Best Companies for Diversity and Inclusion

The saying “What doesn’t get measured doesn’t matter” is well-known, but a more powerful truth is that “What isn’t measured can’t be improved.” For organizations aiming to evolve and learn, decisions should be grounded in evidence. This principle underscores why a dedicated, data-focused approach to addressing inequality can bring dual benefits. By revealing the impacts of inequality, organizations can both make ethical choices and channel resources toward high-impact policies, practices, and structures. Today, we have both advanced knowledge of human behavior and sophisticated tools to measure these outcomes, positioning people analytics as a transformative tool in HR. People analytics also offers the chance to design targeted interventions to reduce disparities and introduce inclusive practices to ensure that all employees feel valued and empowered to contribute, resulting in higher employee satisfaction and retention rates. 

What Sets the Best Companies for Diversity and Inclusion Apart

People’s Data Analytics

Many large companies apply data analytics to predict trends, manage risks, enhance customer experiences, and optimize operations. Yet, few have extended these analytics to Human Resources, with Google leading the way. Google’s People Operations team, identified a “parent gap”—when they noticed women were twice as likely to quit as the average employee, largely due to young mothers leaving. In response they introduced enhanced maternity and paternity leave. New mothers were offered five months, while new parents received seven weeks. This change had an immediate effect: new mothers’ retention matched that of other employees.

Turnover is a costly challenge for companies, as hiring, training, and retention require significant resources. By leveraging data, Google developed five key diagnostic questions to predict employees’ likelihood of quitting. If positive responses dip below 70%, they know intervention is needed, targeting problems based on aggregated data without focusing on individuals.

Data analytics holds great promise for addressing gender disparities. In the late 1990s, sociologist Janice Fanning Madden discovered that female stockbrokers earned only 60% of their male counterparts’ earnings at two major firms. Initially, it seemed women earned less due to lower sales. Yet, after analyzing detailed company records, Madden revealed that female brokers were systematically assigned poorer accounts and fewer opportunities. When women were given high-performing accounts, the gender performance gap disappeared.

A data-driven approach empowers organizations to uncover hidden biases and develop solutions that foster both diversity and equity. By systematically measuring outcomes and applying people analytics, businesses can design targeted strategies that support all employees and drive sustainable, inclusive growth.

Strong Leadership Commitment

While creating an inclusive work environment is a shared responsibility, leaders must set an example by aligning actions with words to promote diversity at all levels. This requires cultivating inclusive leadership, equal opportunities, and openness, which involves stepping outside comfort zones and challenging biases.

Ally Financial, a Top 25 U.S. financial holding company, demonstrates its commitment to diversity through their supplier diversity program. Designed to build partnerships that reflect the communities in which it operates, the program has proven successful in connecting diverse suppliers with decision-makers. Over the past three years, Ally has hosted a symposium to promote the value of varied perspectives and experiences, resulting in $176 million spent with minority-owned businesses in the past year alone. This initiative not only creates opportunities but also fosters healthy competition, driving progress toward greater inclusivity.

Similarly,  Marriott, a global leader in hospitality with over 120,000 employees, actively promotes diversity within its workforce and supply chain. Approximately 10% of its supply chain is made up of women-owned businesses, and more than half of its global workforce is female. In addition, Marriott’s leadership in the U.S. reflects its commitment to diversity, with over half of its U.S. leadership positions held by individuals from diverse backgrounds. 

Comprehensive DEIA Strategies

Diversity should not be reduced to simply including one person of color or one woman, or fulfilling a basic requirement. A genuine commitment to diversity involves a fundamental shift in how we perceive the elements necessary for a company's success. Achieving true success means doing so with a team that reflects the diversity of the entire community. 

Progressive, a leading auto insurance company with more than 37 million customers, has made a concerted effort to build a workforce and leadership team that mirrors the diversity of its customer base, creating an environment where inclusivity thrives. Recognizing the diversity within the U.S. adult population, Progressive leverages this awareness to attract talent from a wide range of backgrounds and experiences. In its commitment to inclusivity, the company actively supports employees and customers with disabilities through initiatives like the Disabilities Awareness Network, an Employee Resource Group (ERG) that organizes an annual inclusive design conference. This conference focuses on improving accessibility across products and services, tackling issues related to physical, neurological, and psychological disabilities in areas such as workspaces, technology interfaces, and training modules.

Inclusive Recruitment Practices

A commitment to diversity in hiring practices begins with recognizing the existence of underrepresented groups and understanding that these groups represent a valuable source of talent, leadership, and innovation. Prioritizing recruitment and outreach to these groups must be embedded in the organization and supported at every level. Additionally, cultivating a workplace culture that is inclusive and supportive of all employees is essential.

Targeted advertising can help employers reach a broader, more diverse talent pool, increasing the chances of finding the right candidate. Beyond mainstream job boards like LinkedIn, specialized platforms can attract underrepresented groups. For instance, The Mom Project targets mothers, while job fairs at historically Black and Hispanic universities promote diversity.

Niche job boards to consider include:

- Hire Autism (autism spectrum)

- Honest Jobs (criminal records)

- Pink Jobs (LGBTQ+)

- TransWork (transgender/non-binary)

Utilizing these platforms might help employers build a more inclusive and diverse workforce.

Employee Resource Groups (ERGs)

Many leading companies support Employee Resource Groups, which are voluntary, employee-led networks that foster community, support, and professional development among diverse employees. Ally Financial exemplifies these principles by contributing significantly to employee engagement and a sense of belonging. Open to all employees, these groups offer feedback on healthcare benefits and other support needs, while also organizing social and cultural activities. Examples include a three-on-three basketball tournament co-hosted by the veterans ERG and the Black/African American ERG, as well as the annual participation of the Asian and Middle Eastern ERG in a dragon boat race that celebrates Asian culture, complete with teams, drums, and oars.

Transparency and Accountability

Transparency is key to building trust and credibility within an organization. The advanced companies openly share their diversity data, goals, and progress with employees and stakeholders. Sodexo exemplifies this commitment through its operations in 55 countries, employing over 400,000 people and serving more than 100 million customers daily. With a strong focus on gender equality for over 20 years, women now make up 60% of its board, 29% of its executive committee, and over 55% of its workforce. Additionally, Sodexo invests in inclusion training and various programs to support the diverse needs of its employees, reinforcing its dedication to fostering an inclusive and transparent workplace.

Conclusion

The best companies for diversity and inclusion stand out not just because of their diverse workforce, but because they actively cultivate an inclusive culture that values and respects all employees. While the core principles of DEI—such as people’s data analytics, strong leadership commitment, comprehensive strategies, inclusive recruitment, employee resource groups, transparency, and fostering a culture of belonging—are widely shared, the execution of these practices varies from one company to another. Each organization adapts its approach to reflect its unique culture, goals, and workforce needs. As the business landscape continues to evolve, companies that prioritize diversity and inclusion, tailored to their distinct environment, will be better positioned to innovate, attract top talent, and drive sustainable success.

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This article is inspired by the following resources:

Bohnet, I. (2016). What works: Gender equality by design. Harvard University Press.

Oracle. (2021, April 2). 7 effective ways to commit to diversity in the workplace. Oracle Blogs. 

Peachman, R. (2024, April 23). Meet America’s best employers for diversity 2024. Forbes. 

King, C. (2024, March 20). Top 10: Companies for diversity & inclusion. Sustainability Magazine. 

Mulcahy, S. 5 inclusive hiring practices for enhancing workforce diversity. Enboarder. 

BambooHR. 10 diversity recruiting strategies that support inclusive hiring. BambooHR.