Four Ways to Increase Diversity and Inclusion in Your Workplace Using Data Driven Insights
by Kathleen Teehan
As is true in any significant change initiative, having leadership buy–in and commitment to execution is critical to success. Sometimes the easiest and most effective way to gain consensus is to present data that demonstrates how the change aligns with organizational priorities, and precisely how it will impact the bottom line. Although the importance of, and impact from, building a diverse and inclusive workplace can be measured far beyond dollar and cents, data and financial metrics are tangible and compelling ways to heighten the urgency to take action.
Here are some data points to help make the case:
- Companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. (Jan. 2015 McKinsey)
- Companies in the top quartile for gender diversity are 15% more likely to have financial returns above their respective national industry medians. (Jan. 2015 McKinsey)
- As innovation becomes more of a key differentiator for the world’s largest companies, these organizations increasingly believe that having a diverse and inclusive workforce is critical to driving the creation and execution of new products, services, and business processes. (Forbes Insights)
- Companies with diverse executive boards enjoy significantly higher earnings and returns on equity. (April 2012 McKinsey)
- A study of more than 500 organizations found that every 1% increase in gender and racial diversity correlates with a 3% to 9% increase in sales revenue. (Cedric Herring, American Sociological Association)
The issue of diversity and inclusion in businesses and organizations is closely connected to employee engagement, fairness, human rights, and social justice. Given the clear importance of the subject, here are four ways to increase diversity and inclusion in your organization:
1. Collect and analyze data. There has never been a more important time to understand your organization’s demographic inventory as it is a precursor to change and the benchmark from which all forward progress can be measured. Consider gathering data in the following areas:
- Age
- Gender
- Disability
- Race
- Religion or spiritual practice
- Generation
- Gender identity
- Personality type
- Ethnicity/national origin
- Sexual orientation
Analyze this data relative to the labor market and look for trends, underrepresented groups, concerns and opportunities to inform your sourcing and hiring activities
2. Use data to improve sourcing
- Cast a wider net by rewriting job ads and descriptions that focus heavily on behavioral job requirements (ie. intense, fast-paced environment requiring risk-taking and independent decision making). Develop a behavioral job target for all roles and leverage it for internal career pathing and external hires.
- Include skill and experience “must haves “, not the “nice to haves.”
- Remove gender coded words and pronouns on website, job postings and descriptions. For example, consider replacing “manpower” with “workforce”, “chairman” with “chairperson”.
- Emphasize your company’s commitment to diversity and inclusion on all candidate-facing materials.
- Post on job boards that represent minority and underrepresented talent
- Expand your recruiting field to include historically Black colleges and universities, Hispanic-serving institutions, Women’s colleges, and public and community colleges.
- Train your hiring team to use data as part of the selection process.
3. Leverage data in the candidate screening process to eliminate bias
- Use a well built, scientifically validated, unbiased assessment. Hiring the right candidate means that the candidate aligns with the Head (Behaviors and Drive), the Heart (Values and Ethics) and the Briefcase (Knowledge, Skills and Experience). Often hiring managers overweigh the need for briefcase fit, when in fact, in most cases, these proficiencies can be learned on the job.
- Consider blind hiring – Eliminate candidate name, college and address from resumes.
- Use “Two in the pool effect” Harvard Business Review Research found that when only one minority candidate is in final candidate pool, there is a low likelihood of them getting the job, however if two minority candidates are in the final round, the odds of landing in the role are 194x greater. This is referred to as the “two in the pool effect”
- Leverage The Predictive Index unbiased match scores to rank how an employee is aligned to the behavioral and cognitive requirements of the job. When this data is used objectively and consistently for all candidates, it minimizes the risk of all types of bias.
4. Don’t lose sight of key metrics to retain a diverse workforce. Hiring a diverse workforce is the first step towards a high performing organization, however, developing a culture where behaviors and social norms make everyone feel welcome will prove beneficial for employee engagement and productivity. To measure employee engagement, conduct surveys, segmenting the data by criteria such as gender, ethnicity, generation, geography, tenure, and role in the organization. Without considering engagement by segment, there is a risk of missing out on key factors that attribute to turnover.
As a Certified Partner and Master Training Center for The Predictive Index®, ClearRock empowers organizations to confidently leverage data driven insights and the Talent Optimization framework to align business and talent strategy. We are here to help!
