Gen Z is the most racially and ethnically diverse generation to enter the workplace, with 40 percent of the UK population expected to identify as an ethnic minority by 2061.
As workplace demographics change and new generations of talent enter the workforce, diversity, equality, and inclusion (DEI) values are now table stakes for any organisation that wants to be seen as a top employer and commercial partner. Not only is it the right thing to do, but a focus on DEI will impact businesses’ long-term success and access to the talent market. With Gen Z expected to account for one-in-four workers globally (27 percent) by 2025, DEI values are a foundational pillar of business continuity.
As businesses across the board brace themselves for a crisis in filling leadership and middle management roles, DEI values have never been more important in the recruitment process because representation can greatly affect career aspirations. Ceridian’s 2023 Pulse of Talent Report found that more than half of respondents who identify as part of a minority or underrepresented ethnic group said they would be less likely to pursue leadership roles within an organisation where there is a lack of diversity across current leadership teams.
So how do we fix this? One solution is something you can’t escape these days: everywhere you look, AI is taking over. By using AI and machine learning to systematically measure and report on DEI efforts, organisations can track their progress, stand out in the talent market, and streamline their recruitment by removing biases and broadening the talent pool.
Eradicating biases using technology
Recent research led by Oxford University shows that candidates in the UK are up to 60 percent less likely to receive a call-back for a job if they have a “foreign-sounding” name, and women are 30 percent less likely to progress from application to interview than a male candidate with the same credentials. On the flip side, having ethnically diverse executive teams, as well as gender-diverse teams, leads to a 36 percent and 25 percent increase in above-average business profitability, respectively.
Bringing AI into the recruitment process can help ensure that DEI values are applied throughout the process, building equality and eradicating both conscious and unconscious bias. This can level the playing field for candidates and enhance equality throughout an employee’s career path within an organisation. Technology should be combined with other important measures, like mentorship and sponsorship, to encourage a diverse mix of candidates to apply for management roles.
Incorporating automation to build equity
Investments in AI, analytics, and automation are driving a revolution in recruitment as it evolves to meet the demands of changing organisations and their workforces. Improved data and AI are frequently being leveraged to source candidates, screen applicants for pre-determined skills and experience, and build shortlists of top talent. This has already delivered benefits in efficiency, immediacy, and informed decision-making to support recruitment efforts. But without appropriate guardrails, a reliance on AI can inadvertently build bias into the process.
Human capital management (HCM) technology can support people teams in identifying patterns and trends that may indicate bias, such as a certain group experiencing higher rejection rates based on their ethnicity, gender, or sexual orientation. Let’s say 50% of women and 50% of men applied to a position, but only 5% of women made it to the interview stage. If all things are equal, and with the right numbers, there is an inequity in the process. AI helps us uncover these potential areas of weakness. This also allows businesses to set informed DEI goals as they get a clear view of demographics and conversion rates.
With proper configuration, talent intelligence products can enhance the recruiting process by screening, shortlisting, and matching top candidates without biases coming into play and grading them against a set of criteria. A Diversity, Equity, and Inclusion (DEI) intelligence system can help employers meet diversity head-on by ensuring objectivity and inclusion happen at the beginning of the talent acquisition and management processes.
The bottom line
The competition for talent remains fierce. With shortages of experienced leaders and middle managers and increasing importance being placed on equity and inclusion among candidates, every organisation needs a holistic DEI strategy to attract the people needed to fuel growth. An AI-powered HCM solution allows HR teams to invest more time in the candidate experience while finding the best talent by ensuring that candidates with the right skills aren’t excluded from the process due to unconscious bias.
