The Impact of Regulation, Technology and Culture on Diversity and Inclusion
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Diversity and inclusion (D&I) has never been a top HR priority in Brandon Hall Group’s annual HCM Outlook research, and 2016 was no exception. The top priorities were learning and leadership development, with D&I in seventh.
However, changes to the U.S. EEO-1, which will make it mandatory to track and report pay data according to gender, race, and ethnicity starting in 2017, means that this is the right time to invest in D&I.
More than three-quarters of respondents say they will increase their D&I budget next year, and that increases to 83% for organizations that say their culture “very much” promotes diversity and inclusion. Even 71% of organizations that say their cultures only “somewhat” or “not really” promote D&I plan to increase spending. That clearly reflects the impending mandatory tracking regulations.
The trend line, regardless of politics for government regulation, has been moving steadily in one direction since the 1960s – we expect more transparency from businesses, and that movement continues with diversity and inclusion data. Businesses are finding that having these insights into their inner workings is making them more agile, innovative, and profitable.
Luckily, there has been an influx of new technology that tracks not only diversity but also inclusion, though at this point only 12% of organizations that have D&I programs are fully utilizing the technology. However, 75% of organizations are implementing technology, or plan to.
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