Researchers from Workday suggest that while most organizations invest in diversity and inclusion, only 20 percent use data to measure the impact of initiatives
Diversity and inclusion are years away from maturity. Most companies take initiatives to address underrepresentation, but the impact is rarely measured. Although HR processes are increasingly data-driven, diversity and inclusion seem to be excluded from the trend.
Workday spoke to more than 3,000 HR professionals and executives for a global survey on diversity and inclusion in business. The topic is gaining traction. Despite inflation and economic uncertainty, 35 percent of respondents said their company will invest more in diversity and inclusion next year.
Lack of data
Interest grows, but the topic remains in its infancy. While three in four companies have budgets for diversity and inclusion, only 20 percent use data to measure the impact of initiatives. The percentage is low, especially when you consider that more and more HR departments are shifting to data-driven strategies.
60 percent revealed that their company would need to invest in new systems and software to be able to measure initiatives. 39 percent said their company lacks a strategic approach. About a third think executives need to do more to promote diversity and inclusion.
The lack of measurability slows down diversity goals. That’s a shame, because most researchers agree that diversity and inclusion are beneficial for business performance. Research firm McKinsey recently argued that startups can grow faster by hiring underrepresented employees, including individuals with a practical education, older age or non-Western migration background.
Workday develops a broad software portfolio for human resources and finance. The organization presented the research at Workday Rising, an annual conference. Techzine is reporting from Stockholm.