Measuring the Success of Your DE&I Strategy
MassCPA’s recent report “Workplace Inclusion: An Imperative for Change in the Accounting Profession” revealed significant Diversity, Equity & Inclusion (DE&I) disparities within the accounting profession. For example, approximately 80% of senior leaders are white, while 60% are male. Perhaps one of the most notable findings, however, was a perception gap between leaders and employees. Alarmingly, 68% of leaders believe they foster empowering environments, while only 36% of employees agree, and 1 in 10 accounting professionals have left the field due to insufficient inclusion and equity measures.
These findings highlight an important truth: just because you implement a DE&I strategy doesn’t mean it will yield meaningful results. Creating an inclusive, equitable, and diverse work environment involves not only designing and implementing a DE&I strategy but also continuously evaluating the success of that strategy.
Below are four key performance indicators (KPIs) you can use to evaluate your DE&I strategy.
1. Demographic Data
Collecting demographic data is perhaps one of the most practical methods of tracking progress toward your DE&I goals. This data may include race, gender, age, job level, and more.
It’s not enough to simply collect this data, however. The real value comes through analyzing the data and taking note of trends. For example, are you losing more black, female employees than any other demographic? Noticing trends such as these can help you identify and resolve potential diversity, equity, and inclusion issues within your organization.
2. Pay Equity
Analyzing employee compensation is another method of assessing equity. Are your employees being compensated fairly, regardless of their demographic background? Partnering with an external consultant to ensure your compensation analyses are objective and thorough may be helpful.
3. Employee Surveys and Feedback
Employee feedback is one the most powerful tools available to measure the success of your DE&I strategy. As a result, every organization should develop an employee listening strategy and foster a culture where employees feel comfortable, and even encouraged, to share meaningful feedback.
Surveys are a popular method of gathering feedback. This is because they are cost-effective, allow for anonymity, and can be distributed to a large number of respondents simultaneously. A note of caution, however: quality is more important than quantity when it comes to surveys. To avoid survey fatigue, consider sending out an annual DE&I feedback survey so you can compare results year over year. This will avoid overwhelming employees with too many survey prompts.
Alternative methods of collecting feedback include focus groups, physical or digital feedback boxes, and social media monitoring.
4. Benchmarking
Benchmarking involves comparing your company’s performance against that of similar companies in the same industry. This practice can help you identify where your company is succeeding and where there is room for improvement.
Since the accounting industry has historically struggled with DE&I, it is important to note that just because you might be more diverse, equitable, and inclusive than other companies within your industry, that doesn’t necessarily mean that your efforts are sufficient.
To get a more holistic view of your organization’s DE&I standing, consider looking at census data for your community: is your organization representative of the community you serve?
The accounting industry is plagued with persistent DE&I issues – leading to an exodus of accounting professionals and a shrinking number of students entering the field. As a result, implementing a strong and effective DE&I strategy is more important than ever.
To ensure the success of that strategy, you must continuously evaluate your performance, using a variety of KPIs such as those outlined above. Using these methods, you can gain a comprehensive understanding of your organization’s DE&I impact to make more informed decisions for future improvements.
Andrew Stephens, Manager of DE&I at The Bonadio Group
Andrew Stephens, Manager of DE&I at The Bonadio Group
Andrew Stephens joined The Bonadio Group 2022 as their Manager of DE&I. Prior to joining the TBG, he spent over six years at a Top 20 Financial Institution, where he most recently served as the Senior Employee Experience Program Manager. Throughout his time in banking, Andrew worked on a number of DE&I initiatives and programs over the years. He founded a local chapter of the PRIDE (LGBTQ+) employee resource group, co-facilitated town hall sessions for employees following the murder of George Floyd, co-chaired the PRIDE (LGBTQ+) employee resource group charter for the bank, led the United Way employee campaign for the local region, and was a core team member of the LGBTQ+ employee journey mapping team. In his role at TBG, Andrew works with the DE&I council, senior leadership, and others to develop and deliver a meaningful long-term DE&I strategy, including programs, initiatives, and communications, which are designed to attract, retain, develop, and advance diverse talent.
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