D&I tech solutions are a $100M global industry
- The market for diversity and inclusion (D&I) tech solutions is rapidly expanding, according to a report by Mercer and RedThread Research, a human capital research and advisory firm. The two companies gathered responses from 105 D&I technology vendors for an analysis of a market with an estimated global market size of $100 million.
- Most (60%) D&I tech vendors are small companies with fewer than 50 employees whose primary customers are in the technology, finance and banking, and professional services industries, according to the report. D&I technology is focused mostly on talent acquisition (43%), followed by analytics (26%).
- "We know that companies are renewing their focus on D&I," RedThread Research co-founder and principal analyst Stacia Garr said in a statement. "As a result, we've seen a flood of new entrants into this market sector. There is very little insight, however, into who they are or what they are offering."
HR has experimented with technology in the D&I space in various ways, with one of the most notable being software to aid in detecting and lowering the incidences of hiring bias. There is also interest in predictive analysis for improving hiring decisions. With D&I becoming a top business priority and research showing that companies perform better with a diverse workforce, it's perhaps not surprising that the D&I tech market is expanding.
"Diversity and inclusion has long been a priority for many of our clients and other organizations," Carole Jackson, co-author of the report and senior principal at Mercer's Diversity & Inclusion consulting practice, said in a statement. "But it wasn't always a top 'business priority' for CEOs. It was often considered 'the right thing to do' and with that came nominal budgets and superficial support from leaders."
Besides talent acquisition and analytics, solutions within the D&I tech market also address development, advancement, engagement and retention. But inclusion is equally critical; hiring alone isn't enough to create and sustain a diverse workplace, experts previously told HR Dive. To retain a diverse staff, employers must create a culture in which all employees feel welcomed, respected and valued.