DEI software is a quintessential need of the hour for corporations interested in elevating their diversity, equity, inclusion and belonging efforts.
DEI (Diversity, Equity, and Inclusion) is on the center-stage due to many of the events in the last several years. DEI software and technologies help companies be better corporate citizens and ease the burden of compliance. (Some call it DEIB where “B” stands for “Belonging”)
DEI platforms and technologies provide a set of tools, workflows, and analytics to make the executive leaders’ task of improving diversity, equity, and inclusion a bit easier.
DEI Mission and Vision:
If you are the chief diversity officer, the crucial first step is to have a foundational vision for what DEI means for your company. It is not about slogans or numbers – it should go beyond what it means to the very soul of your company.
- What do you want your brand to mean to your employees, customers, and society at large?
- What type of culture do you wish to build for your company?
- How do you make the workplace welcoming to people of all backgrounds?
- Does your workplace reflect the thought diversity to foster vibrancy of perspectives?
Once you have your DEI vision and mission, DEI platforms that will support your goals are the next step. Like GreenTech, ESGTech, and CleanTech, DEITech is now a thriving category, with venture investments rising along with corporate spending on such initiatives.
Why do companies need DEI (Diversity, Equity, and Inclusion) Programs?
DEI, as a concept, is more than statistics, quotas, and compliance with government mandates. It is a moral imperative and also fosters a strategic business advantage.
The SEC (Securities and Exchange Commission) recently directed public companies to disclose their human capital and demographic metrics, leading to additional DEI data reporting to showcase to investors how it correlates with better business and financial outcomes.
A company whose employee base reflects the broader trends in the society, those that bring a unique and diverse perspective in demographics, culture, and thought, will have a solid foundation to succeed in these volatile times.
DEI, along with ESG initiatives, may help companies with the following:
- Improve social image, thus attracting a higher caliber and diverse pool of talent.
- Increase the ESG (environmental, social, and governance) cred, which may boost the company’s valuation.
- Create a harmonious and just workplace that will increase employee commitment and happiness, thus boosting business resiliency.
- A positive image in the DEI and ESG realm will foster more partnerships and supplier relationships.
- And, of course, because it is the right thing to do:
What do you need out of DEI Software Solutions?
What type of DEITech tools do you need to support your DEI programs? These software tools are categorized as DEITech or DEIBTech (Diversity, Equity, Inclusion, and Belonging).
The market interest and investor interest in DEI Tech or DEIB Tech are increasing.
Research conducted by Red Thread Research estimates the global market size for DEI software to be $313 million and growing, up from $100 million in 2019. In addition, they report that the number of HR tech vendors offering features or functionalities that cater to DEIB as part of their solutions has increased by 136% since 2019. The research also noted that the total number of DEIB tech vendors increased by 87%, with 196 vendors in the market for 2021, compared with 105 in 2019.
Of course, it depends on the specific needs of your company and where it stands on the diversity, equity, and inclusion endeavors, but in general:
- Analyze the current employee demographics and compose statistics across various parameters – age, gender, race, language, religion, sexual orientation, disabilities, veterans, etc.
- Assess wage gaps, advancements, and feelings of belongingness among various disadvantaged groups.
- Identify patterns where there are gaps and blind spots.
- Forecast trends based on as-is-state and continuing business-as-usual plus various scenarios by varying parameters allow for additional strategies and plans to make your workplace more diverse, equitable, and inclusive.
- Provide guidance and guardrails for complying with various regulatory mandates.
- Keep track of goals and provide periodic assessment and analysis of the state of progress on various initiatives
Top Capabilities and Features of DEI Software Tools:
Depending on the vendors and their legacy and the problem they are addressing, their software tools for DEI and DEIB may have a specific focus and associated features. For example, some DEI tools may focus on pay equity. In contrast, others may focus on demographic and racial composition and analysis, yet others may focus on inclusion and belong efforts by capturing the voice of the employees.
Please use the following capabilities and features list for DEI technologies as a starting point and customize it to your needs.
Feature List for DEI or DEIB Technologies:
- HR Data Migration and Data Quality Assurance
- Current State Analysis of employees on parameters for diversity, equity, inclusion, and belonging
- Benchmarking and KPIs on various parameters of DEIB
- Organizational Network Analysis
- Root Cause Analysis
- Machine Learning Models for Pattern Recognition and Predictive Analytics
- DEIB Life Cycle Support and Facilitation – Analysis and Identification of Issues and plans to remediate DEIB issues through the employee life cycle.
- Job Descriptions
- Talent Sourcing Venues
- Interviewing and Selection Process
- Referral Process
- Employee Onboarding Experience
- Mentors and Buddy Systems
- Informal Networks and Employee Resource Groups
- Talent Development
- Succession Planning
- High Potential Identification and grooming
- Rewards, Recognitions
- OKR Definition and Tracking
- Promotions and Advancement
- Wages, Bonuses, and Pay Equity
- Opportunities for Lateral Movement
- Voice of the Employees
- Culture and Social Norms
- Health, Welfare, and Wellbeing
- Employee Experience
- Life Events Support
- DEI Program Planning and Execution
- DEIB Vision and Mission
- Data Analysis
- Gap Analysis and Roadmap
- Initiatives and Projects
- Program Execution
- Periodic Analysis, Measurement and Course Correction (Monthly, Quarterly, Annual)
- Alerts and Notifications
- Compliance and Regulatory Reporting
- Dashboards and Reporting
- Analysis and Conformance of DEIB Parameters:
- Gender and Gender Expression
- Sexual Orientation
- Differently Abled (Mental and Physical Abilities)
- Nation of Origin
- Education and Background
- Socio-economic Status
- Ideological and Thought Diversity Spectrum
How to Evaluate DEI Tech Tools?
DEI or DEIB is a nascent and evolving field. While there are a couple of unicorns (companies valued over the US $ 1 billion), there are many other new entrants. Here are some evaluation criteria to assess which DEI software platform you need as a part of your tech stack. Given the segment’s importance, it is likely that the top HCM/HRMS (Human Capital Management or Human Resources Management Systems) platforms will extend their functionality to include DEI and ESG type functionalities.
- DEI Core Functionality: A Set of features mentioned above and relative prioritization.
- Discovery and Assessment
- Gap Analysis
- Recommendation and Roadmap
- Project Execution
- Ongoing Monitoring
- Reporting – management, compliance, and regulatory
- Analytics – descriptive, predictive
- Scalability (concurrent users)
- Extensibility (APIs and Integrations)
- Vendor Business Viability
- Partnering and Cultural Fit
- Mobile Device Availability (Responsive)
- Role-based Access Controls
- Multiple Deployment Options
- Product Roadmap
Top DEI Software Platforms:
Related DEI Resources: