Strategies for Measuring and Communicating DEI Success
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Chapter 1: The Importance of Measuring DEI
In the realm of diversity, equity, and inclusion (DEI), measurement is far from a uniform process or a simple checkbox activity.
The well-known saying, "What gets measured gets done," holds significant truth for organizations dedicated to advancing DEI. Regularly assessing outcomes ensures that initiatives receive adequate resources and that leadership remains engaged beyond fleeting media attention on the topic.
Moreover, a growing cohort of younger employees and consumers is advocating for clarity regarding pay equity, both in their workplaces and from the brands they choose. The most forthcoming companies acknowledge their ongoing journey toward DEI while demonstrating a long-term commitment. By sharing their DEI metrics, both publicly and internally, these organizations foster greater transparency, accountability, and advancement in their DEI efforts.
What Should Be Measured
- Diversity Reports: Many organizations publish annual or periodic diversity reports that summarize workforce demographics, showcasing representation across gender, race, ethnicity, and other pertinent categories. These reports may offer comparisons to industry standards or historical data to highlight improvements or areas needing attention.
- Public Commitments: Organizations often release declarations that detail their DEI objectives, strategies, and progress. These statements usually include specific metrics or goals, illustrating their dedication to openness and accountability.
- Corporate Communications: DEI metrics are frequently shared on company websites, typically in a dedicated section for diversity or inclusion. This can include data on workforce demographics, pay equity, diversity initiatives, and employee resource groups. Press releases and blogs can also spotlight significant milestones related to DEI.
- ESG Reports: DEI metrics are increasingly incorporated into Environmental, Social, and Governance (ESG) or sustainability reports, which highlight the company's social impact alongside environmental and governance criteria. These reports are often presented to investors and stakeholders.
- Industry Rankings: Participation in industry surveys or benchmarks allows organizations to compare their DEI performance against peers. Sharing these results can enhance an organization’s reputation and commitment to DEI.
- Inclusion Metrics: Various indices track inclusion metrics, often derived from employee engagement surveys. Collaborations with organizations such as Spectra Diversity can yield scientifically validated metrics crucial for advancing DEI.
- Partnerships: Collaborating with external organizations, like nonprofits or advocacy groups, can enhance DEI initiatives. Sharing metrics in these partnerships illustrates a commitment to collective goals and solutions.
Organizations must also comply with privacy regulations and uphold individual confidentiality when disclosing DEI metrics. Providing context, acknowledging metrics' limitations, and being candid about ongoing efforts are vital. CultureAmp recommends several key metrics for reporting to various stakeholders.
Case Study
A notable case involved a company that lost two high-performing employees due to insufficient diversity and inclusion, as expressed in their exit interviews. Although it's uncommon for employees to be so explicit, this issue often drives individuals to seek new opportunities. Estimating the turnover costs, the organization faced a staggering $200,000 loss attributed to diminished intellectual capital, performance setbacks, and onboarding costs for new hires. For leadership, this figure is likely even higher, considering talent shortages and the time required for new employees to reach previous performance levels.
Often, metrics related to inclusion are more compelling than mere representation figures. While representation statistics may change slowly and feel like enforced quotas, focusing on inclusion is essential as it drives diversity and serves as a leading indicator.
Chapter 2: Communicating DEI Measurements
Measurement alone is insufficient; effectively conveying the results of DEI initiatives is crucial for sustained success. The nature of communication varies, depending on whether the audience is internal or external.
External communications should be succinct and visually engaging. A useful model for showcasing DEI metrics externally is a fundraising barometer, where clear objectives and progress indicators (green, yellow, red) are displayed. Investors increasingly require DEI metrics before making investment decisions, recognizing that diverse teams outshine their non-diverse counterparts.
Internal communications tend to be more comprehensive and intricate. Some organizations provide DEI brochures or flipbooks detailing their initiatives and measurement processes. Employees are often interested in pay equity, leadership diversity, and inclusiveness in hiring. While detailed reports may not resonate externally, they are vital internally. For instance, a visual reminder of safety milestones was used in corporate settings; similarly, visual DEI reminders can be displayed on company intranets, office spaces, and virtual meeting platforms.
In summary, measuring DEI is not a static process but one that evolves. Organizations that prioritize DEI recognize that focusing on progress rather than perfection is key. By continuously measuring and communicating DEI metrics, both internally and externally, organizations can showcase their commitment to transparency and accountability in their DEI initiatives.
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About Julie Kratz
Julie Kratz is a renowned TEDx speaker and trainer in inclusive leadership, having achieved results in corporate America. After navigating various career transitions, she established her own speaking business aimed at fostering inclusive leadership. Julie is dedicated to promoting diversity, inclusion, and allyship in the workplace, helping organizations create more welcoming environments. She frequently speaks at conferences, hosts podcasts, and provides executive coaching. Julie holds an MBA from the Kelley School of Business at Indiana University and is a Certified Master Coach and unconscious bias trainer. Her works include Pivot Point: How to Build a Winning Career Game Plan, ONE: How Male Allies Support Women for Gender Equality, Lead Like an Ally: A Journey Through Corporate America with Strategies to Facilitate Inclusion, her children's book Little Allies, and Allyship in Action: 10 Strategies for Living Inclusively.