By Annika Lofstrand, Leda HR

In recent years, diversity and inclusion have been central to corporate practices in Canada, especially for financial institutions like banks. The Canadian government, through various regulations, including the Employment Equity Act (EEA)1, has placed a significant emphasis on ensuring that businesses reflect the diversity of the population.

The Act requires federally regulated employers with 100 or more employees to submit annual reports that include data on the representation of four designated groups:

• Women
• Indigenous peoples
• Persons with disabilities
• Visible minorities

Failure to meet these reporting requirements can result in penalties and reputational damage. It's critical for employers to establish a clear, structured process for collecting and reporting diversity data.

Going Beyond Compliance

Have you considered what the upside could be beyond compliance? In my experience as a consultant and being accountable for diversity data collection in a financial institution (FI), there is a real opportunity to use the data to improve your workplace culture and the overall employee experience.

Across sectors, sizes, and types of organizations, a diverse workforce can bring a range of perspectives, innovative ideas, and improved decision-making. Understanding your diversity at a moment in time and over time gives you insights into who you attract, recruit, and retain. You can take these quantitative insights into action to identify and remove barriers to full participation and engagement. The emphasis on the word can is intentional. The true upside only comes when you go beyond the numbers.

Consider this example from an FI I worked with recently. They had been intentional about equity, diversity, and inclusion (EDI) for some time. When they were preparing to go federal, they were wondering how to leverage the good work they’d done and to be compliant. Some things they considered included:

• How could they frame the new requirements in the most positive way?
• How could they align data collection, analysis, and reporting requirements to their broader EDI work?
• Did they have the resources and capacity to both meet the requirements and go beyond in a meaningful way?
• How could they continue to involve employees of all identities in their employee resource groups and other diversity, equity, and inclusion efforts and activities?
• Would a focus on the designated groups suggest other groups or identities were less important?

I share this example because I think all organizations who collect diversity data voluntarily or because they are required to can benefit from pausing to consider what is possible or the upside when you have this information. There’s a vulnerability for many in sharing who they are with their employer. They want to see you do something meaningful. To go beyond the numbers to the story they tell. To demonstrate your commitment to an equitable, inclusive, and accessible employee experience.

Best Practices in Diversity Data Collection

The Diversity Demographic Data Collection tool outlines how to collect diversity data to meet the federal reporting requirements for banks. Here are some best practices I am seeing from work with a range of clients.

• Create a clear diversity data collection policy that is transparent, meets legal requirements, and can be applied consistently.
• Communicate clearly with employees so they are more likely to voluntarily disclose their diversity information.
• Offer multiple collection methods such as online forms, surveys, or HR interviews to increase the response rate and improve data accuracy.
• Ensure anonymity and confidentiality when collecting personal data that could include using an external party or anonymizing responses within the HR systems.
• Regularly update and maintain the data to reflect changes in the workforce including new hires, promotions, or departures.
• Monitor and analyze the data to identify trends and gaps and to make informed decisions about EDI strategies, such as targeted recruitment initiatives or internal diversity programs.
• Ensure compliance with reporting deadlines and that you have a system in place to track what is due and when. You can refer to the tool Diversity Demographic Reporting for the reporting requirements and suggested resources.
• Use tools and software for diversity data collection to ensure compliance with privacy laws, and to generate reports.

Going the Extra Mile

Whether you are just starting or have been doing this for awhile, here are some suggestions for how you can capitalize on the diversity data you collect.

If you are a beginner – in your communication and data survey, say something about your commitment to EDI and to a welcoming, inclusive, accessible and respectful workplace. At the outset, ensure the data is collected in a way that respects privacy laws and human rights while ensuring transparency and accountability in meeting diversity goals.

If you are more intermediate – get feedback on the employee experience of how you are asking for diversity data so you can make improvements. An example could be asking diversity identity questions beyond the employment equity designated groups and considering intersectionality in your analysis. Or improving access to the workforce survey to get a higher response rate. Or doing more in-depth analysis of the data and the experiences employees are having based on how they identify.

Collecting and reporting diversity data is a requirement and an opportunity. You can meet regulatory obligations and use the information to create a stronger, more inclusive corporate culture. Diversity data collection should be part of your long-term commitment to fostering a diverse and inclusive workforce that better serves the needs of Canada's diverse population.