At SalesVista, we believe in true equality, transparency, and integrity. That’s why we built a sales compensation management solution (SCMS) that promotes diversity, equity, and inclusion each step of the way.
In today’s article, we’ll reveal how that’s made possible, discuss the limitations of traditional sales compensation methods, and help guide you to a fairer — and more profitable — tomorrow.
But first, let’s take a closer look at why every department should be a champion for DEI efforts.
The Importance of DEI in the Workplace
Promoting DEI isn’t just a moral imperative; it is essential to driving business growth — and the numbers support it.
In fact, the University of Illinois found that companies reporting the highest levels of racial diversity brought in nearly 15x more sales revenue than those with the lowest levels of racial diversity. Similarly, Harvard University found that diverse & inclusive companies are 70% more likely to capture new markets than those that lack diversity.
This is, in part, because diverse teams bring different backgrounds, experiences, and perspectives. That helps companies foster greater creativity, generate new ideas, and outperform competitors. Diverse teams are nearly 2x more likely to be innovation leaders — and, according to Deloitte, they’re also 80% more likely to outperform their peers in assessments.
Of course, promoting DEI can also help companies attract and retain top talent. Today's workforce is increasingly diverse, and job seekers are looking for companies that value diversity and provide an inclusive environment. As a result, Glassdoor found that nearly 80% of job seekers evaluate DEI efforts before applying for or accepting a job offer.
There are many benefits after an employee accepts the offer as well, like improved engagement and retention. When employees feel included, valued, and recognized, they are far less likely to leave their employer — and they’re up to 50% more engaged than peers at less-inclusive organizations.
Diverse companies are better equipped to understand and cater to a diverse customer base. By embracing DEI, companies can tap into new markets, expand their customer base, and create a competitive advantage.
How SCMS Can Support DEI Initiatives
Traditional compensation management systems often lack the necessary transparency and objectivity to ensure fairness in compensation. Without a data-driven approach, companies may be unable to identify disparities and may continue to perpetuate unconscious biases.
This is where SCMS can provide a solution. Let’s look at just a few of the many benefits it can help provide.
Addressing Pay Equity Disparities & Visibility
SCMS can utilize objective data to pinpoint compensation imbalances and rectify them, ensuring that employees receive fair and equitable pay regardless of race, gender, ethnicity, or other personal attributes.
Encouraging Equitable Recruitment and Career Advancement
SCMS can help eliminate systemic inequalities by analyzing recruitment and promotion practices, ensuring a diverse and inclusive workforce throughout all levels of the organization.
Data-Driven DEI Progress Tracking
SCMS allows companies to set, monitor, and evaluate DEI goals through data analysis, ensuring continuous improvement and effective implementation of diversity, equity, and inclusion initiatives.
Developing Custom-Tailored Training Programs
SCMS can assist in creating customized training initiatives that educate employees on unconscious biases and promote inclusive behavior, thereby fostering a more equitable work environment.
Eliminating Unconscious Bias
SCMS can establish protective measures to identify and counteract unconscious biases in decision-making processes, such as anonymizing applicant information during recruitment and utilizing diverse interview panels.
Enhancing Employee Engagement
By leveraging SCMS, organizations can facilitate open communication channels and collect feedback from employees to better understand their perspectives on DEI efforts and make necessary improvements.
Promoting Diverse Leadership
SCMS can help identify potential leaders from underrepresented groups and support their professional development through mentorship, training, and growth opportunities, fostering a more inclusive leadership structure.
Assessing and Updating DEI Policies
SCMS can be used to regularly evaluate the effectiveness of diversity, equity, and inclusion policies within the organization, allowing for data-driven adjustments and continuous improvement.
Challenges and Considerations in Implementing an SCMS for DEI
Implementing an SCMS for DEI initiatives requires careful planning, consideration, and communication. Companies must ensure that the system is designed to promote transparency, fairness, and equity. Additionally, they must ensure that the system is accessible to all employees.
To ensure a successful implementation of SCMS for DEI initiatives, companies should consider the following key factors:
- Establishing clear goals and objectives: Companies should define clear DEI goals and objectives and ensure they are aligned with their overall business objectives. This will help to focus efforts and ensure that the implementation is effective.
- Engaging stakeholders: Successful implementation of SCMS requires buy-in and support from all stakeholders, including sales leaders, employees, and finance teams. Companies should involve all relevant stakeholders in the implementation process and ensure they understand the benefits and objectives of the initiative.
- Ensuring data accuracy and integrity: Data is critical to the success of SCMS for DEI. Companies must ensure that the data used for compensation decisions is accurate, reliable, and unbiased. This requires regular data audits and reviews to identify and address any discrepancies or inconsistencies.
- Regular communication and training: Companies should provide regular communication and training to all stakeholders to ensure they understand the purpose, benefits, and implementation process of SCMS for DEI. This will help to build support and ensure the successful adoption of the initiative.
- Ongoing monitoring and evaluation: To ensure the ongoing success of SCMS for DEI, companies must regularly monitor and evaluate the effectiveness of the initiative. This will help to identify areas for improvement and ensure that the initiative is achieving its goals and objectives.
Implementing an SCMS that promotes DEI can have a significant impact on your workplace and your bottom line. However, it’s important to note that not all SCMS were built from the ground up with visibility, transparency, and DEI in mind!
That’s what helps set SalesVista apart from the other solutions in the market. If you’d like to learn more about how SalesVista can help you on your path to a more equitable — and profitable — tomorrow, you can sign up for our no-obligation demo today!