Building a company without workplace diversity is like weaving a tapestry with only one thread: ineffective and probably a little boring. For example, do men, on average, earn more at your organisation (or department or workgroup) than women earn, over average? 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. 1. Felicity has over 15 years of experience working with and managing diverse workforces in blue chip companies and is a Fellow of Chartered Accountants of Australia and New Zealand. 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. 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. The era of diver… Follow those ideas to have a long list of metrics for diversity. Sharing results externally can also be valuable for industry benchmarking and strengthening employer brand and an organisation’s reputation in the marketplace. Multiculturalism is a concern of countries with a large proportion of migrants, as in many Western European countries as well as Australia and New Zealand. Other metrics used to track progress include membership of employee resources groups, participation rates in formal mentoring programs or sponsorship schemes, participation rates in diversity and inclusion training programs, diversity awards, positive press. Description: Tracking appointments of individuals from monitored groups compared with appointments of applicants who are not members of a monitored group. Description: Compare customer diversity to internal, industry or market benchmarks. 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. Not coming clean on a poor metric out of concern of employee backlash might do more harm than good. CEO or Head of Diversity & Inclusion (D&I)) in a public forum (e.g. For example, if you are targeting the Brazilian market, then the diversity targets will be focused on the talents with a background in Brazilian culture and those who are fluent in the Portuguese language. Organizations that have mastered diversity and inclusion have a better chance of attracting and retaining the best talents. In the context of a strategy scorecard, it means that all indicators should be updated and analyzed periodically. Weakness: Existing engagement surveys may not include specific questions relating to diversity and inclusion. Involuntary attrition that is overrepresented in a monitored group is indicative of conscious or unconscious bias and should be investigated. Organisations manage this through surveys seeking voluntary disclosure of sensitive information. “Inclusion” To be repeated annually. Surveys are the perfect tool for measuring the feelings and opinions of your workforce at scale. Description: Compare financial and non-financial rewards earned by individuals from monitored groups to financial and non-financial rewards earned by individuals who are not members of a monitored group. Note: Another way to make a diversity statement is through diversity videos. Also, does not track whether members of monitored groups are being developed or promoted at the same rate as non-monitored individuals. Felicity also holds a Bachelor of Commerce and a Bachelor of Arts in Psychology. Description: Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent. The answer to this question can be a good starting point to improve things. KPI Units: % A metric in this case can be formulated as: While this approach gives some numbers, it is far from being perfect. Strength: Useful for identifying bias in compensation and reward schemes. Employees sense when an organisation is hiding something. For example, we can focus the measurement of diversity on one of the following dimensions: How to select these dimensions? Making the hiring process less bureaucratized and more transparent will certainly lead to a better diversity of the candidates. Strength: Useful for identifying barriers to entry for different groups, pipeline issues, and narrow or biased recruitment efforts. For example; Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. In a later section, we’ll get into all the benefits of creating a diverse and inclusive workplace, but let’s start with a … It depends on the type of business you are managing. In this case, we can map: How to quantify these needs? Our Performance Indicators of Diversity and Inclusion in Defence. Inclusion ensures that those ideas will find their way in the innovation process (will be heard -> will be valued -> will be tested and prototyped). If you have already started your program without taking a baseline measure, however, you can compare your metrics to results reported in other parts of the business or industry benchmarks. Employers should regularly review diversity and inclusion metrics, changing them as needed as the diversity and inclusion program matures and as business goals change. Diversity & inclusion initiatives and programs have entered the mainstream and moved beyond the realm of HR. However, merely tracking and reporting diversity and inclusion metrics is not sufficient. Another important idea is that the diversity targets should be realistic. 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. 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. Cognitive disabilities, also known as intellectual functioning, are recognized by the EEOC when an individual meets this criteria: 1. Religion and caste are the main issues in India. It is subjective and less tangible than diversity. Develop a critical understanding of issues of diversity and inclusion and their relevance to organisations and leadership. Once implemented, organisations must track the progress of their efforts. It makes a lot of sense as the diversity part of the equation is what the HR department can influence directly. One way to measure inclusion is to use surveys. To automate this, we can set the “Update interval” to quarters so that the software reminds us about upcoming update time. 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). The unique legal, historical, political, and cultural environments of different nations and regions determine which diversity issues are relevant. This fosters trust and encourages accountability. Diversity in ideas is a leading factor for innovations. A company can ensure diversity (for example, by the quotas), but what actually matters is if people stay and get promoted in the organization. I’ll add this as an initiative for the “Diversity and Inclusion” goal: How to set the target values for the diversity metrics? Improvements: Reasons for weakness in applicant diversity should be gathered from employee focus groups, review of job advertisements (bias detection software may be useful), surveys that assess quality of employer brand, and analysis of recruitment strategies for bias (e.g. As a result, programs stall at the diversity stage and founder on inclusion because inclusion is both qualitative and subjective. Strength: Useful for identifying whether certain groups of employees are experiencing lower levels of satisfaction and engagement compared with others. The information may not have been disclosed before resignation due to a fear of recrimination or weak organisational justice. Introduce diversity and inclusion early on in the employee’s cycle. 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. Let’s discuss how to combine various ideas about diversity and inclusion into a coherent strategy. I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. COVID-19: Business Continuity Strategy (Template), align an organization’s strategy with the SDGS goals, Inclusive Leadership: The View From Six Countries, Why Women Don’t Apply for Jobs Unless They’re 100% Qualified, What Board Directors Really Think of Gender Quotas, Margarethe Wiersema, 6 Steps for Building an Inclusive Workplace, BSC Designer – Strategy Execution Software, A company that targets the Brazilian market will benefit from hiring employees who know local cultural traditions and language, A more diverse board is expected to have a better power balance. Intellectual functioning level (IQ) below 70-75 2. Track the time it takes for members of monitored groups to progress compared with non-monitored individuals. Over the last decade, many governments introduced[7] mandatory or voluntary diversity quotas for the members of the board. Improvements: Exit interviews are beneficial only if there is a system in place for reporting on and responding to findings. Significant limitations in adaptive skills — the basic conceptual, social and practical skills needed for everyday life 3. In the customer perspective, we traditionally map the needs of the customers. Copy it to your free account at BSC Designer and use it as a template: Diversity and Inclusion is not a one-time initiative. Because of the risk of non-completion by employees who are not-engaged, findings must be supplemented with exit-interviews. Diversityand inclusion has become a CEO-level issue around the world. Diversity and inclusion are critical elements of every recruitment and retention strategy. I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. Description: Comparing average tenure for employees from monitored groups to average tenure across the workforce or average tenure of members of the dominant group. Improvement: Solicit voluntarily disclose by respondents of identity, such as race, culture, sexual orientation, gender, age, parental status. Weakness: Disenfranchised employees may not volunteer for focus groups. We will follow up with you with lessons about the Balanced Scorecard and will keep you informed about the trending articles on bscdesigner.com, Diversity and Inclusion Strategy Scorecard, Diversity and Inclusion: Strategy Scorecard with KPIs. In China, there is an urban versus rural division as well as a Western-educated dominance in leadership teams. While there is no hard and fast rule on the frequency of reporting diversity and inclusion metrics, ideally diversity reports should be published at least yearly. A difference may be indicative of a performance vs. potential bias that favours members of the dominant group. Diversity Dashboards Cornell’s organizes diversity initiatives around four core principles: composition, engagement, inclusion, and achievement. Ltd. If you prefer to receive posts like these by email sign up to our newsletter. Strength: Helpful for identifying recruitment barriers. When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. Another idea in the context of automation is to visualize such indicators on the performance dashboards. See, for example, a study by Catalyst[2] or the report summarized in this HBR article[3]. 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. With these ideas in mind, we can define another proxy metric of inclusion: With this metric, we could quickly find some extreme сases. Language is significant in Canada and Europe. like VMware’s CEO on CNBC (see below)). An organization that has only diversity metrics on their dashboard follows one of the bad practices in performance measurement. 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. This website uses cookies to improve your experience. Your choice of ROI measure depends on the ultimate goal of your organisation’s diversity and inclusion efforts. Suite 3, Level 27 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. 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. What is obvious is that the economic sustainability of an organization can be predicted on their D&I achievements. Let’s discuss a strategy to improve Diversity and Inclusion in an organization. What is obvious now is that organizations that aim for diversity and inclusion should revise their processes of board recruitment/succession planning. Facilitated focus groups for the purpose of gathering information on the issues and challenges facing diverse talent, organisation is endorsing diversity and inclusion for the purposes of improving its performance, Return on investment metrics translate soft skills into hard returns that align with business goals and the concerns of leaders, ultimate goal of your organisation’s diversity and inclusion efforts, A government department seeking to deliver policy solutions to improve the lives of members of an ethnically and linguistically diverse community, A media distribution company with aggressive growth targets in Asia extends its diversity metrics to include individuals born or raised in Asia, A start-up seeking to improve retention through the implementation of a flexible work policy extends its diversity metrics to track employment status and tenure, A health insurer seeking to deliver better customer solutions extends its diversity metrics to, A large financial institution seeking to rebuild trust through its corporate social responsibility efforts extends its diversity metrics to include immigration status, A mining company seeking to improve the retention of women through the implementation of a flexible work policy extends its diversity metrics to track employment and parental status, “Employees are valued for their differences and their unique contributions.”, “Employees can voice their opinions without fear of retribution or rejection.”, “People are rewarded fairly according to their job performance and accomplishments.”, “I have confidence in my company’s grievance procedures.”. Users of BSC Designer will find the “Update interval” feature in the “Initiatives” dialog for this purpose. 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. Above, we discussed some ideas applicable for the Talent Management department. Examples of business-specific diversity dimensions include: Diversity metrics must be relevant to the local context and business leaders. 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. To elicit a behavioural change, people must have a clear idea of what is expected from them. The findings of such study can reveal that some important customer groups don’t have an internal “advocate” in your organization. As a part of tracking external diversity, track the diversity of your customers. It is important to have a formal plan for measuring your progress—what metrics will be calculated, by whom, and how often? 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 The correlation between the financial bottom line and D&I was demonstrated empirically. Organisations will typically measure diversity dimensions for which data is readily available, namely gender. Description: Track internal and external grievances, complaints, and law-suits by identity group. Calculating diversity / inclusion / people development pillar ratings The diversity, inclusion and people development pillars all use the same methodology to calculate the pillar ratings. 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. Measuring program success might include tracking improvements in the measures listed above, with the diagnosis measurement acting as a baseline. 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. Improvements: Analyse pay and rewards across rank and function. 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. Companies have started to recognize the importance of diversity and inclusion—but few have found ways to hold themselves accountable to real change. This does not, however, relieve the company of its ethical obligation to ensure that data is not used  to discriminate against employees, clients, or suppliers. And since operationalizing data is a normal function for measuring key performance indicators, companies default to it as a method for measuring D&I. These questions may be incorporated into existing engagement surveys or constitute a separate ‘Inclusion Survey’ or ‘Inclusion Index’. To be built into the DECC group performance review and subject to the same reporting and accountability cycle. Workplace diversity not only expands your talent pool, but allows each member of your organization to draw from the backgrounds, viewpoints, and experiences of fellow team members – but you already knew that.The question isn’t whether diversity is important, but “How can my company measure diversi… For example, measuring gender diversity for software engineering roles or leadership positions offers greater insight into risk areas and opportunities. It is important to note that diversity statements are truly optional, and not everyone should write one. 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. Strength: Helpful for identifying which groups are more likely to be targets of prejudice, discrimination, and harassment. Link D&I scorecard with other scorecards, like scorecards for. Felicity is an accredited facilitator with the Cultural Intelligence Centre and the author of A World of Difference. Those metrics can be further strengthened by quantifying the dollar value of increased innovation, for example, how much revenue was generated by new products or services? 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. Further, disengaged employees may not complete the survey, skewing the results. 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. 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 . Strength: Potentially candid source of information on the lived experiences of employees who are voluntarily leaving the organisation. Description: Tracking promotions awarded to individuals from monitored groups compared with promotions awarded to individuals who are not members of a monitored group. Tracking diversity metrics, therefore, can be equally complex. Our workforce data shows that the Civil Servi… Also, making the decision boards more diverse, like we discuss below, will help to create and maintain a more inclusive workspace. Mentoring programs are becoming an increasingly important diversity and inclusion initiative as they encourage the type of activity and … Goals. Our software platform tracks activities, collects the information in databases and facilitates data driven decision making and reporting on the ROI of the diversity … We discussed how to define the dimensions for diversity. What makes us different? Well-defined and measurable goals are particularly important in diversity and inclusion because, as noted at the beginning of the article, without goals, our automatic and hidden tendencies that preference some over others would easily override our conscious intentions to be fair. The labour market is becoming more diverse[1]. We need to wait another decade to see how these ideas will be implemented in practice. Let’s start with a general introduction to the idea of Diversity and Inclusion (D&I). To make the list, the diversity goals had to be written on their web site or spoken goal by their leadership (e.g. Improvements: Track promotion applications from members of monitored groups compared with promotion applications from individuals who are not members of a monitored group. Strength: Helpful for identifying consumer segments are not being served by your business and groups that are experiencing sub-optimal, prejudiced or discriminatory service. Organisations should remain alert to the possibility that not disclosing a metric may erode trust more than disclosing a potentially unfavourable metric. Supplement existing survey items with questions that specifically tap diversity and inclusion concerns. Here is another proxy metric for inclusion: To understand the effectiveness of the D&I strategy, we are interested in seeing how this metric will progress over time. Giving examples of your employee resource groups (like Stanley Black & Decker) is a great example of that. 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. Description: Compare employee engagement scores for individuals from monitored groups with scores reported by individuals who are not members of a monitored group. 10 Diversity Statement Samples 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. Weakness: Does not indicate whether members of monitored groups are self-selecting out of promotion opportunities. 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. Governor Macquarie Tower For example, comparing the number of applicants from monitored groups that make it to interview stage pre- and post-intervention. Even properly organized surveys will not show an objective picture because of survivorship bias. When we value diversity we do not try to make all of us the same instead we embrace the differences that make each of us unique. KPI ： Fujitsu Group aims to achieve at least Consolidated 69% from 66%(FY2019) / Non-consolidated 63% from 59%(FY2019), in favorable answers to Diversity and Inclusion … Improvements: To encourage participation, invitations should highlight that focus group discussion is confidential and that findings will be reported in thematic form with all identifying information removed. When inclusion efforts are undertaken to improve engagement, it is useful to show how increases in engagement scores translate to increased productivity by measuring output per employee or profit per employee. AUSTRALIA, © 2018, Culture Plus Consulting Pty. Since 1999, we have helped to stimulate organizational change by showcasing the visionary leadership, innovative programs, and committed individuals who are making it happen. For the organization, it means an opportunity to adjust internal diversity and serve those customers better. Nevertheless, it can be helpful for employers who are starting on their diversity and inclusion journey, or for employers who are seeking to strengthen the impact of their programs, to be aware of common metrics used to track diversity and inclusion, and to understand how to set meaningful metrics. and will eventually lead to better diversity and inclusion on all levels of the organization. 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 is a concept that considers the many ways we are alike while respecting the ways we are different. To reflect this idea on the strategy map, let’s use a generic financial goal, for example: An alternative approach is to quantify the expectations of the stakeholders (like we did on the non-profit scorecard for community interests) and focus on the value created. Ultimate accountability for diversity and inclusion should be at the level of the CEO and the Board of Directors. Examples of Successful Diversity Statements 13 June 2017 on Examples, Admissions, Diversity Statements. Consideration must be given to your business strategy as well as the maturity of your diversity and inclusion program and the specific diversity and inclusion initiatives you are implementing. In their turn, diverse talents can become an inimitable competitive advantage for a company. Return on investment metrics translate soft skills into hard returns that align with business goals and the concerns of leaders. That’s the reason why companies like Google are not limiting their diversity target to the existing pool of talents but are investing in social and educational initiatives, like STEM accessibility for underserved communities. 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. 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). Strength: Useful for identifying groups that are underrepresented in the organisation usually as a result of conscious or unconscious prejudice, stereotypes, or discrimination across the employee life-cycle. 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