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How Data Strategies Can Help Create a Deeper DE&I Impact

Mid adult African American businesswoman is smiling and raising her hand. She is answering a question during a business conference or job training seminar. Professional woman is wearing business clothing. She is sitting with diverse colleagues.
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Published: September 07, 2023

Updated: January 25, 2024

Sonya Matejko
Summary

A metrics-based approach to diversity, equity, and inclusion (DE&I) can help organizations ensure employees' needs are met, produce meaningful results, and measure Return on Impact. 

According to a 2022 report by employee experience platform Culture Amp, companies’ interest in DE&I soared in 2020. A commitment to diversity in the workplace is top of mind for many businesses, and employees who are confident their company is building diverse teams has increased by 8% from 2020 to 2021.     

By implementing a data insight strategy, managers and executives can have a stronger DE&I impact.

      What Is DE&I Data? 

      DE&I data can reveal demographic information about employee groups across different business processes. By strategically gathering, responsibly storing, and adequately analyzing data, companies can make better and more equitable business choices, including hiring decisions, that support their company’s overall DE&I objectives.  

      Why Is DE&I Data Critical? 

      Cristina Jimenez, Senior Partner & Global Head of Diversity, Inclusion & Belonging at RHR International, says data can be critical in understanding your business' pain points and strengths.

      "Organizations can gain insight into areas of cultural inequality that enable them to focus on the problem and look for ways to address it in a meaningful way,” she said.

      In turn, data can provide organizations with the insights required to make suitable investments and decisions to move forward with proactive DEI strategies. Additionally, Jimenez says DE&I data can demonstrate progress and justify DE&I programs and resource allocations.

      5 Commons Questions About DE&I Data

      1. What identifying data should I collect? 

      According to a report by employee experience platform Culture Amp, 83% of companies collect demographic data from their employees.

      The most common demographic data sets collected include: 

      • Age 
      • Ethnicity and race 
      • Ability status   
      • Education level
      • Veteran / military status
      • Family status
      • Primary language
      • Gender identity
      • Sexual orientation
      • Caregiver status    

      Companies often use self-identification or work with a third party to collect the data. 

      2. What business metrics should I track?

      The answer to this question can largely depend on an organization's DE&I goals. But many companies closely monitor these areas, including:     

      • Hiring: Applicant diversity, new hires, and even hiring panels    
      • Retention: Attrition rates across various demographics in an organization  
      • Compensation: Salary, bonuses, and other aspects of compensation 
      • Advancement: Analysis of promotions and performance evaluations  
      • Job satisfaction: Engagement, productivity, and overall job satisfaction   
      • Employee tools and training: Participation in benefits and employee resource groups (ERGs), including training and mentorship programs    
      • Leadership: Diversity across an organization's various leadership levels      

      Beyond numbers, companies can benefit from seeing how leaders are perceived by peers. Jimenez suggests gathering leadership feedback from employees. This might include asking whether they manage equitably, create a sense of belonging and safety, choose fairly who they mentor and sponsor, and how they represent their brand.   

      3. Who should I involve in the process? 

      DE&I can be prioritized across teams, so every team member, including the CEO, human resources lead, business unit heads, department heads, and managers, are all accountable for and working to meet DE&I objectives.

      Companies commonly share DE&I metrics with senior leadership, executive leadership, and the board of directors. 

      "Messaging from the CEO helps concretize the level of care and investment the organization takes in addressing the issues found after analyzing the data," said Jimenez. “It helps establish a level of expectation around new norms."

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