The global market for diversity and inclusion technology totals approximately $100 million, and will continue growing, according to a Mercer and RedThread Research report released on Tuesday.
The report surveyed 105 diversity and inclusion tech vendors to determine how this technology is being used in the workplace. These solutions are mainly used for talent acquisition purposes (43%), according to the report, followed by analytics (26%), development and advancement (19%), and engagement and retention (12%).
SEE: Hiring kit: Chief diversity officer (Tech Pro Research)
The majority (60%) of organizations in this space that were surveyed were small companies, with less than 50 employees, and with a consumer base primarily in finance/banking, technology, and professional services, according to the report.
"We know that companies are renewing their focus on diversity and inclusion," Stacia Garr, co-founder and principal analyst of RedThread Research, and co-author of the report, said in a press release. "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. We wanted to understand who the players are, exactly what problems they are trying to solve, and how successful they have been, both financially and in the eyes of their customers."
The tech industry, in particular, has long needed to prioritize diversity and inclusion within the workplace—with gender and race bias permeating throughout the industry. Not only should diversity and inclusion be encouraged in the workplace to begin with, but they also bring significant positive impacts to the enterprise.
Diversity and inclusion not only help businesses succeed in digital transformation efforts, but they are necessary for digital transformation success. By including a diverse set of people and backgrounds, businesses only widen the talent pool and knowledge base of their employees, who aid the execution and ideation of digital transformation efforts.
Check out this TechRepublic article to learn how companies successfully promote diversity and inclusion.
The big takeaways for tech leaders:
- The global market for diversity and inclusion tech is worth approximately $100 million, and is predicted to only grow. — Mercer and RedThread, 2019
- The tech solutions can be used for talent acquisition, analytics, development and advancement, and engagement and retention. — Mercer and RedThread, 2019
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Macy Bayern has nothing to disclose. She does not hold investments in the technology companies she covers.
Macy Bayern is an Associate Staff Writer for TechRepublic. A recent graduate from the University of Texas at Austin's Liberal Arts Honors Program, Macy covers tech news and trends.