your organization, and identify the one or two input factors which will have the highest positive impact on your lagging KPI. Diversity is a many-layered metric, encompassing workforce composition, compensation levels, and hiring trends. Diversity and inclusion metrics are used to identify risk areas, prioritise initiatives, set targets and other program goals, assign accountability, and measure the impact of initiatives. At a minimum, adaptation should occur nationally, but regional changes should also be considered, where appropriate. Sydney NSW 2000 CEO or Head of Diversity & Inclusion (D&I)) in a public forum (e.g. If your organisation is endorsing diversity and inclusion for the purposes of improving its performance, whether financial or non-financial, it’s important that you have metrics in place to track how successful your efforts are in achieving those goals. Description: Track internal and external grievances, complaints, and law-suits by identity group. Ultimate accountability for diversity and inclusion should be at the level of the CEO and the Board of Directors. An organization that has only diversity metrics on their dashboard follows one of the bad practices in performance measurement. If you prefer to receive posts like these by email sign up to our newsletter. Giving examples of your employee resource groups (like Stanley Black & Decker) is a great example of that. Where possible, an analysis should also be performed at the level of intact teams because it is only when work teams are diverse, that an organisation is truly positioned to leverage diversity of thought and background. Depending on business goals, leading organisations extend diversity measurement to race, ethnicity, nationality, educational attainment, tertiary institution, professional expertise, tenure, age, disability and health status, sexual orientation, family status, carer and parental status, employment status (full time, part-time, flexible working), immigration status, faith, veteran status, English proficiency, languages spoken, etc. Calculating diversity / inclusion / people development pillar ratings The diversity, inclusion and people development pillars all use the same methodology to calculate the pillar ratings. Your choice of ROI measure depends on the ultimate goal of your organisation’s diversity and inclusion efforts. Not coming clean on a poor metric out of concern of employee backlash might do more harm than good. For example, comparing the number of applicants from monitored groups that make it to interview stage pre- and post-intervention. In fact, diversity & inclusion (D&I) is increasingly becoming a component of companies’ employee recruitment and customer branding strategies. Users of BSC Designer will find the “Update interval” feature in the “Initiatives” dialog for this purpose. Felicity is an accredited facilitator with the Cultural Intelligence Centre and the author of A World of Difference. Of course, not all metrics need to be disclosed, and consideration needs to be given to the costs and benefits of disclosure of a particular metric. Once targets or other goals are set, responsibility for their achievement should be assigned to individuals who are held accountable through scorecards and other performance management tools. While we let Diversity of all other types happen naturally there is one aspect we would actively like to impact: Gender Diversity. Strength: Useful for identifying bias in assessment and selection. In a later section, we’ll get into all the benefits of creating a diverse and inclusive workplace, but let’s start with a … Organisations will typically measure diversity dimensions for which data is readily available, namely gender. What is clear is that the hiring process needs to be adjusted according to the D&I strategy. Metrics evidencing equality and fairness foster employee trust, satisfaction, and commitment, and strengthen an organisation’s employer brand as well as its reputation in the marketplace. A pool of talents seems like a diverse one, but in reality, the organization simply makes the numbers look good without making any tangible impact. However, if you have not tracked those figures before the intervention, you can compare the number of applicants for monitored groups that make it through to interview stage in the department implementing blind recruitment withthe number of applicants for monitored groups that make it through to interview stage in departments who have not made any modifications to their recruitment practices. Suite 3, Level 27 Let’s discuss a strategy to improve Diversity and Inclusion in an organization. If those ideas are taken seriously (=inclusion), an organization will enjoy some performance improvements. Organisations manage this through surveys seeking voluntary disclosure of sensitive information. Weakness: Does not provide information on why some groups of individuals compared with others are more likely to apply for open positions. ACN 614 463 982, Eliminating Bias in Recruitment & Selection, Cultural Intelligence for Universities and Secondary Teaching, Bite-Sized Diversity & Inclusion Workshops, Group Mentoring for Emerging Female Leaders, Group Mentoring for Emerging Culturally Diverse Leaders, A World of Difference: Leading in Global Markets with Cultural Intelligence, D&I Best Practice White Papers and Tip Sheets, biases that perpetuate workplace inequality are largely unconscious and automatic, Metrics help employers committed to diversity and inclusion stay on track by encouraging the identification and management of bias blindspots—mindsets and practices that promote homogeneity but which are largely hidden, extends its diversity metrics to include individuals from culturally and linguistically diverse (CALD) backgrounds, specific questions relating to diversity and inclusion. Religion and caste are the main issues in India. The resulting data must also be analysed to assess what is working and what isn’t with the findings used to determine what modifications or additions to the initial action plan are required. Description: Tracking lateral moves, appointments to acting roles, training and other learning and development participation, and other stretch assignment opportunities by identity group. Diversity and inclusion are critical elements of every recruitment and retention strategy. “Inclusion” Significant limitations in adaptive skills — the basic conceptual, social and practical skills needed for everyday life 3. Examples of Successful Diversity Statements 13 June 2017 on Examples, Admissions, Diversity Statements. 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