Opportunities & Challenges
A diligent and compliant collection of candidate diversity data has resulted in first movers taking the lead over competitors, bringing in higher client win rates, expanded talent access and redeployment and better talent quality and satisfaction.
First movers tend to apply DEI initiatives across all aspects of the business, reflecting the same strategies internally and gaining internal employee satisfaction, referrals, quality and talent access.
Recent global concerns including but not limited to inflation, trade wars, cost-of-living crises, social unrest, and recession have pushed back DEI in terms of importance and prioritisation, in certain countries.
As countries continually shift their priorities, several challenges to implementing DEI initiatives within the staffing industry, have become apparent. One of the primary challenges is finding ways to collect DEI data. Some firms, while willing and wanting to implement data collection initiatives are unable to do so because they do not have a technological system for data collection and are reluctant to add another process to the tech stack that is already in use. They also lack the time and bandwidth for change, as well as the knowledge on how to proceed from the possibility of finding a bias and what solutions to provide.
In addition to technology concerns, companies have encountered some other barriers to implementing their DEI strategies.
Some firms have cited a very limited demand for diversity data, due to a lack of awareness for the usefulness of the information, as well as an absence of procedures and systems to collect the data.
Several staffing executives and firms worry that requesting diversity information from potential talent may receive push back from the condidates. They are concerned that the information is personal and private to the candidate and therefore too sensitive to share. They also fear that candidates may not be open to the request if they are unsure.
Lastly, there are concerns about the legal and compliance issues surrounding the collection of sensitive information and diversity data. Various possible challenges such as legal liability, privacy legislation and compliance considering the different laws and regulations for different countries all hinder collection of data and implementation of diversity measures. There is also a lack of understanding regarding the collection and storage of the sensitive diversity data once obtained and whether each area or country considers this practice to be required, allowed or prohibited depending on the local jurisdiction again preventing any further progress in this matter.
