Annual Audits Strengthen DE&I Initiatives
Annie Erling Gofus - Oct 28 2021Audits create the data critical in guiding programs to success
DE&I initiatives to increase diversity, equity, and inclusion are an integral part of most organizations’ strategies and were a major theme at this year’s Global Workforce Symposium. For these initiatives to have the desired impact, company leaders must make sure to properly implement them. Without adequate planning and implementation, many organizations will not achieve the return on investment in their DE&I efforts.
Harvard Business Review (HBR) noticed that high-profile DE&I-related lawsuits involving large corporations were making the news. Despite having DE&I plans in place and paying millions of dollars to settle discrimination claims, some of these organizations faced new lawsuits years later.
Not every organization will find itself at the center of discrimination claims, but many wonder why their carefully planned DE&I initiatives aren’t working. DE&I plans have been included in strategic initiatives, but many saw little progress in actual DE&I metrics. From 1985 to 2014, among US companies with more than 100 employees, the proportion of Black men in management increased just slightly—from 3% to 3.3% — and white women saw m ore signifigant gains—from 22% to 29%.
HBR found that the standard tools executive leaders often turn to for DE&I implementation can actually hinder rather than help progress. These tools include diversity training, hiring tests, performance ratings, and grievance systems, and are designed to police managers’ decisions and actions, which can decrease the number of women and minorities in management.
Struggling DE&I initiatives share common factors
Every organization’s DE&I plan and goals are different, but many have the same stumbling blocks that keep them from achieving the desired organizational results.
One of the most common factors in a struggling DE&I plan is the lack of standardized data and metrics. Standardized measurement tools and information must be embedded into talent recruiting to ensure that DE&I initiatives are being applied where they create the greatest impact. Uniform measurement and reporting are vital for robust and successful talent acquisition methods.
If an organization is struggling to find diverse candidates it is time to explore why attracting and developing diverse talent is difficult. Understanding how an organization attracts and develops diverse talent should reveal its reputation when it comes to DE&I. Through interviews with current employees and diverse candidates, an organization can understand whether candidates have a positive impression of an organization’s DE&I efforts.
Rather than relying on compulsory DE&I training, organizations should lean into candid conversations, welcome feedback, and be completely transparent with DE&I goals.
Annual audits boost the success of DE&I initiatives
Many DE&I initiatives are well-intentioned but imperfect. Ernest Owens, an assistant professor of management at the University of St. Thomas, recommends an annual audit of your diversity initiatives to define clear accountability for delivering the desired outcomes.
Each year, organizations should audit their DE&I efforts to determine expected outcomes, identify variances, and reconsider last year’s plan. This auditing process can also determine accountability and assign tasks.
To begin, DE&I requires a clear strategic goal. DE&I initiatives without a clear definition of the problem and a well-defined plan are doomed to fail. Next, a DE&I plan needs a baseline that can be used to set goals and measure growth.
The DE&I audit process will, of course, result in data and facts, but also lessons learned. The most successful organizations will then demonstrate how those lessons can be applied to improving next year’s DE&I efforts, including corporate strategy, product development, and recruitment.
Learn More About DE&I Best Practices
To learn more about what senior HR leaders are doing, click here to read The Road to Diversity, Equity, and Inclusion: What Companies Are Doing and Why report. In addition to our new research, join the conversations happening right now in the community.