How to Leverage DEI Metrics to Boost Your Workplace

DEI has been a hot topic in HR for the last few years. In today's market, you must have DEI measures in place, or you'll see stellar candidates sign for your competitors instead.

However, implementing DEI is just the first step. How do you know which initiatives to implement? How do you ensure they will be well received by your employees and have a positive net effect? 

While there's no magic wand, DEI metrics can give you invaluable guidance. They help you measure to what extent your organization makes everyone feel included and accepted at work.

This article delves into how you can leverage DEI metrics to enrich your workplace culture and enhance overall organizational performance. By effectively understanding and applying these metrics, you can create a workplace that truly values and reflects the diversity of experiences and perspectives.

🏳️‍🌈 What are DEI metrics?

DEI metrics refer to specific measurements that organizations use to assess the effectiveness of their Diversity, Equity, and Inclusion (DEI) initiatives. These metrics are vital for understanding how diverse an organization is, whether all employees have access to the same opportunities (equity), and if every individual feels valued and included regardless of their background.

DEI metrics take the temperature on the DEI efforts at your workplace. They show you your progress and if you're aligned with your goals. 

At first glance, measuring such a broad and intangible concept as DEI may seem challenging. Roland Fryer, Harvard University professor of economics and Equal Opportunity Ventures founder, recommends facing DEI challenges with the same attitude as any business task:

"More corporate leaders should be trying to solve diversity challenges in the same way they solve problems in every other aspect of their business: through intelligent use of data, rigorous hypothesis testing, and honest inference about what is working."

When you break down DEI, it's clear that most comes down to tangible metrics that can easily be measured. And staying on track with your DEI metrics is vital for organizational success and employee well-being. When DEI measures are adequate, everyone feels appreciated and welcome. 

Enjoying a sense of belonging at work has shown to be crucial for happiness, productivity, and, thus, profitability. It can be easy to forget, but a workplace doesn't just allow your employees to make a living – it also fills an important social function that tremendously impacts overall well-being.

Belonging thus positively impacts HR effectiveness. 

➡️ Check out our article on other key HR metrics to stay on top of your game. 

➡️ And see how data-driven HR has become increasingly crucial for effective strategic decision-making. 

🧩 Key metrics for measuring diversity, equity, and inclusion: The 10 DEI metrics to track ASAP

Equity metrics

Pay equity

Pay equity means employees get paid the same amount for the same work. 

To calculate pay equity, you should start by identifying similar roles in terms of responsibilities, skills, and qualifications. This comparison should be based on the content of the job, not job titles.

Then, collect comprehensive data on current salaries, bonuses, and other employee benefits, especially those in comparable roles. Account for legitimate factors influencing pay differences, such as experience, education, tenure, performance, and location.

With all this data at hand, it's time for some statistical analysis: 

• Calculate the average and median pay for each role or job category.
• Perform a regression analysis to identify pay disparities that legitimate factors cannot explain.
• Compare your internal data with industry standards or regional data to understand where your organization stands in the market.

Look for patterns or trends of pay differences across gender, race, or other demographic groups in similar roles.

All these steps will allow you to develop a pay-equity ratio. This ratio compares the average earnings of different demographic groups. 

For instance, women's earnings are a percentage of men's in the same role.

Custom access to resources

Equity means that people have access to resources in a way that's adapted to their individual needs. 

For example, if you offer employee benefits, a day off may be more appreciated by a new parent. In contrast, an employee fresh out of college may prefer access to sales training with a manager. Or, if you're giving gifts at the end of the year, a bottle of wine can make a wine enthusiast happy, while it won't be appreciated by someone who doesn't drink. 

Accessibility falls under this metric.

Suppose employees with reduced mobility can't properly access the office or move around freely. In that case, you need to work on it to ensure equity. The same goes for people with reduced hearing. Are they getting the right equipment to actively participate in meetings? 

Other examples of custom access to resources include a room for praying or meditation and nursing rooms for new moms.

Diversity metrics

Diversity metrics help you track diversity in hiring, promotion, and specific initiatives to encourage collaboration across demographic groups.

Diverse companies have been shown to outperform their competitors, so focusing on diversity benefits both people and profit!

Representation ratios 

Look at your marketing. Does it properly represent the diversity of your workforce? If you've only got a stereotypical persona, it may deter people from diverse backgrounds from applying to your organization. The team members who aren't represented will feel excluded, and microaggressions like these can add up over time and lead to lower workplace satisfaction and higher turnover.

To calculate representation ratios as a diversity metric:

1. Segment workforce by group: Divide your workforce into demographic groups based on diversity factors (e.g., gender, race, ethnicity).
2. Count employees in each group: Determine the total number of employees in each demographic group.
3. Total workforce count: Calculate the total number of employees in your organization.
4. Calculate representation ratio: For each group, divide the number of employees in the group by the total workforce count. This gives the representation ratio for each demographic group.
5. Compare to benchmarks: Analyze these ratios in the context of broader industry or regional demographics to assess the diversity of your workforce.

👀 For example: A company segments its workforce by gender, race, and age. If they have 1,000 employees, and 250 are from underrepresented racial groups, the representation ratio for these groups is 25%. The company can compare this ratio to industry benchmarks to identify diversity gaps.

Leadership demographics

If you have a diverse workforce, but the people in leadership positions are only white middle-aged men, you have a problem.

Assess the leadership demographics and, if necessary, implement measures to increase diversity. 

👀 For example: A company analyzes the demographic makeup of its leadership team. They notice that only 10% of senior positions are held by women in a workforce where 50% are women. As a result, they set targeted initiatives to improve leadership diversity, tracking progress annually.

Candidate demographics

Similar to the previous point, if you're not attracting diverse candidates and you see a significant bias toward one gender, age group, or race, you may want to revise your job ads. 

Perhaps you are using gender-coded language that deters people from applying since they already feel they won't fit in, even if they have the right skills.

ERG participation

Employee Resource Groups (ERGs) are initiatives meant to help employees from diverse backgrounds feel included. In these groups, people can learn about each other's differences (and similarities!) as they join forces and collaborate to benefit both the company and the individuals. 

👀 For example: Suppose you have an employee resource group where the representation from different demographic groups is skewed compared to your workforce overall. In that case, you'll want to examine why. Then, take the necessary measures to make everyone feel welcome.

Diversity in hiring panel

Affinity bias occurs when we like people who resemble us purely because they feel similar to us. While that's a natural biological phenomenon, it's essential to be aware of it in work and hiring situations. 

You want to ensure that every candidate is evaluated based on their skills and the value they could add rather than their likability.

👀 For example: To counteract affinity bias, the HR department assembles diverse interview panels for all roles, ensuring they include members of different genders, races, and backgrounds. They track candidate feedback and hiring panel composition over time to ensure diversity.

Promotion rates

To calculate promotion rates as a diversity metric, follow these steps:

1. Segment your workforce by group: Divide the workforce into demographic groups based on diversity factors (e.g., gender, race, ethnicity).
2. Count promotions: For each group, count the number of employees who received promotions during a specific period.
3. Calculate total employees per group: Determine the total number of employees in each group at the start of the period.
4. Calculate promotion rate: For each group, divide the number of promotions by the total number of employees in that group to get the promotion rate.
5. Compare rates: Analyze the promotion rates across different groups to identify disparities or trends in promotion practices related to diversity.

Inclusion metrics

Internal talent mobility

Internal talent mobility refers to an organization's free flow of talent and ideas. 

👀 For example: You have a vacant marketing manager position. Instead of hiring, with all the risks and costs it implies, you look for talent in your workforce. 

Transfer between departments, mentorship, and taking on supplementary projects are other examples of internal talent mobility. From a DEI perspective, examining the demographics of the people offered to participate in internal talent mobility initiatives is essential. 

To calculate internal mobility rates as an inclusion metric, follow these steps:

• Gather data on mobility events: Collect data on all such events over a specified period, including the demographics of the employees involved (gender, race, age, disability, etc.).
• Segment data by demographic groups: Break down the mobility data into different demographic categories to identify trends and patterns.
• Calculate mobility rates: For each group, calculate the mobility rate by dividing the number of employees who experienced a mobility event by the total number of employees in that group.
• Compare rates across groups: Analyze the mobility rates between different demographic groups to identify disparities. For instance, compare the rate of promotions among women versus men or underrepresented racial groups versus majority groups.
• Adjust for representation: Consider the overall representation of each group in the organization. Disparities in mobility rates may be more significant if a certain group is already underrepresented.

Sense of belonging

DEI initiatives should make everyone feel welcome – even those who don't necessarily fall into a minority group. ‍

Marilyn Nagel, Co-Founder and Chief Advocacy Officer for RISEQUITY, highlights the importance of belonging as a key element of all DEI initiatives: 

"Belonging – is the element of a corporate or organizational culture where there is a sense of acceptance, psychological safety, inclusion, and identity for everyone. The scope of our work is about creating a culture of respect and inclusion - it is not one where it is accepted to be inappropriate, rude, and, at times, bullying those who don't hold the same beliefs."

👀 For example: To assess the sense of belonging, conduct bi-annual surveys asking employees to rate their feelings of acceptance, psychological safety, and inclusion. Analyze results across different demographic groups to identify areas for improvement.

🔢 The most important DEI metrics for someone just getting started with measuring DEI

It can feel intimidating to see a massive list of DEI metrics. You have your employees and organization's best interests in mind, so ideally, you should implement all of them like yesterday… right? 

Not necessarily. 

It's better to start slow and do it properly and then implement more DEI metrics over time.

Here are our recommendations: 

1. Workforce demographics: Assess the composition of your workforce in terms of gender, race, ethnicity, age, disability, and other relevant diversity factors. This data is often readily available in HR systems.
2. Promotion rates by demographic group: Measure how promotion rates vary across different demographic groups. This helps to evaluate equitable career progression opportunities within the organization.
3. Employee turnover by demographic group: Analyze turnover rates for different groups to identify if specific demographics are leaving the organization more than others, which might indicate issues in inclusion or equity.
4. Pay equity: Compare compensation across demographic groups in similar roles or job levels to assess if pay disparities need to be addressed.
5. Inclusion score from employee surveys: Include questions in your employee engagement or satisfaction surveys that specifically address feelings of inclusion, respect, and belonging. This can provide valuable insights into the inclusivity of the workplace culture.
6. Representation in leadership: Look at the diversity representation in leadership positions. A diverse leadership team can indicate an inclusive culture and equitable growth opportunities.
7. Participation in DEI training and initiatives: Track participation rates in DEI-related training programs and initiatives. High participation rates can be a positive indicator of organizational commitment to DEI.

🪜 How to implement DEI metrics in your organization in 9 steps

By now, you have an idea of what metrics to focus on. Based on those DEI metrics, it's time to promote diversity, equity, and inclusion in the workplace if you haven't done so already.

Define DEI objectives

Clarify what diversity, equity, and inclusion mean for your organization. Based on your assessment and employee feedback, in what areas do you struggle the most? That's a great starting point. 

👀 Example: A tech company realizes through employee feedback that its engineering department is significantly male-dominated, with women and non-binary individuals feeling underrepresented. The objective could be to increase gender diversity in technical roles by 20% over the next two years.

Identify key metrics

Choose metrics that align with your DEI goals (e.g., workforce composition or pay equity).

👀 Example: To align with the objective above, key metrics might include the gender breakdown of the current workforce, the percentage of female and non-binary candidates in the recruitment pipeline, and employee sentiment regarding gender inclusivity.

Select methods and tools 

Decide which methods and tools you'll use to gather accurate DEI data and analyze trends.

👀 Some examples of tools: 

• Surveys and questionnaires – We recommend anonymous employee surveys so everyone feels comfortable addressing sensitive topics.
• HRIS data – This can be helpful, especially for diversity metrics. Is your talent pool skewed towards one or a few demographic groups? What about employees who get promoted or offered additional training? 
• Focus groups – These groups allow for some people to deep-dive into DEI at their workplace.
• Performance metrics – Is performance continuously higher in some demographic groups? Why? 
• Promotion trends – Look at promotion trends to identify any bias.
• Benchmarking tools – To assess your performance in DEI vs. industry standards.
• Third-party assessments – One method is using listening sessions to identify potential blind spots in your meetings and conversations.‍
• Exit interviews – Include a section about DEI in your exit interviews. People who have resigned tend to be more honest since they've got nothing to lose.

➡️ Employee feedback is valuable for your DEI metrics – if you know how to collect and interpret it. Get the rundown on the best employee survey tools in our guide.

Ensure privacy and compliance

Throughout the process, it's essential to adhere to legal and ethical standards for data privacy. 

👀 Example: Consider GDPR and other privacy regulations by anonymizing personal information and securing data with encryption.

Communicate the importance of DEI metrics 

Communicate the importance of DEI metrics to your entire organization (not just leadership). Make all stakeholders aware of the significance and purpose of the DEI metrics you've chosen to focus on. 

👀 Example: Regularly share updates on your DEI progress through your annual sustainability report, highlighting the importance of DEI metrics and showcasing improvements and goals.

Integrate DEI metrics into your company's KPIS

Integrating DEI metrics into the overall business and employee performance indicators will reduce the risk of DEI metrics being considered secondary or less relevant.

👀 Example: You can incorporate DEI metrics into your corporate scorecard, influencing executive compensation and holding leadership accountable for progress in DEI objectives.

Monitor regularly

Data in itself is powerless – it's the insights and following actions that will make a difference. Set a schedule for regular measurement and review of DEI metrics.

If your people analytics reveal that your workforce stabilizes and employee satisfaction increases, you're on the right track!

Develop action plans following your data

Time for change! Use data to inform DEI strategies and actions. 

👀 Example: You identified a lack of diversity in leadership roles. To remedy this, you can launch a Leadership Development Program aimed at women and underrepresented minorities, using DEI data to tailor the program’s focus areas.

Track progress and adjust

Continually assess and refine DEI initiatives based on metrics outcomes/progress. 

👀 Example: You notice that progress is slow in addressing a lack of diversity in leadership roles. You can consider increasing your investment in mentorship programs for underrepresented employees.

➡️ Transform DEI metrics into action with Zavvy

As mentioned above, DEI metrics won't transform your business on their own. 

You need to regularly assess them, create a plan, and take action on it. The last step in successfully implementing DEI metrics at your workplace is to review the initiatives regularly and see if they align with the desired outcomes, and if not, course-correct. 

If you follow the above steps, you will have a solid DEI strategy that will help you reap the benefits of diversity, equity, and inclusion in the shortest time.

But how do you do it practically without getting lost in documents and spreadsheets?

Zavvy is what you're looking for. With Zavvy, you'll get support with the entire process for DEI metrics, from A to Z.

• 🎯 Our goal management software helps you set DEI goals based on your chosen metrics.
• 🤫 Use the anonymous feedback tool to create surveys where your employees can freely share their feedback on the DEI initiatives. Since DEI can be a sensitive topic, it's a smart move to use anonymous surveys so you can get more honest answers.  
• 💬 The one-on-one meeting software is perfect for hosting all kinds of one-on-one meetings, including exit interviews. Exit interviews are golden opportunities to ask for feedback on the DEI measures and how happy the employee felt with your approach to DEI.

📅 Want to try Zavvy for free for your organization? Book a demo with us – no strings attached.

❓ FAQs

How to benchmark DEI?

Once you've selected your DEI metrics, got started with your initiatives, and measured the results, the next question becomes: are the results satisfying or not? A way to answer that question is by benchmarking DEI against industry data and local talent-market data for your sector.

How do you measure DEI effectiveness?

You can start by looking at the following areas:

• attrition;
• performance;
• promotions;
• leadership pipeline;
• employment pipeline;
• pay equity;
• inclusion.

Then, select at least one metric per area as a starting point. Strategize with management about implementing projects and activities that will help you reach your targets.

After a few months, benchmark your results against industry standards and have your employees complete anonymous feedback surveys (Employee Net Promoter Score).

What are the 4 pillars of diversity and inclusion? 

The 4 pillars of diversity and inclusion are: community, growth, education, and engagement. 

• Community: Focusing on inclusion in day-to-day life. One of the most important things for employee satisfaction – and, indirectly, performance – is that the employees have a sense of belonging. Fostering a welcoming and inclusive community culture is key. 
• Growth: Having a diverse talent pipeline and ensuring equitable access to climbing the corporate ladder. 
• Education: Offering multiple opportunities for employees and management to participate in training, seminars, workshops, and other educational activities. These should ideally have an element of interaction and room for relevant discussions. 
• Engagement: Collaborating with stakeholders – clients, investors, and partners – on DEI initiatives. An example could be hosting a DEI summit for stakeholders. Also, choosing to support businesses run by minorities when there are multiple equivalent options.

What are examples of KPI in D&I? 

There are many KPIs in D&I. Here are some common ones:

• retention across employee groups;
• diversity of partners, clients, and vendors;
• diverse employee promotion rate;
• leadership representation;
• workforce diversity;
• candidate demographics;
• employee feedback on DEI initiatives (through quarterly Employee Net Promoter Score (eNPS) surveys).