Workplace diversity refers to the variety of differences between people in an organization. It includes visible characteristics such as gender, age, ethnicity, and physical abilities as well as less visible characteristics such as sexual orientation, gender identity, cognitive style, marital status, religion, work background, and perspective. Embracing diversity and promoting inclusion has been shown to have many benefits for organizations including increased creativity and innovation, ability to problem solve, better decision making, access to a wider pool of potential customers and clientele, boosting employee satisfaction and retention, a better understanding of client and customer needs, and a positive public image and reputation as an employer of choice. Creating a truly diverse and inclusive workplace requires effort.
Some of the key challenges that companies face in establishing a diverse and inclusive culture include unconscious biases, lack of diverse leadership representation, poor communication regarding diversity initiatives, failure to hold managers and leaders accountable, lack of diversity and inclusion training, outdated or complex HR policies and processes, resistance to change from some existing employees, inability to attract and retain a diverse talent pool, insufficient diversity metrics and goals, and lack of support or commitment from senior leadership (Ward, 2018; Greenberg, 2018; Nishii, 2013; Sabharwal, 2014). For example, research shows that both women and people of color are less likely to be hired or promoted when requirements are subjective rather than clearly defined, revealing unconscious biases (Post, 2015). Furthermore, the lack of diverse leaders and role models at higher levels of organizations makes mentoring and career development difficult for minority employees (Green & Roberts, 2012). Addressing these challenges requires effort across many areas of an organization’s culture, policies, and practices.
One particularly important area of focus is establishing clear diversity goals and metrics to measure progress over time. Setting concrete goals gives companies direction as they work to create an increasingly diverse and inclusive culture (Fernandez & Moldogaziev, 2013; Rijamampianina & Carmichael, 2005). Goals should be specific, measurable, achievable, relevant, and time-bound. For example, a global consumer goods manufacturer established the goal of achieving 40% gender diversity in leadership roles globally by 2025 along with annual interim targets to measure progress. Setting representation goals for both gender and ethnic/racial diversity at various levels of the organization shows commitment and provides accountability. Metrics could include tracking new hire, promotion, attrition, pay equity, performance review completion, and skills development participation rates broken down by demographic subgroups. Conducting regular reviews of these metrics allows companies to identify where biases may be present in processes, surface issues to address, and evaluate whether existing initiatives are effective. Making diversity goals and progress transparent both internally and externally through reporting reinforces accountability. The use of goals and metrics in this way helps maintain progress towards creating a genuinely diverse and inclusive workplace culture over the long term.
Promoting diversity and inclusion requires an integrated, long-term approach across policies, practices, leadership engagement, culture change initiatives, talent acquisition, and skills development. Simply establishing goals and measuring progress is not enough on its own. Companies should incorporate diversity training, employee resource groups, sponsorship programs, unconscious bias education, family-friendly policies, and other inclusive practices to support their goals. Additionally, gaining visible commitment and advocacy from senior leaders and managers is critical to driving change. Leaders must “walk the talk” through behaviors, resource commitment, and accountability. Periodic reviews and revisions of goals can also help maintain continued advancement. A goal-focused, data-driven approach like this, combined with organization-wide efforts, improves the chances of successfully addressing challenges and realizing the potential benefits of a genuinely diverse and inclusive workplace culture.