The following is the first in a 3-part blog series on the benefits of measuring Diversity Equity and Inclusion in your organization. You can stay up to date by signing up for our newsletter to the right of this post. Read part 2 here.

What is Diversity?

Diversity represents the mixture of one or more characteristics in a group of people – like race, nationality, ethnicity, gender identity, age, social class, etc.

A measure of diversity will report the extent to which a set of specified characteristics are present in a group relative to the group’s size.

Typically, the aspirational diversity of a group is based on the diversity of another group. For example, the aspirational diversity of a legislative body might be based on the diversity of the population represented by that body.

Why Measure Diversity?

There are two main reasons to monitor and advance diversity within your organization. First, diversity is inherently linked with equity and inclusion. This is why many organizations have a Diversity, Equity, and Inclusion (DEI) plan or strategy. To advance equity, we must measure diversity and ensure our workforce and leadership are proportionately representative of the people we work with and serve.

Second, advancing diversity within our organizations has clear business benefits. A diverse workforce helps improve everything from employee productivity, morale, decision-making, business outcomes, and finances.

Below are 3 sample measures your organization can use to advance diversity and create better outcomes for you and your clients. These measures are not perfect and are a “work in progress.” Therefore, we recommend engaging your staff and partners to refine these measures further and make them as meaningful and useful as possible.

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Learn more about measuring DEI in your organization.

Download our free e-Book: DEI Made Measurable; Suggestions for Getting Started With DEI Measures Within Individual Organizations.

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3 Suggested Diversity Measures for Organizations:

  1. % of members of the senior leadership team who self-identify as people of color, women, LGBTQ, disabled, etc.

There are many benefits to having diverse leadership teams. Different groups of people have different life experiences, and thus different perspectives, knowledge, and insights. Leadership must represent these experiences and attitudes; otherwise, decisions may consistently undermine, ignore, or even harm underrepresented groups of people. According to Sallie Krawcheck, author of Own It: The Power of Women at Work, “research indicates that if you have non-diverse leadership teams, they tend to make fast decisions because they tend to agree with each other, but they may not make the most effective decisions.” So, diversity may sometimes mean slower decision-making, but this time investment may very well be worth it.

Having a diverse leadership team may also lead to employees feeling more included and thus more productive. In an interview for the Harvard Business Review, 24 CEOs from around the globe agreed that an inclusive culture is one “in which employees can contribute to the success of the company as their authentic selves, while the organization respects and leverages their talents and gives them a sense of connectedness.” When employees see a diverse leadership team that represents them, they may reflect more positively on their own potential and feel more comfortable being their “authentic selves.”

  1. % of all staff who self-identify as people of color, women, LGBTQ, disabled, etc.

There is evidence that diversity across an organization has profound implications on that organization’s ability to grow and remain sustainable. Diversity helps organizations obtain and retain top talent, communicate better with customers, access multicultural markets, and expand locally and globally. Diversity also plays a vital role in an organization’s ability to innovate. One reason for this is that heterogonous talent pools bring different experiences and perspectives to the table. Decision-making processes take longer, but they also produce better results.

Diversity may also improve functionality and productivity in the workplace. It first does so by helping to build stronger relationships among employees and teams. According to Institutional Investor, organizations that build diverse teams are simultaneously likely to create cultures that place a high value in respecting others and differing opinions. This positive culture helps with conflict resolution and other situations that demand mutual respect. Since higher diversity ensures the representation of more perspectives, it may also help improve creativity, problem-solving, and organizations and their staff’s ability to adapt to changes. These benefits translate into the potential for reduced costs by increasing internal capacity and reducing the need for external consultation.

  1. Average age of staff

Achieving a diverse mix of age groups in an organization has two main benefits:

  1. A diverse range of skill sets and perspectives impacts productivity, and
  2. A diverse age-range better prepares an organization to plan for, respond to, and recover from turnover, retirements, and resignations. This type of planning is referred to as “succession planning” and is a critical component to ensuring an organization’s sustainability, adaptability, and efficiency.

The benefits of generational diversity are numerous. In “The Advantages of Diverse Ages in the Workplace,” Lisa McQuerry discusses five business aspects that generational diversity impacts. These include overall diverse skillsets, technology, tradition, mentoring, and continuity. Notably, having a diverse workforce increases internal capacity (and can thus reduce costs) because employees of all ages can learn from each other and share skills.

Next Steps

Learn More in Our Free e-Book:

DEI Made Measurable: Suggestions for Getting Started With DEI Measures Within Individual Organizations

Finalize and Improve Your Measures:

It is not enough to measure diversity. To make real progress and achieve measurable equity, organizations must commit themselves to continual analysis and action. You should complete extensive research to refine and finalize your measures. Make sure you understand potential pitfalls to avoid misusing your measures. Once you research finalize your measures, the “turn the curve thinking” method provides a step-by-step process to get from data to results. You can learn more at https://clearimpact.com/results-based-accountability/turn-the-curve-thinking/.

Learn More and Sign up for the One Year Measurable Equity Challenge

equity culture changeIf you want to get serious about advancing DEI within your organization, Clear Impact Offers a One Year Measurable Equity Challenge.

Each month, we will send out a prompt for consideration and action with your team. We will also send educational resources and video tutorials to support their completion. One of these resources will include more in-depth research on the measures discussed in this blog.

You can complete all tasks at no cost to you or your organization.

Click here to sign up: https://clearimpact.com/solutions/racial-equity/#challenge.