A message from our Social Value Executive Partner
In 2023, businesses and government agencies understand that diversity, equity and inclusion (DE&I) are more than just human resources buzzwords. They are critical in building an engaged workplace that's more productive and innovative, and less likely to leave, than their homogenous counterparts. As a result, organizations are making efforts to increase diversity, equity and inclusion in the workplace.
While much headway has been made, there's still significant room for improvement in hiring practices and opportunities for workplaces to scratch below the surface and institute modest changes that could have a significant impact on making their workplaces welcoming for more people.
In particular, our research discovered that:
- The methods most organizations use to screen candidates can put diverse individuals at a disadvantage. Resumes, reference checks, and cover letters, rather than assessments like psychometric or aptitude tests, are widely used by most organizations.
- Encouragingly, three in four (77%) managers report that their organizations are making efforts to accommodate candidates during the hiring process.
- While most workplaces (70%) have mandated training on inclusive hiring, we identified significant gaps in the subject matter covered through training and significant disparities between large and medium-sized organizations.
- Only half of workplaces with written policies on diversity, equity and inclusion are engaging or consulting with staff when it comes to reviewing and updating them. This can lead to a disconnect between what employees who are regularly engaging applicants actually need to be successful and what they are receiving.
We're pleased to be able to share this research with you. Our hope is that you're able to absorb and apply these findings to your own organization and use them to help build a more equitable workplace.
CIA KOUPARITSAS
Executive Partner, Social Value
Setting a baseline
Diversity
Having a mix of people in an organization. It encompasses social identity, like ethnicity, cultural background, disability status, sexual orientation, gender identity, age, and professional identity, like work experience and education.
These different attributes shape how people see themselves and the people around them.
Equity
The quality of being fair and impartial. Equity acknowledges that each individual comes from different circumstances and therefore needs a different set of resources, tools and opportunities in order to thrive. It means making adjustments for the imbalances inherent in society. This is different to equality, which refers to giving everyone the same resources, regardless of the opportunities already provided to them.
Inclusion
Getting a diverse group of people to work effectively together to improve performance and wellbeing. Inclusion is achieved when a diverse group of people feel they're:
- respected for who they are and able to be themselves
- connected to their colleagues and feel a sense of belonging
- contributing their perspectives and talents to the workplace
- progressing in their career, with equal access to resources and opportunities
Inclusion is how organizations can truly benefit from diversity.
Definitions provided by the Diversity Council Australia (
www.dca.org.au)
At a glance
A nationally representative sample of 512+ Canadian managers
managers report some form of mandatory training on inclusive hiring.
GREAT NEWS!
95%
of managers surveyed say their organization has rigorous processes in place to manage workplace diversity.
of organizations use reference checks, resumes, and cover letters to screen job applicants,
but only
use psychometric or aptitude tests for applicant screening.
Masked resumes are becoming more common
using them some of the time
managers have no formal training on inclusive hiring prior to interviewing applicants.
Opportunities for DE&I begin during the application process
When it's time to hire for a new role, most organizations are keen to consider diverse candidates.
Unfortunately, their screening methods during the application process may hinder these individuals. Resumes and reference checks remain the most widely used ways of screening applicants, with 69% of medium organizations and 74% of large ones relying on resumes. More than half of medium organizations (51%) and 63% of large organizations also use reference checks. For diverse candidates, this means the odds are often stacked against them from the beginning, as things like gender, educational background, age, and race can often be gleaned from resumes.
It looks like change is happening, albeit slowly. One in five (20%) of managers say that their organizations use masked resumes—removing information like names, age, and university names—all the time, while a further one in four, or 26%, say they are used frequently. This can help level the playing field when candidates are judged with resumes.
Cognitive ability, which can be measured with psychometric/aptitude testing, is considered an important predictor of job performance, but isn’t widely used in Canadian organizations. Just 18% of managers from medium businesses and one in five (20%) of managers in large businesses use testing to determine suitability of a candidate. Phasing out or, at a minimum, relying less heavily on resumes and reference checks could help progress a more diverse candidate pool through the application process.
Only one in eight (13%) of managers say their organizations have a flexible hiring process that can be adapted to the position and candidates that apply.
Top tip
Phasing out or, at a minimum, relying less heavily on resumes and reference checks could help progress a more diverse candidate pool through the application process.
Leaving space for flexible hiring
Embracing more flexibility during the hiring process might help.
As it stands, there's not much room for deviation in most organizations. Overall, among medium and large organizations, only one in eight (13%) of managers reported that their organizations have a flexible hiring process that can be adapted to the position and candidates.
Allowing for a more adaptable process, rather than the highly standardized one that nearly two in three managers adhere to, can help diversify the process. This could look like using alternative avenues for recruitment rather than the standard job boards and listings; recognizing alternative forms of work, like volunteer positions or hobbies as work experience; and allowing creativity in the application process, like accepting video applications.
Almost half (47%) of managers say their organizations have a highly standardized hiring process that is uniform for applicants and positions.
Accommodating for differences
Encouragingly, seven in 10 organizations ask candidates if they need special assistance during the application process, either via a specific check box (48%) or contact details in the ad (27%). Medium businesses are less likely than larger ones to have processes in place to ask candidates if they require assistance, at 34% and 52% respectively.
It’s very promising that these questions are being asked, particularly when, overall, after a candidate requests special assistance, 67% of medium and large organizations initiate contact and provide support internally, rather than just giving out information for external services. Taking the onus off the candidate to get in touch and proactively offering solutions is a real step in the right direction.
However, there’s still work to be done. More than half of managers (56%) reported that they do not accommodate for physical access or mobility barriers during the hiring process. That’s a barrier for some candidates that’s impossible to overcome.
Other gaps in accommodating applicants include cultural preferences and sensitivities, language and communication barriers, and hearing impairments. Asking about assistance during the hiring process is a fantastic first step. Now, organizations must focus on the steps that come next and commit to providing a hiring process that’s accessible for more people.
Taking the onus off the candidate to get in touch and proactively offering solutions is a real step in the right direction.
Equity for applicants when interviewing
Significant access gaps remain in making the interview process equitable.
Physical access or mobility barriers
Language or communication barriers
Cultural preferences and sensitivities
Other access issues (e.g. economic hardship)
Noise and sound sensitivity
Body dysmorphia or screen avoidance
56% of managers report their organizations do not accommodate for physical access or mobility barriers when interviewing candidates.
Broadening the scope of mandated training
Shockingly, 30% of organizations have no mandatory training on inclusive hiring before screening applicants.
Only 39% of managers reported that there’s mandated interview training for cultural awareness, sensitivity, and competence. When it comes to LGBTQIA+ awareness, that number drops to 26%, and for neurodiversity awareness, that number drops to a depressing 15%.
Top tip
Investing in mandated training around inclusive hiring for those involved in the recruitment process is an actionable step that organizations can take immediately, allowing them to cast the talent net wider and also better support employees once they do land in roles.
39% reported required training for cultural awareness, sensitivity, and competency.
31% reported required training for disability awareness.
26% reported required training for LGBTQIA+ awareness.
26% reported required training for unconscious bias
15% reported required training for neurodiversity awareness.
Consulting external experts and incorporating recommendations from employees who engage with applicants can only strengthen existing policies and practices.
Measure, Improve, Repeat
You can't fix what's not measured.
In order to improve, it’s necessary for organizations to understand where they’re at. Just under half (46%) of managers say that their organization collects data on diversity as a standard procedure and regularly reviews their workplace’s diversity.
It’s very promising to see that almost all (93%) of the organizations that have written policies around diversity, equity and inclusion during hiring also have processes in place to review and update policies.
Close to half (48%) use staff surveys and employee focus groups (41%) to make changes, while another 35% engage external experts to do the heavy lifting. Consulting external experts and incorporating recommendations from employees who engage with applicants can only strengthen existing policies and practices.
48%
Use staff surveys as a method to review and update ED&I policies
41%
Use employee focus groups as a method to review and update ED&I policies
35%
Engage external experts or consulting firms as a method to review and update ED&I policies
Most managers from medium (88%) and large (93%) businesses who have written policies on diversity, equity and inclusion for hiring practices report that their organizations have processes in place to review and update their ED&I policies.
Managers from large-sized organizations are more likely than those from medium ones to say they hold employee focus groups (44% compared to 29%) or engage with external experts and consulting firms (36% compared to 28%) when reviewing and updating their policies on diversity, equity and inclusion.
What is used to review and update policies on Diversity, Equity and Inclusion
- Staff surveys
- Employee focus groups
- Engage external experts / consulting firms
- Desk research to review latest information, research papers, reports on ED&I
- Not applicable - we have no process in place to review or update our ED&I policies
What's next
Increasing Diversity, Equity & Inclusion during hiring
Many Canadian organizations have made great strides in actively working to increase diversity, equity and inclusion when recruiting for roles. To further this work, we recommend:
1. Expanding applicant screening
The way you screen can make or break whether an applicant will even apply for a role. Rather than sticking solely to traditional methods of screening candidates, like resumes, cover letters, and references checks, we recommend replacing or incorporating psychometric or aptitude testing and expanding the definition of "past experience" to include things like volunteer work and hobbies for more diverse applicants.
2. Accommodating for differences
Asking if accommodations are necessary is a welcome first step, but there must be actions in place to facilitate what comes next. Working with candidates to find creative solutions where necessary, like video interviews when physical access is an issue, and putting processes in place for applicants who require assistance, will lessen the burden on the candidate and provide a more inclusive hiring experience.
3. Broadening recruitment training
For those folks who are screening and interacting with candidates, mandated training that encompasses a range of core diversity areas like cultural sensitivity, disability, LGBTQIA+, and unconscious bias, is critical. They don’t know what they don’t know—understanding what to look out for and how to help can make a tangible difference to your DE&I efforts, quickly.
4. Engaging with employees
Engaging with employees on diversity, equity and inclusion policies. As they’re the ones working with applicants, it’s important to get their experiences. Your policies shouldn’t be a one-time set-and-forget document, but rather a living, breathing document that’s updated and improved with lessons learnt.
