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The Diversity Dividend: How to Measure ROI on DEI

Updated: Aug 30, 2023

The Diversity Dividend: How to Measure ROI on DEI

The ROI of DEI comes from a combination of cost savings, revenue growth and intangible benefits that ultimately drive business results. By quantifying the impact of DEI, leaders can assess the effectiveness of the program or build compelling cases for further investment in the program. The questions organizations need to ask, is whether the input investment is generating dividends in the forms of innovation, productivity, revenue, customer satisfaction, and attracting / retaining the best people to power its success.

DEI leaders can present and assess the ROI in the following ways:

  • Show how greater inclusion led to higher engagement and lower turnover, saving costs. Calculate the direct cost savings from reduced recruiting and training as well as indirect benefits of a more stable workforce.

  • Demonstrate how a diverse, equitable culture attracted top talent and new customer segments, boosting growth. Track how DEI efforts expanded your potential talent pool and customer base, leading to more opportunities. Quantify the impact of new hires and customers acquired.

  • Highlight how diversity fueled innovation through exposure to different perspectives and ideas. Share examples of new products, services or processes developed, and estimate their potential value.

  • Survey customers on the importance of DEI to their purchasing and loyalty decisions. See if a more inclusive brand resonated more with key audiences and led to greater spending and advocacy.

  • Examine the link between DEI and productivity. For instance, show how inclusion and psychological safety enabled employees to bring their full potential, increasing output and performance. Quantify the productivity gains from a more engaged, empowered workforce.

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