05/28/2021
The events of the last few years highlighted how much diversity and inclusion matter in an organization, but this isn’t new information. We now have years of research making the business case for a diverse workforce. Companies that prioritize diversity, equity, inclusion and belonging (DEIB) in the workplace benefit in the following areas:
• Financial performance: Companies in the top quarter for gender diversity on executive teams are 25% more likely to financially outperform those in the bottom quarter. Top-quarter companies for ethnic and cultural diversity outperformed those in the fourth quarter by 36%.
• Innovation: Teams that make inclusive decisions make better decisions. Companies with above-average diversity produced a 19% greater proportion of revenue from innovation than companies with below-average diversity (45% vs. 26%).
• Customer trust: More than half of consumers believe brands should publicly speak out against racial injustice and systemic racism. Brands that are perceived as addressing racial issues well are three times more trusted than those that aren’t.
• Talent acquisition and retention: Diversity is an important factor for 76% of employees and job seekers when evaluating companies and job offers. A vast majority (83%) of Gen Z candidates say a company’s commitment to diversity and inclusion is important when they choose where to work. Almost half of Black (47%) and Hispanic (49%) applicants and employees quit after seeing or experiencing discrimination at work.
• Employee engagement: Inclusiveness — a work environment defined by trust and involvement — is closely related to employee engagement. Engaged employees are more likely to report that their company cares about employees as individuals and values diverse ideas.
How To Improve DEIB Measurement Tools
As the most racially and ethnically diverse generation in history joins the workforce and our country engages in complex conversations about injustice, bias, privilege and opportunity, it’s our responsibility as business leaders to build and grow effective DEIB initiatives.
As the chair of my company’s DEIB council, conversations with my C-suite peers surface a pattern of questions: How can we create meaningful initiatives? How do we measure initiative efficacy? How do we push beyond the PR statements and platitudes to genuine action and change?
Like everything else we do in business, DEIB efforts rely on continuous measurement and improvement. We must give managers insights and recommendations that align with their teams’ unique drivers, and must provide HR and executives with a deeper understanding of what drives employee success. However, existing measurement solutions don’t go as deep as they should. We need to improve measurement in a few key areas to build trust with employees:
• Employee data privacy: Confidential, anonymous survey tools are crucial for gathering honest feedback from employees. No one will speak up and suggest improvements if they fear blowback from their superiors.
• Intersectional analytics: We are all more complex than a series of checkboxes. Intersectional analytics take into account the overlapping factors that influence who we are, such as: age, race, gender identity, sexuality, ability, education, religion, socioeconomic background, political views, etc.
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