Diversity hire percentage is a very simple, yet useful metric that tells you how effective you are at hiring diverse candidates from your selection pools. As a general rule of thumb, if your diversity hire percentage is equal to or higher than your candidate pool diversity percentage, you are doing a good job. If it is lower, then you are either not recruiting high quality, diverse candidates or there is bias in your selection process. Here is a formula you can use to determine diversity hire percentage:
This is one of my favorite metrics because it tells you how effective you are at increasing the diversity of your candidate pools (i.e., recruiting women, the physically challenged, Latinos, Asian Americans, Native Americans and African Americans). If you want to increase the quality and diversity of your staff, the process begins by increasing the quality and diversity of the candidate pools you use for the selection process. Here is a formula you can use to determine candidate pool diversity percentage:
In my last post, I introduced cost-per-hire, which tells you how much it costs for each person you bring into your organization. Cost-per-diverse hire tells you how much it costs for each diverse employee hired (e.g., women, the physically challenged, African Americans, Latinos, Asian Americans and Native Americans). It allows you to compare hiring costs between different employee demographics and categories. Most significantly, it tells you how effective you are at hiring diverse candidates per dollar unit of cost (i.e., whether you are using recruitment sources/techniques that are financially successful). Here is a simple formula you can use to determine cost-per-diverse hire:
One of the most significant benefits of any diversity program is improved organizational bottom-line in terms of reduced costs and/or increased revenues. One way to significantly impact your bottom-line is to reduce hiring costs, which you can assess by determining cost-per-hire. By definition, cost-per-hire is the average of total hiring costs divided by the number of hires in a specific time period. By determining your cost-per-hire on a regular basis (e.g., annually or semi-annually), you can evaluate the effectiveness of your recruitment and selection methods, and make adjustments that yield better financial results. Here is a simple formula you can use to determine cost-per-hire (CPH):
One of the most important elements of any diversity program, activity or intervention is assessment. Simply stated, your activities will not have a significant impact on individual or organizational performance without proper evaluation. As the saying goes, what's measured is managed and the same is true for any diversity-related interventions. Therefore, in the coming weeks, I will share a variety of diversity measures and metrics that I have used with my clients to evaluate the effectiveness of their diversity activities and ensure the success of their programs. I will include metrics that assess the following:
Next Post: November 7, 2013 – Top Diversity Measures and Metrics: Cost-per-Hire
Dr. Tyrone A. Holmes is an author, speaker, coach and consultant. He helps his clients develop the skills needed to communicate, resolve conflict, solve problems and improve performance in diverse organizational settings.