One in three hiring decision makers in the US and UK expect to increase investment in diversity and inclusion efforts and only three percent expect it to decrease, according to a new report from Glassdoor.
The report, conducted among 750 hiring decision makers (those in recruitment, HR and responsible for hiring) in the US and UK, also finds that job candidate demographics are one of the most important recruiting metrics for hiring decision makers.
The report also shows recruiting is less effective when companies do not invest in diversity and inclusion programmes. Nearly three in five (59 percent) hiring decision makers report that a lack of investment in diversity and inclusion is a barrier or challenge their organisation faces in attracting and hiring quality candidates. The report found that the costs a company incurs for generating applicants and securing a hire are the only two measures more important than candidate demographics. They report candidate demographics are more important to recruiting success than the following measures: how long it takes to fill a role; how long it takes to deliver a job offer; the success a company has in converting job seekers to applicants; and applicants to hires.
Nearly one in five (18 percent) of those surveyed report that diversity and inclusion initiatives are among the top elements that have the greatest influence on a candidate’s decision to join their organisation.
While only one in four (28 percent) are optimistic that they will make more progress towards achieving their diversity and inclusion goals in the next 12 months, more than half of this group said they expect quality of hire to improve compared to 20 percent that expect quality of hire to worsen. Plus, of the hiring decision makers that responded that diversity and inclusion will improve over the next year, they also reported that they felt six times more likely to convert applicants to quality hires.
In addition, the report found that not having a diversity and inclusion focus could be costly to more than just a company’s recruiting funnel. Ten percent of hiring decision makers believe employees will voluntarily leave their organisation in the next 12 months as a result of no diversity and inclusion programmes.