What a diversity audit is, the benefits, and how to start one
EW Group consultant Teresa Norman looks at what are they, what the law says, and why you should introduce one. Teresa is a Diversity and Talent Management Consultant whose specialisms include policy development, investigations, research, coaching, facilitation and talent management.
The term ‘diversity audit’ can sound daunting, but they are a powerful means of discovering and generating evidence and data to shape your diversity and inclusion strategy. In this article, we provide all the most important information businesses need when deciding whether or not to perform a diversity audit, including what they are, their benefits, and the factors you must focus on when undertaking an audit.
What is a diversity audit?
A diversity audit helps you understand the demographics and culture of your workforce to identify the specific factors that will help you create a diverse and inclusive organisation. They include tools and activities such as:
- Diversity diagnostics
- Equality impact assessments
- Bespoke diversity research
- Gender pay gap analysis
- Ethnicity pay gay analysis
Diversity audits bring together data collection and analysis with staff consultation, and are the first step towards the attainment of diversity accreditation. They provide a holistic view of your organisation in terms of diversity, equality, and inclusion, allowing the creation of honed diversity strategies that deliver targeted benefits to your organisation and workforce.
What are the benefits of a diversity audit?
There are three key ways diversity audits benefit your business.
1. Craft better strategies and business decisions
When you are able and willing to hear more voices, your decision-making will benefit. Homogenous groups are great at agreeing with each other, but may all agree on the same, incorrect decision because they have not considered different viewpoints. Diverse views lead to a broader range of ideas being heard and a better understanding of your customers or service users, both of which have a directly beneficial effect on the quality of your products and services.
2. Increase creativity and spur innovation
By encouraging and supporting people with different backgrounds, who see the world differently and come up with diverse solutions to problems, you can unleash a tremendous wellspring of creativity within your business. As well as reducing the potential of groupthink that can often result in uninspired decision-making, teams with diverse members can bounce and merge ideas together, creating more innovative solutions to problems.
3. Create an inclusive working environment
By undertaking a diversity audit, you send a powerful signal to current and potential staff about your workplace culture and HR priorities. This improves the retention of existing staff and attracts individuals that value working for a diverse organisation, widening your talent pool.
