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It’s evident there is financial gain to be had by encouraging diversity and inclusion in your workforce. The Wall Street Journal reports that the most diverse companies (12%) outperform the least diverse firms (8%) when it comes to share price and operating results.
However, creating a diverse business requires more than just good intentions - it takes strategic program implementation, accountability and setting realistic KPIs. Here’s how to properly measure diversity programs to create a more competitive and culturally-rich workplace.
First, define the type of return you hope to achieve.
It’s easy to implement a few programs as quick wins, but first it’s important to assess the current state of diversity and inclusion at your organization. Uncover the problem areas and apply data at all stages - surveys, focus groups, exit surveys, Glassdoor and LinkedIn reviews, analyst ratings and more. Then, define the type of return you hope to achieve. Common KPIs are:
- Reducing employee turnover
- Increasing employee satisfaction
- Increasing retention levels
- Growing leadership diversity
- Reducing unconscious bias
Focus on holistic program development and consistent accountability.
Data enables you to create accountability and establish a baseline through which success or opportunities for improvement can then be quantified. It also allows you to create links between programs developed and overall business performance. Remember that diversity isn’t just an HR initiative. As you’re developing programs, remember that it’s important to create a cross-functional task force that acts as a complementary partner in developing, implementing, sustaining and reporting on programs.
Return on Diversity (ROD) framework
Many corporate D&I programs simply fail to deliver tangible business results and stock performance. Many times, this is due to misalignment between KPIs and performance. Aneuvia’s proprietary Return on Diversity framework addresses these issues to deliver greater workplace diversity, investment performance for companies.
Our integrated approach provides actionable insights to C-suite and Board members on how to raise diversity across the board for better business outcomes. Using our proprietary ROD framework, we score companies on two variables: gender diversity and transparency. Based on this score, a targeted subset of companies are selected to comprise our high-conviction portfolio.
The global coronavirus has disrupted life in unimaginable ways and it has become very clear that our underlying social fabric may never be the way it ‘used to be.’ This pandemic has made it impossible to ignore the gaps in mental health awareness, lack of workplace policies to effectively support employees and the social inequalities in America.
In just the past week, first-time jobless claims totaled 1.4 million, and nearly 49 million jobless claims have been filed since the coronavirus was declared a pandemic in March. Becoming unemployed is inextricably linked to having a negative impact on mental health, and there are other contributing factors in the workplace, including:
- Inadequate health and safety policies
- Poor communication and management
- Limited decision-making abilities
- Lack of support for employees
- Inflexible working hours
- Lack of clarity with roles and responsibilities
According to the World Health Organization, nearly 264 million people suffer from depression across the world. In the U.S., nearly one in five adults live with a mental illness. It is expected that only 41 percent of people who had a mental disorder in the past year received professional health care or other services.
The cost of poor employee mental health to businesses is significant:
- $80 billion to $100 billion in annual costs to U.S. businesses.
- $193 billion in lost earnings per year.
- 400 million lost work days annually due to depression.
- $1 trillion lost to the global economy each year in lost productivity
It’s not only good business, but socially responsible to create a healthy, progressive workplace that creates awareness for, and validates the importance of mental health.
Employers who prioritize mental health with treatment programs, workplace safety policies and progressive awareness initiatives not only increase productivity, secure their bottom line, but also create a viable and engaged workforce. Ultimately, prioritizing the mental and emotional wellbeing of employees will increase profit, improve lives, and transform culture.