Invest in Data and Analytics To Drive DEI Program Results

Recent investigative reporting in The Washington PostOpens a new window  reveals the limits of corporate power to effect change on social justice issues. The 50 biggest public companies in America issued statements and collectively pledged nearly $50 billion to address systemic racism in the wake of George Floyd’s 2020 murder and the Black Lives Matter protests that followed. 

The results have been negligible so far. JPMorgan and Bank of America committed nearly $45.2 billion to the effort. But the investigation found that 90% of the money those organizations committed was allocated as loans or investments that could potentially create profits for the companies.   

It’s laudable for company leaders to take a stand on social justice issues — employees increasingly demand it. The companies named in the report had good intentions. But companies can make the most progress where they have the greatest influence: their workplace. Organizations that invest in tools that deliver quantifiable insights and drive DEI accountability in the workplace can truly make a difference. 

Data and Analytics Are the Key 

“Data driven” is an overused phrase for a good reason. The use of data and analytics has completely transformed the way companies operate. Businesses collect data on every aspect of operations and apply it to drive improvement. But there’s still a lot of room for growth when it comes to managing the company’s most important asset — its people. Our researchOpens a new window shows that only 7% of people leaders use apps or technology-based tools to track employee issues at the manager level. 

That’s an opportunity for companies to invest in data and analytics so they can take affirmative steps toward achieving DEI goals. Effecting real change requires tools that empower companies to define a baseline (i.e., their current status), identify objectives and track progress toward goals. Key data for DEI includes HR metrics on hiring, retention, promotions, leadership and pay equity, plus employee relations data on issues like discrimination complaints and investigations. Analyzing demographic data of performance issues, for example, can uncover areas in an organization with possible biases that might otherwise have remained hidden. This unlocks the ability for the teams to dig deeper, understand what’s going on and address any areas that need it. 

Identifying the baseline is critical because that will allow the company to set realistic objectives, such as demographics, that better reflect the community. A baseline shows where the company is now and suggests where it needs to go to make progress on DEI goals. 

Transparency and Technology Are Essential 

Being open with employees about objectives and progress is also critical. Employees want to work with organizations that share their values, so making DEI a priority is helpful from a recruiting and retention standpoint. But it’s essential to go beyond statements and share goals and updates on progress. This is how companies build accountability and trust in the employer brand. 

Virtually all companies track employee relations (ER) data, but according to our earlier researchOpens a new window , fewer than 20% share aggregated information on outcomes with employees. That’s a missed opportunity to build confidence in ER processes, which is a necessary component of establishing a reputation as a fair and transparent organization. Organizations can address that by issuing yearly reports with aggregate data, proactively identifying areas for improvement and sharing details on how the company invested in DEI. Recently, Microsoft followed this approach, approving a proposal to publish a report on the effectiveness of its workplace sexual harassment policies.  

Technology that enables consistent documentation and streamlines people management processes can also help companies drive DEI progress. Managers need tools to document and track ER issues and record employee success, feedback and goals within their business workflow. It’s also helpful to signal when to escalate issues to HR to ensure consistency. 

Better documentation at the manager level can be especially powerful when HR and ER professionals cross-reference it with business data (e.g., sales quotas, productivity information, etc.) to get a holistic view of the workforce. This allows HR and ER to be proactive, identifying and addressing positive and negative trends to expand the use of best practices and prevent adverse outcomes. 

We Can and Must Do Better 

The Washington Post’s investigative reporting underscores the limitations of making statements and pledges supporting social justice initiatives. Those actions are commendable, but they aren’t enough. Organizations can make measurable progress that has a more immediate impact by focusing on their own workforces, where they have the greatest influence. 

Organizations can use data and analytics to create accountability, track emerging issues and adjust programs to drive results with the right approach. They need quantifiable metrics on impact, which only data and analytics can deliver. We can and must do better going forward, and DEI programs that focus on good intentions instead of hard numbers won’t cut it in 2022 and beyond. 

How are you tracking your success in your DEI program? Share with us on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

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