By Annika Lofstrand, Leda HR

Are you new to having to meet diversity demographic reporting requirements under the Legislated Employment Equity Program (LEEP)1? Or are you wondering if there are any best practices or tips to help you do this better or more easily? The compliance piece can be daunting with many clients asking questions like these.

• What data do I collect, analyze and report on in the first year and is this different year over year?
• How do I know how to analyze the data and to understand where I may have gaps in representation?
• What am I expected to do to bridge the gaps and what does acceptable progress look like?
• Is it easy to submit the reports and if not, where do I go for help?
• What happens if I am not compliant with the reporting timeline or what I submit?
• What happens if the requirements change or if I’m audited?

Before we get into the specifics of diversity demographic reporting, let’s take a step back to why this is important or the intent of the legislation.

Why There is a Requirement to Report

In Canada, ensuring diversity and inclusion in the workforce is not just a matter of corporate responsibility—it’s also a legal requirement for federally regulated employers with 100 or more employees. The Employment Equity Act (EEA) mandates that these employers, including banks, track and report the representation of the following designated groups within their workforce:

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

Are you curious about why we have this requirement?

In 1986, the EEA was put in place to increase employment outcomes for the designated groups facing barriers others may not be facing. The legislation was intended to ensure that ability and qualifications are the only criteria for employment opportunities, benefits, and advancement.2

What is Required

Federally regulated employers are required to report on the composition of their workforce, assess any disparities, and take meaningful steps to address underrepresentation. Reporting should not be performative or about ticking a box. The clients I have worked with that are compliant and genuinely committed to equity, diversity, and inclusion (EDI) see the most meaningful and sustainable change.

There are quantitative requirements around data collection and analysis that are outlined in the Diversity Demographic Reporting tool. The numbers give you a picture of your diversity at a moment in time and your flow data as people join, change positions, and leave the organization.

There is also a qualitative requirement to describe what you are doing to ensure representation that matches the labour market availability. You are asked to report on not just activities but the outcomes of your efforts across the employee life cycle from hiring to termination or departure. By building out your qualitative report over time, you can learn how to use the data to identify and address barriers.

Mitigating Bias in Reporting

A more progressive idea from clients I have supported has been to consider the impact of bias in how you analyze and report out on the data. There can be – often unconscious – bias in what is seen as a direct or a more indirect correlation to different experiences by diversity identity.

An example is recruitment if those doing the reporting think their attraction, recruitment, and retention process is inclusive and equitable for the designated groups. That may be the intent but not the actual impact. If the data suggests certain groups are not applying at all or are dropping off before the interview or offer stage, the bias can be in the assessment of why this is happening.

Ways to mitigate potential bias in reporting include:

• Having valid success measures at the outset and evaluating progress on an ongoing basis (not just when the report is due!)
• Doing an internal audit of your efforts or getting external support to review your progress.
• Looking to partners like employment agencies or organizations that support one or more of the designated groups with access to employment.
• Asking for feedback from employees to better understand correlations between their experience and their diversity identity or identities.

Leveraging the Opportunity

Meeting the federal employment equity reporting requirements is essential for any federally regulated employer in Canada. By developing a clear policy for diversity data collection, ensuring privacy, and utilizing the right tools, you can streamline the process of collecting and reporting on diversity data.

The end goal should not just be compliance, but the creation of a more inclusive, equitable workplace that reflects the diversity of the customer, clients and communities you serve. Regularly assessing your progress, acting on disparities, and adjusting your strategies as needed will ensure that you are able to leverage the reporting requirement to foster a truly diverse and inclusive workforce.