By: Marcelle Clavette and Tyler Wurtz
Understanding the availability of different demographic groups within the workforce and how that representation compares to a labor force benchmark is essential for organizations aiming to foster diversity and inclusivity. Metric-driven benchmarks can help identify representation gaps, inform recruitment strategies, and support compliance with equal employment opportunity regulations.
Calculating workforce availability is a multifaceted process that analyzes workforce demographics by comparing them against relevant labor pools. This analytical methodology, typically referred to as a utilization analysis, identifies underrepresented groups within an organization’s current workforce. The two most frequently used benchmark sources for such an analysis include a composite of internal employment availability and labor force availability.
- Internal availability represents the proportion of current employees qualified for promotion or lateral movement within the organization. This method includes (1) conducting skills and qualifications assessments of the existing workforce and (2) reviewing employee career development plans, succession planning, and personnel transaction data (e.g., promotion).
- Labor force availability represents the proportion of individuals who possess the necessary qualifications for a specific job within the relevant labor force. This method involves (1) identifying the organization’s geographical recruitment area and (2) determining the requisite qualifications for each position (e.g., skills, education). The most frequently used source, recommended and sponsored by government agencies, is the American Community Survey produced by U.S. Census Bureau.
Alternative labor force availability is an approach that may replace traditionally defaulted labor market availability, such as U.S. Census Bureau data, with other availability sources to account for factors such as industry-specific trends, educational requirements, and peer comparators. Sources include recent surveys of degrees and certifications obtained by degree level, program of study, geographical locations, or local Universities/Colleges. Other sources include Government agency reports on private sector workforce demographics, collected research of company reports highlighting workforce representation, or labor market availability within a specific industry.
Organizations should understand the advantages and limitations of different labor force availability benchmarks when interpreting their workforce representation. Importantly, alternative availability sources enable organizations to monitor labor market demographic patterns more closely aligned with their industry requirements, which can provide more accuracy when setting organizational goals and confidence with workforce requisites. For assistance with alternative availability sources and analyzing workforce representation, please contact DCI.
