Metrics of Diversity (Business)

There are many definitions of diversity from a social justice perspective. A common one is centered on organizations desiring to increase their employment of people from traditionally under-rerepresented groups or protected classes, such as those defined by race, national origin, sex, disability, LGBT (lesbian, gay, bisexual, transgender) status, and age. One use of metrics is in an employment context.

The metrics discussed are most pertinent to the United States but can be adapted to other countries. Metrics can cover both quantity and quality, but the best are quantified ones. It is important to recognize what diversity metrics are not. They are not quotas or preferences. However, they can be used for goals and to evaluate compliance with court-ordered or voluntary settlement agreements.

Measurements are necessary to determine what needs doing, how to plan initiatives, and their success. Diversity metrics are typically collected, analyzed, evaluated, and promulgated by human resources or diversity departments. Much of the data can be obtained through employee databases.

Collecting the data can present challenges, particularly if the organization has not previously done so. Federal contractors and companies required to report by the federal Equal Employment Opportunity Commission will find that they already have much of the data. However, because ofself-reporting, anonymity, and fears of disclosure, there may be challenges in ensuring accurate reporting and counts of employees with disabilities and of LGBT status.

An employer should know the demographics of its employees and of its service area. The latter can be found through many different sources. It is unlikely that the employer will have to create new data. For its own employees, baseline data must be established. This, and all diversity data, should be disaggregated by the categories listed and by any other categories the employer wants to use, for example, type of job, pay range, division or office, and geographical location. Data should also be disaggregated by major employment milestones such as job applicants, new hires, training opportunities, evaluations, and promotions.

Diversity in the United States is increasing. This is especially true for groups like Hispanics and Asian Americans. Efforts to improve the representation of groups should show a growth rate higher than the natural demographic increase. If an organization only improves its diversity at the [Page 1443]same or a lower rate than natural demographic increase, then its diversity program has failed.

Ratio measures and measures over time should be used whenever possible to provide means for comparison and to demonstrate continuity of effort. Diversity metrics are sometimes considered a scorecard.