How to create customized DEI metrics
– Shareholders are increasingly asking for objective measurements of culture.
– Measuring culture requires developing customized metrics for your company.
– Four types of measurements can help you develop these metrics.
Here’s a write-up from our advisory board member, Ginny Fogg: Assessing and measuring culture are critical components of any Diversity Equity & Inclusion program. Shareholders want objective measures of your culture in your sustainability report and in your human capital management disclosure. If your company has a true culture of inclusion, then you know it. You feel it. But can you prove it?
Employee surveys can help assess how many of your employees feel that they are part of an inclusive culture. Many companies are doing regular surveys and reporting the results to the board. Some are disclosing the actions they are taking to assess culture, but few are disclosing even qualitative trends from the surveys. Shareholders are asking for more. Boards are asking for more. So how do you measure an inclusive culture?
This article from PwC and Katzenbach Center lays out some great options: “More than a feeling: How do you measure culture?” Written more than two years ago, it still provides some of the most practical tips I’ve seen on how to create customized metrics for your company and develop measurements that shareholders want to see. The article suggests using multiple data points, and involving leaders and other employees to create the metrics tailored to your organization. The following four types of measurements can serve as starting points in creating customized metrics for your company:
– Program/rollout KPIs to assess participation from the beginning of the program
– Anecdotes recorded and shared throughout the company to spotlight people doing something outside the norm
– Behavioral KPIs or pulse surveys conducted periodically to track behaviors and any changes over time
– Business KPIs to track how changing culture is impacting the business
The article provides lots of insight on developing culture metrics. Once you tailor the metrics to your company and develop a consistent reporting format, you’re on your way to proving culture.