Diversity and Inclusion Index

KPI Name

Diversity and Inclusion Index

Alternative Names

Workforce Diversity Score

KPI Description

Measures a company’s commitment to workplace diversity and inclusion based on employee demographics and policies.

Category

ESG & Sustainability

KPI Type

Quantitative, Lagging

Target Audience

HR Managers, DEI Leaders, Business Owners

Formula

Diversity and Inclusion Index = Weighted Score of Gender, Ethnicity, Disability, LGBTQ+ Representation

Calculation Example

If a company scores 80 on gender diversity, 75 on ethnicity, 85 on disability inclusion, and 70 on LGBTQ+ inclusion, D&I Index = (80+75+85+70) ÷ 4 = 77

Data Source

HR Reports, Employee Surveys, DEI Audits

Tracking Frequency

Quarterly, Annually

Optimal Value

Higher is better; above 75 is ideal.

Minimum Acceptable Value

A low index suggests poor workplace inclusivity.

Benchmark

Industry benchmarks: Tech ~70-85, Healthcare ~65-80, Finance ~75-90

Recommended Chart Type

Bar chart (to compare demographics), Line chart (to track progress)

How It Appears in Reports

Displayed in DEI reports to track inclusivity efforts.

Why Is This KPI Important?

Indicates corporate commitment to workplace diversity and fair hiring practices.

Typical Problems and Limitations

Measuring diversity does not automatically ensure an inclusive workplace culture.

Actions for Poor Results

Improve diverse hiring practices, enhance inclusivity training, offer mentorship programs.

Related KPIs

Employee Engagement Score, Social Impact Score, Employee Retention Rate

Real-Life Examples

A company improved its Diversity and Inclusion Index from 65 to 82 by implementing leadership mentorship programs for underrepresented employees.

Most Common Mistakes

Focusing only on demographic diversity without addressing workplace culture.