Do you know that the Global Gender Gap will reach parity only after 134 years (or roughly five generations beyond 2030)? Currently, the global gender gap score stands at 68.5. If you aren’t aware, the Global Gender Gap Index benchmarks the current state and evolution of gender parity across economic participation and Opportunity, Educational Attainment, Health and Survival, and Political Empowerment.
India stands at 129 among the 146 countries in the Global Gender Gap Index 2024 rankings
Source: World Economic Forum
Gender is only one of the many criteria for gauging the diversity of a group’s members. When an organization wants to promote Diversity, Equity, and Inclusion among its people, it can choose a variety of yardsticks to measure its current state and aim to optimize it.
Different types of diversities in a workplace
A business can inspire to achieve diversity at multiple levels. Here are some of them.
- Age diversity
- Cultural diversity
- Ethnic diversity
- Educational diversity
- Social economic diversity
- Linguistic diversity
- Religious diversity
- Gender identity diversity
- Geographic diversity
Why is Diversity, Equity, and Inclusion (DEI) important in the workplace?
Diversity, Equity, and Inclusion (DEI) support innovation, fairness, and a sense of belonging in the workplace. They help organizations address systemic inequalities, embrace diverse perspectives, and create equitable opportunities for all employees. DEI improves Employee engagement and collaboration, helps build a positive reputation for the organization, and ensures long-term success and sustainability.
Here are some examples:
Innovation and Revenue: BCG reports that companies with ‘below-average diversity scores’ achieve only 26% ‘innovation revenue’, whereas companies with ‘above average diversity scores’ earn 45% ‘innovation revenue’. In other words, 19 percentage points higher than that of companies with below-average leadership diversity
Innovation revenue refers to the share of revenues companies have generated from enhanced or entirely new products or services in the most recent three-year period.
Source: BCG
The above figure suggests that nearly half the revenue of companies with diverse leadership comes from recently launched products and services. Such an advantage enables companies to quickly adapt to changes in customer demand.
Competitiveness: Companies with a diverse workforce are more competitive than others. A report by Mckinsey suggests:
- Companies with 0% to 10% women in executive teams are 43% more likely to outperform financially vs the national industry median (US & UK).
- 10% to 30% women in executive teams increase the likelihood to 54%.
- Above 30%, the likelihood increases to 63%
Source: Mckinsey
Other factors: While innovation, revenue, and competitiveness help with the business goals, DEI also influences many other organizational factors, including:
- Social relevance: As societies become increasingly diverse, organizations must mirror these changes to remain relevant and relatable. Customers and clients prefer companies that value diversity and act inclusively.
- Addressing systemic inequities: DEI initiatives work to break down barriers that have historically marginalized certain groups. Equity ensures all employees have the tools and support they need to succeed.
- Mitigating bias: DEI helps organizations identify and address unconscious biases in hiring, promotions, and everyday interactions. It fosters a fair workplace where everyone has equal opportunities for success.
- Building a positive reputation: Companies that prioritize DEI are seen as ethical, forward-thinking, and socially responsible. A strong DEI commitment attracts top talent and strengthens relationships with stakeholders.
- Preparing for the future: Organizations that embrace DEI are better equipped to handle global challenges and demographic shifts. It ensures sustainable growth by creating a workplace adaptable to change.
Measuring diversity at your workplace
Measuring diversity helps you understand the current state of diversity and its scope for improvement. This insight allows you to identify gaps, address biases, and make informed decisions to shape effective DEI initiatives in the future.
To assess your workplace diversity, you can analyze demographic data on factors like gender, ethnicity, age, and disability. Examine representation across hiring, leadership, promotions, and retention rates to uncover imbalances. Conduct surveys to gauge employees’ perceptions of inclusivity, and compare your findings with industry benchmarks to set realistic goals. Regularly tracking and evaluating this data will allow you to measure progress and refine your DEI strategies effectively.
Improving DEI at your workplace
As we discussed earlier DEI at the workplace can be based on multiple factors. So if you want to bring improvements, first you need to finalize the metrics that’ll quantify the diversity of your workplace, and then you need to take actions to improve these metrics.
Here are some examples of diversity metrics to track:
- Demographics of the workforce
- Representation in leadership
- Diversity in recruitment
- Turnover rates by demographic
- Average tenure by demographic
- Gender pay gap
- Promotion equity
- Candidate pipeline diversity
- Bias in hiring decisions
- Interview-to-hire ratios
- Employee engagement scores by demographic
- Exit interview sentiment analysis by demographic
While the above are some common metrics to understand diversity, you can choose the one that fits your organizational goals.
Related: 17 HR Reports for Data-driven People Management
What’s Next?
If you are getting started with implementing DEI, you should begin by understanding its basics. You should zero down on the metrics you want to improve and then design your DEI initiatives to improve them. Read about the initiatives of the leaders in your industry and try to emulate them in your organization. Mckinsey talks about five success factors around its DEI initiatives:
- A nuanced understanding of the root causes of diversity issues
- Meaningful definition of success
- Accountable and invested business leaders
- Solutions designed to address the root causes
- Rigorous tracking and course correction
Consider the factors mentioned above for a successful implementation of your DEI initiatives.