Analytics alone won’t foster workforce diversity

Instead of looking outside to increase workforce diversity, companies should first look inside and develop an internal labor map of their own workforce. But, experts caution, analytics alone won’t create greater diversity and should be used in conjunction with other tools.

Brian Levine, a partner in the workface analytics and planning practice with Mercer, says when looking inside, “we like to look at internal labor markets, how they move from point of hire to point of exit and everything that happens to those in between.”

A prime tool he recommends employers use is an internal labor map, which can reveal the value and difference in buying versus enriching talent. Use of the ILM will identify areas of turnover risk, show bottlenecks and provide a perspective on the diversity of the workforce, he says.

He cited the example of a company were women were much less likely to be promoted to upper management — a 7.5% versus 12% difference when compared to men. Additionally, women were much more likely to leave the company than men, 83% versus 17%.

“An ILM is a great place to start,” Levine adds. “It does more than point out a difference, it really engages the leadership team in a conversation about where to get things done.”

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But employers can’t rely on maintaining a diverse group of workers through analytics alone, says Alina Polonskaia, principal, diversity networks at Mercer.

The value of combining an analysis of internal labor market dynamics — identifying root-cause drivers of differences in advancement, compensation and retention — with an assessment of cultural dynamics — measured through interviews focus groups and employee surveys — is key, Polonskaia says. “It captures what managers say with what they do.”

When considering data, think not only about the quantitative information, but the qualitative information, Levine concludes, so you can solve the fundamental issues. “As you are considering solutions, look broadly. You’re only going to have success if you’re partnered with the business leaders. Everyone needs to be aligned and committed to the plan.”