Index Registration Open Through March 8

In January 2021, the Center for Economic Inclusion (Center) launched the first-ever Racial Equity Dividends Index (Index), a comprehensive analytical tool to help companies assess how their current policies and practices position them to win on racial equity and advance business goals, while also identifying opportunities for improvement. Since then, more than 100 public and private organizations have used this assessment to navigate their efforts to close racial wealth gaps.

We sat down with Nathan Arnosti (Director of Analytics and Index project lead) to talk about the Index, now open for registration through March 8.

What is the Index?

(Nathan) The Racial Equity Dividends Index (Index) is an analytical tool designed to support private-sector businesses in their journeys to build racially equitable and inclusive workplaces. The Index offers companies an intuitive, comprehensive, and measurable roadmap for progress on racial equity.

How can my business register for the Index?

(Nathan) First, eligible companies – currently, all private-sector organizations with offices in Minnesota – register online for the Index at the Center’s website. Then, once registration closes on February 24, registered businesses will receive the 2023 Private Sector Index survey and have approximately four weeks to complete it.

What information is gathered through the Index survey?

(Nathan) Through a series of multiple-choice questions, the survey asks companies to report their progress against 43 racial equity standards spanning seven dimensions of company operations, such as hiring, procurement, leadership, and products and services. It also provides companies the opportunity to gather and share data on workforce demographics and supplier spending.

What happens next?

(Nathan) The survey responses inform two sets of analytical Index products that are delivered to participating companies. First, participants receive a customized score report that provides their full answers alongside peer comparisons and recommendations developed by the Center for Economic Inclusion, so that companies can learn what their strengths are and where opportunities lie. Next, companies are included in the Racial Equity Dividends Index Report that aggregates responses across companies, identifying trends, elevating promising practices and case studies, and celebrating leading employers in each category. The 2022 Index report is available on our website.

Why is it important for companies to participate?

(Nathan) Spurred by the murder of George Floyd by Minneapolis police officers and the largest protests in American history in 2020, businesses pledged to reshape existing practices and committed record-setting investments in historically disadvantaged Black, Indigenous, Hispanic, and Asian communities.

At the same time, we know that businesses often lack a roadmap for what racial equity can look like or clear standards against which to measure their actions. They also have very limited information about how their actions compare to peers.

The Index is a tool designed to meet these needs – to help companies make tangible, durable progress towards building racially equitable and inclusive workplaces that drive innovation, productivity, retention, and belonging.

Who is the target audience?

(Nathan) We’ve designed the Index for all private-sector companies in all industries. In our experience, companies with at least 50 employees find the Index most valuable.

In 2022, companies of all sizes participated in the Index -- executive recruiting firms with fewer than 100 employees, to manufacturing companies with several hundred or thousand employees, to Fortune 500 companies, like Best Buy or 3M.

This Index offers companies the opportunity to learn from one another, regardless of sector or size, and I see that as a key part of its value. Participating companies were particularly compelled by the opportunity to assess their results alongside similar employers in a customized sector report.

What were some of the biggest learnings from the Racial Equity Dividends Index?

(Nathan) We learned that there is a tremendous appetite among private-sector leaders for analytical tools that offer a clearly defined, measurable roadmap to build racially equitable workplaces. In its first year, 40 companies that collectively employ more than 200,000 Minnesotans participated in the Index, even though it was a novel and unprecedented initiative. We’re excited to connect with even more businesses to encourage them to participate and take advantage of the Index this year.

QUESTIONS

For more information about the Racial Equity Dividends Index, please see the registration page, FAQ page, download the Index brochure, or email us at index@centerforeconomicinclusion.