A diverse workplace is more important than ever. Many studies show the benefits organizations receive when they make concerted efforts to diversify their workforce and leadership positions. For instance, diverse workforces can improve performance by 12%. Additionally, the number of employees intending to stay with the organization can increase by 20%.
A focus on diversity can also help organizations with recruitment, as 32% of employed adults say that it's important to them to work at a place with a mix of employees of different races and ethnicities. Fifty-six percent of adults also view investing in diversity at work positively.
With these numbers, it's no wonder that diversity, equity, inclusion and belonging, or DEIB, is a top priority for HR leaders. If organizations want to benefit from a more diverse workplace, they need realistic DEIB goals. This article explores how to set DEIB goals, including the importance of using data in decision-making, a framework for effective goals and how to start implementing DEIB goals.
The Importance of Data-Driven Goal Setting
DEIB goals must have a strong foundation rooted in data. This ensures initiatives are realistic and allows leaders to measure progress. Focusing DEIB decisions on objective data improves accountability, transparency and informed decision-making. Measurable DEIB objectives and a timeline for achievement are also crucial to setting these goals.
For example, a software development company may look at its workforce and see that only 20% are women. This percentage may seem low, but women only make up around 8% of software developers. With this in mind, the software company can set realistic goals and align its resources appropriately. According to Jason Thompson, VP of DE and I at Western Governors University, “The benchmarks can guide us …. They help us explain to the board and our other stakeholders that ‘low' has to be relative to the market. We shouldn't spend more effort on recruitment when the pool of people isn't there.”
Some example data-driven goals for an organization include:
- Improve retention rates of underrepresented talent.
- Expand women in leadership positions by 25% within three years.
- Increase representation of minority groups by 25% within five years.
- Receive more applications from underrepresented groups by writing job descriptions with inclusive language.
Using the SMARTIE Framework for DEIB Goals
Implementing the specific, measurable, attainable, relevant, timely, inclusive and equitable, or SMARTIE, framework is integral to creating data-driven DEIB goals. This framework adds diversity, equity and inclusion benchmarks to the common SMART framework.
Major corporations use the SMARTIE framework to reach their DEIB goals. For example, Mattel plans to achieve and maintain 100% base pay equity between employees in similar roles. McDonald's aims to increase the representation of underrepresented groups in leadership roles by 35%. KPMG intends to double its Black employees and increase the representation of underrepresented groups to 50% at the partner and managing director levels.
These major organizations have specific targets to reach for their DEIB goals. Leaders can ask the following questions when creating DEIB goals based on the SMARTIE framework.
- Specific: What is the company specifically trying to accomplish? This statement forms the mission statement for the goal.
- Measurable: What factors will signify the accomplishment of the goal?
- Attainable: Is this an attainable goal?
- Relevant: Does this goal fit with the company's broader business objectives?
- Timely: What is the deadline for this goal?
- Inclusive: How will the goal bring traditionally excluded individuals or groups into the process?
- Equitable: How will the goal reduce barriers to inclusion and create a more equitable opportunity for participation?
Aligning DEIB Goals with Business Objectives
One of the SMARTIE benchmarks is relevancy, which helps organizations align their DEIB goals with their broader business objectives. DEIB initiatives can fit well with other business objectives.
For example, bringing in new talent is a common goal for businesses. With 56% of Gen Z respondents seeking a work culture that focuses on diversity and inclusion, DEIB goals can help attract the younger generation.
All businesses want to stay ahead of their competition. Racially and ethnically diverse organizations are 35% more likely to outperform competitors.
Policymakers should consider the wider objectives of the business and explore how DEIB initiatives could help achieve those goals.
Implementing and Tracking DEIB Goals
Here are some DEIB goal-setting strategies for implementing these principles within an organization:
Establishing a Dedicated Team
HR and recruitment can lead a dedicated team or committee to help establish DEIB goals and the framework for achieving them. This team's role is to ensure that the organization focuses on improving its DEIB metrics. For the best results, the team should include diverse voices and backgrounds.
Implementing Training Sessions
DEIB initiatives may be new to existing employees. Additional training and workshops can highlight why DEIB is beneficial. Trainers can also explain best practices for reaching these goals. In some companies, human resources leaders are implementing DEIB training in specific areas throughout their organizations, such as recognizing unconscious bias, hiring and mentoring.
Using Data Analytic Tools
Tools that can help track underlying data are useful when monitoring the company's progress toward its DEIB goals. For example, if a business wants to hire more diverse employees, it can include data points such as race and gender when evaluating candidates.
According to Roy Zambonino, a Senior Solutions Consultant at Affirmity, "We're seeing now that with the advent of ERG platforms that information on age, demographics, and LGBTQ+ status is being more freely volunteered. It's becoming more feasible to include that information with your traditional data points, such as race, gender, veteran status and disability." Tools such as ERG platforms can help track progress and ensure recruiters meet their established deadlines.
Create Realistic DEIB Goals
Key Points
- Successful DEIB goals have a foundation rooted in data
- The SMARTIE framework can help organizations develop data-driven goals
- DEIB goals should align with business objectives
- DEIB policy implementation benefits from a dedicated team, training sessions, and data analytic tools
Making DEIB efforts an ongoing part of organizational policy can set the business up for long-term success. For example, companies with diverse teams saw a 2.5 times higher cash flow. The focus should be assembling a diverse team to achieve organizational DEIB initiatives and goals. Start developing your realistic DEIB goals today, and before long, employees should see the benefits of a more diverse workplace.
