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Measuring Diversity and Inclusion in the Workplace: Metrics and Strategies

A diverse workforce gives a company access to a more significant range of perspectives, skills, and experiences that can aid its success and expansion. Many organizations have made D&I initiatives their top priority, but how do they define the success of these initiatives and measure workforce diversity metrics? What are the key performance indicators (KPIs) when it comes to diversity and inclusion?

Tracking diversity in the workplace through a company’s diversity metrics provides insight into how diverse its workforce is –corresponding to other organizations in its industry or market sector. These include gender representation in leadership positions, gender pay gap, underrepresented minorities in leadership positions, employee satisfaction, and representation of inclusivity in managerial positions.

In recent years, there have been several studies on diversity and inclusion in the workplace. The 2019 Global Diversity & Inclusion Conference in London found that three-quarters of respondents said their organizations had made progress over the past year. Let’s look into the important KPIs to measure diversity and inclusion in the workplace.

Metrics to measure to track D&I

Without precise and reliable metrics, an organization’s investment in diversity and inclusion is less likely to provide positive results since people are more likely to fall back into ingrained and accustomed ways of thinking and behaving. Metrics support the detection and control of unconscious bias and prioritize initiatives and thereby, helping businesses that are dedicated to diversity and inclusion stay on track.


Representation is an important KPI of diversity and inclusion, where an organization examines the company’s structure to find out the representation of diversity in the workplace. If the corporations are lagging behind in representation then companies need to invest their efforts in hiring people from historically underrepresented groups. One way to identify these groups is by looking at the demographic data of the community and comparing it with demographic data within the company. This data can also be used to assess if there is bias at different stages of the hiring process. For example, if the applications you receive for a certain position include underrepresented/diverse groups, but the representation of these groups within your team is still below average, this could indicate bias at the sourcing stage.

Representation is a key factor determining how prospective employees look at a company and shows whether the company walks the talk when it comes to inclusion and diversity in the workplace.

You may also like to read: 5 powerful reasons why your company should embrace diversity and inclusion


Retention rate is the percentage of employees a company is to retain, this rate can help you identify areas that need development and provide insight into the employee experience. The employee retention rate is a crucial indicator because it enables companies to assess the strategies they take to find, hire, and retain skilled staff.


There are a ton of talented job searchers out there, but many firms today are finding it increasingly difficult to find the ideal individuals for the job. In addition to finding the best candidates for your organization, it’s important that the new hires blend into the culture of the organization as a whole, and stay motivated, content, and engaged at all times. 

Selection of candidates

Selection is an easy metric to track provided there is clarity on the demographics of targeted groups and that of applicants. Once these data points are available, they can be compared with the demographics of selected candidates. Over a period, a comparative analysis from across teams will reflect if there is representation from underrepresented groups, and if there is bias at the selection stage.

Another aspect to be considered during the selection stage is the panel responsible for selecting candidates – does the panel include representatives from diverse backgrounds?

You may also like to read: How To Create Equality And Diversity At The Workplace


Promotion is a key metric to assess whether bias exists when it comes to the growth of employees from diverse groups. Companies can assess if there is homogeneity in the kind of employees climbing the ladder within the company, and if the promoted individuals are representative of the overall demographics in the company.

Companies can also look at differences in time taken by people from diverse groups to advance within a company – this could highlight the need for training for different stakeholders involved, to provide equal opportunities to grow for all.

Employee Development

To check if there is bias in overall development of employees, organizations can look at differences in representation from different employee groups in aspects like opportunities for employees from diverse groups to move laterally, participation in learning and development programs, and participation in stretch assignments.

Pay and benefits

Total financial and non-monetary payments provided to an employee in exchange for their services are referred to as compensation. Employee pay and benefits typically consist of wages such as salaries, overtime pay, benefits, incentives, bonuses, etc. This metric supports companies in planning budget estimation and recruitment. Additionally, it aids in the planning and modification of the company’s compensation ranges and can guarantee equal compensation and inclusion for diverse staff by using continuous tracking.

Employee engagement

Considering its obvious connections to job satisfaction and employee morale, employee engagement can be crucial to a company’s success. Engagement among employees can only be established and sustained via effective communication. Engaged workers are more likely to be efficient and deliver better outcomes. They frequently exhibit a stronger dedication to a company’s ideals and objectives.

Employee focus groups

Employee focus groups are a fantastic approach to getting employee feedback. You can make sure you’re developing plans that will actually have an impact by using this input. You can learn about trends, organizational strengths, and problems with the help of employee surveys. 

Exit interviews

Exit interviews are conducted when an employee is leaving an organization to help understand why the employee is leaving and their experience working in the company. This is an easy way to receive candid feedback on the company’s or the team’s culture and identify areas of improvement.

Employer brand

An organization’s profile and reputation as an employer is referred to as its employer brand. It defines how other people view a company. The employer brand of a company is influenced by things like employee recognition programs and the quality of its branding. A company’s reputation with customers, staff, and shareholders is influenced by its employer brand. We surveyed 10,000 tech professionals and found that 93% of candidates actively used Linkedin to research companies. Therefore, showcase a strong employer brand online, where the majority of prospects are active.

Grievances and lawsuits

This metric can keep track of internal and external complaints, lawsuits, and grievances by minority groups. Useful for determining which racial or ethnic groups are more susceptible to bias, discrimination, and harassment.

Customer diversity, experience, and loyalty

This metric help in comparing the diversity of your customer base to the internal, or market standards and keep track of client satisfaction and loyalty by the dimension of variety. It is useful for identifying customer segments that the company is not serving and those that receive subpar, biased, or discriminating services.

 Supplier diversity

Diversity in an organization is not limited to the workforce, it is important to also look at vendors and collaborators to see if an organization is working with a diverse set of partners. This can be done by assessing if at the selection stage, a company is open to giving vendors belonging to underrepresented groups or diverse backgrounds an equal chance to build business relationships.

You may also like to read: Strategies to improve diversity, equity, and inclusion in hiring

Percentage of employees from diverse groups hired and retained in a year

The attrition rate measures how many people have left the company during the year and their primary reason for departing. If more people are leaving due to poor working conditions or lack of opportunities for career growth, then it may be an indicator that your organization has room for improvement when it comes to diversity and inclusion practices. Measuring diversity in the workplace helps in providing employees with the best tools they need, and indicates areas where employers may invest in employees’ professional growth. You may provide them unrestricted access to a paid training program that enhances their performance at work. As an alternative, you may also plan workshops and seminars to assist them in staying current on market trends and innovations.

Representation of underrepresented groups in leadership positions

This indicator demonstrates how successfully the company is recruiting members of underrepresented groups to take on leadership positions inside the organization. Leadership roles for people belonging to underrepresented groups show how competently the company is implementing the strategies of D&I and tackling discrimination. The more women and minorities in leadership positions, the better chance the business has of improving overall performance.. D&I Metrics for measuring diversity and inclusion in the workplace are created to gauge how well an organization is achieving its objectives in both areas. 

Gender Pay gap

The gender pay gap is the difference between the average compensation of men and women across the organization. According to the Global Gender Gap Report 2022 by the World Economic Forum, gender parity is not improving. The worldwide gender gap won’t be eliminated for another 132 years. Women’s workplace outcomes are deteriorating as crises deepen, and the possibility of a global gender parity backslide is growing.

The gender pay gap is the pivotal element of D&I KPIs – this metric defines how gender parity exists across the organization. It is necessary to design a report that allows employers to understand that a gender pay disparity may harm their brand, employee relations, public reputation, and capacity to draw in and retain talent. The report will define the missing diversity and inclusion KPIs–major factors the company is not operating on and demands progress and modifications. Failure to show progress could harm your company. Examine these major areas– policies and procedures; How can they be improved?

Level of employee satisfaction

Employee satisfaction is an essential indicator of organizational health. It is also a good indicator of how satisfied employees are with the diversity and inclusion program at the organization. Employee satisfaction surveys allow ranking of their levels of satisfaction in the surveys. The outcomes are then examined to see if there are any discrepancies between various employee categories (e.g., men vs. women, minorities vs. non-minorities). Based on the results, reviewing diversity and inclusive policies is the best way to make progress.

Tracking employee engagement scores by the demographic group is necessary; this statistic gauges how much employees identify with the goals and fundamental principles of their employer.

Employee development programs conducted and participation rates

Companies want to attract and keep brilliant individuals from various backgrounds, so they have implemented diversity and inclusion programs. ClearCompany mentions that 74% of workers are unable to realize their full potential since there aren’t enough opportunities for staff growth. Employee development programs help the diverse staff in realizing their full potential, which makes them valuable to the team and the company. 

Determine and keep track of the number of employees who participated in the company’s employee development initiatives, this helps in understanding how employees are motivated and areas where more can be done. The more individuals who partake in these initiatives, the greater the chance that the business will be successful in luring diverse talent. For instance, if the company offers a program to assist women in advancing their careers, one can monitor the proportion of women and men who entered the program. You might also keep tabs on diversity KPI through participation rates inside your organization for other racial or demographic groupings, such as age or educational levels.

Number of managers rated as inclusive

Inclusion and diversity are significant challenges in the contemporary workplace. Measuring inclusion in the workplace is necessary to ensure that employees are treated fairly. Track the number of managers who are regarded as inclusive by creating a custom report. Metrics like employee surveys, exit interviews, or staff satisfaction surveys help to understand how managers are working in the workplace and tackle the difficulties occurring due to discrimination, prejudice, or performance.

To collect data, survey every employee to learn about their opinions of the workplace: are they feeling secure and included at work, bringing their complete self to work, and how much help they have received when changing careers – all are possible questions to ask and based on the answers, steps should be taken to create a better understanding. 

The aim should be, to have every manager, at least rank average in terms of inclusivity in surveys and interviews; if the company falls short of this target, you should determine why and take appropriate action.

Ratio of employee referrals by gender, race, and ethnicity

Employee referrals are a fantastic method to draw in top talent and create a diversified team. With these diversity metrics in the workplace, the company can tell a lot about how well employees are connecting with different groups by looking at the percentage of employee recommendations split down by gender, color, and ethnicity. 

The more varied your referrals, the more diverse your hiring pool will be. The more employees who refer candidates from within, the better it is for diversity and inclusion efforts — because these employees already know what it’s like being on your team and can recommend people who will fit in well with their colleagues and culture. 

As per Glassdoor, about 36.6% of referral candidates in the US in 2010 were female candidates. This percentage dramatically increased to 53.8% in 2021 as a result of rising gender parity in the workforce and an increasing number of businesses pledging to promote workplace gender equity. The share of BIPOC (Black, Indigenous, People of Color)candidates increased from 40.9 percent in 2010 to 45.8 percent in 2021, with similar development in the ethnic diversity of referral candidates.

 KPIs help to focus attention on the things that really matter, such as identifying the fundamentals and bottlenecks, providing strategic and operational improvement, and developing an analytical foundation for decision-making, which will bring a transformational improvement to the company. With the right KPIs in place, companies today can make steady and swift progress towards building a diverse, happy and productive workforce.

At Talent500, companies can access a larger talent pool to meet their demands with the help of automated recruitment technologies. You can find the best fit for your business and guarantee ongoing engagement with AI-powered insights. Request a consultation to learn more about how to create effective, diverse teams.

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Taniya Pan

Taniya Pan

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