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DIVERSITYDATAGUIDE2024GuidanceonthecollectionanduseofdatatoenhanceworkforceEDIJuly2024ABOUTTHEINVESTMENTASSOCIATION(IA):TheIAchampionsUKinvestmentmanagement,supportingBritishsavers,investorsandbusinesses.Our250membersmanage£8.8trillionofassetsandtheinvestmentmanagementindustrysupports126,400jobsacrosstheUK.Ourmissionistomakeinvestmentbetter.Betterforclients,sotheyachievetheirfinancialgoals.Betterforcompanies,sotheygetthecapitaltheyneedtogrow.Andbetterfortheeconomy,soeveryoneprospers.Ourpurposeistoensureinvestmentmanagersareinthebestpossiblepositionto:•Buildpeople’sresiliencetofinancialadversity•Helppeopleachievetheirfinancialaspirations•Enablepeopletomaintainadecentstandardoflivingastheygrowolder•ContributetoeconomicgrowththroughtheefficientallocationofcapitalThemoneyourmembersmanageisinawidevarietyofinvestmentvehiclesincludingauthorisedinvestmentfunds,pensionfundsandstocksandsharesISAs.TheUKisthesecondlargestinvestmentmanagementcentreintheworld,aftertheUSandmanagesoverathird(37%)ofallassetsmanagedinEurope.DIVERSITYDATAGUIDECONTENTSIAFORWARD04050608PwCINTRODUCTIONBACKGROUND:THEEVOLVINGREGULATORYLANDSCAPESECTION1:IMPROVINGTHEQUALITYOFYOURDATAIMPROVINGENGAGEMENTANDBUILDINGTRUSTSECTION2:USINGDIVERSITYDATATODEVELOPEDISTRATEGIES,INTERVENTIONSANDTARGETS12EMPLOYEELIFECYCLEANALYSISINCLUSIONANDCULTUREANALYTICSDETERMININGSTRATEGIESANDINTERVENTIONSHOWTOSETDIVERSITYTARGETSSECTION3:MONITORINGEDI:MANAGINGRISKSANDBUILDINGACCOUNTABILITY1517WHATAREEDIRISKS?ACCOUNTABILITYANDGOVERNANCEFOREDICONCLUSION3THEINVESTMENTASSOCIATIONIAFORWARDCultivatingarobustworkplacecultureisanindustrypriority,giventhedirectlinkbetweenhealthyculturesandpositivebusinessoutcomes.Inrecentyears,firmshaveevolvedtheirapproachtoequity,diversityandinclusion(EDI)drivenbyincreasedcustomerexpectations,societalchangesandemergingregulatorymandatesfromgovernmentandregulators.Asaresult,thereisastrongeremphasisondiversitydatacollection,enablingfirmstogaindeeperinsightsintotheirworkforcecompositionandaccuratelyreportonit.encouraginghigheremployeeresponseanddisclosurerates.InsightsfromourcomprehensiveEDISurveyindicatethatsubstantialdevelopmentisstillneededinthisarea.WorkinginpartnershipwithPwC,ourdataguideofferspracticalsupporttoourmembersinimprovingtheaccuracyandreliabilityoftheirworkforcedata.Tailoredforfirmsofallsizesandatvaryingstagesintheirdatacollectionjourney,thisguideprovidespracticaltoolsandguidanceforimproveddataintegrityandanalysis.Amidsttheevolvingregulatorylandscape,ourguideaimstohelpyounavigatethedatacollectionandanalysisprocesssmoothly,ensuringyourfirmiswell-preparedforcurrentandfutureregulatoryrequirements.Wesincerelythankourmembersfortheirvaluableparticipationinhelpingtoshapeourguide.KarisStanderDirector-Culture,Talent&Inclusion,MDInvestment20/20TheInvestmentAssociationFirms,fromlargemultinationalstosmallerboutiques,areseekingtoimprovetheintegrityandqualityoftheirdiversitydatatoensureitaccuratelyreflectstheirworkforce.Thisfocusallowsformeaningfulanalysistoinformstrategies,interventionsandprocesses,aswellastotrackprogressovertime.Achievingthisrequires4DIVERSITYDATAGUIDEPwCINTRODUCTIONIn2021,PwCUKandtheInvestmentAssociation(IA)createdaDiversityDataGuidethatprovidesguidancefororganisationsbeginningtheirdiversitydatajourneys,including:challengesastheirjourneyprogresses,suchashowtoincreasedisclosureratestogainmoremeaningfulanalysis,andhowtomosteffectivelyusetheirdatatocreatetailoredandtargetedactionplans.•Whyshouldorganisationscollectdiversitydata?Withthisinmind,PwCandtheIAhaveworkedtogethertodevelopthisguideinordertorespondtomemberfeedback,andprovidedeeperinsightsinlightofthechangingregulatorylandscapeon:•Canorganisationscollectdiversitydataandwhoshouldbeinvolved?•Whatprocessshouldorganisationsfollowwhengatheringthisdata?•Improvingyourdataquality:Strategiestoenhancedisclosureandimproveresponseratesthrougheffectivecommunicationandcrossstakeholdercollaboration.•Whatdatashouldorganisationsbecollecting?•Howdoorganisationsanalysethisdata?•Howdoorganisationsrespondtothisdata?•UsingdiversitydatatodevelopEDIstrategies,interventionsandtargets:Guidanceonusingthedatayou’vecollectedeffectively,todetermineyouractions,developyourstrategyandbuildaclearnarrative.Intheyearssince,thelandscapehasshifted:evolvingregulation,marketnormsandpublicperceptionhaveallmeantthatEDIhascontinuedtoriseuptheagenda.Asaresult,manyorganisationsarefacingnew•MonitoringEDIasabusinessrisk:GuidanceoncapturingEDIrisksandusingdiversitydatatoeffectivelymonitorandgovernactivities.WewouldliketothanktheIAforcontinuingtodriveforwardthisimportantagenda,andthemembersoftheIA’sDiversityDataWorkingGroupwhocontributedtheirexperiencesandthoughtstohelpshapethisdocument.Fororganisationsattheearlystagesoftheirdiversitydatajourney,orforthoselookingforareminderofcertainaspects,werecommendalsoreadingourinitialguide.Wehopethisguideisausefultoolfororganisationscontinuingtoprogressontheirdiversitydatajourney.5THEINVESTMENTASSOCIATIONBACKGROUND:
THEEVOLVINGREGULATORYLANDSCAPETheUKfinancialservicesregulatorshaveproposedwide-rangingandcomprehensiveDiversityandInclusion(D&I)regulations.InSeptember2023,theFinancialConductAuthority
(‘FCA’)andthePrudentialRegulationAuthority
(‘PRA’)publishedtwoconsultationpapers(‘CPs’)settingouttheirproposalstointroduceanewregulatoryframeworkonD&Iinthefinancialsector.ThetwoCPs,whicharebroadlyconsistent,setoutproposedreportingandtargetsettingrequirements,alongsideexpectationstoembedD&Iintoriskandgovernanceframeworks(acomprehensivesummaryoftheproposedregulationscanbefoundhere).financialmisconductelementsoftheirCPsaheadofrequirementsondiversitydatareportingandtargets.However,diversitydatareportingandtargetsremainapriorityformanyfirms.Whileregulatoryproposalstargetfirmsoverthe250threshold,it’simportanttonotethatdatacollectioneffortsextendbeyondthisthreshold.Infact,firmsoutsidetheregulatoryscopearealreadyactivelyengaginginemployeedatacollection.Nearly50%oftherespondentstotheIA’sEDIDataSurvey,doneinpartnershipwiththeThinkingAheadInstitute,fellbelowthe250threshold.TheCPsemphasisethatD&Ishouldbeconsideredanon-financialriskandtreatedassuchinexistingriskmanagementprocesses.Riskandcontrolfunctionsmayplayaroleinmanagingtheserisksandensuringeffectivecompliance.Thisfurtheremphasisestheneedforqualitydata,whichcanbeeasilymonitoredandmaintainedtohighstandards.Theseproposedregulationsmayimpacthoworganisationscollectandreportondiversitydata.Forfirmswithover250employees,thisincludescollectingandreportingondataforage,sexorgender,ethnicity,disability,sexualorientationandreligion.Voluntarydisclosureisrecommendedforgenderidentity,socio-economicbackground,parentalresponsibilitiesandcarerresponsibilities.Firmswouldalsoberequiredtoannuallyaskemployeessixspecificinclusionquestionsandpublishresponses.ItshouldbenotedthatsincethepublicationoftheCPs,followingtherecommendationsoftheTreasurySelectCommitteeInquiryinto‘SexismintheCity’,theFCAandPRAhaveindicatedthattheywillbeprioritisingthenon-RegulationsbeyondtheFinancialServicesindustryarealsopayingmoreattentiontoEDIthaneverbefore.Diversityreportingisexpandingtoincludeawiderrangeoffactorsbeyondgender,withsomeorganisationsadaptingtheirdatacaptureandanalysistoalignwithglobalpracticesandstandards.Thegraphbelowhighlightsanumberofthesekeydirectivesandregulation,bothincomingandcurrent.Internationalsustainabilityreportingframeworks(CSRD,ISSBandSEC)UKgenderpaygapreportingGenderspecificTheFTSEWomenLeadersReviewEUpaytransparencydirectiveFCAlistingrulesondiversityrepresentationonBoardsandExCoVoluntaryglobalsustainabilitydisclosuresInvestorguidanceIncludingbroaderdiversityUKethnicityanddisabilitypaygapreportingTheParkerReviewDE&Ireportingstandards/bestpracticeframeworksFCAandPRAdiversityandinclusionregulationKey:MandatoryVoluntarySectorspecificAnticipatedSource:PwC6DIVERSITYDATAGUIDEKeyexamplesinclude:•TheCorporateSustainabilityReportingDirectiverequiresabroaderrangeofdisclosuresregardingdiversity.Beyondgender,thelegislationalsoincludesdisclosurerequirementsonthepercentagesofemployeeswithdisabilities.Subjecttomaterialityassessments,theserequirementsmayresultinorganisationsneedingtocollectand/orimprovetheirdisclosureratesfordisabilitydata.Theseregulationswillaffectmanycompaniesacrosstheworldduetothebroadscopeofthelegislationandgroupreportingrequirements.•TheParkerReview
askinglistedandlargeprivatecompaniestosettargetsfortheproportionoftheirseniormanagementwhoarefromanethnicminoritybackgroundTocomplywiththeseproposedregulations,firmsmayneedtobroadenthecollectionoftheirdiversitydata,whilealsoensuringthattheyhavesufficientresponseratestocarryoutmeaningfulanalysisanddisclosures.Theywillthenneedtobeequippedtoanalysethisdata-inordertodetermineactions,setstrategiesandbuildmeaningfulnarrativestosupportanydisclosures.Manyorganisationsaregoingbeyondthesemandatoryoranticipatedrequirements,andaremakingadditionalvoluntarydisclosuresonrepresentation,paygapsandEDItargets.•TheEUPayTransparencyDirective
willrequireorganisationswithanyworkersinEUmemberstatestoimplementaseriesofmeasurestoensurepaytransparency.Theseincludeexternalgenderpaygapreporting,internalequalpayassessments,employeeshavingtheabilitytorequestinformationonindividualpaylevel,prospectiveemployeesbeingabletorequestpayinformationandadditionaldisclosuresoncompensationstrategy.TheoverallaimoftheEUPayTransparencyDirectiveistoincreasetransparencyacrosstheEU.•TheLabourgovernment
haveindictedthattheywillintroducemandatoryethnicityanddisabilitypayreportingforlargerfirms,alongsiderequirementstodevelop,publishandimplementactionplanstoclosegenderpaygaps.Whiledetailsandtimingsofthishavenotbeenprovided,nowthatLabourhaveformedagovernment,firmsshouldanticipatefutureregulationhere.Thismayrequireorganisationstostartcollectingand/orimprovetheirdisclosureratesfordataonethnicityanddisability.7THEINVESTMENTASSOCIATIONSECTION1:IMPROVINGTHEQUALITYOFYOURDATAThevoluntarynatureofdiversitydatacollectioncanmeanthattheproportionofemployeeswhohavesharedtheirdiversitydatamayberelativelylow.Thismeansthattheremaybegapsinthedata,makinganalysis,year-on-yearcomparisonsandstrategydevelopmentmorechallenging.withsharingpersonalinformationinaworkcontext,anduncertaintyabouthowpersonaldatawillbeused.Characteristicshistoricallycollectedduringhiringandonboardingprocessestypicallyhavehigherratesofpersonaldisclosure.Tounderstandwhatmightbedrivinglowresponserates,itisadvisabletobeginwithananalysisofthedatayoualreadyhave.Forexample,ifahighproportionofpeoplechoose‘prefernottosay’,thislikelyindicatesalackoftrustwhensharingpersonalinformation.Whereas,ifemployeeshavenotloggedintothesystemtoentertheirdata,itmayindicatealackofengagement.Itwouldbehelpfultogatherfeedbackfromemployees,suchasviafocusgroups,tobetterunderstandanyconcernsorhurdlestheymighthavearoundprovidingdata.TheIA’s2023industry-wideEDIDataSurveyidentifiedthetoptwochallengesincollectingemployeedataasconcernsarounddataprivacy,andlackofengagement.Alongsidethis,specificpersonalattributesoftenhavelowerresponserates.Thiscanbeattributedtounfamiliaritywithrequestsforpersonaldatabeyondthetraditionalcategoriesofageandgender,discomfortAnongoingchallengeofdiversitydatacollectionisestablishingbothengagementandtrustwithintheworkforcetoencouragethemtosharethisdata.CHART1:TOPCHALLENGESINCOLLECTINGDIVERSITYDATAFROMINDIVIDUALEMPLOYEESConcernsoverdataprivacy76%47%ApathyConcernsoverreprisalordiscriminationTimeconstraints38%31%LackofemployeesupportforachievingEDIobjectives22%Wedonotfaceanychallenges/barriersincollectingdiversitydatafromemployees13%33%OtherTheIA’s2023industry-wideEDISurveyidentifiedthetoptwochallengesincollectingemployeedataasconcernsarounddataprivacyandapathy.Source:TheIA2023industrywideEDISurvey8DIVERSITYDATAGUIDECHART2:RESPONSERATESACROSSATTRIBUTESFORFIRMSCOLLECTINGTHEDATAAgeGender94%2%4%84%12%2%2%2%8%14%2%Ethnicity52%34%9%CaringresponsibilitiesReligion/belief31%27%26%46%50%15%9%21%Disability29%48%6%18%SexualorientationNeurodiversity18%3%6%15%24%15%19%15%14%23%29%31%29%Socio-economicbackground10%100%-80%80%-50%50%-20%20%-0%Notsure/Don'tknowForfirmscollectingdiversitydata,thereisgenerallyapositivecorrelationbetweentheoveralldatacollectionratesandresponserates.Thehighestcollectionratesaretypicallyseenforcharacteristicshistoricallygatheredduringhiringandonboardingprocesses.Source:TheIA2023industrywideEDISurveyIMPROVINGENGAGEMENTWheretherearelowresponseratestodiversitydatacollectionefforts,anissuemaybelowengagementlevelswithparticipants.Thiscouldbedrivenbyalackofclearfeedbackandresults,oremployeesbelievingthattherequestisnotapplicableorrelevanttothem.•Combattingsurveyfatigueandapathy:ConnectingyourHRsystemsandsurveyscanhelptoensurethatemployeesarenotrepeatedlyaskedtoprovidethesameinformation.Itcanbehelpfultoaskemployeestoprovidediversitydataattimeswhentheymightalreadybeengagedinsharinginformation,forexample,asanewjoinerorwhencompletingannualtrainingactivities.Techniquestoaddressthisinclude:•Demonstratingrelevancetotheindividual:Communicatingthecompany’sEDIaimsplacesitattheheartofthebroaderbusinessstrategyandincreasesemployeeengagement.Targetedcommunicationcanimprovethisbypositivelyengagingwithemployeesonwhytheirdataisneededandhowitwillinformactionsandoutcomes.Workwithmanagementtobuildengagementinareaswithlowerresponserates,andleverageemployeenetworkgroupswhereavailabletoincreaseengagementwithspecificgroups.•Makeitsimpleandaccessible:Thetechnologyusedshouldbesmoothandsimpletouse,easilyaccessiblefromarangeofdevices,andclearlysetout.Linkstotherelevantportalshouldbeeasytofindandrepeatedlyreferencedwithincommunications,alongsidestep-by-stepguidanceandclearlysignpostedforms.9THEINVESTMENTASSOCIATIONBUILDINGTRUSTTobuildhighresponseratesofaccuratedata,itiscrucialtobetransparentaboutwhyyou’recollectingthisdata,andhowyouintendtouseit.Potentialwaystoaddressthisinclude:•Leadingbyexample:Seniorstakeholderscommunicatingwiththewiderworkforce,explainingthepurposeofdiversitydatacollection,canoftenincreaseengagementwithemployees.Bysettingapositivetonefromthetopand•Creatingengagementcampaigns:Drivingengagementviacampaignscanhelptobuildenthusiasmandawareness.Internalmarketingtoolssuchasscreensavers,onlinepromptsand‘countmein’programmescanbeutilised.Engagingkeyemployeestobecomeambassadorsfordiversitydatacollectioncanenableabridgebetweenseniorleadershipandemployees,providingtheworkforcewithavoice.Thisaccessibilitytothewiderworkforcepromotesamorecollaborativeapproachindrivingtheseinitiativesforchange,whichcanimpactdiversitydisclosurerates.enhancingtransparencyoftheEDIagendaanditsoutcomes,itcanbuildtrust.Havingseniorleadershipcommunicatingthisstrategysignalsyourorganisation’sintentandcommitmentinternallyandexternally.Thisapproachshouldbecascadeddowntoteamleaderlevel,ascommunicationfromawell-knownleaderisusuallymostimpactful.Oftenthiscanbedonethroughavarietyofwaysincludingemailcommunications,videomessagesandQ&Asessions.Similarly,regulardiscussionsofdatacollectionatteammeetingsortownhallsareagoodwayforleaderstodemonstratetheirfocusandcommitmenttothisexercise.CASESTUDY:‘COUNTMEIN’DAY“Wehelda‘CountMeIn’daylastyearacrossofficesindifferentregions,butthiscanbedoneevenifyouhaveasmalloffice.Weplacedastandinourlobbywherepeoplewerecomingthroughandaskedthemtosharetheirdata.Ithadamaterialimpactonournumbers.Justbytalkingandengagingpeople’ssentimentasitrelatestotrustandlettingthemknowwhatwewereplanningtodowiththedataseemedtoseemtowork.”10DIVERSITYDATAGUIDESTAKEHOLDERSTOINVOLVE•Howdatawillbeprocessedandprotected:Provideclearinformationaroundhowthedatacanandcannotbeused,whocanseeit,securitymeasuresinplace,andhowitwillbetreated–referencinganykeypoliciessuchasGDPR.IfdataiscollectedviaaHRsystem,remindemployeesthattheycanremovetheirdatafromthesystematanytime.Leadership–Boardlevelbuy-iniscrucial,asitactsasaninternalandexternalsignalofyourorganisation’sintentandcommitment.Involvingseniormanagementinfirmwidecommunicationscanhaveapositiveimpactonemployeedisclosureasitdemonstrateshowthebusinessisprioritisingthecampaign.Leadershipcanalsoensuretheactivityisprioritised,resourcesareallocatedandinternalchallengesareovercome.•Howthedataisused:Communicatehowthedatawillbeusedaspartofthebroaderstrategy,settingoutthenextstepsandtiming.Betransparentwithyourfindingstodemonstratethisfollowthroughandfurtherbuildtrust.Bylinkingthedatatoactionsaroundthebroaderpeoplestrategyandinclusionefforts,employeescanseethatthedataisbeingusedtosupportanddevelopthecompanyandcultureasawhole.HR–HRhaveakeyroletoplayinbuildingtheinternalbusinesscase,ensuringthedatacollectioncampaignalignswithexistingEDIinitiatives,stakeholderengagementandanalysingandreportingonthedataasitiscollected.Asdiversitydataisalmostalwayscollectedonavoluntarybasis,tobesuccessfulitisvitaltohaveaclearengagementplan.Gettinggoodresponseratescanbechallengingandsobuildingaclearcommunicationsstrategyfromthestartwillbecriticaltosuccess.Identifyyourkeymessages,channelsandstakeholdersandhowthesecanbeadaptedtoreachdifferentemployeegroups.Establishingtrustiskeytodrivinghigherresponseratesofaccuratedata.Inordertoachievethis,itiscrucialtobetransparentaboutwhyyou’recollectingthisdata,andhowyouintendtouseit.HRSystems/InformationTechnology–Someorganisationswillhaveinternalteamswhocanhelpwithconfigurationofthesystemtocollectdata,whilstotherorganisationsmayneedtoliaisewiththeirITdepartmentoruseexternaladvisorstosupportthisprocess.Legal,dataprotectionandcompliance–Consultinternallegalprofessionals,dataprotectionexpertsorexternallawyerstoensurecompliancewithrelevantdataprotectionandemploymentlegislation.Inaddition,involvingcomplianceteamstoensurealignmentwithevolvingregulatoryrequirementscanassistincompliance.Forfurtherdetailonstakeholderstoinvolve,pleaseseemoreinformationhere.11THEINVESTMENTASSOCIATIONSECTION2:DEVELOPINGSTRATEGIES,INTERVENTIONSANDTARGETSRegulatoryframeworksandmarketpracticesareevolving,expandingtheirfocusfromBoarddiversitytodeeperwithinorganisations.TheFCAandPRAregulatoryproposalsmayrequirearangeofdiversitydemographicstobecollectedthroughouttheorganisation;theWomeninFinancechartercallsforfirmstosetgendertargetsforseniormanagement;similarly,theParkerReviewasksfirmstosetethnicitytargetsforseniorSettingeffectivetargetsoftenrequiresadata-drivenanalysistounderstandthedemographiccompositionofyourfirmandidentifyanyfactorsthatmaycontributetorepresentationgaps,iftheyexist.Thisanalysishelpsassesshowtargetedinterventionsandpoliciescanpotentiallyimproveequityinopportunity,therebyadvancingrepresentationwithintheorganisation.PwC’smethodologyanalysesboththeemployeelifecycle,aswellastheemployeeexperienceviainclusionandcultureanalytics.Thesecanbeusedtohelpunderstandwhatisgoingonwithintheorganisationandwhy,enablingthedevelopmentofdata-ledstrategiesandtargets.management.EMPLOYEELIFECYCLEANALYSISCompaniesshouldfirstunderstandthecurrentpositionand,ideally,historicemployeemovements,ifthatdataisavailable.Bylookingatrecruitment,attritionandpromotionratesaccordingtodiversitydemographics,youcanidentifytrendsandpotentialareasforimprovement.Organisationscandevelophypothesesaroundwhatmightbedrivinganygaps,whichcanbetestedusinginclusionandcultureanalytics.AnalysiscanbeundertakentoinfluenceLeavingtalentmanagementandsuccessionplanningwithadiversitylens,identifyingthenextgenerationofleadersandusingdiversitydatatoensurethatpeoplefromallbackgroundsareabletosucceed.Joining0201ProgressingYoucanlookatthediversity03ofyourjoinerstodeterminehowyouarerecruitinginthecontextofyourtalentpoolandgeography.It’simportanttoanalysediversityinyourleavers,takingnoteofgrades,departmentsetc.astherateatwhichyourpeopleleavecansignificantlyimpactthediversityofyourworkforce,andhigherattritionratesforcertainpopulationscanalsobeanindicatorofsystemiccultureproblems.Additionally,youcananalysediversityateachstageoftherecruitmentcycletodetermineanybiaseswithinyourrecruitmentprocesses.12DIVERSITYDATAGUIDEINCLUSIONANDCULTUREANALYTICSConductingadditionalqualitativeresearchthroughmethodssuchasemployeeinclusionsurveys,exitinterviews,andfocusgroups,providesanopportunitytogaindeeperinsightsintoyourworkforce.Forexample,someemployeesmayexperiencealackofinclusionwithintheworkforcewhichcanleadtoincreasedattritionrates.Asaresult,targetedprogrammescanbedevelopedtoincreasefeelingsofinclusion.Onceyouhaveidentifiedkeydriversinfluencinginclusionandprogressionwithinyourorganisation,youcanbegintodeveloptailoredinterventionstoaddresstheseissues.DataplaysacrucialroleinhelpingcompaniestoDETERMININGSTRATEGIESANDINTERVENTIONSdevelopanevidenced-basedEDIstrategy,retainingacommerciallenstofocusonthemostcriticalandimpactfulinterventions.AstheEDIstrategymatures,datacanbeusedtocontinuetotesttheoutcomesoftheseinitiativesandfurtherrefinethestrategy,alongsidequalitativeanalysis.Theriskofpursuingdiverseemployeerepresentationwithoutcarefulplanningtoaddressunderlyingfactorscontributingtorepresentationgapsisthatitcanleadcompaniestoprioritise‘quickfixes’oversustainable,long-termstrategies.Themostimpactfulinterventionsfocusoncreatinganinclusiveenvironmentwherealltalentcanthrive,ratherthansolelyaddressingrepresentationgapsthroughrecruitment,withoutmakingthenecessarychangestotheenvironmentandprocess.Wherefirmsdonothaveaninclusiveculture,attritionofemployeesfromminoritydemographicscanbeparticularlyhigh,counteractingrecruitmentefforts.HOWTOSETDIVERSITYTARGETSIdentifyingbarriershelpsorganisationscreate,understandandmonitoreffectivetargetstodrivechange,usingtheirexistingdatatoguideandinform.Withoutthis,organisationsoftenfindtheirtargetsareeitherunrealisticorlackaspirational.Thiscanthenleadtoinactionorthewrongactionsbeingtakentotryandsolvetheoutcomeratherthantherootcause.13THEINVESTMENTASSOCIATIONInternalmetrics•Historicaltalentflows•Dataandworkforceplanning•Crossdepartmentalcomparisons•OtherrelevantareasTargetSettingbasedonagreedinterventionsRecruitmentProgressionAttritionCurrentworkforcerepresentationFutureworkforcerepresentationImprovingdiversityinrecruitmente.g.debiasingrecruitmentprocess,AimingforgreaterproportionalityofpromotionsbymitigatingbiasesinImprovingretentionandreducinggapsinattritionthroughafocusonculture,broadeningrecruitmentchannelsandcollaboratingwithrecruiterspromotionandperformancemanagementprocessesinclusionandtheemployeevaluepropositionExternallabourmarketinsights•Nationalstatistics•Universitygraduatefigures•Datafromindustrybodies•BenchmarksfromotherorganisationsSource:PwCPwC’stargetsettingmethodology,showninthediagramabove,buildsontheemployeelifecycleExternalperspectivesfromindustrydataandbenchmarkssuchastheIA’sEDIDataSurvey
arehelpful.Lookingatexternalmetricsbasedonlocation,industryandqualificationcanbeahelpfulinputtoensurerecruitmentinterventionsarerealisticandalignedtotheavailabilityoftalent.However,itisimportantnottoover-relyonexternaldataorpeers’targetswhensettingyourown,aseachcompanywillhavedifferencesinoperatingmodel,strategyandcircumstancesthatcanimpactdiversityrepresentation.analysisbymodellingforwardhowrepresentationwillchangeoverthenext3-5years,ifhistoricflowratesaremaintained.Thiscreatesabaselinescenario,uponwhichfurtherscenarioscanbebuiltbyadjustingthe‘levers’ofrecruitment,promotionandattrition.
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