Employee data is a valuable commodity, not least because such data is needed in order to comply with an ever-increasing raft of legal obligations. Data is also needed for employers to be able to track progress against metrics introduced in employee remuneration arrangements, including metrics linked to diversity at senior management levels.
Employee diversity data also serves a broader purpose for employers’ inclusion and diversity (I&D) initiatives. It enables employers to understand their baseline diversity, develop appropriate initiatives to improve I&D, monitor progress against such initiatives, identify potential barriers to progress, and select the most effective interventions.
However, employers first need to be able to collect, store, and analyze such data for it to be useful. Employees must also be willing to provide data in the first place, which relies on there being a trusting and cooperative workplace culture.
This article considers current employee diversity reporting initiatives in the U.K. It also explores some of the potential conflicts that could arise between different regimes, highlights some of the risks to employers when collating and reporting employee diversity data, and provides some practical tips to manage those risks.
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