Tag: Featured

Free DEI Statement Template

Posted on by Kate Stone

Workplaces today encompass people from profoundly diverse backgrounds and experiences. An organization’s DEI statement is more than merely an announcement, it is an essential declaration of its deep commitment to welcoming each person’s unique perspective. A thoughtful DEI statement reflects the core values of building a culture where everyone can belong, contribute, and grow.

A strong statement aligns what the organization does with what is right in today’s world, where having different ideas leads to growth and success. A good DEI statement says an organization is committed to fairness and always improving. It helps business actions, rules, and ways of thinking to include the many differences for better quality.

Consider this: A Pew Research Center survey found that 56% of workers view DEI initiatives positively, underscoring their importance in the workplace. This info shows how important it is to have a real DEI statement because it sets standards and connects with different workers. The statement’s ability to link values with work habits shows its importance.

Key Takeaways: A DEI statement articulates a firm's commitment to diversity, equity, and inclusion, setting goals for a fair and diverse workplace. However, turning these commitments into measurable outcomes poses a challenge without precise tracking and accountability.
Diversio answers this with its AI-powered platform, delivering customized insights for quantifiable DEI improvements.

Important parts of a DEI statement:

A good DEI statement combines different components to fully communicate a company’s diversity, fairness, and inclusion promise. Every part makes the statement connect more with each other. 

Here is a breakdown of these essential components:

  • Commitment to diversity: This part of the statement should highlight the organization’s dedication to embracing diversity in all forms – which includes race, gender, age, sexual orientation, & cultural backgrounds. It’s about recognizing the strength that comes from having a unique & diverse workforce. For example, phrases like “We are committed to fostering a diverse environment where every voice is heard & valued,” effectively communicate this commitment.
  • Statement of inclusion: The aim here should be to help everyone fully participate by creating a fair & pleasant environment. The objective should be to encourage situations where everyone gets respect, honor, worth, & power. This part should also talk about ensuring everyday activities & talks are inclusive. Phrases such as “Our workplace is an inclusive space where individuals from all backgrounds can thrive,” can be powerful.
  • Equity objectives & initiative: This part shows unique aims & efforts to improve fairness, chance, & rights at both personal & wide-scale levels. It includes steps such as fair ways of hiring, access to career growth, routes to leadership, & transparent information about pay & progress. Statements like “We actively pursue equity by ensuring fair & unbiased hiring & promotion practices,” are strongly suggested.
  • Commitment to continual learning & improvement: This aspect reflects that crafting an equitable culture is a dynamic journey needing ongoing humility, reflection, & re-calibration of strategies. The focus should be on pursuing substantial change through the perspectives of multiple stakeholders. Saying, “We continually evolve our approaches toward equitable impact through community dialogue,” encapsulates this mindset.
  • Accountability & transparency: Here, the focus lies on providing transparent systems to track progress & lapses on the path toward equitable impact. Regular reporting will provide insights on achievements & areas needing correction across initiatives. Saying, “We hold ourselves accountable by measuring our choices against our aspirations,” speaks to this ethic.

Incorporating these elements into a DEI statement conveys a multidimensional pledge to enable every person to belong, contribute, and grow as their authentic self. It shows the organization’s dedication to fostering a diverse, equitable, and inclusive workplace.

Tailoring your DEI statement to reflect your organization

Customizing your DEI statement to reflect your organization’s unique culture and values effectively is not just essential but a must. Because of this, using a one-size-fits-all approach won’t work here. Avoid a generic, templated statement by rooting it in your organization’s unique mission, vision, values, structure, and population. Your DEI statement should genuinely reflect who you are as an organization, resonating authentically with the people who make up your workplace.

  • Reflect on your unique organizational culture: Every organization has its unique blend of values, traditions, & practices. Your DEI statement should match these by showing how diversity, fairness, & openness connect to the bigger idea of your organization’s identity. For example, if coming up with new ideas is very important, you should say how different points of view make it easier to find solutions.
  • Involve diverse stakeholder groups: Getting opinions from many in your organization ensures that diversity, equity, & inclusion statements work for everyone at different levels. This can be done using polls, group discussions, or one-on-one interviews. Involving people from various departments, backgrounds, & levels of seniority can give a full look at the organization’s goals for being fair & diverse.
  • Reflect on real experiences & aspirations: Use examples from your company & its goals to make the statement more personal. This could be about how having different people in your organization made it successful or how fairness steps helped to make a real change.
  • Be honest & aspirational: Even though it’s important to celebrate where your organization currently excels in DEI, it is equally necessary to be honest about areas that need improvement. Ensure your statement genuinely reflects DEI’s current state & aspirational goals for the organization.
  • Update regularly: As your company grows, so should its DEI statement. Checking & updating the statement often ensures it stays relevant & aligned with your organization’s culture or values that change over time.

Remember, a DEI statement is more than words on a page. It steers habits, affects rules, and shapes the future of any organization. Make it as dynamic and multifaceted as the people it stands for.

Free DEI statement template

Crafting a diversity, equity, and inclusion (DEI) statement can feel overwhelming, especially when starting from scratch. So here’s a basic template to kickstart your process and make it seamless. However, you should remember that this is just a guide; customize it with your organization’s culture, values, and DEI goals. 

[Your Organization’s Name]: Diversity, Equity, & Inclusion Statement

At [Your Organization’s Name], we believe in the power of diversity to continuously drive innovation, foster creativity, and enhance decision-making. We are actively committed to building and nurturing a diverse, inclusive, and equitable workplace where all our employees feel valued, respected, heard and empowered to bring their best selves to work.

Our Commitment to Diversity:

  • We embrace and celebrate diverse backgrounds, identities and abilities that make our workforce strong in its variety, recognizing that our strength lies in our diversity.
  • We are dedicated to creating and maintaining an environment where everyone, regardless of their race, color, religion, gender, gender identity or expression, sexual orientation, national origin, genetics, disability, age, or veteran status, feels included and empowered to contribute their best work.

Our Pledge to Equity:

  • We strive to provide equitable opportunities for all employees by ensuring fair treatment, access to justice, opportunity, and advancement.
  • We commit to identifying and uprooting factors, practices, and mindsets within our organization that consciously or unconsciously obstruct equity.

Inclusion in Action:

  • We nurture a culture where open dialogue, mutual understanding, and the exchange of ideas receive active support.
  • We focus on continuously educating ourselves to turn our inclusion aspirations into evolving reality through ever more thoughtful words, policies, and collective actions.

Accountability and Continuous Improvement:

  • We hold ourselves accountable by regularly assessing and transparently reporting our challenges, gaps, achievements, and opportunities to build equitable access and belonging.
  • We understand that crafting equitable culture requires humility, vigilance, and continually pushing the boundaries of our imagination. We commit to meeting the needs of both our organization and the societal landscape.

This statement symbolizes our organization’s holistic pledge to embed diversity, equity and inclusion into our fabric. It steers our policies, practices and decision-making today and into the future.

Feel free to add, modify, or rephrase parts of this template to showcase your organization’s unique DEI journey effectively. Remember, it’s about capturing what DEI means to you and how you envision it unfolding in your workspace. A DEI statement is not just words; it’s a promise and action plan that must be carried out.

Next steps?

In conclusion, an effective and authentic DEI statement speaks to your organization’s commitment to diversity, equity, and inclusion. It goes beyond just creating a statement to keep up with relevant trends, it’s about creating a document that resonates with your unique corporate culture, reflects your values, and speaks to your aspirations in the DEI space. 

The key takeaways? Ensure your DEI statement is inclusive, reflects a true and dedicated commitment, and is tailored to represent your organization’s unique context.

But remember, a DEI statement is just the beginning. It’s a promise, a roadmap for what comes next. The real impact lies in the actions you take and the continuous efforts you put towards creating a more inclusive and equitable workplace. It’s about being true to your words and sticking by them.

Thankfully, tools and expertise like those offered by Diversio can be invaluable for organizations that are looking to start this journey. We can provide the insights, guidance, and support needed to draft a DEI statement and live it, breathe it, and see it flourish into a thriving, inclusive workplace culture where everyone’s voice is heard, respected, and recognized.

Free DEI Strategic Plan Template

Posted on by Kate Stone

Diversity, equity, and inclusion strategies are a must for businesses of all types and sizes today. Yet, 45% of businesses report that they have not begun work on their DEI strategy or are still in the beginning stages.

Common barriers to DEI implementation include cultural resistance and lack of buy-in, not knowing where to start, and not having well-defined goals and a structured approach to the process. Starting with a strategic template for DEI initiatives can help solve some of these challenges.

A structured approach to DEI can:

  • Increase buy-in at all levels of the organization as employees & leaders see an unbiased, logical approach to the strategy
  • Provide a starting point and guideposts to help your team create a DEI strategy that supports positive workplace culture as well as business goals
  • Help you set measurable objectives & cascade those objectives across the organization for a holistic approach to DEI

Key Takeaways: A DEI strategy plan outlines an organization’s approach to enhancing diversity, equity, and inclusion, detailing goals, strategies, and metrics for tracking progress. The challenge lies in transitioning from ad-hoc initiatives, which may lack direction and consistency, to a strategic, holistic approach.
Diversio answers this with its AI-powered platform, providing the analytics and customization needed to turn DEI planning into measurable, impactful actions across any organization.

What is a DEI strategy plan?

A DEI strategy plan is a written document that details how an organization plans to support diversity, equity, and inclusion. It includes specific goals for DEI in an organization, along with definitions of how progress toward goals will be measured. The plan may also identify certain strategies or tasks that may enhance DEI within a business, including knowledge management and training, development of inclusion programs, and changes to hiring practices.

A strategic DEI plan allows an organization to move forward with diversity, equity, and inclusion in a holistic and consistent manner. That’s not always the case with ad-hoc DEI initiatives, which can rise and fall quickly due to a lack of structure. Ad-hoc approaches also leave room for biases or misunderstandings to slip in because they aren’t always well-defined and managed.

Why every organization needs a DEI strategic template

Implementing DEI in your organization is critical to long-term success today. First, because employees are starting to demand diversity and inclusion. According to Pew Research, more than half of all workers say that it’s important for employers to focus on increasing diversity, equity, and inclusion in the workplace.

Second, DEI strategies can have a positive impact on business performance. For example, McKinsey & Company analysis indicates that businesses that perform in the top quartile when it comes to diversity are 15% to 36% more likely to outperform financial goals than businesses in the bottom quartile.

To get these benefits and best serve employees, ensure your plan is cohesive and complete by starting with a DEI strategic templates. A template can help you consistently work toward DEI goals, communicate clearly about your goals, and create measurable outcomes for success.

Key components of a DEI strategic template

Look for DEI strategic templates that are comprehensive without being too complex to navigate or implement. Ensure the template you select includes the key elements required to create a successful DEI plan. Some important elements of DEI templates include:

  • Vision & mission statements. This section helps you think intentionally about the purpose behind your DEI strategy. If you don’t know the mission behind DEI in your organization—or you’re just engaging in this process because it seems like the next item on a checklist—you may find that your strategy is ineffective. Having a clear vision and mission statement also helps you communicate the “why” of your strategy to others & foster buy-in at all levels of your organization.
  • Objectives & goals. Once you know the why behind your DEI strategy, you can develop the “what.” Think about what you want to accomplish in your business and set goals and objectives. Make them SMART goals, meaning specific, measurable, attainable, relevant, & time-bound. For example, perhaps one of your goals is to improve team culture. You might measure that with a survey about employee satisfaction & culture, starting with a baseline measurement & striving to increase positive performance indicators by 10% quarter over quarter.
  • Key performance indicators (KPIs). Select & define the KPIs you’ll use to measure success. If you’re using employee satisfaction as a measurement, how exactly will you analyze it? You might ask employees to rate certain team culture factors on a scale of 1 to 5 every quarter, for instance, & use those data points as KPIs. Whatever your goals, measurable outcomes are critical to understanding how to move the needle and whether you’ve done so.
  • Action plans. Finally, create detailed action plans meant to drive you from your current state to your objectives. Consider major initiatives & tasks in implementing DEI strategies — such as staff DEI training — & include those on your template. When necessary, break them down into smaller milestones and achievable rocks so you can realistically work on them & delegate work to the appropriate people.

Customizing the DEI template for your organization

Remember that a template is a starting point. You should always customize a strategic template to fit the needs of your organization and speak to the challenges your teams tend to face. Start by getting insights from employees and stakeholders about the template and what it needs to help you accomplish. You can also look at industry benchmarks and best practices in DEI implementation to understand what else to include on a strategy template.

Here are a few tips for gathering insights from your subject-matter experts and stakeholders:

  • Begin by opening the conversation about DEI strategy. Invite stakeholders & others to share why this might be an important step for them & what they would like to see happen as a result of DEI implementation.
  • Discuss the need for a written plan. Talk about the benefits of a well-organized, structured approach, & open the door to conversation about what a strong DEI plan might look like.
  • Present a potential DEI template. Offer a DEI strategy template you think might work or that you want to use as a foundation for creating your own template. Ask for input about what seems to work or not work about the template. With your team, brainstorm what else should be included on the template & what changes might ensure it serves you better.

Implementing the DEI strategic template

DEI implementation looks different in each organization, but there are some tried-and-true steps you can take in moving from the completion of your template to rolling out your strategy.

  • Identify your vision & set goals, as noted above.
  • Create a team for DEI implementation. The team should include relevant stakeholders & skill-holders in your organization, including individuals from departments such as human resources, knowledge management, compliance, & leadership. You may also want to include subject-matter experts who can help with various initiatives, such as resources from tech departments.
  • Gain leadership buy-in. Ensure you have strong sponsorship for your DEI initiatives from across the leadership spectrum, including from executives & department heads.
  • Gather employee feedback. Use methods such as surveys, interviews, & focus groups to find out what employees want to see related to diversity, equity, & inclusion. These insights also let you create a baseline for DEI performance now so you can compare performance once you implement solutions.
  • Communicate DEI goals. Be transparent about the process and what you’re trying to achieve. Provide employees at all levels of your organization with the mission statement related to your DEI initiative as well as information about how the implementation may impact them or how they can be involved.
  • Implement solutions. Back up communication with action.
  • Report, analyze, & repeat. Consider performance metrics, tweak DEI processes, & continuously improve your approach.

Monitoring & adapting the DEI strategic template

Diversity, equity, and inclusion is not a one-and-done project. It’s an ongoing approach to work culture and employer best practices. To that end, it’s critical that you continuously monitor performance and seek feedback from employees and other stakeholders.

Some tools you might use for this include employee surveys and KPIs that are related to or tend to fluctuate based on employee morale. For example, production may go up or down in your organization depending on how employees feel about their work environment.

Consider implementing a data and analytics platform to help you track this information.

Get started

DEI is important in modern business environments, and the best way to implement these changes is through a carefully structured strategic approach. Use our free DEI template as a starting point to support structure as you work toward a more inclusive future.

15 Types of Diversity in the Workplace

Posted on by Kate Stone

Diversity in today’s corporate world is multifaceted beyond gender and ethnicity. This leads to the broad array of experiences, backgrounds, and perspectives employees bring to their roles. For CEOs and directors, understanding and integrating this diversity is more than a moral imperative; it’s a business strategy that drives innovation, market relevance, and financial success.

This guide’ll break down the different types of diversity reshaping the workplace. We’ll discuss the inherent qualities we’re born with, the acquired traits we gain from our experiences, and why they’re all vital to the rich tapestry of a thriving business environment.

As we navigate the essentials of workplace diversity, you’ll gain actionable insights into how your organization can acknowledge, celebrate, and capitalize on the unique differences within your team. Let’s dive in.

Comprehensive diversity types in the workplace

At its core, workplace diversity includes the full range of characteristics and experiences individuals bring to their professional environment. This consists of the inherent traits that are part of an individual’s makeup, like race and gender, as well as the acquired traits shaped by life experiences. 

Inherent diversity types

1) Racial & ethnic diversity: Every individual’s race and ethnicity brings a unique cultural perspective. It’s about more than skin color or heritage; it’s about diverse viewpoints that can lead to a 19% increase in revenue for companies with diverse management teams. It’s how traditional strategies get challenged, and innovation gets a boost from different angles of problem-solving.

2) Gender & sexual orientation diversity: The gender spectrum is broad and acknowledging this can help tap into a vast talent pool. It’s proven that gender-diverse companies are 21% more likely to experience above-average profitability. Embracing sexual orientation diversity means respecting personal identities, translating into a respectful and productive workplace culture.

3) Age diversity: A mix of generations in the workforce brings a dynamic interplay of stability and fresh ideas. Seasoned professionals offer wisdom and time-tested approaches, while younger employees infuse energy and a pulse on the latest trends. Together, they can propel companies to new heights.

4) Physical ability & neurodiversity: Recognizing the talents of individuals across the physical ability spectrum and those with neurodiverse conditions is critical. It’s not just about accessibility but about the unique abilities and perspectives these individuals bring to a team.

5) Physical appearance: Even clothing choices and body types play a role. They’re a part of one’s identity, and when employees feel comfortable in their skin, their confidence and productivity can soar. 

Recognizing these inherent diversity types isn’t just good ethics; it’s sound business. It leads to more robust discussions, a deeper understanding of customer bases, and, ultimately, a more robust bottom line.

Acquired diversity types

Acquired diversity reflects the vast array of experiences and skills gathered over a lifetime, shaping how we think, work, and connect with others. 

Here’s how these experiences translate into a diverse workforce:

6) Educational & skills diversity: Imagine a team where every diploma tells a different story, each certificate adds a unique skill, and every training session opens a new perspective. This diversity in education and skills fuels a team’s engine, driving innovation and adaptability.

7) Socioeconomic background diversity: Employees from various economic backgrounds enrich a workplace with diverse perspectives on value and resourcefulness, which can pivot a business to resonate with broader audiences.

8) Cultural & language diversity: With each new language spoken in the break room, there’s a door to a unique market opportunity. Cultural and linguistic diversity isn’t just about global reach; it’s about enriched creativity and nuanced problem-solving that can increase a company’s chance to capture new markets by 70%.

9) Professional & industry experience diversity: A spectrum of professional backgrounds, including invaluable insights from veterans, can give your company the edge.

10) Geographic location: The city, suburb, or farm where employees grew up can influence their approach to work. It’s the local flavors that season a company’s global appeal.

11) Work content field & functional level/classification: From the front lines to the corner office, every role offers a window into a different aspect of the business. When these views come together, the picture is complete.

12) Division/department/unit/group affiliation: Each department has its subculture, its way of seeing things. Harnessing these perspectives ensures that every angle is explored.

13) Seniority: The interplay between the fresh perspectives of new employees and the seasoned insights of long-time workers keeps a company growing. It’s the perfect blend of reverence for what works and the audacity to disrupt.

14) Marital & parental status: Life choices, such as being single, married, or a parent, shape individual priorities and viewpoints, adding depth to the collective company perspective.

15) Personal & recreational habits: Employees’ interests, from running marathons to culinary arts, invigorate the workplace with energy and a sense of balance, emphasizing the importance of integrating personal passions with professional roles.

These facets of acquired diversity do not just coexist; they collaborate, creating a workplace symphony that resonates with innovation and unity.

Additional diversity considerations

Diving deeper into the diversity pool, we find cognitive diversity — the variety of thought processes and problem-solving approaches that pepper our teams. This isn’t about what’s on paper.

This realm extends beyond credentials, tapping into how individuals process information and confront challenges. Such diversity in thinking is linked to a notable uptick in innovation, with some studies suggesting up to a 20% boost in creative output. Exploring the depths of workplace diversity brings us to cognitive diversity — the array of thought patterns and problem-solving skills across a team.

Then there’s intersectionality. It recognizes that people aren’t one-dimensional; we’re complex beings with intersecting identities — race, gender, age, class, and so much more.  Intersectionality sees the full spectrum of an employee’s life, recognizing someone who juggles roles as a part-time student, a parent, and a digital innovator.  This approach enriches a business with profound, lived experiences that traditional metrics might overlook.

Acknowledging and valuing cognitive diversity and intersectionality isn’t just a nice to do; it’s a must-do for any business that aims to stay ahead of the curve.

Measuring and fostering diversity

Measuring diversity isn’t just about counting different identities within your company. It delves into the actual experiences of team members: their sense of value, their feeling of being heard, and their level of inclusion. These are the vital signs of your company’s health.

Here’s the role Diversio plays in transforming diversity data into meaningful action:

  • DEI data & analytics: Consider this your organization’s health check-up. Diversio’s platform provides a clear snapshot of employee engagement and cultural health without the hassle of manual data sorting. With this information, you can see the numbers and the narratives behind them.
  • AI-powered insights: Diversio’s AI tools analyze the diversity data to give you actionable insights. It reveals where your teams are in sync and where you need to adjust the harmony. This goes beyond management—it’s about leadership tuning into a diverse workforce’s frequencies.
  • Closing the loop: Post-assessment, the focus shifts to cultivating an inclusive atmosphere. The aim is to convert data-driven insights into inclusive strategies that resonate with the entire team. Diversio provides DEI certifications and training that go beyond pinpointing areas for improvement; We provide a roadmap for creating tailored action plans that reflect your team’s distinct diversity profile.

By integrating Diversio’s capabilities, you’re equipped to map out the current diversity landscape and cultivate it. It’s about creating a workplace that doesn’t just welcome diversity but thrives on it, ensuring every employee’s potential can be fully realized.

Diversity is a journey of continuous learning.

Acknowledging the full spectrum of diversity within your workforce is a savvy move that propels your business forward. 

Here’s the gist: each type of diversity brings a unique strength. Harnessing these strengths requires a comprehensive approach that Diversio understands and can actively support with data and analytics, training, and AI-driven insights.

As the business world evolves, so too should our DEI efforts. It’s a continuous learning and improvement journey, with Diversio as a committed partner. The goal? To build workplaces where diversity is seen, felt, valued, and leveraged for the betterment of all.

Navigating the Pregnant Workers Fairness Act

Posted on by Diversio DEI Expert

The Pregnant Workers Fairness Act (PWFA) is more than just legislation; it’s a commitment to expecting mothers in the workplace. 

Thanks to the EEOC’s support, the PWFA aims to ensure that pregnant workers are treated fairly and provided the accommodations they need. It’s a clear message: pregnant employees deserve respect and understanding in their roles.

We’ll break down the PWFA’s core elements, explore the challenges pregnant workers have historically faced, and highlight the EEOC’s instrumental role in making this act a reality.

What is the Pregnant Workers Fairness Act?

The PWFA fundamentally ensures that expecting mothers can work without compromising their health or pregnancy. It addresses the frequent issues pregnant employees encounter, from lack of accommodations, to direct discrimination. More than just laying down guidelines, the act emphasizes the importance and worth of every pregnant worker in the workforce.

Let’s dive into its core objectives and understand why this act is making waves in the employment world.

The PWFA’s cornerstones: Key takeaways for employers

The Pregnant Workers Fairness Act (PWFA) sets clear expectations for employers:

  • Accommodation requirement: The act requires provisions for pregnancy-related needs, but it’s not a one-size-fits-all approach. Employers cannot force an employee to accept an accommodation other than what is deemed reasonable. They also cannot force an employee to take leave if another reasonable accommodation can be provided.
  • Navigating accommodations: While the act emphasizes support, it also acknowledges that not every accommodation request might be feasible. Employers need to discern & navigate these situations with care. Denying employment opportunities based on the need to accommodate pregnancy-related limitations is prohibited.
  • Discrimination or retaliation: The PWFA is unequivocal: they’re off the table. Adverse actions against an employee for requesting or using a reasonable accommodation are prohibited.

For employers, it’s not just about ticking compliance boxes. Embracing the act means building a workplace where every employee, pregnant or not, feels valued and supported.

Who’s covered by the PWFA? A closer look

The Pregnant Workers Fairness Act (PWFA) uses specific terms to define its scope, and understanding these is crucial:

  • Covered entity: Refers to employers engaged in industry affecting commerce with 15 or more employees, among others. Essentially, it’s about employers who fall under the act’s guidelines.
  • Employee definition: The term “employee” has a distinct definition within the PWFA’s context, encompassing a wide range of categories.

The act goes beyond mere definitions. It reaches out broadly, covering various employers and employee groups. The PWFA’s goal is to make workplaces everywhere more just and supportive for every pregnant employee.

Breaking down ‘Reasonable Accommodations’ in the PWFA

The term “reasonable accommodations” might sound a bit abstract, but the PWFA gives it tangible meaning, especially when it comes to supporting pregnant workers. So, what exactly does the act consider “reasonable”? It’s about adjustments or modifications that allow pregnant employees to perform their job without compromising their health or the well-being of their unborn child.

For instance, it could be as simple as providing a stool for a cashier who usually stands or adjusting work hours for someone with morning sickness. The key is collaboration. Employers and employees should engage in open dialogue to identify and implement accommodations that are both feasible and effective.

In the end, it’s about striking a balance: safeguarding pregnant workers’ well-being and keeping the workplace running smoothly.

Keeping employers in check: The enforcement of the PWFA

When it comes to the Pregnant Workers Fairness Act, there’s a robust system in place to ensure its principles aren’t just words on paper. For those who believe they’ve faced violations under the PWFA, there are specific avenues and resources available to seek justice.

Central to this enforcement is the U.S. Equal Employment Opportunity Commission (EEOC). They’re the guardians of the PWFA, ensuring that its tenets are upheld and that employers toe the line. If companies fall short, they’re not just facing a slap on the wrist. The consequences can be significant, ranging from financial penalties to mandatory training sessions.

In essence, the PWFA has teeth, and with the EEOC at the helm, it’s clear that the rights of pregnant workers are a priority worth protecting.

The PWFA & its place in the broader legal tapestry

While the PWFA stands tall in its mission, it also harmonizes with other legislations, ensuring a cohesive approach to workers’ rights. 

It’s essential to recognize that the PWFA isn’t about overshadowing or replacing other laws. Instead, it’s about complementing them, filling gaps, and reinforcing protections where needed. This act underscores a broader commitment: to continually refine and bolster the legal safeguards that surround our workforce, ensuring that every individual, regardless of their circumstances, gets a fair shake in the workplace.

Wrapping up: The PWFA’s ripple effect

The PWFA promises to reshape workplaces across the nation, championing the rights of pregnant workers. For employers, it’s more than just compliance; it’s a call to foster a truly inclusive and supportive work culture for everyone.

Free DEI Audit Template 

Posted on by Kate Stone

In the world of business today, the words “diversity,” “equity,” and “inclusion” aren’t just buzzwords; they’re imperatives. However, just stating your commitment isn’t enough. You need to measure your progress and assess the effectiveness of your DEI initiatives. Enter the DEI Audit.

Over 50% of companies champion DEI, but how many of them actually evaluate their efforts critically? This is where a robust DEI Audit Template comes into play, helping to transform those good intentions into tangible actions and improvements.

Key Takeaways: A DEI audit evaluates an organization's inclusivity, pinpointing successes and areas needing enhancement. The gap between DEI intentions and outcomes signals a pressing need for measurable strategies. Diversio answers this with its AI-powered platform, delivering customized insights for quantifiable DEI improvements.

What is a DEI audit? 

DEI audit is a health check-up for your organization’s diversity practices. It meticulously evaluates your company’s policies, practices, and culture to identify strengths and detect areas that need attention. It’s not just about numbers or ticking boxes—it’s about ensuring that every individual feels valued, understood, and included.

There’s a vast gap between implementing DEI policies and ensuring they’re effective. 

While sporadic DEI initiatives might create momentary sparks, a systematic DEI audit ensures a sustained flame of inclusivity and fairness.

The significance of a DEI audit template for organizations 

So, you’re committed to DEI. Great! But commitment without measurement is like driving without a destination. Here’s why a structured audit template is crucial:

  1. Employee expectations: According to recent surveys, over 60% of employees expect their employers to demonstrate a genuine commitment to DEI, not just in words, but in practice. A structured audit showcases your dedication to transparency & accountability.
  2. Business impact: There’s growing evidence linking DEI to business performance. A thorough audit helps pinpoint what’s working & what’s not, allowing organizations to optimize strategies for better results.
  3. Structured approach: A DEI audit template ensures that your audit is comprehensive, systematic, & consistently applied, enabling you to monitor progress over time.

Key elements of a DEI audit template

A thorough DEI audit is akin to a diagnostic tool that gauges the health of an organization’s diversity, equity, and inclusion initiatives. Here’s an expansive breakdown of the crucial components of a DEI audit template:

  1. Assessment areas: This refers to the various sectors or segments within the organization where DEI initiatives are either active or required.
    • Recruitment practices: Evaluate how diverse the candidate pools are, the objectivity of interview processes, & any inherent biases in job postings or descriptions.
    • Workplace culture: Measure how conducive the environment is for diverse teams. Are there micro-aggressions? Do employees from diverse backgrounds feel they belong & are valued?
    • Retention rates: Investigate the longevity of employees from various backgrounds. Is there a pattern of certain groups leaving sooner than others?
    • Leadership representation: Scrutinize the diversity makeup of the decision-making tiers. Are all groups represented fairly at the leadership level?
    • Training & development opportunities: Determine if all groups have equal access to growth opportunities within the organization.
  2. Evaluation metrics: These are the yardsticks that determine the success or areas of improvement for DEI initiatives.
    • Quantitative metrics: Numerical data like the percentage of diverse hires, the ratio of promotions among different groups, & attrition rates among diverse teams.
    • Qualitative metrics: Subjective data gathered from employee feedback, testimonials, & personal experiences. These offer insights into the “feel” of the organization from a DEI perspective.
    • Surveys & feedback mechanisms: Regularly scheduled surveys that gauge the mood, experiences, & suggestions of the workforce with respect to DEI.
  3. Stakeholder engagement: This ensures that the DEI audit isn’t just a top-down approach but is inclusive in its methodology.
    • Open forums: Hold sessions where employees can share their experiences, thoughts, & suggestions related to DEI without fear of repercussions.
    • Feedback mechanisms: Establish anonymous channels where employees can provide feedback on DEI initiatives or report incidents.
    • Collaborative task forces: Create DEI committees or task forces that represent a cross-section of the organization to ensure multiple perspectives are considered.
  4. Reporting structures: This focuses on how the findings of the DEI audit are compiled, presented, & disseminated.
    • Data visualization: Utilize charts, graphs, & infographics to make the findings more comprehensible & actionable.
    • Actionable insights: Beyond just presenting data, provide interpretations & recommendations to address any gaps or challenges.
    • Transparency: Ensure that the audit findings are shared with the entire organization, reinforcing a culture of openness & collective responsibility.
    • Review mechanisms: Schedule regular intervals, say quarterly or bi-annually, to review the progress post-audit & recalibrate strategies if necessary.

Tailoring the DEI audit template to your organization’s needs 

Just as every individual is unique, so is every organization. A one-size-fits-all approach won’t cut it. Customize your template based on:

  1. Organizational structure: A multinational conglomerate will have different challenges than a startup.
  2. Industry standards: Stay abreast of best practices & benchmarks in your industry.
  3. Employee feedback: Remember, they’re not just your workforce; they’re your DEI partners. Listen to their insights & incorporate them into your audit.

Conducting the DEI audit

Stepping into the world of DEI assessment can be both invigorating and challenging. Here’s a roadmap to guide you through this crucial process:

  1. Prepare:
    • Team selection: Assemble a diverse team from different departments, backgrounds, & levels in the hierarchy. This mix ensures a more comprehensive & empathetic audit.
    • Training: Provide your team with the necessary training to understand & approach DEI issues objectively.
    • Resource allocation: Ensure that you have the required technological & logistical support for the audit.
  2. Engage:
    • Open channels: Facilitate platforms where employees can freely express their views on DEI matters in the organization.
    • Feedback mechanisms: Use surveys, one-on-one interviews, & focus groups to gather qualitative data.
    • Reassure anonymity: Stress the importance of confidentiality to encourage honest feedback.
  3. Measure:
    • Data collection: Employ the metrics from your audit template to collect quantitative data, like representation stats across various roles.
    • Qualitative assessment: Analyze narratives & patterns that emerge from feedback to gauge the sentiment of employees towards DEI initiatives.
    • External benchmarks: Compare your DEI metrics with industry standards or similar organizations.
  4. Act:
    • Insight synthesis: Collate the data to extract meaningful insights.
    • Stakeholder presentation: Share the findings with key decision-makers.
    • Strategy formulation: Based on your findings, devise immediate, short-term, & long-term strategies.

Post-audit action & implementation

An effective DEI audit is only as valuable as the actions it instigates:

  1. Review findings:
    • Data analysis: Delve into the collected data, categorizing strengths, areas of concern, & potential opportunities.
    • Discussion forums: Organize sessions with team leaders & employees to discuss the findings & solicit further feedback.
  2. Craft strategies:
    • Task force: Assemble a dedicated team to brainstorm & develop strategies based on the audit results.
    • Pilot initiatives: Before a full-scale rollout, test DEI initiatives in smaller groups or departments to gauge effectiveness & gather feedback.
    • Communication: Ensure that every stakeholder is aware of the new strategies & their role in successful implementation.
  3. Monitor & repeat:
    • Performance metrics: Establish KPIs to assess the effectiveness of the newly implemented DEI strategies.
    • Feedback loops: Regularly check in with employees to gauge the impact & effectiveness of the strategies.
    • Ongoing assessment: DEI is an evolving landscape. Periodically conduct mini-audits or surveys to stay updated & pivot strategies as required.

Next Steps

The DEI audit is not just a measure of current practices but a commitment to continuous evolution in promoting diversity, equity, and inclusion. Through diligent assessment and re-evaluation, organizations can ensure they are always at the forefront of inclusivity. However, to truly harness the benefits and insights of such audits, a robust DEI platform can be invaluable.

DEI Training: Why it matters & how to implement it effectively

Posted on by Diversio DEI Expert

DEI training plays a key role in modern organizations. It greatly impacts an organization’s culture, growth, and employee satisfaction. Effective DEI training can have the power to shed light on a company’s underlying problems and work to solve them. 

Introduction to DEI training

Diversity, equity, and inclusion (DEI) are three closely linked values that promote the fair treatment and full participation of different groups of individuals. Diversity refers to who is represented in the workplace, equity refers to fair treatment for all people, and inclusion refers to the extent to which organizations embrace all employees and their contributions. Companies with effective DEI strategies are more likely to respond to challenges, meet customer needs, and retain top talent. 

DEI workplace training has taken a long journey to get to where it is today as a key focus for most large companies. Although DEI training did not properly take off until the 1960s, it is now considered a key tool in boosting productivity and innovation in an increasingly diverse workplace. Although the importance of DEI training is now widely known, organizations still face many challenges in implementing effective training. Many programs fail to create lasting change following a few training days. Ineffective DEI training can also fail to leave a meaningful impact due to a lack of engagement in the material. However, proper, effective DEI training can dramatically improve your company. 

Why training is crucial for organizations

Diversity, equity, and inclusion training is crucial for an organization’s success. An effective program can improve employee satisfaction, retention, and productivity. DEI strategies also have the power to benefit organizations financially. Employees who feel valued and safe within their organization are more likely to stay with their employees and perform better. This is because those with a high level of mental well-being are naturally more productive. According to the 2020 LinkedIn Learning Report, 94% of employees would stay at a company longer if it invested in their learning and development. A psychologically safe environment where every voice is heard will support the organization’s success. Additionally, implementing DEI training sends the message that your company values diversity and truly values the principles of DEI within the company culture. Corporations must understand the many opportunities they give up by not prioritizing DEI strategy. 

Common misconceptions about DEI training

There is a common misconception about the effectiveness of DEI training, particularly that DEI training is a one-off solution that is not effective. Diversity training has the potential to create a self-sustaining cycle. DEI is not a one-time event; it is an ongoing process. By offering DEI training, you encourage a culture of learning and best practices. Employees will begin to speak the same language as DEI elements become a part of your workplace. Training is the first step in driving your business and building a better workplace. 

Components of effective DEI training

Diversity, equity, and inclusion training comes in many forms to ensure each company implements training that will have the most impact. 

Some of the different types of training include: 

  • Basic diversity training allows organizations to cover various DEI topics through a foundational program. 
  • Awareness training provides an overview of diversity in the workplace. These include the various races, genders, sexual orientations, & ethnicities in the workplace. 
  • Unconscious bias training eliminates words & actions that may cause unintentional harm. It helps employees recognize their own unintentional biases & judgements about others.  
  • Cultural sensitivity training helps employees to become mindful of cultural nuances & customs when interacting with others within the organization. Cultural sensitivity training is particularly important for organizations with teams located in different parts of the world. 
  • Anti-oppression training educated employees about forms of oppression, power dynamics, & privilege. 

Tailoring training to the specific needs and challenges of each organization is a key step in ensuring the long-term success of your DEI training program. 

The role of language

Language is a key aspect of diversity, equity, and inclusion. Implicit bias in communication, the unconscious beliefs and attitudes leading to biased decision-making, can have far-reaching consequences if not addressed. Implicit biases in communication can hinder workplace collaboration, fuel harassment, and foster a workplace environment where employees do not feel safe. A prominent example of implicit bias in language involves someone’s birthplace versus where they live now. Implicit bias may lead someone to assume that because an employee was born in a different country than where they currently reside, their previous experience and success are not equal. Diversity training, alongside recruitment strategies, mentorship programs, and cultural wellness training, can help mitigate unconscious language bias. 

Measuring impact 

Once a DEI training strategy has been implemented in your organization, measuring and reevaluating your plan is important. Key metrics to evaluate the effectiveness of the program include diversity percentage in leadership, retention rates, and employee feedback. Employee feedback is particularly important in all types of training, especially DEI training. Diversity, equity, and inclusion  training topics are often sensitive for many individuals, making the invitation for peer feedback vital. This could be performed through a formal audit or informal feedback. DEI training is not meant to be a one-off; it is most effective when seen as an ongoing process with the continuous evaluation and adaptation of DEI initiatives. 

Beyond training: Building a holistic company culture 

DEI training is not a one-and-done fix to creating an entirely diverse and inclusive organization. Organizations must adopt a holistic approach to diversity with continuous efforts. DEI training should be integrated into other initiatives, such as mentorship programs and workforce education. 

If done correctly, a systematic and continuous approach to DEI training can create a long-lasting positive change in your workplace culture, where all employees feel a strong sense of belonging. Organizations should continuously invest and refine their DEI initiative for lasting impact. 

Who is Diversio?

Diversio offers a host of self-led, in-person, and customized training and certification programs. We are equipped to address the training needs of any organization. If you are looking to kick-off your DEI training program, contact us today to arrange a complimentary consultation.

By connecting artificial intelligence (AI) technology, sophisticated data analytics, and knowledgeable subject matter experts, Diversio is able to accurately diagnose opportunity areas, benchmark organizations against peers, and create a robust action plan to meet any DEI goal. Through the unique combination of technology and human expertise, Diversio is driving meaningful impact for hundreds of organizations across over 35 countries globally.

Diversio – The Diversity Experts™

For more information on Diversio, or how we can help you start your DEI program contact us at info@diversio.com.

Diveriso’s DEI maturity model – a complete guide

Posted on by Diversio DEI Expert

‘DEI maturity’ describes the level of advancement of a holistic diversity, equity, and inclusion strategy within an organization. This article breaks down Diveriso’s 6-stage DEI maturity model, which explains various DEI maturity levels an organization may pass through.  We will specifically highlight the key milestones needed to successfully progress to the next stage of maturity.

DEI Maturity Level 1: Compliance

DEI work is minimal and is mostly to comply with legislation. DEI discussions and initiatives are often reactionary to events and will mainly focus on recruitment. Diversity is considered, but equity and inclusion aren’t made a priority throughout the organization.

DEI Maturity Level 2: Awareness

There is a DEI business case. Diversity is understood as there is data, and there are targets and goals in place to work towards. The organization has Ad hoc or stand-alone initiatives such as infrequent training or employee resource groups (ERGs).

DEI Maturity Level 3: HR led

Equity and inclusion are integrated into the DEI strategy, there are targets that go beyond diversity demographics and create real change. There is a mission, vision, and values in relation to DEI, there is training for employees, and internal initiatives are in place.

DEI Maturity Level 4: Leader-led

There is education and training for people leaders; DEI is a personal priority of the executive team as well as the wider organization. Leaders and managers are committed and role model inclusion and are held accountable to target actions. There is a long-term vision for DEI; leaders are aligned, the team is aligned and involved, and there is a significant investment of resources put towards DEI.

DEI Maturity Level 5: Integrated

There is a more sophisticated understanding of DEI and links to the business strategy. Systemic biases and blockers are identified, and there are initiatives to work on addressing these. There is a clear, actionable, and effective DEI strategy that involves the whole team, including leadership. A DEI lens is given to each aspect of the operations, including recruiting, hiring, employee engagement, employee retention, external communications, and relationship management.

DEI Maturity Level 6: Industry leader

As well as meeting all criteria for the ‘Integrated’ stage of the model- the ‘Industry leaders’ stage describes organizations that are recognized as being industry leaders for ESG and DEI. There is continuous evaluation of the strategy, data, and goals as well as having a holistic and effective internal DEI strategy that is well-maintained and invested in; these organizations have a commitment to the wider community within their DEI lens. Organizations will facilitate summits and lead conversations to affect competitors and suppliers. They will set industry standards and publicize metrics.

Diversio can help you leverage the DEI maturity model

At Diversio, we work with hundreds of organizations worldwide to measure, track, and improve DEI in measurable and meaningful ways. We’d love to chat with you about how we can support you in reaching the next stage of DEI maturity so that you can attract and retain the best talent and remain competitive in your industry. Learn more here!

Diversio is the people intelligence platform that measures, tracks, and improves Diversity, Equity, and Inclusion (DEI).

By connecting artificial intelligence (AI) technology, sophisticated data analytics, and knowledgeable subject matter experts, Diversio is able to accurately diagnose your pain points, benchmark you against peers, and create a robust action plan that will meet your DEI goals. Through the unique combination of technology and human expertise, Diversio is driving meaningful impact for hundreds of organizations across over 35 countries globally.

Diversio – The Diversity Experts™

For more information on Diversio, or how we can help you start your DEI program contact us at info@diversio.com.

The Best DEI Software Solutions

Posted on by Diversio DEI Expert

The best DEI software providers offer a range of features and capabilities to help organizations create more diverse and inclusive workplaces. From data analysis capabilities to practical solutions and user experience, there’s lots to consider when choosing a diversity, equity, and inclusion (DEI) software provider. This article breaks down some important features of the best DEI software solutions and compares Diversio to the following providers: Edge, Culture Amp, Qlearsite, Glint, & Qualtrics. 

The Diversio Platform

Diversio is a leading, global, DEI software and resource provider. By connecting artificial intelligence (AI), sophisticated data analytics, and knowledgeable subject matter experts, Diversio is able to accurately diagnose opportunity areas, benchmark companies to peers, and deliver training that will drive meaningful impact for companies at all stages of the DEI journey.

The Diversio Platform is a unique DEI software solution; it is academically validated and developed by a multidisciplinary team of social scientists, diversity advocates, and engineers. The system uses natural language processing (NLP) and matching algorithms to add rigor and accuracy to your diversity, equity, and inclusion strategy.

Is Diversio the best DEI software solution?

Metrics for DEI software solutions

There are several features that set Diversio’s software solution apart from other providers. The first is a research-based Inclusion Metric Framework™. The Inclusion Metric  Framework™ offers a clear and proven structure to ensure that DEI surveys quantify accurate, insightful, and valuable metrics. Effective research is the foundational key to building an impactful diversity & inclusion strategy; it’s fundamental that organizations uncover quality data, and Diversio’s DEI analytics makes this possible. The metrics utilized by the Inclusion Metric™ Framework are as follows: 

  • Career Development:
    Inclusive Career Development provides all employees with opportunities to grow & advance internally 
  • Fair Management:
    Fair managers unbiased towards all employees and address people and workplace matters in a fair and equitable manner
  • Inclusive Culture:
    An Inclusive Culture is an environment where everyone feels heard & valued by their team
  • Workplace Flexibility:
    A flexible workplace is on which enables all individuals to establish a healthy work-life balance
  • Workplace Safety:
    The workplace safety metric measures physical and psychological safety in the workplace; improving this metric ensures all employees are not experiencing any form of harassment.
  • Recruiting & Hiring:
    Ensuring the hiring pipeline in a workplace reflects the diversity of the communities the organization in which it operates, contributes to equitable Recruiting and Hiring practices.

Goal setting in DEI software

Another proud feature of the Diversio platform that isn’t provided by alternative DEI software solution providers is the goal setting abilities, and notably department goal setting. After extensive industry experience and research, it has become clear that the most successful diversity & inclusion strategies are those that work towards specific, measurable goals and maintain accountability to drive demonstrable results. As such, Diversio enables clients to uncover opportunity’ areas and then define clear goals attached to these metrics so that actions are prioritized in the most meaningful ways.

Integrated DEI calendar

Further, Diversio’s DEI calendar offers a global reference for days, weeks, and months of significance so that your organization can make sure to acknowledge these and remain inclusive to all communities. This can support you in your initiatives and help schedule initiatives and keep things organized. 

What features are common among DEI software solutions?

There are some features that are a common offering throughout the software providers. For example, all noted providers offer a technology platform combined with qualitative human overlay.

In addition, all noted providers offer industry benchmarking capabilities which enables clients to understand where they fit within the industry and what progress can be made to ensure they remain competitive. 

Furthermore, the software providers offer the ability to track progress over time, which is helpful for internal and external communications, and can highlight how effective the holistic strategy is. 

The complete breakdown of features and providers can be found on our website here.

Want to learn more about Diversio?

Diversio is the people intelligence platform that measures, tracks, and improves diversity, equity, and inclusion (DEI).

By connecting artificial intelligence (AI) technology, sophisticated data analytics, and knowledgeable subject matter experts, Diversio is able to accurately diagnose opportunity areas, benchmark organizations against peers, and create a robust action plan to meet any DEI goal. Through the unique combination of technology and human expertise, Diversio is driving meaningful impact for hundreds of organizations across over 35 countries globally.

Diversio – The Diversity Experts™

For more information on Diversio, or how we can help you start your DEI program contact us at info@diversio.com.

The ESG Data Convergence Initiative and What It Means for DEI

Posted on by Diversio DEI Expert

For the private equity sector, the pressure to act on Environmental, Social, and Governance — ESG for short — metrics is rising. The demands for ESG data, reporting, and action plans have been mounting. Private equity firms are now prioritizing how to measure, report, and integrate ESG into their end-to-end investment processes.

So how does ‘Diversity, Equity and Inclusion’ come into play, and why is it a critical part of ESG?

McKinsey published a report, “The state of diversity in global Private Markets: 2022” which found that leading institutional investors would invest 2.6 times more capital in more ethnically and racially diverse firms. However, the lack of data prevented the study from diving deeper into the financial value of increased diversity.

Investors have an opportunity to improve the measurement and integration of Diversity, Equity, and Inclusion data into their investment and portfolio management strategies.

The Core DEI Data Challenge That Investors Should Tackle

Here’s the problem: Traditionally, the private equity sector has had a very fragmented approach to ESG data. They’ve struggled with diversity and inclusion, too. Where companies have had to report the data or have tried to be more transparent, they were not always using the same tools, definitions, and categories. They were sharing the data in various ways and on different schedules.

Common challenges that investors have with Diversity, Equity, and Inclusion (DEI) data collection are as follows:

  1. Not knowing what DEI data to collect. Most investors start at gender diversity but there are multiple forms of diversity that can be measured to give a more comprehensive understanding of a team’s makeup and activity.
  2. Compliance and data and security risks. Investors often are concerned about being compliant with global sensitive data and security laws. A lack of know-how about the regulations can deter investors from measuring this data entirely.
  3. Lack of in-house capability and resources to collect and analyze the data. Even if the desire exists, data collection in a secure, scalable, and efficient way is difficult to do in-house where an investment firm may not be equipped with the technical expertise to do so.
  4. Difficulty building trust and educating stakeholders on the value of DEI measurement and improvement. Without employee or portfolio company willingness to disclose the data, investors cannot have high-quality data to conduct analysis.
  5. Not knowing what to do once they have the data. Often, investors collect data to simply report on it but are sitting on an untapped gold mine of insights that could drive financial performance. Investors need the help of DEI experts to connect the dots between the data and strategy.
  6. Lack of knowledge on the value of a more inclusive team and/or portfolio. Increased diversity at the leadership level is correlated to financial performance across numerous studies. Investing in DEI can improve employee retention, productivity, and innovation — all of which have a cost savings or revenue generation impact. Investors are not looking at this as a value-creation lever.

In short, the need for more standardized data and reporting on ESG data, especially DEI data, is needed by the industry. Hence the ESG Data Convergence Initiative.

What Is the ESG Data Convergence Initiative?

The ESG Data Convergence Initiative is an open partnership of private equity firms, representing over $8T in AUM, or assets under management. Founded in the spring of 2021, the goal of the ESG Data Convergence Initiative is to streamline the way the private equity sector gathers and reports ESG data.

So far, there are over 250 general partners who have all agreed to measure and share the same data in the same way. This will hopefully pave the way for a robust comparison of metrics and real-world, actionable insights.

The data ESG Data Convergence Initiative is collecting includes:

  • Greenhouse gas emissions
  • Renewable-energy share
  • Board diversity
  • Net new hires
  • Work-related injury
  • Employee engagement

Currently, large enterprises such as CalPERS and the Carlyle Group are backing and taking part in the ESG Data Convergence Initiative. Their aim is to not just gather this data in a way that’s easy to understand for limited partners and all stakeholders but also to gather data that is then actionable.

How Will the ESG Data Convergence Initiative Impact What Is Expected of Investors

A group of the world’s largest GPs  and LPs  have come together in collaboration with global management consulting firm, The Boston Consulting Group to measure and share data from GPs to LPs in a standardized way.

The data collected will be anonymized from portfolio companies and aggregated to produce industry-wide insights to show the relationship and potential correlation between financial performance and ESG performance.

The impact of this ongoing study would meaningfully impact the way that investors are expected to collect and share data between GPs to LPs.

Today, GPs ask LPs for Diversity, Equity, and Inclusion data in the form of reporting questionnaires. Common questionnaires from GPs to LPs on DEI have been created and standardized by ILPA (the Institutional Limited Partners Association) and The Principles of Responsible Investment (PRI). Diversio collaborated with ILPA on the creation of their DEI Due Diligence Questionnaire (DDQ), which is similar to what PRI asks for.

The investment industry can expect to see new standards developed on how to measure, track and analyze DEI data as a result of the ESG Data Convergence Initiative. It would be wise for them to start thinking about how they would do this proactively.

There is already demand for ESG in Private Equity. One general partner (GP) researched by Boston Consulting Group reported receiving 37 separate requests for ESG data from LPs within just one week. GPs who want to ensure their portfolio companies are getting a strong ROI on DEI and are making progress on ESG KPIs and goals can choose to join the collection efforts of the ESG Data Convergence Project once they are ready to adhere to the defined set of metrics. It’s also possible for PE firms to join the ESG Data Convergence Initiative as members to contribute to the standardization of ESG data in the industry. Joining is one way to join the effort at standardization.

The ESG Data Convergence Initiative also publishes data that can shape investments for private equity firms. In their inaugural year, for example, the ESG Data Convergence Initiative reported that 45% of private firms had no women on their boards, compared to 12% of public firms that reported no women on their boards. Firms looking for investor intelligence can turn to the ESG Data Convergence Initiative as one source of information. This data can inform firms as to what metrics they may be gathering in the future.

It’s clear that the stakes are significant for portfolio companies and GPs. The McKinsey study concluded that Chief Investment Officers at some of the largest institutional investors reported that when comparing two similar private equity firms, they would allocate twice as much capital to the PE firm with more gender diversity.

How Can Diversio Help?

Diversio for Portfolios is designed to support investors who wish to measure and improve the DEI of their internal teams and portfolio. For firms interested in taking part in the ESG Data Convergence Project and those who are not ready to be members yet, Diversio is a resource that can encourage a positive return on investment in DEI efforts. Our solutions are structured for portfolio management, so investors can understand DEI within their portfolios at a macro and micro level.

Diversio’s DEI data collection, analysis, reporting, strategic plan generation, and support from DEI Experts provide all the tools necessary to measure and improve DEI KPIs. Diversio helps organizations in the finance sector benchmark DEI data and take actionable, proven steps toward change.

Diversio helps build diversity in finance sectors by educating investment teams on how to be inclusive investors. We also train teams about the return on investment and the benefits possible with sustainable finance and DEI. Finally, Diversio offers fund and portfolio certification. This public-facing statement showcases to LPs that DEI best practices are integrated into investments and internal teams.

To find out more about Diversio and how our solutions work, schedule a demo today.