However, diversity extends much further than gender, and an organisation should not limit its metrics to data captured by existing systems. 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. BSC Designer is a Balanced Scorecard software that is helping companies to better formulate their strategies and make the process of strategy execution more tangible with KPIs. A company can ensure diversity (for example, by the quotas), but what actually matters is if people stay and get promoted in the organization. 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. While we are now equipped with KPIs and a strategy map, it always makes sense to put those business tools aside and ask a simple question: Do the indicators and the initiatives that we introduced actually create a positive change that we expected? The unique legal, historical, political, and cultural environments of different nations and regions determine which diversity issues are relevant. Strength: Helpful for identifying which groups are more likely to be targets of prejudice, discrimination, and harassment. Above, we discussed some ideas applicable for the Talent Management department. Some HR experts suggest that the job posts need to be adjusted to be more diversity-friendly: Another point of view[6] is that this bias doesn’t actually exist, and what employers should really do is to inform better about the hiring process. 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. Giving examples of your employee resource groups (like Stanley Black & Decker) is a great example of that. Weakness: Reactive (the horse has already bolted!). 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. We support our clients with education for management and employees, advice on how to assure the quality of the recruitment process from a diversity and inclusion perspective, develop policies, make compensation surveys, KPI’s for gender equality and diversity, and support you in your work with the Active measures of the Discrimination Act. KPI: Diversity and inclusion. 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. Strength: Useful for identifying whether certain groups of employees are experiencing lower levels of satisfaction and engagement compared with others. 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? 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 … Diversity & inclusion initiatives and programs have entered the mainstream and moved beyond the realm of HR. 1 Farrer Place For example, comparing the number of applicants from monitored groups that make it to interview stage pre- and post-intervention. 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. 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. Mentoring programs are becoming an increasingly important diversity and inclusion initiative as they encourage the type of activity and … The reason is that inclusion is a feeling, and as any feeling, it is hard to quantify it objectively. This is achieved only through dialogue with local leaders and employees. Strength: Helpful for identifying recruitment barriers. Strength: Useful for identifying bias in compensation and reward schemes. Analyze internal and external workforce data and trends to recommend enhancements to the Company culture and working environment including workplace flexibility programs and practices. On our strategy map, we can formulate this hypothesis as: With this idea in mind, we can define some leadership-related keystones and focus on these indicators: There are a lot of training and workshop products offered on the market. Organisations that are focused on diversity and inclusion as a talent retention strategy should translate the results of their effort on retention into cost savings. Weakness: Although useful for highlighting which groups of employees leave the organisation sooner than others, measures of retention, per se, do not provide information regarding the reasons why some groups of people leave before others. To elicit a behavioural change, people must have a clear idea of what is expected from them. For example, measuring gender diversity for software engineering roles or leadership positions offers greater insight into risk areas and opportunities. In the customer perspective, we traditionally map the needs of the customers. Diversity & Inclusion; “Diversity” for Alstom refers to all the ways in which we differ which includes visible differences such as, for example, gender, country of origin, age, disabilities and invisible differences as, for example, disabilities, career history, social and academic background etc. We need to wait another decade to see how these ideas will be implemented in practice. Organisations that have experienced a diversity failure or missed their diversity targets should respond honestly and sincerely, outlining a plan for rectification. Description: Tracking promotions awarded to individuals from monitored groups compared with promotions awarded to individuals who are not members of a monitored group. Profiles in Diversity Journal ® is dedicated to promoting and advancing diversity and inclusion in the corporate, government, nonprofit, higher education, and military sectors. The metrics can be: The strategy scorecard that we discussed above is just a starting point for your own strategy. Gender inequality is a global concern. Description: Compare employee engagement scores for individuals from monitored groups with scores reported by individuals who are not members of a monitored group. Over the last decade, many governments introduced[7] mandatory or voluntary diversity quotas for the members of the board. Updated August 2020. A Strategy Template with KPIs for Diversity and Inclusion. Diversity and inclusion metrics are used to identify risk areas, prioritise initiatives, set targets and other program goals, assign accountability, and measure the impact of initiatives. 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. Having a more diverse workforce is a leading factor for better understanding the needs of different groups of customers. Examples of Successful Diversity Statements 13 June 2017 on Examples, Admissions, Diversity Statements. Diverse teams with engaged talents are more innovative, understand customer needs better, and drive financial results. An organisation’s diversity and inclusion metrics should serve three purposes: diagnose risk areas and opportunities, track the progress of initiatives, calculate return on investment. Religion and ethnicity are significant in the Middle East and Africa. like VMware’s CEO on CNBC (see below)). Felicity Menzies is CEO and Principal Consultant at Include-Empower.Com, a diversity and inclusion consultancy with expertise in inclusive leadership, unconscious bias, cultural intelligence and inclusion, gender equity, empowering diverse talent. It depends on the type of business you are managing. Goals help individuals to focus their efforts in a particular direction. Introduce diversity and inclusion early on in the employee’s cycle. 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. Description: An interview held with an employee about to leave an organisation, typically to discuss the employee’s reasons for leaving and their experience of working for the organisation. What is inclusion then? Ltd. In this case, we can map: How to quantify these needs? Ideally, you will have baseline measures to track the impact of that initiative. If you prefer to receive posts like these by email sign up to our newsletter. Track the time it takes for members of monitored groups to progress compared with non-monitored individuals. Companies must review their data policies to ensure information voluntarily disclosed is stored in a manner that obscures identifying information (not reporting on groups of smaller than five employees, ensuring IP addresses are not stored with data, etc.). 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. For organisations seeking market growth from their diversity efforts, market share and revenue are relevant for measuring return on investment. Setting meaningful metrics necessitates a deep understanding of local challenges. Similar to average length of employment, we can measure (all analyzed by diversity dimensions): What about measuring the effectiveness of HR in the context of diversity and inclusion? Inclusion is a respect for and appreciation of these differences – the deliberate act of welcoming and valuing diversity. Race is the predominant diversity issue in the United States and South Africa. Metrics evidencing equality and fairness foster employee trust, satisfaction, and commitment, and strengthen an organisation’s employer brand as well as its reputation in the marketplace. Felicity is an accredited facilitator with the Cultural Intelligence Centre and the author of A World of Difference. What is obvious now is that organizations that aim for diversity and inclusion should revise their processes of board recruitment/succession planning. A classical strategic planning process starts with a definition of strategy attributes. Develop a critical understanding of issues of diversity and inclusion and their relevance to organisations and leadership. Metrics that help organisations to identity bias blind spots include: Description: Percentage of employees from monitored groups compared with company, labour market or industry benchmarks. Diversity and Inclusion are often named as a driver factor of innovations. In China, there is an urban versus rural division as well as a Western-educated dominance in leadership teams. Another measurement strategy is based on the hypothesis that inclusive companies are able to retain diverse talents for a longer time. This fosters trust and encourages accountability. At a minimum, adaptation should occur nationally, but regional changes should also be considered, where appropriate. Strength: Useful for identifying groups that may be less satisfied with their workplace and less committed to the organisation as well as groups that are more likely to have their employment terminated. As a part of tracking external diversity, track the diversity of your customers. 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. The labour market is becoming more diverse[1]. For example, for the procurement scorecard, we agreed that the success of the procurement department depends on the diversity of skills (internal diversity) and on the diversity of suppliers (external diversity). 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. Results of diversity efforts should be transparent internally. Instead of complex metrics, focus on just one: Instead of a formal innovation pipeline, create an innovation sandbox where members of your team can try new ideas without the need to rationalize their potential value. 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… Diversity in ideas is a leading factor for innovations. The overarching consideration when setting meaningful metrics is that they must map progress towards the achievement of your program goals. Note: Another way to make a diversity statement is through diversity videos. Improvements: Exit interviews are beneficial only if there is a system in place for reporting on and responding to findings. 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. Once implemented, organisations must track the progress of their efforts. We've been asked for examples of diversity statements many times; below are several great ones. 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. Employers should regularly review diversity and inclusion metrics, changing them as needed as the diversity and inclusion program matures and as business goals change. Our Performance Indicators of Diversity and Inclusion in Defence. Organisations should remain alert to the possibility that not disclosing a metric may erode trust more than disclosing a potentially unfavourable metric. Improvements: Segmenting attrition data into voluntary and involuntary is useful for identifying whether monitored groups are more likely to self-select or be pushed out of an organisation. There are at least three goals that resonate with the D&I initiatives: Before, we were talking about the way to align an organization’s strategy with the SDGS goals. However, gender diversity is at different stages of maturity in different parts of the world and across industries and metrics must reflect that. Training on: The training goal for the strategy map can be formulated as: In terms of performance measurement, the efforts part can be quantified and measured by: As for the results, it’s interesting to look beyond the basic test scores and analyze if the actual behaviour patterns have changed. Sydney NSW 2000 When defining any strategy, we need to understand the causality, find success factors, and understand better expected outcomes. Goals should be ambitious enough to encourage effort and commitment but realistic enough so as not to trigger negative emotions such as resistance or fear. Another important idea is that the diversity targets should be realistic. For example, we can focus the measurement of diversity on one of the following dimensions: How to select these dimensions? Weakness: Does not provide information on why some groups of individuals compared with others are more likely to apply for open positions. An intuitive hypothesis is that a more diverse talent pool will approach the challenges of the organization from different, sometimes unexpected perspectives. It is impossible to track progress unless you have a baseline measure. Strength: Useful for identifying bias in assessment and selection. What is clear is that the hiring process needs to be adjusted according to the D&I strategy. In this sense, it’s not enough to define the high-level D&I strategy; the company’s management needs to understand how defined goals can be cascaded throughout the organization. Description: Track internal and external grievances, complaints, and law-suits by identity group. 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 . Description: Compare the quality and strength of your employer brand among different identity groups. 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). 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. Religion and caste are the main issues in India. Because every organisation faces unique diversity and inclusion challenges in the context of its business strategy, no two employers will utilise the same metrics. Not coming clean on a poor metric out of concern of employee backlash might do more harm than good. Ultimate accountability for diversity and inclusion should be at the level of the CEO and the Board of Directors. CEO or Head of Diversity & Inclusion (D&I)) in a public forum (e.g. 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. 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.”. Strength: Focus groups complement workforce analytics, providing additional information that cannot be acquired from quantitative analysis alone. Strength: Useful for identifying bias in development. I’ll use the Balanced Scorecard as a framework to articulate the D&I strategy. One of the strategies behind quotas is about solving D&I problems from the top: The acceptance of quotas varies across the countries with actual inclusion being one of the main challenges. Being an inclusive organization is no longer a proactive initiative. 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. Also, making the decision boards more diverse, like we discuss below, will help to create and maintain a more inclusive workspace. Goal setting theory (Locke and Latham) posits that motivation and task performance are positively correlated with setting specific and measurable goals. The findings of such study can reveal that some important customer groups don’t have an internal “advocate” in your organization. That is not to suggest goal setting is easy, however. It is subjective and less tangible than diversity. The best way to do this is by defining S.M.A.R.T. It makes a lot of sense as the diversity part of the equation is what the HR department can influence directly. Metrics also serve to neutralise the emotion associated with diversity and inclusion. Weakness: Does not indicate whether members of monitored groups are self-selecting out of promotion opportunities. Hr department can influence directly process for responding to findings, by whom, and harassment to use.... Implementing the wrong diversity problems and by implementing the wrong solutions intellectual functioning, are recognized by UN... 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