Diversity, Equity, Inclusion, and Belonging (DEIB) goes beyond just ticking the boxes and achieving legal compliance. It is a strategic advantage that helps create a diverse workforce and an inclusive environment where everyone is respected, welcomed and included.

It enhances employee well-being, creativity, innovation and resilience, leading to higher organisational performance for the entire workforce. And at the core of these efforts lies the capability of people analytics.

Insight222 People Analytics Trends Report Impacting Business Value: Leading Companies in People Analytics found DEIB is one of the top five areas where people analytics adds business value.

The top five areas where people analytics adds business value. (Source: Insight222 People Analytics Trends Report Impacting Business Value: Leading Companies in People Analytics)

Crunchr, a prominent player in the people analytics field, also validated this notion as they held a panel discussion with HR experts to uncover why data is a cornerstone of successful DEIB initiatives. Four common themes emerged from this discussion:

Flagging gaps in representation,
Providing food for thought through data-driven insights,
Tracking the progress of D&I initiatives,
Most importantly, using data to inform strategy.

Identifying Diversity, Equity, Inclusion and Belonging Gaps with People Analytics

People analytics impact on DEIB helps to pinpoint areas in the organisation that could benefit from improvement and enhance organisational performance. This can be done by analysing workforce demographics, understanding behavioural patterns and identifying unconscious bias reflected in decision-making processes. These are important aspects for HR teams to consider if they are looking to make a tangle impact.

Analysing Demographic Data

One of the most obvious ways to identify diversity and inclusion gaps is through utilising demographic data. This includes looking at gender, ethnicity, age, disability status and other categories that measure diversity in the workplace.

By utilising the power of people analytics, you can observe changes in representation over time and compare your data against external benchmarks. For instance, a company can determine whether its diversity ratios are ahead, on par, or behind industry standards.

However, as Dr Ella F. Washington, Professor of Practice and Georgetown University McDonough School of Business, CEO of Ellavate Solutions, and author of "The Necessary Journey: Making Real Progress On Equity and Inclusion." highlights on the Digital HR Leaders Podcast:

"...yes, it's helpful to look at what your direct competitors are doing and what other people are doing, that maybe you admire some of their efforts and see how you can replicate those, but you must take into account your specific approach. You have to take into account your specific mission as an organisation and what resources you have. You're not like every other organisation. Maybe you have more; maybe you have fewer resources to connect to these efforts."

An example of this is evident in VF Corporation, a company responsible for multiple sporting brands such as Vans, Timberland, and The North Face.

Laure Guthrie, Vice President of Global Inclusion, Diversity, Equity, Action (IDEA) and Talent Development at VF Corporation, expresses during her discussion with David Green:

"...we have a global goal for gender parity around the world. That doesn't mean that every single brand is striving towards the same percentage. We have some brands who've already exceeded gender parity, who may be looking at tactics to take them back to centre in other ways."

In other words, focus on your own organisational business objectives and goals, not merely replicating what others are doing simply because you feel this will result in a more diverse workplace.

Understanding Patterns of Hiring

Suppose you are hiring the same typical candidates with similar backgrounds from the same talent pool. In that case, you risk missing out on fresh ideas from diverse teams, perspectives and approaches to problem-solving, never mind potential tribunal claims for discrimination.

Looking at the trends over time can help you understand the hiring rate for underrepresented groups and whether it is increasing, decreasing or staying the same. However, you can go beyond this standard reporting and go further by looking at predictive analytics to identify the likelihood of a hire being successful.

Google provides an excellent example of this with their "Project Janus." Under this initiative, Google developed an algorithm to predict which candidates were most likely to succeed after being hired. They obtained all data from previous rejection and acceptance of candidates and their background information.

The results were hugely successful in helping to reduce unconscious bias. And as a result, they hired some of the previously overlooked candidates and highly diverse talent.

Monitoring Promotion and Attrition

What demographic groups are most likely to be promoted? Who is leaving the organisation and why? These are some questions people analytics impact on DEIB can help answer.

You can gain insights into potential disparities and develop strategies to address them by tracking these data points. But again, people analytics is there to go beyond the standard reporting and provide more detailed data into the root of the problem.

By tapping into predictive analytics, you can determine the factors that are most likely to lead to a successful promotion or a higher attrition rate for certain groups. This knowledge is gold for succession planning or creating preventative programs for employee retention.

Fig 1. Gender representation at hierarchical levels in surgical departments at Weill Cornell Medicine (Reproduced from Underrepresented Women Leaders: Lasting Impact of Gender Homophily in Surgical Faculty Networks, Laryngoscope, 00:1–6, 2021)

In addition to this, organisations are increasingly leveraging organisational network analysis (ONA) to understand who the experts or people leaders are within their teams. This helps to identify early talent promoters and leaders and create fairer development opportunities and equal access. But it can also be used to understand the inclusivity of networks and help in the identification of implicit bias in the workplace.

Uncovering Unconscious Bias

Unconscious bias is a significant factor when it comes to DEIB initiatives. However, oftentimes, bias is hidden and hard to spot.

People analytics can help unearth any hidden biases in the organisation's decision-making processes. For instance, examining employee attrition data could reveal if a specific demographic group is exiting the company more frequently due to bias in promotion cycles or lack of inclusive culture in the workplace. But again, using organisational network analysis can provide further insights into how decisions are made, who is in the loop, and who is gaining access to more resources than others.

Reverting to Google, they implemented a program called "Unbiasing the Workplace." This program used people analytics to identify and address unconscious bias in the hiring and promotion process. As a result of this program, Google was able to make its hiring process more equitable and transparent.

Challenges in Using People Analytics for Diversity and Inclusion

While the potential of people analytics' impact on DEIB is vast, it comes with its share of challenges. These challenges range from data privacy concerns to the risk of misinterpreting data and, perhaps most importantly, addressing algorithmic biases.

Collecting Data Ethically

Collecting and analysing employee data, particularly sensitive information related to gender, ethnicity, and personal background, requires a delicate balance between extracting valuable insights and respecting individual privacy rights. This is why the ethical implications of data collection and analysis demand transparency and consent.

Organisations must adhere to stringent data protection regulations, ensuring that data is anonymised, securely stored, and used only for its intended purpose. Hence, why a well-defined data governance framework, combined with open communication about data usage, builds trust among employees and safeguards their personal information.

Interpreting Data Effectively Through Data Literacy

In addition to this, there is the challenge of ensuring accuracy in data interpretation. People analytics must be used critically – with an understanding that misinterpretation of data may lead to ineffective strategies and in some cases, may even perpetuate biases.

Data literacy, therefore, becomes paramount. Organisations must invest in training their workforce to interpret data accurately, fostering a culture where insights are critically examined, and a comprehensive understanding informs decisions.

Data Collaboration

Collaboration between data analysts, HR professionals, and leadership is also essential to ensure that the insights derived from people analytics are correctly understood and integrated into actionable strategies.

Then we have algorithmic biases. As we invest in more sophisticated people analytics tools, we must be aware of the potential biases arising from our algorithms. As Anderson, Bjarnadóttir, and Gaddis Ross highlight in their HBR article, algorithmic tools can contain implicit and explicit bias if not calibrated correctly, so regular testing is essential to check for discrepancies. And to do that, you need to invest in the skills that competencies that can understand and address these biases.

Let the Data Guide You

People analytics stands as a powerful tool in promoting diversity, equity, inclusion, and belonging (DEIB) in the workplace. It enables organisations to delve deeper into their workforce, analysing demographic data, tracking hiring, promotion, and attrition patterns, and uncovering unconscious bias. This is why companies such as Google, VF Corporation (and many more) are harnessing successful strategies in people analytics to create more equitable and transparent workplace cultures.

However, while the potential of people analytics is vast, it also presents challenges such as data privacy concerns, risk of misinterpretation, and algorithmic biases. These issues underscore the importance of data literacy, collaboration, and regular testing and evaluation to ensure accuracy and fairness.

On that note, and ending the article with a quote from Lauren Guthrie:

"Let the data guide you; it exposes a lot of sins."

Embrace the power of people analytics and leverage it strategically so that you can achieve transformative outcomes and contribute to a more equitable and inclusive future.

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Our experienced team of people analytics consultants can help you maximise your HR analytics initiatives and unlock greater business value. So, if you're ready to take your people analytics to the next level, contact us today.

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