How to Harness the Power of Diversity Data
Having a diverse workforce brings varied perspectives, creativity, and imaginative problem-solving approaches to your business. But to truly understand where your organisation stands in relation to diversity, and how you can improve, you need reliable diversity data. Using diversity data well can guide fair recruitment, boost employee engagement, and strengthen compliance with equality legislation. Here’s how to harness its power effectively.
Understand what diversity data is
Diversity data refers to the information an employer gathers about the demographic makeup of their workforce. This data typically might include:
- Gender
- Age
- Ethnicity
- Disability status
- Religion or belief
- Sexual orientation
While collecting this information, employers must comply with data protection law, particularly the General Data Protection Regulation (GDPR) and the Equality Act 2010. In practice, this means gathering data for legitimate purposes, storing it securely, and ensuring employees understand how it will be used.
Make the case – why diversity data matters
Gathering and analysing diversity data isn’t just a tick-box exercise. Done well, it can:
- Highlight representation gaps – so you can address underrepresentation in recruitment or promotion
- Track progress over time – measure whether initiatives like mentoring schemes or targeted outreach are making an impact
- Support legal compliance – maintain evidence that you are meeting obligations under a variety of legislation, for example if your business meets the headcount threshold then you are legally required to report and publish gender pay gap data
- Strengthen decision-making – data-backed insights help avoid relying on assumptions or stereotypes
Create a clear purpose before collecting data
Before you send out an employee survey or request that new starters complete diversity information forms, ask yourselves, “What do we want to achieve with this information?”.
Possible aims could include:
- Improving diversity in recruitment pipelines
- Understanding pay gaps, whether those gaps are related to age, gender or any other characteristics
- Informing policy changes
A clear purpose not only helps you design the right questions but also reassures employees that their personal information will be used responsibly and meaningfully.
Build employee confidence and trust
Employees will only share accurate diversity data if they feel safe doing so. You can encourage participation by:
- Communicating openly – explain why you’re collecting the data, how it will be used, and how privacy will be protected
- Keeping responses voluntary – participation should always be optional
- Anonymising results – avoid identifying individuals in small teams where data could be traced back to them
- Demonstrating action – report back on findings and explain what changes will follow
Transparency and follow-through are key. If employees see that their input leads to positive change, engagement will increase in future surveys.
Collect data in a structured way
There are various ways to gather diversity data:
- Staff surveys – simple to distribute and complete and can be anonymous
- HR records – existing data may already cover some protected characteristics but it is important that records are regularly updated, if employees have access to self service HR software then they can easily keep their own information up to date
- Recruitment monitoring forms – track diversity at application, interview, and hiring stages
Whatever methods you choose, ensure your approach is consistent so data can be compared over time. If using online tools, make sure they comply with data protection requirements regarding data security and in particular who can access the data.
Analyse and interpret your diversity data
Once collected, data is only useful if it’s analysed effectively. Look for patterns, such as:
- Are certain groups under or over represented in senior roles?
- Is there a gender, age or ethnicity pay gap?
- Are internal promotion rates balanced across different demographics?
Comparing your data to national or sector benchmarks can also reveal whether your organisation reflects the wider talent pool. This step can help you identify priority areas for action so that targeted, data driven plans can be implemented.
Turn insights into action
Data is most powerful when it informs practical changes. Examples include:
- Adjusting recruitment strategies to reach a wider talent pool
- Offering training to reduce bias in decision-making
- Introducing mentoring or training programmes for underrepresented groups or to take account of the need for succession planning if you have an ageing workforce
- Reviewing policies to ensure they support inclusion (e.g. flexible working, religious observance leave).
Monitor and share progress
Improving workplace diversity is an ongoing process and therefore it is essential to regularly review your diversity data to see if any changes made are actually having the desired effect. Sharing positive change and progress with employees also shows accountability and commitment. Some organisations choose to publish diversity reports externally. While not a legal requirement, this can demonstrate transparency and attract talent who value inclusion.
Stay compliant with the law
In the UK, employers must handle diversity data in line with:
- Equality Act 2010 – this prohibits discrimination and sets out 9 protected characteristics.
- Data Protection Act 2018 and GDPR – classifies diversity data as “special category data,” requiring extra safeguards.
High-level legal awareness ensures you protect employee rights while gathering valuable insights. Seek professional advice if you’re unsure about specific processes.
Look ahead – the future of diversity data
Technology, and in particular AI powered software, is making it easier to collect and analyse diversity data. That said, the human element remains essential, data alone won’t drive change without genuine leadership commitment to diversity and inclusion.
By embedding diversity data into your decision making, you create a culture that values fairness, opportunity, and representation and that’s good for people and business alike.
Ultimately, harnessing the power of diversity data isn’t about ticking boxes, it’s about understanding your workforce and creating an environment where everyone can thrive.
Whether you’re a small start-up or a large employer, the principles are the same: collect data carefully, analyse it meaningfully, act on it consistently, and keep making progress towards a more inclusive, innovative, and successful workplace.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog The Employment Rights Bill Roadmap
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
