How do we calculate the return on investment for diversity

The term “calculate” is very precise. In order to calculate the return on investment for a diversity initiative we need to be very clear on what we are measuring and why we are doing this.
To give you an example of how this works in practice, many diversity professionals will proudly tell you that they have put hundreds of managers through a diversity and inclusion training module. But if we want to calculate the return on investment for that particular training module, we would need to look at outcomes and translate that into hard cash. Let’s just suppose that a particular company was riddled with poor work relations, much of which had diversity at their heart. In order to calculate a return on investment for this series of diversity workshops, you would need to measure what the managers can do better after being on the workshop. Is this quantifiable? If it is quantifiable, then the next stage is to turn it into hard cash.
Calculating the return on investment for diversity initiatives is not an easy process but it does have to be mastered by diversity professionals, or quite simply we won’t be able to get the funds to do the programmes in the first place.

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