Measuring the impact of socio-economic diversity and inclusion initiatives
Measuring the impact of socio-economic diversity and inclusion initiatives
This year, National Inclusion Week is centred on the theme ‘Impact Matters’ - understanding, identifying and measuring the impact of diversity and inclusion (D&I) initiatives on marginalised groups. At the Bridge Group, we support organisations to make real and lasting impact on socio-economic diversity and social equality. So, to mark the week, we have summarised some of the different approaches we employ. Click on the coloured boxes to find out more about specific projects.
1. Two tools to use and the types of information they provide
Diversity metrics track the representation of different demographic groups
Diversity metrics are a first step in measuring the impact of D&I initiatives – and in informing their development. They show the representation of various demographic characteristics, such as socio-economic background (SEB), gender, race, ethnicity, age, sexual orientation, or disability status. Looking at changes in diversity metrics over time can help to indicate what, if any, impact D&I initiatives are having.
SEB (your socio-economic circumstances as a child and young person) can often be overlooked in organisations’ discussions about equity and inclusion, but it is an important aspect of building an inclusive and effective working culture. There are various measures or indicators of SEB that later impact on educational, employment and life outcomes. If you use only one measure, we recommend parental occupation at age 14.
Following the analysis of a robust data set by the Bridge Group, Slaughter and May published its social mobility report last December, setting targets for socio-economic diversity in its workforce. Slaughter and May collects a range of data on SEB, and their target-setting adhered to best practice guidance which focussed on the ‘parental occupation at age 14’ of their UK workforce. This metric enables them to understand the current workforce and to model how different factors impact on diversity over time, addressing recruitment, attrition and progression.
Qualitative data helps us to find out what people think
To effectively measure the impact of D&I policies, organisations should also use qualitative data. While diversity metrics (quantitative data) shows the numbers, qualitative data (obtained, for example, through interviews) shows stories and experiences. It has an important role to play in improving understanding, informing practical actions, and ensuring ethical practice. Blending quantitative and qualitative data analysis, using mixed-methods research, is invaluable to provide a more comprehensive view of individuals’ experiences.
Bridge Group research on the outcomes for alumni of the Aspiring Professionals Programme (APP), commissioned by the Social Mobility Foundation, explores the early career and progression experiences of recent graduates from lower SEBs and how this compares with their more privileged peers. The research questions were addressed via a mixed methods approach, comprising interviews with APP alumni, interviews with comparator groups from both lower and higher SEBs, a survey of APP alumni and benchmarking against national datasets. The methodology enabled the researchers to conclude that the APP alumni performed significantly better than their peers, in relation to both employment and earnings. However, the qualitative research revealed insights into their workplace experiences: the challenges of navigating the professions, the culture of the workplace, and issues with modulating accent and personality.
2. How are the tools used?
Recruitment
Metrics are important for evaluating the effectiveness of D&I initiatives at every stage of the recruitment process. This will include analysing the diversity of applicants, shortlisted candidates, interviewees and new hires. Factors such as where roles are advertised, the language that is used in the adverts and the job description, and awareness of bias during the selection and interviewing processes, will all have an impact.
The Cabinet Office commissioned the Bridge Group to investigate diversity in the Civil Service Fast Stream programme. The study looked in depth at the recruitment process, identified problem areas and made recommendations. In 2016, when the report was published, 4.2% of Civil Service Fast Stream recruits were from a lower SEB (based on parental occupation), whereas in 2023 the scheme had over 20% of people recruited from lower SEBs. It was the use of diversity metrics and the granular analysis of the data, that enabled an understanding of exactly what was going on at every stage of the application process. This data, combined with practical recommendations, meant that the project has been very successful in improving the representation of people from lower SEBs in the Fast Stream.
In the Bridge Group’s inclusive recruitment toolkit for the screen industries, commissioned by the Screen Industries Growth Network (SIGN), organisations in the screen industries were offered a step-by-step approach to improving diversity. The research comprised of a literature review and twelve interviews with professionals working in the screen industries, which helped us to identify recurring challenges for the sector, barriers to diverse recruitment, and how SEB fits into current thinking on D&I. The toolkit also provides a list of questions which can be used to measure SEB, as well as advice on how to group respondents in the analysis, and guidance on managing data.
Progression
Does employees’ background influence how long it takes for them to get promoted? Relatively few organisations know the answer to this question. Only by tracking how long it takes for people from different SEBs to progress through an organisation, can we really understand inequalities – and ensure that the most talented people get ahead.
In one of the largest studies into socio-economic diversity and progression in financial services ever undertaken, Bridge Group research, commissioned by Progress Together, revealed SEB is more likely to impact a person’s route to success in financial services than gender or ethnicity. Tracking the progress of nearly 150,000 people from different backgrounds enabled us to understand barriers and revealed that those from higher SEBs are hired disproportionately and are more likely to progress more quickly: people from higher SEBs are more than twice as likely to be found in senior roles as those from lower SEBs.
In the biggest ‘progression gap’ analysis ever published by a business, the Bridge Group analysed the career paths of over 16,500 partners and employees at KPMG over a five-year period, examining the average time it took individuals to be promoted. The study considered SEB, gender, ethnicity, disability, and sexual orientation. It was found that individuals from lower SEBs take on average 19% longer to progress to the next grade, relative to those from higher SEBs. The analysis builds on a previous study from 2018, providing a unique opportunity to see where change has been made and where extra work is required.
Retention
If an organisation is hiring but not retaining diverse talent, it’s an indication that there are problematic organisational issues and/or systemic biases. Retention metrics include tracking how long employees stay at an organisation as well as the demographics of those who leave. By comparing employee retention rates for people from different SEBs, you can identify any issues which might lead to higher attrition rates by SEB.
The Bridge Group is currently undertaking research work for one of the world's largest law firms to explore whether and how SEB affects retention and attrition. This includes exploring how SEB diversity is structured in the workforce and among leavers. Qualitative inputs include listening to employees’ experiences, and interviews with senior staff to understand current D&I approaches, observations on any relationships between SEB and retention, policies that encourage equal retention rates for people from different backgrounds, and factors that might contribute to people leaving. Drawing on data gathered using this mixed methods approach, the Bridge Group will be sharing practical recommendations with the law firm to develop a sector-leading strategy.
Class pay gaps
Regular pay gap audits are a means of identifying pay disparities among different demographic groups. A pay gap measures the difference in the average earnings of staff by SEB or other characteristics. Measuring and reporting pay gaps can help increase understanding and equity within an organisation, or in the labour market.
Although SEB is not a protected characteristic, it can be associated with lower salary and slower career progression. An increasing number of organisations are therefore now proactively measuring and reporting their socio-economic pay gap and taking actions to close it.
Research from the Social Mobility Foundation in 2023 showed that professionals from working-class backgrounds are being paid £6,291 less than their more privileged peers in the same occupation. Consequently, the Bridge Group was commissioned to produce a guide to help organisations calculate their socio-economic pay gap, set meaningful targets for socio-economic diversity and drive change. It is already a statutory requirement for larger employers to measure and report on the gender pay gap. The guide therefore takes advantage of established best practices in reporting gender pay gaps, but tailors the recommendations specifically to SEB.
Outreach
University and employer outreach schemes can help young people from less advantaged backgrounds decide which profession or what type of career they want to pursue. However, it is only through surveys or interviews with programme participants, that we can appreciate the impact of work experience activities, such as individual perceptions of the experiences, barriers to participation, or the reality of the workplace. For example, the Bridge Group has discovered that there have been instances where work experience has given an inaccurate impression of particular graduate-entry jobs, which can cause problems when new-hires experience the reality of a new job.
A recent survey conducted by Uptree, in partnership with the Bridge Group, revealed that 80% of student respondents felt they had gained experience and information from workplace-based experience events, that they could not have got from elsewhere. The survey also showed a lack of confidence prevented 36% of respondents from taking part in workplace-based experiences. The survey asked about the students’ work experience placements as well as their career plans and factors that are important to them. Demographic questions were also asked to enable the disaggregation of responses by background characteristics. The survey was crucial to elucidating young people’s work experiences and identifying barriers to attendance. It also helped to shape employer-led work experience events which reach out to young, diverse talent.
The Bridge Group has worked with the Sutton Trust to evaluate existing outreach programmes and research the need for additional developments in specific professions and sectors, such as law and banking/finance. The work has included annual evaluations of their Pathways programmes and the UK Summer Schools schemes. We have also explored the relative benefits of online and face-to-face activities; and worked with employers to evaluate their outreach.
3. Next steps
Benchmarking D&I metrics can illuminate
To compare your D&I metrics, you will need to find reliable and relevant sources and methods, which may include industry reports or surveys from reputable organisations or coalitions. In addition, you can use your own historical data and trends to benchmark your D&I performance over time and to set realistic targets for improvement.
The Bridge Group has advised and supported the Social Mobility Foundation in the creation and development of the Social Mobility Employer Index since 2017. The Index, which was established to encourage firms to become more accessible to individuals from lower SEBs, has become an authoritative influence on social mobility in the UK. The annual benchmarking and assessment tool shows how employers perform on eight areas of employer-led social mobility.
D&I initiatives should consider the bigger picture and future ramifications
Ideally a D&I initiative should consider what might happen next, so metrics to measure the impact of D&I actions may need to be broader than initially envisaged. Initiatives designed to promote access to specific professions or employers should look beyond recruitment by tracking how the new recruits get on in the workplace. This can be in terms of quantifiable metrics such as retention, salary and progression, but also in terms of their day-to-day experiences as early-career professionals. If these additional measurements are not done in-house, it is important to recruit others to undertake this evaluation.
Bridge Group research for the Social Mobility Foundation (see above) tracked alumni from the APP (recent graduates from lower SEBs). The research surveyed alumni’s early career and progression experiences in a wide range of employing organisations across the UK and compared their experiences with those of their more privileged peers.
To find out more about the projects the Bridge Group has undertaken and the approaches we’ve employed consult our research page.
