DE & I
By Florence Holland
Staying Focused
Recession-proof Your DEI Efforts
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As organizations continue to watch for a potential recession , many may be wondering what might be sacrificed , halted or changed over the coming months as companies tighten their belts in anticipation of what seems to be an inevitable slowdown .
While diversity , equity and inclusion ( DEI ) strategies are gaining significance and focus in the workplace , some might view these efforts as “ nice to have ” rather than essential to their businesses . To ensure that your DEI efforts are recession-proof , you must be able to show the importance of these efforts in producing organizational change . How do you do that ?
Use Data Effective DEI measurements ensure you are using factual evidence and not relying on any bias to evaluate your programs . The
adage of “ what gets measured , gets done ” reinforces that DEI should be data-driven and strategic , with success metrics clearly defined . Collect a variety of metrics from diversity demographic data over time and inclusion data to show how well individuals feel they belong , as well as equity , retention and programmatic data . Focusing on robust evaluation collection and thoughtful interpretation of that data enables you to speak to the business case for your specific organization to show progress .
Communicate Success Stories Where you make improvements and enhance your DEI efforts ( both quantitively and qualitatively ) be sure to share those successes ! You want to arm as many champions as possible within your organization to be able to speak to the success and impact that a focus on diversity , equity and inclusion has had on your organization ’ s culture . Why is this so important ? According to Harvard Business Review , “ high belonging ” is linked to a whopping 56 percent increase in job performance , a 50 percent drop in turnover risk and a 75 percent reduction in sick days . For a 10,000-person organization , this translates to annual savings of more than $ 52 million .
Calculate Your ROI The key to assessing the return on investment for your DEI program is related to how you link your goals to performance measures . As you collect baseline data , you will need to monitor it at regular intervals . Assuming you ’ re gathering the right data and that your
“ Where you make improvements and enhance your DEI efforts ( both quantitively and qualitatively ) be sure to share those successes !”
programs are leading to positive change , data analysis should reveal positive correlations between your findings and your business success .
According to Diversity Best Practices , leading ROI calculations include a variety of market and workforce implications , including measurable impacts on sales , geographic reach , reputational capital , market share , customer satisfaction , recruitment , attrition ,
retention , turnover , safety incidents , innovation and more .
You can also evaluate how soft skills translate into hard returns aligned with business goals . For example , if increased innovation was reached by leveraging diversity , then you can collect metrics related to streamlining processes or changes in the number of patents obtained between evaluation periods .
Consider whether there was an increase in revenue from new products and services . If so , those metrics could be given credit for strengthening the top line . Or maybe your organization saw growth in market share , sales , reputational capital , geographic reach or customer satisfaction . Inclusion efforts to improve engagement can show how increases in engagement scores might translate to increased productivity by measuring output per employee or profit per employee .
While it can be challenging to provide cause and effect , you can draw a strong correlation if you establish a specific baseline , have a strategic plan in place and regularly collect data across your baseline data points throughout the strategic plan timeline .
Conclusion You must demonstrate through your DEI efforts the same level of data-based results as your sales team or line of business units . Your data should be at the forefront and shared broadly throughout your organization to ensure awareness and understanding of the importance and impact these efforts have on your organization ’ s profitability and culture . DEI is a business imperative that can help drive success across lines of business , geographies and other boundaries .
Florence Holland is director of culture diversity and inclusion at RSM US LLP . You can reach her at Florence . Holland @ rsmus . com .
12 CALIFORNIA CPA OCTOBER 2022 www . calcpa . org