How to Measure the ROI of Diversity Training

Investing in diversity training is a key strategy for businesses looking to foster more inclusive workplaces. Despite some resistance to DEI programs, data consistently shows that inclusion benefits businesses in measurable ways. A poll from The Washington Post and Ipsos found that 61% of Americans view DEI programs positively, and 82% of company executives consider diversity essential to their business strategy, according to a survey by Morning Consult and the Public Private Strategies Institute.

However, despite the growing investment - $8 billion per year and projected to grow to $15.4 billion by 2026 - a 2023 study published in Translational Behavioral Medicine revealed that there is limited research on the effectiveness of these programs. As organizations continue to invest heavily in DEI training, understanding how to measure its return on investment (ROI) becomes increasingly important.

1. Pre- and Post-Training Culture Surveys and Focus Groups

One of the most effective ways to assess the impact of DEI training is by measuring changes in employee sentiment before and after training sessions. Culture surveys and focus groups allow organizations to capture insights into how employees perceive their workplace culture and diversity initiatives.

Before the training, surveys can ask employees about their understanding of DEI concepts, their comfort level in discussing diversity topics, and their experiences with inclusivity at work. After the training, the same surveys can be conducted to find any shifts in perception or behavior. Focus groups can dive deeper, providing qualitative data on how employees feel the training impacted their day-to-day interactions and whether they’ve noticed positive cultural changes within the organization.

These tools offer a direct measure of training effectiveness, revealing whether employees feel more confident in their ability to foster inclusivity. Positive shifts in survey results and focus group feedback provide a clear indication of success.

2. Knowledge and Confidence Assessments

Another useful approach is to compare pre- and post-training assessments that measure participants' knowledge, confidence, and abilities related to DEI topics. These assessments can cover a wide range of areas, including understanding unconscious bias, addressing microaggressions, or promoting inclusive practices.

The goal is to determine whether participants leave the training with improved understanding and greater confidence in handling real-world situations. A successful training program should make participants feel more equipped to support and contribute to a diverse workplace.

If assessments reveal areas where employees still lack confidence or knowledge, organizations can use this data to offer additional training or provide resources to address these gaps. Regularly revisiting these assessments helps ensure that DEI training remains relevant and impactful over time.

3. Tracking Innovation and Diverse Representation

Measuring innovation within an organization and comparing it to levels of diversity representation can be a powerful way to assess the long-term impact of DEI efforts. Many studies have shown that diverse teams outperform homogenous ones, particularly when it comes to innovation and creativity. Organizations can track key metrics such as product development, problem-solving initiatives, or new patents filed to evaluate whether diversity is leading to greater innovation.

Organizations can identify patterns that correlate diversity with enhanced creativity by comparing these innovation metrics to the representation of diverse individuals in key teams. This approach shows the value of diversity in driving business outcomes beyond just compliance and how inclusivity directly supports growth and innovation.

4. Employee Retention and Turnover Rates

Diversity training should aim to create an inclusive workplace where employees feel valued and understood. Monitoring retention and turnover rates, particularly among underrepresented groups, before and after training can be a powerful indicator of success. If turnover decreases and retention improves after training, it’s a strong signal that employees are feeling more engaged and supported.

Higher retention rates, especially within historically underrepresented groups, can be a key sign that your DEI efforts are paying off. A reduced turnover rate also shows that employees choose to stay because they feel included, respected, and able to advance within the company.

5. Leadership and Promotion Tracking

DEI efforts should also focus on upward mobility for underrepresented employees. Tracking the diversity of leadership promotions and who receives growth opportunities can give insight into whether the training breaks down systemic barriers and creates a more equitable environment. A lack of diverse representation at higher levels may indicate that training needs to address deeper issues within the company’s culture.

By monitoring who is promoted, who is given leadership roles, and how career advancement aligns with DEI goals, organizations can get a clearer picture of whether diversity training contributes to a more inclusive workplace. If certain groups are still underrepresented in leadership, it may be a signal to adjust or enhance DEI training programs.

6. Customer Satisfaction and Brand Perception

Many companies overlook the external impact of their DEI efforts. Engaging in customer satisfaction surveys, especially for businesses with a diverse customer base, can show how inclusivity initiatives influence brand perception. Customers today care about a company’s values, and if they see improvement in diversity and inclusion efforts, it may lead to increased loyalty and positive sentiment.

For example, tracking social media mentions, customer reviews, or direct customer feedback on how the company's DEI initiatives resonate externally can help gauge the broader impact of diversity training. A more inclusive and diverse brand image can improve customer loyalty and broaden market appeal.

7. Behavioral Changes Over Time

It’s not just about what employees know - it’s also about how they act. Long-term follow-ups that track behavioral changes post-training can offer deeper insights into whether the training is making a difference in everyday interactions. For example, is there a reduction in microaggressions or biased decision-making? Are more inclusive practices, like mentoring or creating safe spaces for discussions, becoming the norm?

This can be measured through peer reviews, managerial feedback, and observation of workplace dynamics. Changes in how employees collaborate and treat each other post-training are strong indicators of whether diversity training is leading to meaningful improvements in the workplace.

Why Measuring DEI Training Matters

Despite growing investments in DEI training, there is often skepticism about its effectiveness. Without clear measurements, leaders may struggle to justify ongoing investments or implement necessary improvements. This is why it’s important to make data-driven decisions based on well-structured assessments. Measuring ROI in DEI is not just about financial returns- it’s about understanding the broader impact on company culture, employee engagement, and innovation.

When DEI efforts are properly measured, businesses can identify the areas where training is working and improvements are needed, ensuring that the long-term benefits of an inclusive workplace are realized.