← HR Metrics·Workforce Composition
Diversity Index
Simpson's diversity index measuring demographic representation
How it’s computed
1 - SUM(p_i^2)
What the evidence shows
Evidence (effect sizes, priors, validity) is syncing from Principia.
Run it on your data
This metric is computed in the People Analytics Toolbox on your own numbers. See pricing — posted, no quotes.
sources: toolbox:metrics-catalog
What the literature says
The measurement literature behind this signal — sourced, so you can defend it.
“The shift brought a key insight. “We realized that our service, with some modifications, could also be useful for a market segment older than 50 years, something that we hadn’t realized before because nobody on our team was in that segment,” Rennella says. Sales jumped 24.4…”
— Predictive HR Analyticsmatch 79%
“By monitoring a diversity index as a supplement to traditional diversity breakdowns, it is easier to track shifts in diversity representation across your company, and for hypothesis testing. The Simpson’s Diversity Index (SDI), is a better way to quantify diversity into a…”
— People Analytics Text Mining with Rmatch 79%
“In the United Kingdom, greater gender diversity on the senior-executive team corresponded to the highest performance uplift in our data set: for every 10 percent increase in gender diversity, EBIT rose by 3.5 percent. Given the higher returns that diversity can bring, it is…”
— Predictive HR Analyticsmatch 79%
Resources: Predictive HR Analytics · People Analytics Text Mining with R