Diversity continues to be an important topic for HR and business leaders. We all know the importance of having a diverse workforce. It brings a diversity of thought, which positively impacts the company’s bottom line. But, diversity is not effective without inclusion.
Individuals will not contribute their opinions if they do not feel included and believe their opinions will be valued. Additionally, the diverse workforce will not stay with the organization. The time, money, and resources spent on attracting diverse talent will be for nothing. Diversity needs inclusion to be successful.
What’s Wrong with the Metrics We Already Know?
The problem with standard diversity metrics is that they do not look at inclusion. An HR metric like the headcount of groups of employees based on their gender only shows how diverse the workforce is. It does not give you any indication if they are being included.
Fortunately, there’s HR metrics to help HR and business leaders. Before calculating any of the metrics below, it’s important to determine the employee demographic groups that are going to be analyzed. Race/ethnicity and gender are not the only important diversity factors to take into account. Try looking at the HR metrics by veteran status, disability status, and age.
Also, you should calculate what the number is for each metric for the organization overall. It will provide a control number to compare the metrics against.
HR Metrics for Inclusion
To calculate average tenure, total the number of years for the population group and divide it by the headcount of that group. This tells you how long the diverse talent is staying with the organization. Low tenure means talent is not staying. Now if the metric is consistent with the company’s overall tenure, then there may be a larger issue tied the company’s employee engagement. But, if the tenure is lower than the company’s average, it’s an indication of issues with inclusion.
Promotion rate is calculated based on how many promotions occur over a certain period of time. In this case, you’ll want to average the number of people that have been promoted within certain demographic groups. Now compare that rate to either the company’s overall average or to the majority group rate. Are the two rates comparable? If they’re not, starting looking at why the diverse groups are not being promoted at the same rate as others. Is it due to unconscious bias within the hiring managers? Maybe the diverse talent is not staying with the organization long enough to be promoted.
Representation in Leadership
To find this metric, first, determine what is considered “leadership”. Is it employees with the title supervisor and above? Or will it only factor in senior leadership, like directors or executives? Then, total the number of diverse talent within those leadership positions and divide it by the total number of leadership. Once multiplied by 100, you’re left with the percentage of leadership that is within that diverse group. Compare the percentage to the overall percentage of that group within the organization. Are the numbers a reflection of each other? For example, if 45% of your organization are women, but only 10% of leadership are women, there’s a problem. Start asking why women are not making it into leadership.
It may seem redundant to calculate both promotion rate and leadership representation but they could tell different stories. Promotion rate only looks at internal hires into higher roles, which are not always considered a leadership role. Leadership representation factors in external hires, which can still support inclusion. Representation is important and supports a positive employer brand. It shows the organization values diversity even at the highest levels. Diverse talent will be more likely to stay with the organization and feel included when there is representation in leadership. Additionally, diverse leadership is more likely to develop and support diversity and inclusion initiatives.
Don’t Forget Inclusion with Diversity
Diversity is nothing without inclusion and both are crucial to the success of an organization. HR needs to foster a culture that supports and promotes diversity and inclusion. Any HR initiatives with ties to strategic business goals need metrics and KPIs. Average tenure, promotion rate, and leadership representation will all aid in developing inclusive practices. The metrics will also provide a way to show if any HR diversity and inclusion initiatives are successful. Hopefully, you have an HR dashboard that easily calculates the metrics for you. In addition, it will provide easy visualizations to help understand what the numbers are saying. If you don’t have one, no worries. Sign up today for a free demo of our automated HR dashboard.