In today’s competitive talent landscape, diversity, equity, and inclusion (DE&I) have evolved from being merely buzzwords to becoming strategic imperatives. Research has shown that 76% of jobseekers are looking to work for companies who embrace a diverse workforce. What’s more, 39% of candidates have said they would reject or not apply for a role due to perceived lack of inclusiveness within the company. But how can companies navigate the complexities of DE&I and ensure they’re steering towards a diverse and inclusive future?
Understanding the goals or metrics that indicate healthy DE&I requires organizations to define diversity in the context of their unique workforce and industry. Diversity extends beyond visible traits—it encompasses different perspectives, backgrounds, abilities and experiences. By embracing diversity, companies can unlock innovation, creativity, adaptability and success in an ever-evolving economic landscape.
How can companies ensure they’re making progress on their DE&I strategies? It starts with tracking the right metrics. We’ve broken down the top metrics organizations should be tracking to show a meaningful commitment towards a truly diverse and inclusive company culture.
Demographic metrics
Understanding the composition of your workforce is vital for targeted DE&I efforts. Demographic metrics shed light on representation by capturing the percentage of different groups within your organization. Drilling down to demographic segments shows the diversity of employees by gender, ethnicity, race, age, LGBTQIA+, family status, any disabilities and more. These metrics allow you to identify underrepresented areas, create targeted recruitment initiatives, and evaluate the success of current DE&I strategies.
To ensure that employees are comfortable sharing this sensitive information, it is best practice to ask them to voluntarily self-report their data and keep any statistics completely anonymous and separate from other HR or payroll data.
Key metrics to track:
- Representation by demographic group (employees)
- Diversity of candidate pool
- Diversity of new hires
Source of hires
A successful DE&I recruitment strategy starts with evaluating your sourcing channels. Source of hire metrics outlines where successful candidates are coming from, illuminating the channels that yield the most diverse and qualified applicants. By assessing which sources drive applications from target groups, organizations can align their recruitment marketing strategies with platforms that resonate most with underrepresented talent or specific target demographics. For example, for early careers talent, talent teams might consider emerging channels such as TikTok, as opposed to more traditional sourcing channels.
Key metrics to track:
- Diverse applicants per channel/source
- Conversion rate by source
Retention metrics
DE&I strategies aren’t solely about attracting talent —it’s important to evaluate the impact these strategies have on retention as well. Retention metrics can provide insights into the inclusivity of workplace culture by analyzing attrition rates across demographic segments. For instance, if you’re attracting and hiring diverse candidates, but there is higher churn amongst these employees, it could indicate a gap in how you’re positioning your company, and the actual inclusivity of the culture. Understanding if certain groups experience higher turnover helps pinpoint potential challenges and implement measures to reinforce a culture of inclusivity, equity and respect.
Key metrics to track:
- Voluntary turnover rate by demographic
- Promotion and advancement rate by demographic
- Retention rate of new hires from diverse backgrounds
Internal mobility metrics
Promoting growth and development amongst employees is central to DE&I. Internal mobility metrics assess if employees from all backgrounds are equally participating in learning and advancement opportunities. Examining any disparities in engagement with these initiatives uncovers potential barriers and highlights where to focus new efforts to ensure equal access to growth pathways.
Key metrics to track:
- Participation rates (by demographic)
- Participant feedback
- Learning and development engagement
Employee satisfaction
The effectiveness of DE&I strategies is also reflected in employee satisfaction and engagement. Often, this is assessed through a regular employee engagement survey, to benchmark and track progress. These surveys are an effective tool to assess engagement, while drilling down into specific examples of what’s working and what’s not in your organization —offering a comprehensive view of workplace sentiment.
Key metrics to track:
- Employee engagement survey results
- Employee NPS
- Employee engagement Index
Pay equity
Fair compensation is fundamental to DE&I. Pay equity metrics analyze the difference in compensation between demographics in similar roles. Pay equity metrics allow teams to identify any systemic biases that may unfairly impact employees with diverse backgrounds. These metrics empower hiring teams to cross-reference roles, genders and promotion opportunities, and identify and correct discrepancies to foster an environment where every contribution is valued.
Key metrics to track:
- Gender and Ethnicity pay gap analysis
- Equal pay for equal work
- Promotion gaps
Diversity in leadership roles
Research has shown that true diversity in leadership teams drives innovation and productivity —companies with executive teams rich in gender diversity are 25% more likely to achieve above-average profitability. But it’s something many organizations still struggle to get right, with women of color in C-suite leadership roles constituting a mere 4% in the United States. Monitoring leadership demographics and promotion rates helps identify challenges in creating an equitable path to leadership positions.
Questions to consider:
- How many individuals from diverse backgrounds (genders, race, disabilities, sexual orientation etc) progress to leadership positions?
- Is there a difference in the time it takes for employees from different demographics to achieve promotions?
- Does the career trajectory of non-white employees mirror that of their white counterparts?
Final thoughts
The bottom line? When it comes to DE&I, metrics matter. Clinch gives talent teams access to a range of in-depth insights and actionable analytics to help shape your hiring strategy. Packed with tools to help you streamline the application process, build a compelling career site, showcase your commitment to DE&I, and build robust talent pools for target talent segments —Clinch helps savvy talent teams elevate their strategies. Get in touch to see how Clinch can improve your hiring today.
