NEW
YORK, July 11, 2024 /PRNewswire/ -- Bias
within business systems like hiring and performance evaluations
poses significant risks for both employees and organizations. That
is according to a new report by The Conference Board in partnership
with the Equality Action Center (EAC).
Among the negative effects of this workplace bias, the report
highlights the financial impact on companies. It can cause high
attrition rates, costing up to 150% of an employee's annual salary,
as well as decrease employee engagement, potentially reducing
productivity by as much as 20%.
While diversity, equity, and inclusion (DEI) has been a growing
focus in corporate America—with nearly $8
billion invested in corporate diversity training in 2020
alone and investments expected to double by 2026—most companies do
not have the metrics necessary to assess their programs'
effectiveness.
"Addressing bias that is embedded within a business's systems
and processes can seem like—and often is—a daunting task. Companies
can move the needle in a meaningful way by treating it like any
other business challenge: analyze the data, understand the problem,
plan interventions and course corrections, assess the results, and
evaluate progress," said Diana
Scott, US Human Capital Center Leader at The Conference
Board.
As revealed in the report, companies can make significant
strides toward tackling workplace discrimination by implementing
the 'Bias Interrupters' framework—an approach based on evidence,
action, and commitment. It shares the findings of a two-year
project by EAC and The Conference Board applying the framework to
the systems and processes of select Members of The Conference Board
Human Capital Center, made possible by a grant from Walmart. The
study provides insights into using Bias Interrupters in the hiring
process, performance evaluations, and access to career-enhancing
work.
"The good news is that Bias Interrupters not only help
businesses make year-over-year progress towards their inclusion
goals; they also are the best way to control for legal risk," said
EAC Director Joan C. Williams, a law
professor at University of California
Law SF.
Additional findings include:
There's a business case for using Bias Interrupters in
corporate America.
- Workplace bias leads to attrition, which is expensive—often
150% of a worker's annual salary.
- Workplace bias decreases employee engagement, reducing
productivity by roughly 20%.
Billions are being invested in corporate diversity training,
but assessment of these programs' effectiveness trails.
- US corporations spent almost $8
billion on diversity training in 2020 alone. This number is
projected to more than double by 2026.
- Most companies do not have the metrics necessary to assess
their programs' effectiveness.
Traditional diversity training often doesn't work—but Bias
Interrupters do.
- DEI workshops can be impactful but cannot interrupt bias built
into business systems.
Interrupting bias in the hiring process allows organizations
to select the most qualified candidates.
- Metrics help determine whether (and where) certain candidates
are falling out of the funnel.
- It is important to keep track of who applies; who comes in
through referrals; who makes it through resume review; who makes it
through interviews; and who gets the final offer.
- The results: In just a few months' time, the Bias
Interrupters framework increased job offers to men of color by 6
percentage points.
Interrupting bias in performance evaluations leads to
better-quality, fairer evaluations.
- Companies should develop specific competency criteria that
translates to evidence-based and action-oriented feedback.
- The results: Bias Interrupters increased
evidence-based feedback by 44-52 percentage points.
Interrupting bias in access to opportunities requires keeping
track of both career-enhancing work and non-promotable office
housework.
- Access to high-profile, career-enhancing work is essential for
employees to succeed in the workplace. Organizations that want to
guarantee their top talent has access to career-enhancing work
should keep track of these opportunities—and make changes when they
see bias.
- Low profile "office housework"—which encompasses everything
from finding a time to meet, cleaning the cups, to doing routine
keeping-the-trains running work—will not typically lead to
promotion.
- The results: Bias Interrupters eliminated the bias
against women in access to career-enhancing core technical work
from 13 percentage points to zero.
- The results: Bias Interrupters eliminated the bias
against women of color doing more non-promotable office housework
from 27 percentage points to zero.
About The Conference Board
The Conference Board is the
member-driven think tank that delivers Trusted Insights for What's
Ahead™. Founded in 1916, we are a non-partisan, not-for-profit
entity holding 501 (c) (3) tax-exempt status in the United States.
www.ConferenceBoard.org
Equality Action Center
Equality Action Center at
UC Law SF seeks to advance racial, gender, and class equality in
the workplace and in politics. Our initiatives address inequality
at a structural level with concrete, evidence-based interventions.
We lead programs that cultivate leadership and level the playing
field for everyone. Our focus is pragmatic: our rigorous research
is linked with practical steps to produce social or organizational
change within a two- to five-year time frame.
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SOURCE The Conference Board