What are diversity and inclusion analytics & why are they important?
A diversity and inclusion analytics report provides information about the composition of a workforce, highlighting details such as gender, age and other characteristics important to an organisation. It helps them track and share data within their teams.
By openly sharing information about the makeup of their workforce, companies demonstrate their commitment to fairness and equal opportunities. These reports also help identify areas for improvement, fostering a more inclusive environment and allowing businesses to measure progress toward building diverse and representative workplaces.
Here are some examples of common diversity and inclusion analytics that are useful for reporting:
- Gender ratio: The proportion of males to females, used to identify any imbalances in the representation of men and women in the workplace
- Compa ratio: Comparing an employee’s salary to the midpoint of the salary range for their position, is vital for ensuring pay equity (read this article to learn more about gender pay gap reporting)
- Average age: Monitoring the average age of employees provides insights into the generational composition of the workforce, which is valuable for tailoring workplace policies to meet the needs of different age groups
- Employees close to retirement: Identifying employees close to retirement is important for succession planning, allowing companies to prepare for knowledge transfer and potential skill gaps
- Average length of service: Measures the average duration that employees have been with the company, which is valuable for assessing employee retention, loyalty and the effectiveness of talent management strategies over time
The Workplace Gender Equality Agency (WGEA) is publishing the gender pay gap for all Australian employers with 100 or more employees on February 27, 2024. These statistics will be accessible via WGEA’s Data Explorer, a recently updated platform that offers comprehensive insights into gender equality performance. The WGEA considers this publication as an important step to close the gender pay gap, which was recorded at 21.7% in 2023.
It’s clear that now more than ever, it’s time for organisations to seek meaningful change. So, how can we improve? Well, step one involves gathering the tools you need to accurately report on your diversity ratios so HR can understand the gender balance and pay disparities across all departments. Even better if you can access ongoing, real-time reports that are always up to date so you can see how you’re measuring against the set objectives for the organisation.
Diversity and inclusion analytics report example
If you’re looking for a best practice diversity and inclusion analytics report, below is an example of what it looks like in org.manager.
This particular chart has three views – Gender, Age and Length of Service. Each perspective highlights KPIs that are important for the business along with summary metrics at the organisation and department level, as well as detailed information about the individual. These charts also use visualisation rules to highlight departments that have a gender disparity over 65%, fall outside an average age range of 30-50 and have the average length of service below 3 years.
Having all diversity metrics in one place allows your leaders to effortlessly design a plan that aligns with your strategic goals. You can even use org.manager to create these ‘to be’ scenarios with easy drag-and-drop for fast visual review and approval. Plus, if you’re worried about closing the pay gap for your employees, a budget management report allows you to highlight any pay disparities, including all employees who are being paid below your set compa ratio goals.
Tip: This view can be customised based on your business requirements. Use visualisation rules to highlight key information that is important for analysis, or hide fields to reduce the amount of information shown on screen for a more focused view.
How diversity and inclusion analytics software will improve your business
Using dedicated software that tracks diversity in the workplace goes beyond compliance, it offers insights into your workforce demographics, recruitment practices and overall workplace culture. By leveraging the power of data, you can make more informed decisions to foster an inclusive environment.
Here are 5 ways that a diversity and inclusion analytics reporting software will help level up your business:
Data-driven decision making: A diversity and inclusion analytics report allows organisations to collect and analyse data related to employee demographics, hiring practices and culture. This data-driven approach enables informed decision-making, as organisations can identify areas that require attention, set specific goals and measure progress over time.
Compliance and risk mitigation: Dedicated software can help ensure compliance with government regulations by providing accurate and up-to-date information on workforce diversity. This minimises the risk of legal issues and associated penalties, fostering a more inclusive and compliant work environment.
Improved retention and collaboration: By reporting on diversity, you can reveal patterns, disparities or challenges faced by specific groups within the workforce. With this information, you can implement targeted initiatives to create a more inclusive workplace, boosting retention rates. As an added bonus, the more diverse your team, the more diverse your brainstorming capabilities. With each person bringing their own unique perspectives to the same problem, you’re more likely to get a broader set of creative solutions.
Best practices to create an inclusive culture
- Communicate & educate: Create a safe space to have an open conversation about diversity and inclusion. Let your employees know that you are open to listening and understanding their individual needs.
- Create a culture of ally ship: Ally ship is about supporting others, holding ourselves liable when mistakes are made and creating a more inclusive environment. This can be done in many ways, including becoming a champion for the underrepresented employees using inclusive language and calling out inappropriate behaviour.
- Make everyone accountable: Everyone should be equally responsible and should be motivated to seek ways to bring change in the organisation.
- Look for inspiration in the right places: Rather than searching in Google or seeing what other big companies do for best practice, a good starting point is to engage in diversity and inclusion networks and groups to discuss your own unique situations.
- Don’t simply set targets, change mindsets: According to Harvard Business Review, when organisations make it compulsory to include diverse employees, it can quickly become counter-productive as there are no initiatives to make them feel included, which in turn can lead to lower morale. A better way to effectively implement initiatives is by changing employees’ mindsets and making it voluntary to participate in diversity conversations.
Final thoughts
Diversity and inclusion shouldn’t be seen as a HR initiative, rather as a business strategy that’s driven by HR. By using diversity reporting software, your business can demonstrate its commitment to creating a more inclusive workplace, leading to many benefits for the organisation.
Navigo has 20+ years’ experience implementing successful workforce solutions across all industries in Australia. Book a demo today to discover how our portfolio of interactive HR reports will elevate the way you work.
