Inclusion And Diversity With HR Analytics - Emplysight
With the Emplysight HR Analytics platform, you gain useful insights in your employees. Emplysight helps all HR departments, wherever they are in their analytical journey.
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Diversity With HR Analytics

Inclusion And Diversity With HR Analytics

Diversity is good for a company. This has been shown in numerous studies. McKinsey for instance, reported that between 2008 and 2010, organizations with more diverse teams were top financial performers. The company surveyed more than 300 companies and the conclusions were as expected:

  • The financial performance of gender diverse companies is 15%
    better than non-gender diverse companies
  • The financial performance of ethnically diverse companies is 35% better than non-ethnically diverse companies

In simple words, this means that embracing inclusion and diversity within your company will make you a better performing company.

However, it seems to be hard to have a perfectly diverse workforce. The bias and discrimination of hiring managers, unconscious or not, is hard to overcome. There are tons of examples where the bias of recruiting managers comes into play and mistakes are made. Recruitment company Hays did a study where they created two resumes, one for Susan and one for Simon. The resumes were exactly the same except for the names. Hiring managers were then asked to evaluate them based on their attributes. The results were not in favor of inclusion and diversity: within large companies, 62% of hiring managers wanted to interview Simon, while only 56% wanted to talk with Susan.

There is not only gender bias. Looking at minorities, the statistics are even worse. The National Bureau of Economic Research (NBER) conducted a research where they responded to 1.300 ads in Boston and Chicago newspapers. Each resume that they sent out had either a very White sounding name or a very African American sounding name. The results showed serious discrimination against the African American sounding names. The resumes with White names received 50 percent more callbacks for interviews.

Diversity With HR Analytics

Diversity with HR Analytics

HR Analytics can help companies with removing the bias. There are 3 ways where HR Analytics can improve diversity:

  1. Probably the most effective use of HR Analytics is how data can be used to influence the top leaders. It is one way to verbally tell the story. But when the data is presented in easy-to-understand visualizations, it is much easier to understand the story. Leaders are more inclined to take action when the story is clear.
  2. Companies can work out what the turnover rate is for different groups. When the turnover rate for certain groups (like minorities or females) is higher than the base group, the company can take action. This exercise can be done for the past workforce, where turnover already happened, or for the current workforce. This is done by predicting which current employees are likely to leave the firm. However, a simple exercise of the current turnover rate per group (without the prediction) is in most cases enough to tackle this issue.
  3. Using HR Analytics can also enable companies to focus on the core values of potential employees. Some companies use psychological attributes to identify the perfect candidate for a certain team. The employee then becomes part of a team. As you can imagine, teams within one firm sometimes differ very much in the way of working. By using this method, the criteria to find a candidate is not only based on the right experience, but also on the right fit. This eventually removes the constraints of the information that is provided by a resume alone.


How To Get Started: Diversity With HR Analytics

How should you get started with diversity and how can HR Analytics play a role in this? The following 4 options can kick-start the process and tackle the diversity issue:

  1. Companies should start with measuring diversity. A simple dashboard with checking how many employees are females, minorities, LGBT or have a disability can help very much with addressing the diversity problem. Companies could also zoom in on different levels within the company. This way you can see if diversity is more of a problem in the highest ranks of the firm. When you start with measuring diversity, you can then set and track targets.
  2. Creating goals for diversity is a second way to increase the employee diversity within your company. Setting these goals can help reshaping your recruitment and hiring efforts for the better.
  3. By conducting certain surveys, companies can get to know the employees’ issues and experiences in a better way. Surveys could be focused more towards demographic-focused questions. This information can then be analyzed and can give a sense of how certain groups within the company think about certain issues. Note that in most cases diversity data is highly confidential and compliance should be informed to check what can be stored and what not.
  4. Firms could also create workplace inclusion and diversity programs, which helps with on-boarding and retain new hires and creates a more inclusive environment within the company.


About Emplysight

Emplysight was founded to give you better insight in your employees. The company aims to use both simple analytics as more advanced predictive analytics, such as machine learning and Artificial Intelligence, to help organizations get a better understanding of their employees. Emplysight helps all HR departments, wherever they are in their analytical journey.