Data on diversity in the workplace: what is diversity data and how to collect it?
Teresa Norman, a consultant at EW Group, evaluates how to collect diversity data and why it is so important to progress your DEI journey.
When I am running diversity and inclusion workshops, I often ask participants: “What do senior managers want?” The answer is always: “We want data”.
More than 70% of business leaders have said that increasing diversity and inclusion is a top business priority. And it is data that tells leaders what is working and where they need to take action.
Learning how to collect and understand diversity data is a critical part of the work of Diversity and Inclusion. There is no point in collecting data unless it is analyzed and the analysis leads to real-world change where there is a greater experience of belonging through inclusion.
The first step is to understand what company diversity data is and how to collect diversity data.
What is diversity data?
The basis of diversity data is the different protected characteristics of your workforce and job applicants so it’s a way of collecting people’s ethnic identity, sexual orientation, disability status, gender identity etc. It is anonymized so it is never about identifying one person but about looking at trends across different processes.
Analysis of your data can tell you if you are representative of your local community or the community you serve. It will tell you which groups are in the majority in your company and if any groups is under-represented.
It will also tell you if any diversity initiative you are working on is having an impact.
Diversity data will help businesses understand if action is needed. Analyzed diversity data could, for instance, tell you if some groups are not promoted at the same rate as other groups, or if certain groups do not breakthrough at different points in the recruitment process.
How to collect diversity data
When collecting your data on diversity in the workplace, you may come up against some challenges.
Here are our top tips on how to collect diversity data, and how to use your diversity data in the workplace:
1. You need good communication with job applicants and employees to explain why this data is so important
It can seem intrusive that an organization wants this information so you need to be really explicit about why it is so important.
2. You need baseline evidence
Your baseline diversity data could be the composition of your workforce or your service users. Using this benchmark, you can show how it changes over time and effectively demonstrate the success of any future initiatives.
If you don’t have enough information about the service users, you can use sources like the Office of National Statistics to gather approximate diversity data e.g. ONS could give you the overall profile of an industry.
3. You need to work out what is measurable
What can your systems tell you? If you want to, for instance, focus on promotion rates of different groups, can your HR systems give you this information?
Do you have a system for analyzing your recruitment data so that you can identify diversity patterns? Are you collecting information on service users so that you can report on the takeup of services?
Working out how to collect diversity data can be complex, so you will need to decide what you wish to know, and what information you can collect. You will achieve greater analysis if your diversity data collection is purposeful and focused.
4. You need to be able to report on trends
After you have collected your diversity data, you might find powerful evidence for your initiatives by looking at trends over time.
The Civil Service is, for instance, able to look at the proportion of women in different grades in different departments over years.
If this kind of evidence is available to you, you could make a powerful case for the need to accelerate progress or that enough progress is being made. You can then show how your initiatives are making a difference over time.
5. Decide on your reporting points
Sometimes the reporting points will be dictated by legislation e.g. on the Gender Pay Gap or if you are in the public sector, to comply with the Public Sector Equality Duty, you will need to make annual reports.
In other sectors, you can choose the times you will be reporting back. Give yourself reasonably long lead times. It takes time to make a difference.
6. Diversity data is not enough, it needs analysis
Collecting diversity data is not enough on its own. It needs analysis, and it needs to be coherently presented.
If the diversity data shows that certain groups are not accessing your services or breaking through in recruitment, then this needs an explanation as to why it is happening and why it matters, and of course, what you are going to do about it.
Senior managers are busy people who need to know why they should invest time in changing outcomes. As you progress your strategy, ideally, you will be explaining how the action you have taken has created improvements in results.
Your diversity strategy has the power to make your organization more innovative, improve staff engagement and deliver better results. But it can only do this if it is underpinned by robust data. Your data gives you the power to act.
Once your diversity data has guided you to where you should focus, you can then set your evidence-based strategy. You can then go back to your baseline data and see whether your actions have generated results.
Ask us about how we can help you to capture and analyze your diversity data.