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Our Blog

An ongoing series of informational entries

Linking Business Metrics, Workforce Diversity

and Inclusive Culture Change Goals

May 26, 2020

After reading many available company diversity reports, each

articulating a variety of internal/external diversity-related activities

along with available EE0 data, efforts to expand domestic workforce

diversity has been incremental at best.

There was very little to no discussion about the fairness of their human

resource processes as they were attempting to create an inclusive

organizational culture. The reports have a CEO statement of support for

diversity, and they highlight various positive employee internal/external

diversity activities along with EEO representation data, however, there

are no indications of how metrics are used to hold themselves

accountable for workforce diversity, the fairness of HR processes and

culture change. Those measures would be consistent with how

executives are held responsible and rewarded for achieving established

business metrics.

My review of diversity reports also showed little evidence that Chief

Human Resource Officers, Talent Management Leaders, and Chief

Diversity Officers, individually or as partners, are actively influencing

leaders to establish metrics for inclusive actions, expansion of

workforce diversity, and business metrics as an integral part of

leadership compensation and rewards.

CEO’s and business division leaders often utilize the achievement of

specific internal and external business metrics as the foundation of

executive financial compensation, incentives, and rewards. Inclusive

organizational culture and expansion of demographic diversity changes

should also be a part of this vital equation. Collective leadership efforts

and actions are necessary for the achievement of positive company and

organizational change. Creating an inclusive organization goes beyond

an individual leader’s success in achieving a company’s diversity goals.

The achievement of companywide business metrics is a leadership

team effort. To achieve more than incremental diversity and culture

change requires a similar leadership team effort.

Leadership financial compensation, incentives, and rewards are linked

to overall organizational/company metrics for successful business

outcomes. Collective leadership team achievement of specific business

metrics, diversity, and individual performance goals need to have a

laser focus on accountability at all levels within an organization if fair

people processes and culture goals are achieved. Mutual financial risk

and rewards should be the critical lever for more aggressive

organizational culture and workforce change.

The achievement of companywide goals is a primary leadership team

effort. A similar level of leadership team effort is required to move

beyond incremental organizational diversity and culture change. The

linking of culture change goals, diversity goals, and business metrics to

leadership compensation and other rewards, promotes expansion of

workforce diversity while aggressively expanding fair and inclusive

company cultures.

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