How To Measure Your Inclusion Efforts In An Uncertain Environment

September 21, 2025

Measuring a company’s return on investment (ROI) in inclusion and diversity initiatives has long been a challenge for leaders. While many recognize the moral and ethical reasons for fostering a diverse and inclusive workplace, demonstrating its tangible business value has often proven difficult. However, as organizational psychology expert Victoria Mattingly, PhD, explains, measuring the effectiveness of inclusion programs requires a data-driven approach that goes beyond surface-level initiatives.

“To start, organizations should assess the demographic breakdown of their workforce across different levels, from entry-level roles to leadership positions,” Mattingly says. This foundational data provides a clear picture of who is being hired, retained, and promoted, and where potential gaps in inclusion may exist.

The Data-Driven Approach: From Hiring to Promotion

Measuring inclusion means looking at every stage of the employee lifecycle. It’s not enough to simply say a company is committed to diversity; you have to prove it with numbers. Mattingly recommends a multi-pronged approach that utilizes internal data to identify and address systemic issues.

  • Hiring Data: Review hiring data at each stage of the selection process to see if historically marginalized candidates are not advancing. This can help an organization discover if inclusive hiring practices need to be revisited and ensure the candidate pool is diverse from the start.
  • Retention and Promotion Rates: Analyze retention and promotion rates to see if employees from historically marginalized groups are leaving at higher rates or are consistently passed over for advancement. This data could signal a need for more inclusive performance management processes and help a company understand if its culture is one where all employees can thrive.
  • Pay Equity Audits: Conduct comprehensive pay equity audits to identify disparities in compensation across gender, race, and other identity markers. While this might feel risky or even costly, the financial and reputational cost of a discrimination lawsuit is far greater. As Mattingly points out, pay inequality is a primary driver of turnover and can be a significant drag on a company’s bottom line.
  • Performance Evaluation Data: Combing through performance evaluation data can uncover patterns of bias if certain groups of employees are consistently rated lower or receive fewer growth opportunities. If the data shows a consistent pattern of lower scores for a particular demographic, it’s a clear signal that bias may be influencing evaluations.
  • Leadership and Development Tracking: Track participation in leadership development programs, sponsorship initiatives, and high-visibility projects. This serves as a proactive indicator of whether all employees have access to advancement pathways. If the same groups of people are consistently getting these opportunities, it’s a sign that the playing field isn’t level.

Qualitative Measures and the Power of Peer Feedback

While quantitative data provides the “what,” qualitative data can help uncover the “why.” Mattingly emphasizes the importance of using employee feedback to understand the lived experiences of inclusion within an organization.

“Because behaviors are best assessed by those who experience them,” Mattingly underscores, “it is recommended to ask others to rate the frequency with which they observe inclusive behaviors in their colleagues and leaders.” This approach, often used in 360-degree feedback, can provide a more accurate measure of inclusion in action. For example, employees might be asked how often their manager actively seeks out and values different perspectives. Self-reported assessments of one’s own inclusive behavior, on the other hand, tend to be unreliable due to social desirability bias where people may overestimate their inclusivity or be unaware of how their behaviors impact others. Therefore, peer and subordinate ratings provide a more accurate measure of inclusion in action.”

Connecting Inclusion to the Bottom Line

In a capitalist society, organizations must also assess the ROI of their inclusion efforts. The good news is that the data consistently shows a strong correlation between inclusion and business success.

  • Reduced Turnover Costs: “Turnover costs provide a tangible measure of impact,” Mattingly notes. “Companies that foster inclusive cultures often see lower attrition rates, reducing the significant financial burden of replacing employees.” This is a direct, measurable ROI that leadership can understand and appreciate.
  • Increased Innovation and Productivity: Research has also shown that inclusive teams are more innovative and productive. When employees feel a sense of belonging, they are more likely to share new ideas and take calculated risks, leading to improved business performance.
  • Enhanced Customer Service and Revenue: In customer-facing industries, diverse and inclusive teams can better serve an increasingly multicultural market. This can directly affect revenue and brand perception, as customers are more likely to engage with brands that reflect their own values.

Real-World Examples of Data-Driven Inclusion

Mattingly, in her book Inclusalytics, provides powerful examples of companies that have successfully used data to drive meaningful change.

National Grid, for example, recognized that inclusion needed to be tied to accountability. By linking executive compensation to inclusion metrics, the company ensured that its top leaders were invested in measurable progress. This approach was the result of years building a strong business case, demonstrating the connection between inclusion, engagement, and financial performance.

Another organization used data to address gender pay gaps. Instead of implementing across-the-board salary increases, they conducted a comprehensive pay equity audit. This analysis allowed them to make targeted, evidence-based adjustments, ensuring that salary corrections were fair and not merely performative.

Similarly, a retail company conducted an equity audit and found that employees of color were being promoted at lower rates than their white counterparts. With this insight, they launched a sponsorship program designed to provide equitable access to career advancement opportunities. Over three years, the company saw a 20% increase in leadership representation, a shift that would not have been possible without first identifying and addressing the structural barriers in their promotion process.

The Path Forward: From Policy to Practice

Measuring inclusion is not about checking boxes; it’s about using data to create meaningful, lasting change. “The key is to define clear goals, measure progress with both quantitative and qualitative data, and continuously refine strategies based on findings,” Mattingly states. “Leadership accountability is essential, and inclusion efforts must be integrated into the overall business strategy rather than treated as a separate initiative.”

For allyship to be sustainable, it must be embedded into everyday leadership. Leaders should publicly acknowledge their privilege and commit to meaningful action, whether through structured training, executive coaching, or real-world accountability mechanisms. Inclusive leadership should be reinforced through mentorship and sponsorship, ensuring that historically marginalized employees have advocates who open doors for them.

When those with power see allyship as an essential leadership practice and are given the tools to act, they become powerful advocates for change. The most effective allies are those who consistently leverage their influence to drive inclusion, foster belonging, and ensure that fairness is not just an aspiration but an organizational reality.

The backlash is not new. To manage in this uncertain environment, take a systematic, evidence-based approach. Move beyond good intentions and drive real, measurable impact in their workplaces.