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Monetizing Diversity Efforts: How Inclusion Can Be Quantified

Understanding the cost of bad diversity management.

Although diversity and inclusion is valued far more within corporations than it was in 1998 when we first launched DiversityInc.com, diversity management in many companies does not command the kind of business credibility that it could.


If you can monetize the benefits of what diversity and inclusion brings to the organization, you'll see that change.

For example, say your firm has 75,000 employees, 50 percent of whom are women and/or non-white people, and a 3 percent average turnover rate but a 3.6 percent turnover rate for women and/or non-white people. If it costs $10,000 to replace an employee, then closing that turnover gap will save $2,250,000.

What hasn't been possible—until now—is to strongly connect the results of diversity management and inclusion to areas we can measure, such as turnover or failure for some groups to thrive equally in talent development.

I think the key is "engagement," which is a measurement of a person's feeling of inclusion in an organization and which drives the quality of overall human-capital output. Further, engagement can go beyond human-capital factors to business subjects on a range as wide as accidents on factory floors to quality of innovation.

We've invested in SAS software this year and now have the computing power to correlate our engagement survey to our benchmarking survey, which allows us to then make exacting, precise recommendations for best practices going forward. Our engagement survey carefully introduces questions about race, orientation, age and gender to avoid decreased performance, as described by Dr. Claude Steele as "stereotype threat." This is especially important for majority inclusion and for companies that may not enjoy a great diversity reputation internally.

Moreover, using our shortened 50-field Benchmarking survey, we can benchmark several divisions within your company and give each an individual assessment on their relationships with people, as well as individual suggested next steps for diversity-management implementation. This can tie back to accountability for results to the local leader and give that person the exact tools they need to close gaps and move everyone forward in their engagement and feeling of inclusion.

DiversityInc is unique in its ability to do this; we have data on diversity management and outcome from hundreds of companies, and with our computing abilities, we can make specific suggestions tied to actual performance as correlated to other companies. We can project your potential return and we can help you put an actual dollar value on what success will look like.

Take these scenarios, for example:

  • Your women employees are disengaged to the point of filing a lawsuit, which can mean a loss of real money and damage to the company's reputation. Our engagement survey will identify that problem and the benchmarking survey will provide correlations to the best-practice solutions other companies have used.
  • After investing heavily in recruiting and training Black, Latino and Asian execs, the percentage of retention among these groups remains low. Our engagement survey will uncover the cause and degree of their disengagement, and the benchmarking survey will show you what proven best practices and goals will stop that regrettable loss.

When the benefits of diversity management can specifically be tied back to bottom-line benefits, in the absence of emotion and in the sunlight of comparisons with other companies' accomplishments, the benefits of a strong diversity-and-inclusion program become quite clear—and it can be monetized. I've staffed up on our consulting practice, and we are ready to put a detailed analysis together for you. Please contact me directly for more information.

--Luke Visconti

Trial Begins for Cops Charged With Covering Up Laquan McDonald's Death

They are the first Chicago officers to face criminal "code of silence" charges.

Screenshot from ABC 7 Chicago

The trial of former Detective David March and former Officers Joseph Walsh and Thomas Gaffney of the Chicago Police Department begins today. The men are charged with conspiracy, obstruction of justice and misconduct in the shooting death of 17-year-old Laquan McDonald.

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Was Our Article on the SSM Hospital Beat Down 'Fair and Unbiased'?

An inquiry from a reader inspires further investigation and the results are shocking.

The following email came in from a Yahoo.com email address; I am not going to reveal the person's name:

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Kavanaugh vs. Ford

A tale of a complete lack of diversity causing bad decisions, and shifting opinions nationwide, as well as a teachable moment for corporate America.

Having zero diversity, and by trying to make it "Kavanaugh vs. Ford," the old, white Republican men lost control of the nomination, and made it about them versus all women, a situation that, at best, will be a Pyrrhic victory.

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Alaska Airlines Under Fire for Separating Gay Couple on Flight to Give Seats to Heterosexual Couple

"We could not bear the feeling of humiliation for an entire cross-country flight and left the plane," David Cooley said in a Facebook post.

FACEBOOK

Alaska Airlines is apologizing for an act of blatant discrimination against a same-sex couple, but the damage is already done as #BoycottAlaskaAirlines is circulating social media.

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Suck It Up, We’re Screwed

Decades of incompetent Democratic leadership — and disregard for diversity — has taken us down this path.

The retirement of Justice Anthony Kennedy puts our country at a crossroads where there's only one expected outcome: a bizarrely out of touch and unrepresentative Supreme Court, for generations to come.

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Video: Diversity is 'Un-American,' a 'Bunch of Crap,' Says Republican Congressional Candidate

Seth Grossman once said, "I do know of many Africans who wish their ancestors had been taken to America as slaves, and who are now risking their lives on flimsy boats every day to come to America."

In a room of among many of his peers — white, male conservatives — Seth Grossman pleaded his case that diversity threatens the "traditional ways that made America great" and is a "bunch of crap" supported by Democrats and communists.

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Howard Schultz Steps Down as Chairman of Starbucks

From the #RaceMatters campaign in 2015 to optional racial-sensitivity training last week, Starbucks is failing in diversity and inclusion.

REUTERS

Howard Schultz is stepping down as executive chairman of Starbucks, the company announced in a press release Monday.

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Starbucks’ Optional Diversity Training Empowers People like Roseanne

Clearly communicated policies and values build corporate diversity success — treating people right is not an option for a well-run company.

By making yesterday's diversity training optional, Starbucks revealed top management indecision about its own principles and how to treat customers.

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