Data can help organizations hit D&I goals.
By Debbie Bolla
Diversity and inclusion (D&I) initiatives are at the forefront of many organizations’ talent strategies, and there is an abundance of data to support why. In fact, McKinsey reports organizations with gender diversity within their executive teams are 21% more likely to experience above-average profitability. Companies with ethnic and cultural diversity have a 33% likelihood to outperform in terms of EBITA margin over non-inclusive organizations.
Being transparent around D&I goals is an excellent way to stay accountable and ensure that initiatives are creating change. Paul Harty, chief solutions officer for Sevenstep, says that data can play a large role in achieving transparency and business success. “The first steps to driving D&I in any organization are looking at the data to understand the current make-up on the talent pool, identifying possible improvements, and having a strategic discussion with senior leaders around goals,” he says.
There are plenty of metrics that HR can look at. A good place to start is to analyze diversity metrics by level, role, and department for both current employees and the candidate pool. This will develop a clear picture of where the company is hitting D&I markers and where areas of improvement lie.
But this is just the beginning. Harty says there are several other data points that can help organizations take a deeper dive into their TA efforts. Some include:
- candidate recruitment strategies;
- the number of active and passive candidates;
- the number of candidates in the screening, interviewing, and offer stages; and
- when candidate drop-off occurs.
Looking at data from the funnel steps can provide transparency around how organizations are building -or not building -a diverse slate of candidates. It can also give insight into policies or trainings that would lead to improvements. Harty says that the data could show an abnormal number of diverse candidates rejected during their screens, flagging unconscious bias in the recruiter screening process. Training or technology that evaluates candidates more fairly could be a good solution. For example, Sevenstep’s Sevayo Insights data aggregator provides a single dashboard for full visibility into a candidate’s entire lifecycle, pulling in data from the company CRM, ATS, HRIS, and talent management platform. Organizations can also look into description optimization, resume redaction, interview guides, and interview scoring.
It doesn’t end there. Companies should also keep their eye on current employees. Harty recommends tracking retention, promotion metrics, and internal mobility rates among diverse employees. This will provide transparency around the diversity among leadership development efforts. For example, if one department promotes 30 percent of its diverse candidates over a 36-month period whereas another only promotes two percent, there could be underlying bias and training could make a big difference.