It’s no secret that diverse teams work better. They’re a must-have—but they don’t build themselves.

The remote opportunities that have unfolded over the last few months have knocked down barriers in diverse recruitment and hiring practices: we can hire nearly anyone from nearly anywhere. What’s left to unpack is how we objectively measure our efforts.

The unfortunate truth with HR successes: if it wasn’t measured, it didn’t happen. To keep up with our diversity wins, we need to be keeping an eye on sets of diversity-specific hiring and retention metrics.

Let’s learn more about how to measure pay gap and diversity ratios to build a diverse and inclusive workforce.

1. Pay gap

Women in the United States are earning less than men. Gay and transgender men are earning less than straight men. Black women earn less than white women.

Members of underrepresented minority groups are earning less than they deserve and it’s inexcusable. To solve this problem, we need to understand how bad it is—and then to put our money where our mouth is.

To calculate the pay gap, you need to compare the means of two different groups. For example, to measure the pay gap between men and women, you’ll do this:

[total salaries of women employees] / 2 = median, women

[total salaries of men employees] / 2 = median, men

The difference between those two numbers represented in percentage points is the pay gap. In the United States, the current pay gap in tech between men and women is 3%.

With that data in-hand, you can build a system that not only addresses existing inequities but also prevents future missteps.

2. Diversity 

Diverse teams—across age, gender, race, and basically every other factor you can imagine—work better. If you want to improve your teams’ performance, productivity, and culture, creating a diversity-first recruiting culture is key.

To understand where your diversity efforts stand currently and the kind of work you have ahead, you need to start measuring diversity rates, breakdowns, and ratios across different segments. 

With these numbers in hand, your organization can plan smarter recruitment and retention strategies to maintain a strong, diverse workforce.

Gender diversity ratio

To understand the gender breakdown of your team, it’s easiest to measure in ratio form. Using ratios will help you understand diversity (or lack thereof) both in your organization as a whole and within certain teams and rankings.

To calculate your company’s gender diversity ratio, you’ll need to divide your people up into groups based on declared gender and then divide down to the smallest numbers.

# men employees : # women employees : # nonbinary employees : # other employees

An upsetting bechmark: the ratio of woman:man founders in tech is 1:4.

Racial and age diversity benchmark

The most effective way to measure age diversity is to measure against benchmarks. This will help you understand how you’re doing in the context of your community and how you can improve.

This study produced by Australia’s largest universities, for example, provides a benchmark for Australia’s workforce.

Inclusion

For your teams’ diverse makeup to matter, you have to foster an inclusive culture: one that celebrates diversity and gives folks from underrepresented populations a chance to succeed.

To measure your organization’s inclusiveness, we recommend using a number of metrics with a focus on age, gender, race, sexual orientation, and other diversity factors, including :

  • Career path ratio, to understand mobility within your organization 
  • Attrition, to understand the value folks from underrepresented populations bring to your organization
  • Turnover, to understand who’s leaving your organization and what that may say about your culture 

We need to be measuring

While we may be working hard, we’ll only know how successful our efforts are if we measure them. To get the best results, we need to keep our eyes on the prize: and the prize here is better performance by the numbers.


From Shayna Hodkin

Shayna lives in south Tel Aviv with two dogs and a lot of plants. She writes poems and reads tarot.