Leveraging HR analytics to improve diversity metrics

Building a diverse and inclusive workplace is no longer a peripheral initiative. For many organisations, it has become a core business priority linked to performance, employee satisfaction and long-term sustainability. Yet good intentions alone are rarely enough. Without the ability to analyse data consistently and at scale, diversity and inclusion efforts often lack direction and measurable impact.

HR analytics provides organisations with the tools to move beyond assumptions and towards data driven decision making. By gaining a comprehensive understanding of diversity metrics across the hiring process and the wider employee lifecycle, HR teams and hiring managers can identify gaps, uncover patterns and make more informed decisions that support diverse teams and a stronger workplace culture.

Why diversity analytics matters

Diversity analytics allows organisations to build a full picture of their workforce across different demographic groups. By analysing diversity data alongside historical data, organisations can assess representation, identify bottlenecks and understand where inclusion efforts may be falling short.

This level of insight supports both compliance and performance. With regulatory expectations increasing, including requirements linked to pay transparency, organisations need accurate and consistent data collection to evidence progress. At the same time, analytics helps HR professionals understand employee sentiment, employee engagement and the wider workplace experience, all of which influence retention, productivity and employee satisfaction.

Organisations with diverse leadership positions are consistently shown to outperform peers. Analytics can help connect diversity efforts to business outcomes by highlighting where representation, advancement or engagement differs across demographic groups.

The EU Pay Transparency Directive's guidelines for diversity and inclusion

Organisations operating in the European Union will soon need to adapt their systems and processes to align with the EU Pay Transparency Directive, which reinforces equal pay and transparency in pay structures. Employers will be required to provide clear information on average pay levels broken down by sex and the criteria used to determine pay and progression.

Preparing now by reviewing pay structures, refining job evaluation systems and strengthening people data practices will support compliance in light of upcoming regulations.

Using HR analytics to improve the recruitment process

The recruitment process is often where unconscious bias has the greatest impact. HR analytics can help hiring managers and HR teams identify areas where bias may influence hiring decisions, from job descriptions and job boards through to applicant tracking systems and shortlisting criteria.

By tracking hiring metrics across candidates and demographic groups, organisations can gain insights into where diverse talent may be dropping out of the process. This enables informed decisions about how recruitment strategies are designed, how resources are allocated and how hiring decisions are made.

Data driven recruitment is not about removing human judgement. It is about equipping managers with real time data and insights so they can focus on attracting top talent and creating an inclusive environment where candidates have equal opportunity.

Beyond hiring: retention, progression and engagement

Hiring diverse talent is only one part of the equation. Retaining employees and supporting progression into leadership positions is equally critical. HR analytics enables organisations to measure employee experience, track employee engagement and assess progression patterns across demographic groups.

By analysing data related to turnover, promotion rates, ERG participation and employee sentiment, HR teams can identify pain points and areas for improvement. This insight supports targeted strategies that promote diversity, improve productivity and strengthen company culture over time.

Importantly, analytics helps organisations move from reactive reporting to continuous tracking. Real time data allows HR teams to monitor progress, assess the impact of initiatives and adjust inclusion efforts as needed.

Turning data into action

The value of HR analytics lies not in dashboards alone, but in how insights are applied. Data driven decisions require trust in the quality of data and clarity around which metrics matter most. Organisations must also approach sensitive questions thoughtfully, ensuring that data collection respects employee privacy while still enabling meaningful analysis.

When used effectively, analytics can help organisations identify patterns, measure progress and focus efforts where they will have the greatest impact. This creates a more inclusive workplace experience for employees and supports future outcomes that benefit both people and the business.

Building a more inclusive workplace through insight

HR analytics gives organisations the ability to assess diversity and inclusion across multiple aspects of the employee lifecycle. By analysing data, identifying gaps and supporting more informed decisions, organisations can build high performing, diverse teams that strengthen workplace culture and improve employee engagement.

As expectations around transparency and inclusion continue to rise, analytics can help organisations move from intention to action. With the right focus, HR analytics becomes not just a reporting tool, but a foundation for lasting improvement.

Zalaris helps organisations use HR analytics to understand workforce diversity, identify gaps and support fair, evidence-based decisions across hiring, pay and progression. The Zalaris PeopleHub People Analytics solution unifies HR and payroll data, we enable reliable diversity metrics that support inclusion efforts and help organisations prepare for requirements such as the EU Pay Transparency Directive.