Submitted by Darryl
As the United States becomes more aware of the subtle power structures and struggles within society, companies are placing unprecedented emphasis on diversity, equity, and inclusion (DE&I). For those who are still coming to terms with the concept, here is how to start.
DE&I broadly outlines how an organization tries to create an environment of belonging for people of minority or marginalized identities. The ‘party analogy’, popularized by diversity advocate Vernā Myers, describes diversity as being invited to the party and inclusion as being asked to dance. Equity, then, is being able to attend the party without any additional obstacles.
Start With Data Governance
An equity audit can help you to get a clearer picture of the present power disparities within your organization. Such an audit studies the fairness of your company’s policies, programs, and practices, and how they directly or indirectly impact your employees.
Preparation is essential when planning an equity audit. It is prudent to consult your legal department to determine who should be able to gather and access the information. You might consider talking to a specialist, such as a data governance consultant, to pre-empt any issues and to manage the confidentiality of the data and subsequent reports.
A solid data governance strategy and policy will also help you to gather crucial information. People generally feel more willing to volunteer information when the organization is transparent and clear on the purpose of its collection and use.
For example, many people may prefer not to self-identify with regards to their sexual orientation or disabilities due to fear of resulting bias. While they can choose not to disclose certain information, these people might feel more comfortable doing so after reading up on your data governance policy.
The organization’s position on data governance also reflects its values on the whole. The more respectful a company is of an individual’s data, the more respectful of the individual it appears to be. DE&I applies here as well, as a more diverse data governance council will be more attuned to equity issues that affect trust in the handling of personal data.
The Equity Audit
Before conducting your equity audit, identify the fields that you want to collect. The information should help break down your workforce into various categories, such as race, ethnicity, gender, disability, age, sexual orientation, sexual identity, religion, veteran status, and more.
Have a look at your hiring rates. Do hiring rates differ for people from different demographics? According to the US government’s Four-Fifths Rule, the selection rate for minority groups should not be less than four-fifths (or 80 percent) of majority groups. Adverse impact is defined when underrepresented groups are disproportionately eliminated in the hiring process.
Another key indicator of equity in your company is the rates of promotion for various demographics. Are men and women being promoted at the same rates? How about employees from the same gender but of different races? It is common for companies to try to boost diversity numbers by hiring junior-level employees from minority backgrounds. However, this does not necessarily translate to meaningful change.
Aside from internal mobility, there are other statistics of interest such as rates of compensation, access to and usage of benefits like paid leave, and turnover rates. When sorted by demographic group, this information will form a telling pattern about any inequity experienced by your employees.
Next, have a look at your senior management team and board members. DE&I should be reflected at the top levels of your organization. When people with decision-making powers come from diverse backgrounds, it is more likely that they will ensure more inclusive and equitable treatment of the rest of the staff.
Finally, create a list of the policies and practices of your organization. This could be anything from your company culture manifesto to performance evaluation guidelines and paid leave policies. These major practices that the company engages in may not be objective and could inadvertently affect disadvantaged employees.
Leverage the Data
With your company’s equity audit data in hand, you can create a viable plan to achieve DE&I goals. Start by benchmarking your organization against others in your industry and region. This will help you to compare your current situation and provide insights on any industry-wide issues.
Set achievable and progressive goals. Aiming to increase the percentage of women of color in your workforce from 2 percent to 20 percent within a year is an unrealistic goal. However, you can aim for 5 percent in the first year, and increase it to 10 percent the next. This keeps your organization invested in driving continuous change.
Present your plan in a simple and comprehensive fashion with clear targets. For instance, hiring managers do not need (and should not have) access to detailed data for the entire organization. They only need snapshots of current and target diversity statistics.
Show that you are truly committed to DE&I by being transparent during the entire process. By making your company’s goals public, you accept social accountability which is more likely to motivate you to achieve your aims. One way to do this is to empower employees to track DE&I milestones and share regular updates on the company HR blog.
Diverse workplaces are the engines that drive innovation and creative problem-solving. These are skills much needed in our current economic climate. By incorporating diversity, equity, and inclusion in your company culture, you can build a stronger company where all members of the team feel a sense of belonging and work towards a central purpose.