a more equitable workplace.
What are the KPIs?
GDKA’s goal is to advance women and underrepresented groups in the workplace by promoting the adoption of a set of key performance indicators (KPIs) to drive change. Globally, the percentage of women participating in the labor force is declining, with structural barriers and cultural restrictions contributing to this gender gap. The GDKA KPIs focus on the pipeline of women and underrepresented groups moving through an organization. Women and underrepresented groups cannot progress to senior levels unless they are able to advance in the pipeline and be paid equally.
GDKA believes that measurement is vital for making true progress. You can’t manage what you can’t measure; currently, there is no universal standard for measuring diversity in organizations. Widespread adoption of the GDKA KPIs will help companies focus on the most important items for improving diversity and inclusion.
The right measurements are critical. The GDKA KPIs measure gender and underrepresented groups where applicable (e.g., race and ethnicity in the United States). These three high-level measurements provide an overview of the diversity in your workforce:
Percentage of representation on an organization’s board.
Percentage of representation by employee category.
The ratio of compensation by employee category (e.g. equal pay for equal work).
Widespread adoption of the GDKA KPIs will help companies focus on the most important items for improving diversity and inclusion. The right measurements are critical.
These KPIs—selected after months of evaluation to find a universal standard for measuring diversity—were derived from those identified by the Global Reporting Initiative (GRI). They were also included in the International Business Council’s proposed ESG (environmental, social, and governance) standards presented at the World Economic Forum.
We recommend that companies use these KPIs to measure the diversity of their pipeline. They should use employment categories that reflect the management and non-management levels within their organization and include all employee compensation. It is important to keep the evaluation consistent so progress over time can be measured.
GDKA has no plans to collect the data nor to advocate for data disclosure. The KPIs are meant to give a high-level view of the corporate pipeline.
The KPIs are a starting point to analyze and monitor gender and diversity within an organization, tracking progress over time. Companies are encouraged to disaggregate the data by underrepresented groups wherever feasible to do so. They should also select employment categories that are meaningful and keep them consistent over time and include total compensation when calculating pay ratios.