Scroll down to watch the recording and download Solange’s deck!
In our previous webinar and blog post, we addressed how DE&I performance should be analyzed and “spun” into a compelling story to address the investor stakeholder. What investors care about is sustainable financial performance and we highlighted the relationship between diversity, HCROI and profitability. We showed, with evidence how diversity improvements generated higher HCROI and how HCROI is linked to profitability performance, so if you want to improve profitability, focus on improving your diversity!
“Show Me The Money!”
Let’s consider the next stakeholder: Employees. The fundamental premise is that in today’s climate, employees and candidates don’t want to hear what you could possibly offer them in terms of opportunities, learning and development, advancement, etc., they want you to show them EVIDENCE of how you are actually treating your employees, especially those that look like them. This generation of workers, comprised mostly of Millennials and Gen Z’s, are interested in understanding your “track record” on several critical areas, directly related to their experience addressed in the table below. Promises are empty, proof is compelling, so provide them evidence!
The video and the deck for download are available at the bottom of the article
| Issue | Evidence |
| Learning and Development | Average number of learning/development opportunities offered to employees by job level, function, tenure, etc. |
| Pay Equity | Average pay by job classification by race, gender, ethnicity, LGBTQ+, veteran status, disabled, etc. |
| Mobility and Advancement | Average time to promotion by job level, function, race, gender, ethnicity, etc. |
| DE&I | Benchmark to competitors and/or local labor force by job level, function, race, gender, ethnicity, etc. |
Some compelling information you can show is the organization’s DE&I performance. Easy analytics will allow you to communicate you level of diversity captured by these illustrations:
Chart 1: This chart shows that the company is not as diverse as all other competitors.
Chart 2: This chart shows that the company is primarily comprised of women and that they employ proportionally more women that their competitors.
Chart 3: This chart shows that the company’s labor force reflect the local market for talent.
Chart 4: This chart shows diversity by race and ethnicity.
Organizations that trail their industry competitors have an opportunity to improve their diversity performance and communicate progress to the market for talent.
What Managers Want to Know About DE&I Initiative Impact
If organizations are providing opportunities in these areas, and employees needs are fulfilled, organizations find that they have reduced attrition and longer-tenured employees. Not only will they be “doing good”, they will be “doing well” because more satisfied employees are more productive and stay longer, which avoids costs associated with talent replacement. The economic imperative of DE&I impact is proven out in decades of academic research and follows this path:
And by using the Attrition Cost Calculator, https://hcmoneyball.outgrow.us/Attrition_Cost organizations can quantify the financial impact of attrition reduction. For this organization that has 6,280 employees could avoid $184 million dollars of cost by reducing their attrition from 20% to 15%. How much should the organization spend to reduce attrition and avoid this cost?
The best way to make the case to current talent and candidates to engage with the organization is to prove with evidence what experiences they can expect related to learning and development, advancement, and other programs they will enjoy. Demonstrate your DE&I competitiveness.
The best way to make the case to management to support investments in DE&I initiatives is to show the “payoff” of enhanced DE&I performance. Data wins the day.
