6 diversity metrics you should measure
Global – Companies are working to become more diverse and inclusive. It is critical to analyze these efforts by looking at the indicators of diversity. Only by evaluating these indicators can they learn about the effectiveness of their actions and continue to grow.
What are Diversity Indicators?
Diversity metrics are assigned quantitative values that help employers evaluate strategies for achieving a more diverse workforce. They are also useful for tracking diversity and inclusion goals.
Why are diversity indicators important?
Organizations have a responsibility to ensure that their employees reflect the communities they serve and create an inclusive culture to succeed. Having Diversity and Inclusion KPIs allows you to objectively measure your performance to help identify biases, fairness and fairness in the workplace.
On an internal level, knowing your DEI performance can help you pinpoint risks, set DEI goals, prioritize strategies, and evaluate the results of your DEI programs.
Hiring and recruiting
Diversity in hiring can help increase the range of skills and abilities in your workforce, which is vital to expanding your client base and meeting the needs of each client. Reaching out to more customers means you can increase sales and increase your company’s revenue.
Among the metrics, the number of diverse applicants compared to the number of diverse applicants hired is the most important because you can see real information about the effectiveness of your diversity hiring process.
Employers must pay their employees equally if they want to increase employee productivity, creativity, and efficiency. Pay equity helps attract and retain the best talent. There are currently two issues affecting pay equity: pay inequality between genders and between races. In Payscale’s 2022 State of the Gender Pay Gap Report, women earn 82 cents for every dollar men make.
When strong people with different backgrounds work in an organization, it makes it clear to future employees that success is not limited to just one particular type of person. Representation not only gives a voice to those who were previously underrepresented but also gives all of us hope to learn about people we may not understand or who are different from us.
According to a Mckinsey and Company report, only 86 women get a raise compared to 100 men. And among the women who got promoted, only 71 Hispanics and 58 women were promoted.
Diversity metrics associated with promotion somehow go hand in hand with performance.
Creating career opportunities for different employees boosts employee morale and engagement. This encourages people seeking to move up in the company to perform better, which has a significant impact on organizational depth and growth.
DEI stands for making a workplace that is accessible and convenient for everyone… People who feel comfortable at work are more likely to stay, which reduces employee turnover.
And companies that employ members of an underrepresented group (for example, former prisoners) are characterized by high employee loyalty and low staff turnover. The average tenure of employees at the manufacturing company Nehemiah is 5.5 years. It has 150 to 180 employees and 80 to 85% of its workforce is considered “second chances”.
Employee satisfaction should be part of your various employee retention strategies.
If you have high turnover from an underrepresented group, this may indicate that employees were dissatisfied with their jobs or felt left out.
How do you measure employee satisfaction with diversity?
Check out the employees who leave and stay. If you understand that a wide variety of employees are leaving, this signals problems with inclusion, which indicates employee satisfaction.