3 Vital Areas for Diversity and Inclusion KPIs

Jun 02 2023
5 min read
3 Vital Areas for Diversity and Inclusion KPIs

Diversity and inclusion KPIs are a vital part of a DEI initiative. By applying the right metrics to diversity programs, you can understand what’s going according to plan, and what needs a bit more effort. But because there are so many dimensions to a DEI plan, the first step in assessment is knowing what to measure.

Why Are Diversity and Inclusion KPIs Important?

There is a common thread to all HR initiatives, and that is the need for metrics. The human resources department is responsible for many activities where the benefits aren’t always obvious, so assessment methods are vital. And when it comes to DEIB, success is hard to measure. How do you know when a workplace is inclusive? When is a diversity requirement fulfilled? 

These answers can be tough to come by in a single company. However, on a global basis and when compared to low-scoring organizations, diversity and inclusion provide many advantages. Here are a few:

  • Companies in the top 25% for gender diversity have a 25% greater chance of superior financial performance.
  • Companies in the top 25% for ethnic diversity have a 36% greater chance of superior financial performance.
  • A diverse workforce generates cash flow that is 250% higher per employee and enables 87% better decisions. 
  • Workplaces that are inclusive benefit from 35% greater team productivity.

But How Do You Get There?

There are three essential workplace factors that should be reviewed to both set diversity goals and measure them over time: employee lifecycle, employee experience, and stakeholder structure. For each of the categories within these factors, you should set KPIs according to organizational goals. 

As an example, when it comes to gender diversity, an obvious benchmark is that 50% of the workforce should be female. For other measurements, HR and management should agree on levels according to the specific diversity populations within the organization. However, no matter what KPIs are set, the basic goal is to see increasing diversity across all categories over time. 

Employee Lifecycle

Before, during, and even after a disadvantaged person works for your organization, it’s important to monitor how much they benefit from DEI programs according to the following factors:

Hiring Practices

The recruiting process consists of many people, and each needs to be free of the bias that can result in low diversity rates. It’s important to make sure that both candidates and HR staff that are responsible for hiring are diverse. It might help to use external recruiting companies that specialize in certain demographics such as AfroTech and Advento.


As an employee spends their career at an organization, it’s expected that, all things being equal, they advance at the same rate and with the same benefits as their peers. Checking promotion lists to see that minorities are also moving ahead is vital. 

Retention Rates

HR departments commonly measure retention, but it’s also critical to analyze who is leaving. If you notice that members of minority communities are quitting more often than dominant populations, you need to find out why.

Employee Experience

Even if all of your lifecycle stats look good, you must still check on how minority workers feel about their experience at your organization. This idea comes from the DEIB concept, where the B stands for belonging, and is the final measure of a successful diversity program. 


Almost every organization tracks engagement rates – but do they analyze them according to social status? If you notice that engagement is lagging among certain communities, it could be a sign that DEI isn’t working. 


Engagement and satisfaction are not the same. An employee might do a good job but still be unhappy, which puts them at risk of leaving. Thankfully, there are many tools to measure satisfaction, like the JDS. You should be examining such metrics according to DEI standards.  


One aspect of diversity that is often overlooked is equality for handicapped people. Did you know that 10% of Americans have an invisible disability? Ensuring that their physical and emotional needs are met is yet another piece of the DEI puzzle. 

Stakeholder Structure

We live in a world where information about employees, customers, and vendors is all easily available. Whenever a person or company does something that is morally unacceptable (for example, on social media), it affects many of the entities that they are connected with. Organizations that want to be thorough with a diversity initiative will also try to apply its concepts to suppliers, buyers, and even employees when they are not actually at the workplace. 

GrowthSpace: Diversity Goals Require Diverse Learning Experiences

Ensuring that your employees are up to speed in the latest DEI concepts and practices often depends on learning and development. Your workers might be eager to understand new diversity principles, but where can you find up to date experts? 

GrowthSpace gives you worldwide access to DEI coaches and trainers who are on the cutting edge of their field. But more than that, the GrowthSpace platform minimizes the effort required for setting up and running DEI initiatives. Looking for a big win in the DEI department? Contact GrowthSpace.  

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