Can organisations collect diversity data and who should be involved?

Section 2

Can organisations collect diversity data and who should be involved?

Legal Considerations

Anna Sanford, Director and Solicitor, PwC UK

The first step in running a successful data collection project is ensuring the restrictions and considerations of collecting this data are understood and the right stakeholders are involved in the process.

Key areas to consider

Legal - Due to variation in data protection, employment law and legal regulations globally, the restrictions and practicalities around collecting and processing diversity data will need to be

considered on a country by country basis. In the majority of territories, collecting diversity data should be possible provided there is a relevant lawful basis for doing so and certain conditions and requirements are met. This is the case, for example, in the UK where a number of large public and private sector organisations have already voluntarily gathered, analysed and disclosed diversity data, such as data on ethnicity, disability and sexual orientation.

The global perspective

For global organisations it is important to understand where there are any existing requirements in place to collect, monitor or report on diversity data in each of their locations. For example, in China, it is mandatory to report on disability data within the workplace therefore gathering this data is essential.

In certain territories while it may be legally permissible to collect diversity data, it is also important to consider cultural sensitivities. Consideration should be given to whether individuals are accustomed to sharing this type of data, whether the categories used may offend and any other social norms that would impact the perception and trust that employees would have while engaging with the process.

It is important to work with your local legal and data protection teams on a territory by territory basis to understand any local restrictions or documentation required to gather, process and analyse this data. In order to ensure appropriate steps are taken, you may wish to build a ‘term sheet’ for data collection in each territory setting out any required legal steps and restrictions, the type of data intended to collect, categories which can be used for collection and any local cultural considerations which may be relevant.

Systems - It is important to identify the best technology and systems for data collection. For those with a single HR system in place with self-service capability, this may be the best option. However, where organisations have disparate HR systems and/or disconnected employees, companies will likely need to consider a variety of tools and technology to reach different employee populations whilst ensuring the process remains simple and the data is appropriately protected.

Communications - As diversity data is almost always collected on a voluntary basis, to be successful it is vital to plan your communications. Getting good response rates can be challenging and so building a clear communications strategy from the start will be critical to success. Identify your key messages, channels and stakeholders and how these can be adapted to reach different employee groups. Consider collaborating with employee networks (where they exist) to refine your message and gain their support. It is important to build trust with employees and be transparent as to how the data will be used. This will ensure greater engagement and lead to higher response rates.

Stakeholders to involve

Given the potential complexity of collecting diversity data and the multitude of external and internal stakeholders, it is important that it is not seen purely as a HR initiative. You may wish to consider forming a working group, composed of some of the stakeholders outlined on the next page, to plan and execute any diversity data collection campaign.

Leadership - Board level buy-in is crucial, as it acts as an internal and external signal of your organisation's intent and commitment. Involving senior management in firmwide communications can have a positive impact on employee disclosure as it demonstrates how the business is prioritising the campaign. Leadership can also ensure the activity is prioritised, resources are allocated and internal challenges are overcome.

Human Resources - HR have a key role to play in building the internal business case, ensuring the data collection campaign aligns with existing D&I initiatives, stakeholder engagement and analysing and reporting on the data as it is collected.

HR Systems / Information Technology - Some organisations will have internal HR systems teams who can help with configuration of the system to collect data, whilst other organisations may need to liaise with their IT department or use external advisors to support this process.

Legal, data protection and compliance - Internal legal professionals and data protection experts or external lawyers should be consulted to ensure compliance with relevant data protection and employment legislation and considerations. Compliance teams can also help you ensure the process is run in a safe, compliant and legal way.

Communications - It is important to include your communications team in the process to create a strategy that is able to effectively engage your employees in the data collection process and aligned to other internal and external communications activity.

Employee networks - Utilising existing internal diversity networks or employee resource groups in your organisation ensures that the messaging can be tailored to different employee groups, leveraging channels that are pre-existing and, crucially, trusted by individuals.

Employees - Involving employees early on in the process will allow you to get input as to how the process may be received and any areas of concern that communications should address. It is important to consider how employees feel about sharing their data, therefore it may be helpful to use focus groups or involve divisional leaders who are closer to the individual employees.

External advisors - Many organisations, especially those without the available resources, skills or experience, may wish to seek support from external advisors especially given the sensitivities around the topic, legal risks and requirements and the additional complexity of global data.

Unions - For some organisations, it will be important to engage with unions to help them understand the process and reasoning behind collecting diversity data. The unions in turn may be able to help engage employees in this exercise and support them in disclosing their diversity data.

Schroders

Schroders diversity data communications strategy is split across three main areas; leader-led, FAQ’s and ongoing encouragement of diversity profile completion.

1. Leader-led includes the sharing of diversity profile completion targets and actions that will be taken once the targets have been reached. Management team podcasts have highlighted the importance of diversity data collection and global town-halls have included reminders for everyone to complete or review their diversity profiles.

2. FAQ’s and a dedicated Inclusion and Diversity Intranet page are available to clearly explain the purpose of collecting diversity data, set out the overall I&D objectives, identifying Employee Resource Groups and Diversity Committees, and providing contact details for any further questions.

3. Encouraging diversity profile completion is considered on an ongoing basis – this is particularly important as employees’ data changes as well as the introduction of new questions to capture increased data over time. Employees are first asked to complete their diversity profiles during onboarding and then receive opportunities to complete as part of other employee lifecycle activities as well as consistent reminders through banners on the Intranet home page and a link from the HR system homepage. Regular internal communications promoting D&I events also serve as another opportunity to remind employees to keep their diversity profile up to date.