The fifth major research question of the study focused on how diversity initiatives are evaluated in the corporations. To address this area the study participants were asked how diversity initiatives are being evaluated in their organizations. They were also asked how they measured success of diversity initiatives. In addition, they were asked how effective their diversity initiatives have been and what components of diversity initiatives are difficult to evaluate.
Six of the organizations (75%) evaluate diversity initiatives. A basic theme that emerged from the study participants was that evaluating diversity initiatives effectively was difficult and time-consuming. Despite the difficulty of evaluating diversity initiatives, all of the organizations in the study were attempting to measure their effects on employees and the organization. The study participants together cited twelve methods for evaluating diversity initiatives. The range of evaluations methods cited by participants numbered from 3 to 7. The average number of evaluation methods used was 4.8. Table 24 presents participants in rank order by frequency all the methods for evaluating diversity initiatives that were cited by the study.
| Method | f | % | |
| 1. | Employee surveys | 6 | 75 |
| 2. | Track employment data | 6 | 75 |
| 3. | Management annual performance reviews | 4 | 50 |
| 4. | 360-degree feedback | 4 | 50 |
| 5. | Focus groups | 3 | 38 |
| 6. | Benchmarking | 3 | 38 |
| 7. | Diversity-specific surveys | 3 | 38 |
| 8. | Customer feedback | 3 | 38 |
| 9. | Informal employee feedback | 2 | 25 |
| 10. | Informal employee group feedback | 2 | 25 |
| 11. | Employee attitude survey | 1 | 13 |
| 12. | Peer reviews | 1 | 13 |
Six of the study participants (75%) indicated they used employee surveys, and another six (75%) stated that they tracked employee data to evaluate the effectiveness of diversity initiatives. The employee surveys were used to gather data from employees to determine their perceptions one to two years after the original employee survey was conducted. The data collected from these surveys gave the organization a basis for comparison from the point at which it began the initial diversity initiative effort. The corporations that tracked employee data reviewed the information to determine where improvements had been made in such areas as turnover rates, retention, hiring, and promotion of women and minorities. In addition, data was reviewed to determine whether people from diverse groups were represented at all levels of the organization, especially at the top management ranks.
Half of the corporations in the study used management annual performance reviews and another half used 360-degree feedback as methods for evaluating diversity initiatives. The management annual performance reviews were used to determine whether the manager's business unit was reaching effective and profitable results by fully utilizing a more diverse workforce. The 360-degree feedback process was used to provide feedback from employees to management regarding management's skills and abilities in addressing diversity issues. This information was then used to better develop managers in dealing with diversity issues.
Three of the study participants (38%) reported using focus groups as a method for evaluating diversity initiatives, another three (38%) used benchmarking, another three (38%) used diversity-specific surveys, and another three (38%) used customer feedback. The focus groups were used to gather information from employees to determine their perception about the progress of diversity initiatives in the organization. Benchmarking was used to assess the company's progress related to diversity in relation to other companies who are exemplary in addressing diversity. Diversity-specific surveys were used to obtain information about the climate of the company from various diverse employee groups. Customer feedback was used to determine whether their diverse customers' needs were being met by the company's products, services, and employees. In addition, informal employee feedback, informal employee group feedback, employee attitude surveys, and peer reviews were methods of evaluation of diversity used by two (25%) or one (12.5%) of the corporations.
The study participants were asked to specify how success is measured for diversity initiatives in their corporations. The study participants cited fifteen methods for measuring success of diversity initiatives. The range of methods cited by participants numbered from 5 to 12. The average number of methods used was 8.5. Table 25 presents in rank order by frequency all the methods for measuring success of diversity initiatives that were cited by the study participants.
| Method | f | % | |
| 1. | Leadership commitment | 8 | 100 |
| 2. | Representation of diversity at all level of the organization | 8 | 100 |
| 3. | Measure progress against stated goals and objectives | 6 | 75 |
| 4. | Diversity initiatives are assisting to meet the company's strategic plans goals | 6 | 75 |
| 5. | Promotion rates | 5 | 63 |
| 6. | Hiring rates | 5 | 63 |
| 7. | Turnover rates | 5 | 63 |
| 8. | Retention rates | 5 | 63 |
| 9. | Absenteeism rates | 5 | 63 |
| 10. | Performance ratings | 3 | 38 |
| 11. | Attitude and behavioral change | 3 | 38 |
| 12. | Employee satisfaction | 3 | 38 |
| 13. | Complains about diversity issues | 2 | 25 |
| 14. | Work group performance | 2 | 25 |
| 15. | External recognition and awards | 2 | 25 |
All of the study participants indicated that they looked at leadership commitment as a way of measuring success of diversity initiatives. According to the study participants, there is an indication of success if leaders in the organizations are committed and supportive of diversity initiatives and are willing to allocate resources to help ensure the success of diversity efforts. All the participants also reported using representation of diverse populations at all levels of the organization as a method for measuring the success of diversity initiatives.
Six of the corporations (75%) studied measured their success by observing goals and objectives attained, and another six (75%) noticed if diversity initiatives were assisting in meeting the goals of the company's strategic plan. If they achieved their goals, then they could conclude that the diversity initiatives were successful.
Five of the study participants (63%) reported using promotion rates, hiring rates, turnover rates, retention, and absenteeism rates as methods for measuring success of diversity initiatives. These measures were set to obtain their objective of creating and maintaining a diverse workforce and also of meeting affirmative action requirements.
Three of the study participants (38%) indicated they use performance rates, attitude and behavioral change, and employee satisfaction as methods for measuring success of diversity initiatives. These measurements were often achieved through performance appraisals, informal employee feedback, and general observations.
Complaints about diversity issues, work group performance, and external recognition and award were used by two of the corporations studied (25%) as methods for measuring success of diversity initiatives. It is interesting to note that, although only two of the study participants (25%) identified external recognition and award for measuring success, the review of the related documents revealed that all of the corporations had received widespread public recognition for their exemplary HR practices related to diversity. For example, half of the corporations in the study were included in the book The Best 100 Companies for Minorities, three (38%) were included in the book, Best Companies for Working Mothers, two (25%) had received the Catalyst Award for innovative efforts in providing equal opportunity for women and minorities, and another two (25%) had received the Manufacturer of the Year Award for its community citizenship and commitment to women and minority employees.
The study participants were asked to specify how effective the corporation's diversity initiatives had been. Six of the study participants (75%) stated that the diversity initiatives have been very effective and have had a positive impact on employees and the organization. Two of the study participants (25%) indicated that the effectiveness and impact have been average, meaning that diversity initiatives have had a relative success. These two research participants based their opinions on just perceptions because it was too early to judge the effectiveness or impact of the diversity initiatives and there was no hard data available at the time the interviews took place.
The following statements were made by the study participants on the degree of effectiveness or impact of diversity initiatives.
Some examples of our success are the positive feedback that we get from our employees regarding the benefits of our diversity efforts such as training. Also, the positive feedback we get when we do presentations about how and why we are addressing diversity. From what I sense and hear, diversity is very well-received in this organization. The employees are beginning to feel much better and they sense that managers are now walking the talk.
One of the study participants indicated that their diversity initiatives have been successful because the minority representation has changed throughout the organization and their diversity initiatives are being highly benchmarked. For them, that meant that many other organizations have followed their example regarding diversity initiatives. This study participant stated,
We know that the number of women has increased tremendously. There was a time when very few women were working in this corporation. We know that there is a major shift in the employee make up. Women are now represented in all key departments, and this is a major shift in terms of how we've grown and changed. Sometimes we get external recognition by impartial organizations for our efforts in providing opportunities for women.
Another study participant said, "We have very good results based on our diversity initiatives and top management is very happy with our work and progress and the impact we are having on the company." Still another study participant stated,
We have been very effective in that we have raised diversity awareness throughout the entire organization from top to bottom. The organization as a whole understands the value and business impact of diversity. This has resulted in many more business units implementing diversity related initiatives.
The two study participants who indicated that it was too early to judge success and effectiveness of diversity initiatives had this to say: "Effectiveness and impact should be data driven. I can't give you any hard data because I need another year. However, based on perceptions and generally speaking diversity is well-supported." The other study participant stated,
It is going to take a while before we really know how successful and effective we are going to be, because we are talking about a cultural change and this is going to take time. We realized that it is going to be at least a three to five year effort. Therefore, it is too early for us to judge our successes and effectiveness.
The study participants were asked to identify the components of diversity initiatives that were difficult to evaluate. The study participants cited six components of diversity initiatives that were difficult to evaluate. The range of components cited by participants numbered from 2 to 4. The average number of components cited was 3. Table 26 presents in rank order by frequency all the components of diversity initiatives that are difficult to evaluate that were cited by the study participants. Six of the study participants (75%) indicated that impact of diversity on bottom line (profitability) was difficult to evaluate. Another six (75%) stated that impact of diversity on productivity was difficult to evaluate. According to the study participants, bottom line (profitability) impact and productivity are two of the greatest challenges in evaluating the effectiveness of diversity initiatives. The reasons for these challenges were that bottom line (profitability) and productivity are influenced by so many factors that it was difficult to isolate the specific diversity initiatives that caused the increased productivity or profit levels.
| Method | f | % |
| 1. Impact of diversity on bottom line (profitability) | 6 | 75 |
| 2. Impact of diversity on productivity | 6 | 75 |
| 3. Return-on-investments | 5 | 63 |
| 4. Behavior changes | 3 | 38 |
| 5. Employee attitudes | 3 | 38 |
| 6. Internal readiness | 1 | 38 |
Five of the study participants (63%) found it extremely difficult and time consuming to evaluate the return-on-investments of diversity initiatives. These participants indicated that they did not have an effective method for measuring the profitability gain that resulted from the money invested on diversity initiatives.
Behavior changes and employee attitudes were mentioned as difficult to evaluate by three of the study participants (38%). Attitudes and behavioral changes were seen as difficult to evaluate because they may take a long time to occur and many times may go unnoticed. One of the study participants stated that internal readiness to launch diversity initiatives was difficult to evaluate. Internal readiness meant that employees and managers were ready to accept diversity as part of the organizational culture. This was seen as difficult because there was no effective way to determine whether organizational members were ready for this change, which was seen as necessary and critical for effective implementation of diversity initiatives.