3 Diversity Statistics You Need To Know When Hiring Gen Z

Gen Z believes diversity and inclusion is a non-negotiable. In fact, they are likey to base their decision on where to work based on diversity and inclusion. Be prepared for them to ask you about diverse representation, diversity and inclusion goals and metrics, and the strategy to improve diversity and inclusion.

The newest generation entering the workforce, known as Gen Z (born ~ 1997 to 2012) is more likely than past generations to shape the workplace versus comply with the current workplace standards. Due to ongoing labor shortages, baby boomers retiring along with lower birth rates puts Gen Z sits in a unique position to redefine workplace culture.

Gen Z has an unwavering commitment to diversity. They are well known for valuing diversity and inclusivity. Did you know that…

• 83% said that a company’s commitment to diversity and inclusion is important when choosing an employer
• 74% have taken some form of action in the past year to support social and political causes
• 31% identify as LGBTQ+ (lesbian, gay, bisexual, transgender, queer or other gender identities or sexual orientations)
• 48% are from racially and ethnically diverse backgrounds (non-white)

Gen Z also values authenticity and is quick to point out problematic one-and-done check-the-box diversity and inclusion approaches. For them, inclusion is embedded in the culture and foundational to how decisions are made.Statistics to know to attract Gen Z

Statistics to know to attract Gen Z

When hiring new employees, it's essential to consider diversity and inclusion to not only attract top Gen Z talent, but retain them. Here are three diversity statistics leaders should have ready when talking with Gen Z:

1. Gender Diversity: Gender diversity refers to the representation of different genders in the workforce. According to McKinsey & Company, companies with a higher proportion of women in executive roles outperform those with fewer women. The study found that businesses in the top quartile for gender diversity in executive teams were 25% more likely to have above-average profitability compared to those in the bottom quartile.
2. Racial and Ethnic Diversity: Racial and ethnic diversity is another crucial aspect of building an inclusive workforce. Companies with ethnically diverse executive teams were 33% more likely to outperform others in terms of profitability.
3. Diversity in Age: Age diversity encompasses employees from different age groups within the organization. Companies with age-diverse management teams reported higher innovation revenue—meaning they were more likely to generate revenue from new products and services launched in the past three years.

Representation numbers are important, but perceptions of inclusion are often even more telling as a leading indicator of DEI, whereas representation can be lagging. Once you have these statistics ready, consider layering in inclusion data and be ready to speak to that in the interview process.

Gen Z is highly likely to ask companies about their representation numbers during the interview process as well as make decisions about their employment based on diversity inclusion activities at the organization. At a minimum, organizations should have a stated diversity, equity and inclusion (DEI) strategy as well as goals and metrics for accountability.

How to build a DEI strategy

A strong DEI strategy includes three key components: what it means, why it matters and intentional action steps to improve DEI. If your organization doesn't have a strategy yet it's not too late. A strong DEI statement is concise, easy to share and authentically connects to the organizational values.

The DEI strategy helps Gen Z understand that the organization is taking a holistic approach this work and not simply checking the box or inauthentically discussing DEI when it is in the newscycle. Gen Z is likely to research activities and commitment statements to vet how genuine the organization’s commitment is to DEI.

And if you don't have a good answer to what DEI means at your organization and why you care about it start there. They will want to know.

What goals and metrics to track

Representation statistics are important, but inclusion perceptions are more important. Once you have your representation statistics understood, consider digging into the perceptions of inclusion. These are often even more telling as a leading indicator of DEI, whereas representation can be lagging. You can't have a diverse team if the culture is not inclusive. Organizations can use employee engagement surveys or pulse surveys to better understand the perceptions of inclusion. Ideally, these are done on a likert scale where people can choose from strongly agree to strongly disagree to key statements that measure inclusion. Consider these statements as a starting point:

1. People are fairly promoted equitably based on their work performance.
2. My team is fair in considering ideas and suggestions offered by team members of different backgrounds.
3. I can share my best ideas at work.
4. I feel like I belong at this organization.
5. Leadership is committed to diversity and inclusion.

Gen Z is the most diverse generation to enter the workforce and have strong beliefs about diversity and inclusion. They are less likely to be changed by the workplace and are more likely to change the workplace given labor shortages. Organizations should have a well-defined diversity, equity, and inclusion (DEI) strategy, along with goals and metrics for accountability to attract this next generation of top talent.

At Next Pivot Point we have lots of resources to help you facilitate successful diversity and inclusion initiatives. Schedule some time with our team today?to discuss where to start or how to do better. You can also check out:

• Our?available workshop topics for developing inclusive leaders.
• Our?Train the Trainer programs?for scalability within your organization
• Our?Right-Sized DEI micro-content packages?for consistent small-drip content throughout the year.