1 in 5 HR leaders unsure on how to proceed: Report
Insufficient data and reporting on DEI efforts are preventing employers across Australia and New Zealand from establishing a strategic approach to DEI, according to a new report.
Findings from Sapio Research and Workday's Global Blueprint for Belonging and Diversity revealed that 35% of HR professionals in ANZ said their organisation doesn't have a strategic approach to DEI and hasn't taken steps to make one.
While 19% of these respondents recognise that they need a strategic approach, they also revealed that they don't know how to proceed, according to the report.
A smaller seven per cent, on the other hand, said they don't see it as a current priority.
"Not having a DEI strategy makes it difficult for organisations to move from goal-setting to goal-getting and use their budget effectively," Workday said in a media release.
Not doing enough about DEI could also cost an organisations its workforce, as findings from GoodHire in 2022 found that 81% would consider quitting if their employers are not giving much thought to DEI policies.
In New Zealand, 43% of HR professionals said diversity is recognised, valued, and celebrated in their organisation, according to the report.
Businesses were also more likely to accept racial and ethnic diversity (68%) and are least likely to accept people with different physical and mental abilities (46%).
Challenges to DEI strategies
The lack of strategic approach on DEI among ANZ organisations is "insufficient data and reporting DEI efforts," according to Workday.
In ANZ, only 23% said their organisations measure the business impact and perceived value of DEI initiatives, according to the report, while 72% admitted that tracking progress was challenging required new systems.
In order to move forward, 37% of the respondents said their organisation would need leadership and commitment from the top. For 35%, a clear strategy with DEI metrics included as part of corporate KPIs should is needed to move further in the next stage of DEI.
The findings come as 75% of ANZ businesses said they already have a budget for DEI initiatives, with 45% saying this will increase in the next financial year and 39% planning to retain the budget.
This suggests that employers across ANZ are starting to see the value of a well-planned and strategic approach to DEI, according to Jo-Anne Ruhl, vice president and managing director, Workday Australia and New Zealand.
"In the year ahead, senior leadership has even more opportunity to keep driving this change, especially using powerful technology and tools to stay informed by data-driven insights and reporting," said Ruhl said.
