What Makes an Effective DEI Policy? Examples, Case Studies, & Tips

Before we get into the article, let’s first address the elephant in the room: what is DEI? D-E-I, or D-E-and-I, is an acronym for Diversity, Equity, (and) Inclusion. Which is, in other words, your new best friend when it comes to attracting top talent and building an inclusive workplace within your organization. 

In the context of a DEI policy, Diversity, Equity, and Inclusion refers to how one’s race, ethnicity, age, etc. are acknowledged and respected within the workplace, and how, regardless of these variables, every employee has access to the same opportunities. And that they feel included and valued within the big organizational family. 

While there are many variables that impact diversity and inclusion in the workplace, Forbes noted that gender identity and social issues were among the critical DEI trends to watch for in 2023. For HR departments, this translates into needing to amend hiring practices and training, all of which would be easier if there was already an effective DEI policy in place. 

Which is why, in this article, we’ll share exactly what is DEI policy, where you can find effective DEI policy examples, and tips on how you can assess their effectiveness. We’ll also share a few notable case studies to give you a proper overview of the topic.

An easy way to think of Diversity, Equity, and Inclusion (DEI) policies is as a master plan for all the DEI programs, DEI training, DEI hiring policies, and DEI initiatives that your company has or is planning to implement in order to foster a diverse and inclusive workplace. Where equity exists, too.

In short, a DEI policy should outline:

• Company outlook on DEI
• Company values and principles (and how they align DEI goals)
• Best practices for interactions with stakeholders
• Measurement of diversity, equity, and inclusion policy results
• Procedures for policy violations

Now let’s look at the core components of an effective DEI policy.

Statement of Commitment

It goes without saying that a DEI policy has to articulate the organization's commitment to promoting diversity, equity, and inclusion in the workplace. To portray this, share what diversity and inclusion in the workplace means to your organization, what the plans are, what is already in place, and what you expect to achieve. In other words, state your commitment to fostering a DEI workplace.

Definitions and Scope

To craft an effective DEI policy, you must define what diversity, equity and inclusion means to the company, which dimensions of diversity will be addressed, and to whom the DEI policy applies to. If it applies to internal and external stakeholders, equity and inclusion policies will need to be integrated into HR for the DEI hiring policy and possible DEI training programs on discrimination and unconscious bias.

Objectives and Goals

When crafting or reviewing your DEI policy, make sure that it includes specific company objectives and goals. This means defining measurable, achievable, relevant, and time-bound goals for your DEI initiatives. Having them align with the mission and values of the organization is extra icing on the cake.

Roles and Responsibilities

While executives might create the DEI policy statement, employees at all levels contribute to the creation of a diverse and inclusive workplace. Therefore, while it is the role of every internal stakeholder to uphold and promote the DEI policy, it is especially important for managers and hiring managers to undergo DEI training and be well versed in the DEI policy.

Continuous Monitoring and Evaluation

Ensure your DEI policy is being implemented well by outlining the key performance indicators for assessing its impact directly within the policy. You may also want to have prematurely scheduled periodic evaluations of the DEI policy, to ensure its ongoing relevance and effectiveness.

1. Recruitment and Hiring

Effective DEI policy statements cover all the bases when they actively review their DEI hiring policy. Such examples of diverse hiring practices within the hiring process include conducting standardized interviews (to reduce recruiting bias) or employing diverse interviewers. Employers can also actively seek diverse candidates through targeted recruitment efforts, such as through hiring a certain percentage of your workforce from a targeted background.

Amending the DEI hiring policy is an important step in implementing an effective DEI policy, as it is the main reason behind how diverse your workforce can be. And as we know, the more representation, the more productive and innovative employees are. (Yes, there’s a correlation).

2. Employee Resource Groups (ERGs)

Employee Resource Groups (ERGs) are voluntary groups run by and for employees with the specific aim of fostering diversity and inclusion in the workplace. Whether a female-only group like GE Women’s Network or GEICO’s ERGs that offer support to other employees, these groups are a great way for individuals to really feel their D and I within the happy family workplace.

3. Compensation and Benefits

Equal pay is a big issue for companies, and not just in developing markets. With so much scrutiny being placed on large companies with regards to this issue, many are stepping up and taking the Pledge. Some big names, and pledgers, include Airbnb, Gap Inc., Glassdoor, and Cisco, all of whom are committed to equal pay for equal work.

4. Promotion and Career Development

It’s no longer acceptable - fact: it was never acceptable -  to offer promotions without having a set list of criteria in place. But should you make your criteria transparent? Yes, because then your employees will feel included within a fair working environment. So, you should consider the following best practices for promotions:

• Have measurable criteria (and communicate this to employees)
• Consider long and short term career goals
• Implement hiring practices that focus on equity

Another way to make the process more transparent is through mentorship programs that offer career development resources, such as Autodesk’s NEXT DOOR program.

5. Training and Development

DEI training programs are key to ensuring that your entire workforce is on board and progressing forward with the DEI policy initiatives. While topics can vary from Korn Ferry to Johnson & Johnson, some key DEI programs should focus on developing professional capabilities and addressing unconscious biases. Where one supports employee growth and the other creates a happy work environment, both lend a hand in fostering an equitable and inclusive workplace.

6. Inclusive Leadership

Inclusive leadership leads to numerous benefits, such as enhanced feelings of inclusivity and value among people from diverse backgrounds. Although Google offers courses on this topic, the question remains: do they actually follow through? Indeed, Google has inclusive leadership programs to promote inclusivity. Moreover, they have implemented various policies to hold leadership accountable to their DEI policy statement, including:

• Using data to measure diversity in leadership
• Holding educational opportunities for employees
• Encouraging equal pay

7. Flexibility and Accommodations

Following the pandemic, many organizations like American Express, Dell, and Virgin Media have started to promote flexible work schedules. In addition to the added comfort, flexible schedules are incredibly important to accommodate the diverse needs of a workforce. They can also help meet and better serve the needs of employees with disabilities, alongside other accommodations like creating accessible work spaces.

Where examples are nice, case studies go the extra mile in illustrating real-world applications, such as those of DEI initiatives. So, in this section, we’ll be looking at three major companies and offering very brief case studies on their DEI policy initiatives.

Microsoft: Inclusive Hiring Practices

Microsoft is a technology company best known for its Windows operating systems and often-neglected Edge web browser. With a reported annual revenue of $211.915 billion to be had in 2023 and a labor force of 221,000, Microsoft is a behemoth. Even so, it makes time and effort to implement and share its inclusive hiring practices. From its neurodiversity program to disability hiring, Microsoft has a variety of roles tailored for accessibility and disabled peoples. 

IBM: Emphasizing Diversity in Leadership

IBM is a consulting and technology company with an annual revenue of $60.53 billion USD in 2022. With just over 288,000 employees, just over 30% of its workforce is reported to be female. Even so, IBM is a strong proponent of gender diversity in leadership. With its own annual reports highlighting DEI policy examples, such as 42.2% of promotion receivers being women in 2022, IBM is doing fairly well when it comes to its own DEI policy. However, it’s really the IBM Institute for Business Value’s study on ‘Women in leadership’ where the company’s emphasis on diversity in leadership shines through. 

Accenture: Transparent Diversity Reporting

Accenture is a consulting and information technology services giant. With reported revenues of $64.1 billion USD in 2023, it is a massive company with about 733,000 employees. Which opens itself up to a variety of scrutiny when it comes to hiring practices. However, Accenture combats this through its transparent diversity reporting. From 2021, anyone can access Accenture's 360° Value Reporting Experience and review the company’s achievements in diversity, among other notable dimensions.

Writing a DEI policy isn’t rocket science and is self-explanatory enough that there’s no need for a DEI policy template. That being said, it can get a little tricky when considering how to measure the effectiveness of your unique company policy, which is one of the most important aspects of having a diversity, equity, and inclusion policy in the first place.

To help you out, here are three tips to evaluate the effectiveness of a DEI policy.

Tip 1: Establishing Key Performance Indicators (KPIs)

When it comes to evaluating the effectiveness of DEI policies, there is no more helpful method than using KPIs. In the context of a DEI policy, KPIs are metrics that help track and measure progress towards specific DEI goals, like those in hiring and employee retention.

While such DEI metrics will depend upon your own policy, a few examples of such metrics include the company’s:

• Gender pay gap
• Employee retention from diverse groups
• Accessibility
• Budget allocation for DEI 

Tip 2: Assessing Representation and Inclusivity

Another tip to evaluate a diversity equity and inclusion policy is to assess representation and inclusivity. This can easily be done by collecting and reviewing data on workforce demographics, evaluating diversity in leadership positions, and ensuring inclusivity across departments and teams. 

Tip 3: Employee Engagement and Satisfaction

By monitoring employee engagement levels and satisfaction levels through surveys, companies can evaluate the impact of their DEI policy - and whether certain groups are not feeling the I in D-E-I as much as others. Exit interviews are another way to gather insights about employee (dis)satisfaction.

Conclusion

With diversity, equity, and inclusion being buzzwords of their own in recent years, it makes so much sense to ensure that they are rooted into the core of your organization. And what better way to do that than with a DEI policy that defines what these terms mean to your company, how you will implement such initiatives, and how you will measure them. 

So many high profile companies have already jumped onto the bandwagon, improving their hiring and training procedures in the process, so why not give it a try? It’s the right thing to do, after all.

Looking for more ways to improve your workplace environment and hiring practices to find top talent? CakeResume is the best site when it comes to offering reliable resources for employers wanting to do just that, with hundreds of useful articles at your disposal. Take a browse of CakeResume and discover something new today.

--- Originally written by Eva O’Mara ---