Visible C-suite Support & Better Data ‘Key’ to DE&I Progress

Commitment from the executive ranks and better data are crucial for diversity, equity and inclusion (DE&I) progress, new research has revealed.  

Growing social and political pressure, expanding pay data laws, and a global pandemic that is inflicting disproportionate economic damage on women and people of colour are compelling organisations to confront workplace disparities. However, new research has indicated that progress around this complex issue is largely inconsistent and insufficient. The study carried out by Harvard Business Review Analytic Services and the Society for Human Resource Management (SHRM) in association with software firm Trusaic suggests two key factors are responsible driving forward DE&I progress. They include commitment from the executive ranks and better data. 

The study, which examines the actions businesses are taking to improve DE&I; how successful they are; and where critical gaps stand in the way of meaningful change, also identifies how ‘leaders’ and ‘laggards’ approach DE&I. While the majority of leaders surveyed (65%) say DE&I is a high strategic priority; two-thirds (67%) admit their organisation is, at best, only somewhat successful in creating a diverse, equitable and inclusive workplace. Even among leader organisations, almost half acknowledge they are behind where they should be in improving DE&I. Most laggard organisations report DE&I initiatives are more “style over substance.”

C-SUITE COMMITMENT

The findings reveal that momentum for change must begin in the C-suite. According to the study:

• Half of laggard organisations say they are frustrated by a lack of commitment from leadership; and 72% say they are held back by a lack of diversity at senior levels of the organisation. 
• 77% of leader organisations have visible executive support compared to just 34% of laggards. 
• When the CEO sets the strategy and frequently communicates progress, the company is 6.3 times more likely to have a diverse leadership team; and be a leader in its industry segment. 
• DE&I leaders are significantly more likely than followers or laggards to set goals for levels of diversity among senior executives and board members.

DE&I DATA

The reports also demonstrated that measuring and tracking DE&I metrics are essential to accelerating DE&I progress. Leader organisations regularly monitor DE&I metrics, communicate progress to key stakeholders, and use data to identify interventions and course-correct. The findings revealed that:

• Leaders (70%) are more than twice as likely as laggards (30%) to track all three aspects of DE&I. Leaders also measure progress across a wider range of metrics. 
• Recruiting and hiring are the most tracked diversity metrics. Leaders track both areas much more than laggards. 
• Leaders work far harder to determine whether their staff are treated equitably; and are significantly more likely to track equity in compensation, performance development and feedback, promotions, and access to growth opportunities. 
• A third of laggard companies that track diversity do not track equity. 
• 95% of DE&I leaders measure inclusion goal progress at least annually; 51% track inclusion goal progress at least quarterly – more than twice as often as laggards. 
• More than twice as many leaders have seen inclusion sentiment improvement in the past two years.

CREATING LASTING CHANGE

As a direct result of their DE&I efforts, surveyed leaders reported greater improvements in team diversity, employee engagement, collaboration, pay equity and the ability to recruit top talent. The numbers prove that good intentions are not enough.

“Organisations that commit to correcting imbalances in the workplace are often met with significant challenges. What’s missing is the critical connection point between monitoring DE&I metrics; and using that data to improve the effectiveness of DE&I programmes to create lasting, meaningful change,” stated Robert Sheen, CEO of Trusaic. “Data supports firms in holding themselves to account. Access to timely and reliable data is key to DE&I success.”

Click here to download the survey. 

ACTIONS TO ACCELERATE DE&I PROGRESS

Although many companies have made public statements about DE&I and advancing racial equity over the past year, most are still grappling with where to start. Here are some proven actions that can help accelerate DE&I progress.