Addressing Biases in the Performance Review Process: Best Practices for Promoting DIEB Efforts

The past several years have demonstrated how diversity, equity, inclusion, and belonging initiatives have increased importance in the workplace. While these initiatives can lead to improved business outcomes, they can also present challenges for organizations.

In this article, I will discuss the importance of prioritizing diversity and inclusion in the performance review process, common challenges that organizations may face when implementing these initiatives, and strategies for measuring their impact.

Bias in the Performance Review Process

It is important to address the issue of bias in the performance review process, particularly as it disproportionately affects women who choose to take advantage of the flexibility offered by hybrid and remote work. Three types of bias are especially prevalent: (1) experience bias, (2) proximity bias, and (3) in-group/out-group bias.

Experience bias occurs when reviewers overvalue tasks that are easy to define. This can lead to a neglect of the more nuanced and complex aspects of a person's job, and may disproportionately affect women who are more likely to take on such tasks. To combat this bias, it is important to focus on outcomes rather than tasks, and to recognize the value of diverse skills and experiences.

Proximity bias occurs when reviewers believe that people in their immediate orbit do the most important work. This can be particularly challenging in a hybrid or remote work environment, where physical proximity is not a factor. To combat this bias, it is important to recognize the value of different perspectives and contributions, and to actively seek out input from a diverse group of colleagues.

In-group/out-group bias occurs when reviewers give preferential treatment to people they feel belong to a group they identify with. This can lead to a lack of opportunities for women and other underrepresented groups, who may be excluded from informal networks or excluded from key projects. To combat this bias, it is important to create a culture of inclusivity and to actively seek out and mentor people from diverse backgrounds.

Recommendations for Overcoming these Biases

To combat experience bias, organizations can focus on outcomes rather than tasks, and recognize the value of diverse skills and experiences. For example, a company can ensure that performance evaluations are based on specific goals and objectives, rather than on arbitrary criteria. This can help to ensure that employees are evaluated fairly based on their contributions to the company, rather than on their job duties or titles. Additionally, organizations can create job descriptions that are broader and more flexible, allowing employees to take on projects and tasks that may not fall within their specific job title but align with their skills and interests.

To combat proximity bias, organizations can recognize the value of different perspectives and contributions, and actively seek out input from a diverse group of colleagues. For example, a company can create cross-functional teams that bring together employees from different departments and locations to work on specific projects. This can help to break down silos and encourage collaboration across the organization. Additionally, organizations can use technology to facilitate communication and collaboration, such as video conferencing software or collaboration tools like Slack or Microsoft Teams.

To combat in-group/out-group bias, organizations can create a culture of inclusivity and actively seek out and mentor people from diverse backgrounds. For example, a company can create employee resource groups (ERGs) that bring together employees of different races, genders, ages, and backgrounds to share experiences and support each other. ERGs can also provide opportunities for mentoring and professional development. Additionally, organizations can ensure that hiring and promotion processes are fair and equitable, and that diversity and inclusion are prioritized at all levels of the organization.

Additional Recommendations from a Recent Study

A study of a large multinational consulting group offers several suggestions for how to combat these biases.

One key recommendation is to use objective and quantifiable criteria to evaluate performance, rather than relying on subjective assessments. This can help to mitigate the influence of biases and ensure that evaluations are fair and equitable.

Another recommendation is to provide ongoing feedback and support, rather than relying on a single annual review process. This can help to address issues in real time and allow for course corrections as needed. It can also help to build trust and communication between managers and employees, which can be particularly important in a hybrid or remote work environment.

Finally, it is important to promote diversity and inclusion at all levels of the organization. This includes creating a culture that values different perspectives and experiences, providing opportunities for professional development and advancement, and actively seeking out and mentoring people from diverse backgrounds. By creating a culture of inclusivity and addressing biases head-on, organizations can create a more equitable and effective performance-review process.

Bias in the performance-review process is a complex issue that can disproportionately affect women and other underrepresented groups. By recognizing the types of bias that are commonly present, and by implementing strategies to combat them, organizations can create a more equitable and effective evaluation process. As an HR and leadership consultant, it is important to stay informed and to offer guidance to help organizations address these issues and create a more inclusive and effective workplace.

Ensuring that Diversity and Inclusion are Prioritized at all Levels of the Organization

Here are some ways that organizations can ensure that diversity and inclusion are prioritized at all levels of the organization:

1. Establish a diversity and inclusion task force: Organizations can create a task force made up of employees from different departments and levels of seniority to develop and implement strategies for promoting diversity and inclusion. This task force can be responsible for identifying gaps and opportunities, creating training programs, and developing metrics to measure progress.
Provide diversity and inclusion training: All employees, from entry-level to senior executives, should receive training on diversity and inclusion. This training should cover topics such as bias, cultural competence, and inclusive leadership. It can also include workshops and other interactive activities to help employees understand the impact of their actions and words on others.
Implement inclusive hiring practices: Organizations can implement policies and practices that help to ensure that hiring is fair and inclusive. This can include removing biased language from job descriptions, using diverse interview panels, and setting diversity targets for recruitment.
Foster an inclusive culture: Leaders can create a culture of inclusivity by modeling inclusive behaviors, such as active listening, open communication, and respect for diversity. They can also encourage employees to share their perspectives and ideas, and recognize and celebrate the diversity of their teams.
Measure and track progress: Organizations should establish metrics to measure progress and track the impact of their diversity and inclusion initiatives. This can include tracking the diversity of the workforce and leadership, monitoring employee engagement and retention rates, and measuring the impact of training and development programs.

By prioritizing diversity and inclusion at all levels of the organization, organizations can create a culture that values and respects the contributions of all employees. This can lead to improved innovation, productivity, and employee satisfaction, as well as a better bottom line. As an HR and leadership consultant, I can work with organizations to help them develop and implement strategies that promote diversity and inclusion.

Common Challenges Companies Face When Implementing Diversity and Inclusion Initiatives

Implementing diversity and inclusion initiatives can be challenging for companies. Here are some common challenges that organizations may face:

1. Resistance to change: Some employees may be resistant to change and may not see the value of diversity and inclusion initiatives. This can lead to a lack of buy-in and support, which can hinder the success of these initiatives.
Lack of accountability: Without clear accountability, diversity and inclusion initiatives may not be prioritized or properly implemented. It is important for organizations to establish clear goals and metrics for success and to hold leaders and employees accountable for progress.
Limited resources: Implementing diversity and inclusion initiatives can require significant resources, including time, money, and personnel. Organizations may struggle to allocate resources to these initiatives if they are already stretched thin.
Lack of diversity in leadership: If the leadership of an organization does not reflect the diversity of its workforce, it can be difficult to implement successful diversity and inclusion initiatives. It is important for organizations to prioritize diversity and inclusion at all levels of the organization, including in leadership positions.

Despite these challenges, implementing diversity and inclusion initiatives is critical for the success of any organization. By addressing these challenges head-on and implementing strategies to promote diversity and inclusion, organizations can build a more engaged, innovative, and successful workforce. As a leadership and HR consultant, I can work with organizations to help them overcome these challenges and develop and implement effective diversity and inclusion initiatives.

How Companies Can Measure the Impact Implementing Diversity and Inclusion Initiatives

Here are some ways that companies can measure the impact of their diversity and inclusion initiatives:

1. Employee engagement surveys: Employee engagement surveys can provide valuable insights into the impact of diversity and inclusion initiatives on employees. These surveys can measure employees' perceptions of the company's culture, their level of engagement, and their willingness to recommend the company to others.
Turnover rates: Turnover rates can be a key indicator of the success of diversity and inclusion initiatives. Companies that prioritize diversity and inclusion are more likely to retain their employees, particularly those from underrepresented groups.
Promotion rates: Promotion rates can also be a key indicator of the success of diversity and inclusion initiatives. Companies that prioritize diversity and inclusion are more likely to promote employees from underrepresented groups into leadership positions.
Business outcomes: The impact of diversity and inclusion initiatives can also be measured by their impact on business outcomes. For example, companies that prioritize diversity and inclusion may see improvements in innovation, productivity, and financial performance.
Diversity metrics: Finally, companies can measure the impact of diversity and inclusion initiatives by tracking diversity metrics, such as the representation of underrepresented groups in the workforce and leadership. These metrics can provide insights into the success of diversity and inclusion initiatives and identify areas for improvement.

By measuring the impact of diversity and inclusion initiatives, companies can identify areas for improvement and ensure that their initiatives are aligned with their business goals. As a leadership and HR consultant, I can work with companies to help them develop and implement effective diversity and inclusion metrics and strategies for measuring impact.

Examples of Companies that have Successfully Implemented Diversity and Inclusion Initiatives

Here are some examples of companies that have successfully implemented diversity and inclusion initiatives.

One example is Salesforce, which has made diversity and inclusion a top priority. The company has established a number of initiatives, including an internal program called Trailhead that provides training on diversity and inclusion. Salesforce also has a diversity and inclusion task force, which is responsible for developing and implementing strategies to promote diversity and inclusion across the organization. Additionally, the company has set goals for increasing the representation of underrepresented groups in its workforce and leadership.

Another example is Accenture, which has developed a comprehensive diversity and inclusion strategy. The company has established a number of initiatives, including a mentorship program for women and minorities, and a sponsorship program that encourages senior leaders to sponsor high-potential employees from underrepresented groups. Accenture also has a diversity and inclusion council, which is responsible for overseeing the company's diversity and inclusion initiatives and ensuring that they are aligned with business strategy.

Finally, Microsoft has made significant strides in promoting diversity and inclusion across the organization. The company has established a number of initiatives, including unconscious bias training and a program that provides mentoring and networking opportunities for women. Microsoft has also set diversity and inclusion goals for its workforce and leadership, and tracks progress through regular reporting.

These companies have demonstrated that prioritizing diversity and inclusion can lead to improved business outcomes, including increased innovation, improved employee engagement, and better financial performance. As an HR and leadership consultant, I can work with organizations to help them develop and implement strategies that promote diversity and inclusion and align with their business goals.

Conclusion

Diversity, Equity, inclusion, and belonging initiatives are critical for the success of any organization. By prioritizing diversity and inclusion, companies can build a more engaged, innovative, and successful workforce. While implementing these initiatives can present challenges, such as resistance to change and unconscious bias, organizations can overcome these challenges by establishing clear goals and metrics for success, providing training and education on bias, and prioritizing diversity and inclusion at all levels of the organization. By measuring the impact of diversity and inclusion initiatives, organizations can identify areas for improvement and ensure that their initiatives are aligned with their business goals. As an HR and leadership consultant, I can work with organizations to develop and implement effective diversity and inclusion strategies and metrics for measuring impact.

Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.