The Data To Drive Your DEI Efforts

In today's rapidly changing corporate environment, understanding the intersection of Diversity, Equity, and Inclusion (DEI) with human capital management is critical.

In this episode, host David Rice is joined by Diana File—CEO & Founder of DF Analytics & Consulting—to share her invaluable insights into leveraging DEI analytics to revolutionize the workplace.

Interview Highlights

  • Introducing Diana File [00:48]
    • Diana studied psychology with a focus on organizational behavior and research.
    • She became interested in data analysis related to human behavior and change.
    • After living in the Middle East for 10 years and doing conflict resolution work, she developed an interest in using data to understand and influence willingness to reconcile in conflict situations.
    • Upon returning to the US, she worked in corporate environments managing change and measuring behavior.
    • In 2020, she began focusing on Diversity, Equity, and Inclusion (DEI) analytics, combining her interests in data and conflict resolution.
    • DF Analytics & Consulting offers services in four areas: DEI, change management, people & culture (including HR and leadership), and M&A (due diligence and project management).
    • Their services span the entire process from data collection and analysis to implementation and training.
  • The Evolution of DF Analytics & Consulting [03:30]
    • Diana's path to people practices and data wasn't planned, it emerged from her experiences.
    • While researching international conflict, she saw a connection between individual psychology (including childhood development) and large-scale issues.
    • She realized she wouldn't be a policymaker or diplomat but could contribute through change management.
    • The rise of DEI in the 2020s created an opportunity for her to combine her data skills and conflict resolution background.
  • Redefining HR Metrics for Business Impact [04:56]
    • Businesses often measure HR metrics that are convenient for HR departments, but not necessarily relevant to business goals.
      • Examples: Number of new hires, cost per hire. These don't tell the whole story.
    • Better metrics track what happens after hiring: onboarding success, turnover rates, revenue per hire.
    • Another example: Attrition rate alone is meaningless. Analyze cost of attrition to understand the impact on the business.
    • High attrition might not be HR's fault - correlate it with manager effectiveness and training in inclusive leadership.
  • Human Capital Financial Impact Analysis: A Game Changer [07:18]
    • Human Capital Financial Impact Analysis quantifies the return on investment (ROI) for people-focused initiatives.
    • It shows how HR practices impact the business in terms of revenue, profitability, and value creation.
    • This analysis helps move HR budgeting beyond guesswork and allows for data-driven decisions.
    • It can be done at a macro level (entire company) or micro level (specific program).
    • Benchmarking allows companies to compare their HR practices and performance against competitors.
    • Studies show that increased diversity leads to higher profitability, while stagnant diversity correlates with decreased revenue.
  • The State of DEI: Concerns and Opportunities [09:58]
    • Diana is concerned about the future of DEI due to:
      • Companies backing out of DEI initiatives due to political rhetoric.
      • Misunderstanding of recent court rulings on affirmative action.
    • She believes strong financial impact analysis can counter arguments against DEI.
    • Folding DEI back into HR is short-sighted because DEI should be about business strategy, not just HR tasks.

I'm starting to get more concerned because the amount of companies that have come to us and chickened out after wanting to do something or have had their budget slashed or lost people is showing me that people aren't actually listening to the evidence. They're listening to the fear mongering that's going on.

Diana File
  • Embedding DEI into Corporate Culture: A Framework for Success [12:31]
    • Success of DEI initiatives being part of the culture will be measured by:
      • Embedding DEI into everything the company does.
      • Having metrics that demonstrate the impact of DEI efforts.
    • The DEI Evolution Framework by Priya Bates and Advita Patel outlines stages of DEI maturity:
      • Exist: No change, company does what it always has.
      • Enter: Dabble in DEI efforts, performative actions like holiday celebrations.
      • Educate: Provide training (e.g. unconscious bias) to instill understanding of DEI concepts, whether it's a formal DEI course or single sessions.
      • Embrace: Invest in DEI ownership with leadership, dedicated individuals or departments.
      • Embed (Gold Standard): Integrate DEI into company strategy, mission, vision, values, and behaviors. DEI becomes inseparable from the company identity.

Embedding DEI into everything the company does and having metrics that demonstrate that would be a sign of success.

Diana File
  • Inclusion Analysis: Beyond Surveys to Real Insights [15:03]
    • Measuring inclusion goes beyond just feeling included - look at observable behaviors like speaking up in meetings.
    • Organizational Network Analysis (ONA) helps see how people are connected within a company:
      • Highly connected and influential individuals.
      • Isolated individuals with few connections.
      • Information brokers who connect separate parts of the organization. 
    • Overlaying ONA with diversity data shows how included different identity groups are (e.g., by gender, race).
    • Analyze passive data (emails, meeting invites) to see who is truly involved in collaborations.
    • Combine surveys with data analysis to identify gaps between perceived and actual inclusion.
    • This data can provide clear evidence of who is being excluded.
  • Addressing Global Conflicts in the Workplace [18:51]
    • Businesses should address international conflicts that impact employees, instead of ignoring them.
    • A simple first step is acknowledging the situation.
    • Leaders should set a tone of inclusion, offering:
      • Safe spaces for employees to discuss the conflict.
      • Compassion and empathy for those affected.
    • Diana created a program ("Breaking the Echo Chambers") to foster understanding between Israelis and Muslims.
    • Businesses can offer similar programs for their Employee Resource Groups (ERGs).
      • This is not just a Middle Eastern issue - anti-Semitism and Islamophobia are global problems.
      • Businesses can educate their workforce about these issues.
    • Businesses can take action beyond conversations:
      • Address hate speech and discrimination in the workplace.
      • Partner with NGOs or government entities.
      • Encourage employee donations to relevant causes.
    • Businesses should avoid the fear of imperfection and take action, even if it's not perfect.

Meet Our Guest

Diana File founded DF Analytics to bring rigor and accountability to DEI efforts around the world. A research and organizational psychologist, she has spent 15 years adapting her proprietary data science methodologies to drive results for Fortune 500 corporations, start-ups, government agencies, non-profit institutions, and small businesses around the world.

photo of Diana File

I think it goes back to what DEI is all about: it's messy, and none of us have all the answers. But doing something is still better than doing nothing, even if you do it wrong or incorrectly at first.

Diana File

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