Understanding your workforce diversity

The disruption caused by the pandemic has strengthened focus on diversity and equality. As stakeholders and investors expect more transparency and commitment from organisations, building an inclusive and diverse workplace has never been more important.

Why collect diversity data?

Collecting diversity data is the first step in enabling organisations to analyse and understand the diversity of their workforce and highlight inequalities that might exist in the workplace. Being able to perform meaningful analysis allows employers to implement targeted and focused initiatives to make a real change to their workplace culture, achieve their inclusion and diversity goals and help mitigate risks of unconscious bias and discrimination.

In addition, stakeholders are increasingly demanding that organisations report on workforce diversity and tackle inequalities including in the context of their Environmental, Social and Corporate Governance (ESG) agendas. As a result, the collection of data on diversity characteristics such as gender, ethnicity, sexual orientation and disability is becoming more of a priority for organisations.

The collection of diversity data can be complex

Organisations need to navigate a range of legal, cultural, technological and communication obstacles to complete a successful data collection exercise. It is important to involve the right stakeholders at the outset and proactively plan and agree on a strategy for the gathering of this data.

However, being transparent about workforce diversity is also an important step towards creating meaningful change. It not only demonstrates a strong commitment to diversity, but also strengthens accountability for organisations that are committed to promoting fairness and addressing inequalities.

Factors to consider

Strategy and planning

The key to overall success is putting in place a clear strategy which sets out an organisation’s priorities and approach for data collection. This should incorporate legal and data privacy requirements, cultural considerations, the use of data analytics and a communications plan.

Legal and cultural considerations

Given the sensitivity of the data, when devising a data collection strategy, it is essential to factor in legal data privacy requirements, discrimination risks and cultural factors.

Technology and systems

It may be possible to adapt existing HR systems to collect and integrate diversity data with existing information. Alternatively, separate independent systems can be used, particularly when carrying out ‘snapshot’ reviews and/or anonymous surveys.

Data and analytics

Clear analytics and visuals are key to spotting trends, identifying focus and risk areas, and creating actionable insights which organisations can use to drive change.

Developing a communications strategy

Communication plays an integral role in building trust, increasing response rates, and implementing positive cultural change.

Understanding global nuances

Each of the issues above will be made more complex where organisations are collecting diversity data globally and they will need to be particularly aware of the legal and cultural nuances of different jurisdictions.

Benefits of collecting diversity data

Some benefits of collecting and analysing diversity data include meeting stakeholder expectations to report on diversity and equality, achieving ESG diversity reporting targets, complying with possible upcoming regulatory reporting requirements, identifying focus areas and implementing targeted and impactful initiatives, reviewing diversity and inclusion at all stages of the employee lifecycle and demonstrating progress against key social objectives.

In conclusion ...

Collecting workforce diversity data can be complex and employers need to be mindful of data privacy considerations and discrimination risks. As a first step, employers should start considering the diversity data they currently have available and whether it is sufficient to enable them to carry out meaningful analysis of their diversity profile.

Collection and analysis of further diversity data enables employers to understand where potential problems lie and implement targeted and focused initiatives to make a real change to their workplace culture and to mitigate risks of discrimination whilst fostering a sense of belonging in an organisation.

In turn, when employees feel like they can bring all of themselves to the workplace they feel empowered to contribute and are the most productive version of themselves. Through the accumulation of small and consistent actions and behaviors, occurring on a daily basis in a way that demonstrates respect, people feel valued - and that's when businesses can start to change mindsets and culture.