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“2020 created a watershed moment for diversity, equity, inclusion, and belonging in the workplace...We anticipate this market will continue to grow rapidly,” said Stacia Garr, Co-founder & Principal Analyst of RedThread Research.
WOODSIDE, Calif. (PRWEB) January 19, 2021
A new report from RedThread Research, DEIB Tech A Market Maturing to Meet the Moment, provides insights and analysis into the expanding market for diversity, equity, inclusion, and belonging (DEIB) technology offerings. The report explores and maps major shifts happening in the DEIB technology landscape since the initial study on the topic in 2019. It also includes real-world examples from corporate leaders who are leveraging technology to identify opportunities, accelerate programs, and track progress toward diversity, equity, inclusion, and belonging. The report is accompanied by a robust, evergreen online tool, where users can learn about the individual vendors that comprise the DEIB tech market.
“2020 created a watershed moment for diversity, equity, inclusion, and belonging in the workplace,” said Stacia Garr, Co-founder & Principal Analyst of RedThread Research. “Since 2019, we’ve seen the DEIB technology market grow by 59% CAGR. Given the continued emphasis on DEIB from CEOs, business leaders, managers, employees, and customers -- and the potential for broader economic recovery throughout 2021 -- we anticipate this market will continue to grow rapidly.”
Major findings from the report demonstrate rapid market growth and important trends:
Three major shifts punctuate the current DEIB tech market
- In previous years, leaders were especially focused on gender; in 2020-21, the emphasis has evolved to include a focus on race and ethnicity.
- Social justice movements and conversations around discriminatory workplace practices and behaviors have led to greater attention to inclusion than ever before.
- The role of AI in mitigating bias to enhance DEIB has come front and center, and more approaches have been introduced to address this issue.
The DEIB tech market is hotter than ever
- The global market size is estimated to be $313 million and growing, up from $100 million in 2019.
- The number of HR tech vendors offering features or functionalities that cater to DEIB as part of their solutions has increased by 136% since 2019.
- The total number of DEIB tech vendors increased by 87%, with a total of 196 vendors in the market for 2021, compared with 105 in 2019.
People analytics for DEIB has arrived
- Lack of analytics and insights on DEIB is the primary challenge the majority of vendors help their customers solve, hence the growing number of solutions. providing DEIB analytics in 2021 compared to 2019 (28% vs 26%, respectively).
Small-sized organizations and knowledge industries remain the main customers of DEIB tech
- The largest customer category is small-sized organizations (those with less than 1,000 employees), who represent almost 30% of all DEIB vendor customers.
- However, these small organizations represent a smaller percentage of DEIB vendor customers in 2021 than in 2019, and there was an increase in the percentage of customer organizations in the 10,000-50,000 range.
- The industries most likely to be DEIB tech customers are concentrated in knowledge industries, namely technology, financial, banking, and insurance.
Postmates is one organization that has seen the significant impact of using DEIB technology. "Using a technology that accounts for how people from different backgrounds might use that technology differently has allowed us to tap into a much broader talent pipeline than we have before and improved our overall candidate experience,” said SteFan PremDas, Head of Talent Acquisition Operation, Postmates. “After implementing this tech, we saw a 52% increase in female applicants, a 33% increase in Hispanic/Latino applicants, and a more than 12% growth in Black / African American applicants between Q2 and Q3 2020."
To learn more about this research report and the other data and insights provided to RedThread Research members, visit https://redthreadresearch.com/membership/.
About RedThread Research
At RedThread Research, we get it.
Sure, we’re experts in performance, people analytics, learning, and D&I – and we’re well versed in the technologies that support them. But we’re also truth-seekers and storytellers in an industry often short on substance, and too full of #!%. Our mission (indeed, our very reason for existing) is to cut through the noise and amplify what’s good. We look for the connections (or red threads) between people, data, and ideas – even among seemingly unrelated concepts. The result is high-quality, unbiased, transformative foresight that helps you build a stronger business.
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