Bill Overview
Title: Diversity and Inclusion Data Accountability and Transparency Act of 2021
Description: This bill requires certain regulated entities to report to the Offices of Women and Minority Inclusion within specified financial agencies. Specifically, entities that are regulated by such agencies and that have at least 100 employees must provide information to the appropriate Office of Women and Minority Inclusion to allow that office to carry out duties relating to diversity policies and practices.
Sponsors: Rep. Beatty, Joyce [D-OH-3]
Target Audience
Population: Employees of Medium to Large-Sized Financial Entities Worldwide
Estimated Size: 3000000
- The bill targets entities regulated by specific financial agencies and imposes reporting requirements on them.
- Only those entities with at least 100 employees are required to report diversity data, which affects medium to large-sized organizations.
- The policies aim to improve diversity and inclusion within entities, impacting employees' experiences and workplace culture.
- By requiring data reporting, the bill indirectly influences the workforce of these entities, potentially affecting hiring and promoting practices, and contributing to wider societal diversity impacts.
Reasoning
- The majority of people impacted by this policy will be employees of medium to large-sized financial entities in the US, as these organizations will be required to report diversity data.
- The wellbeing impact of this policy might not be immediate, as impact on workplace culture can take time to manifest.
- Many employees might not directly notice changes, as the policy addresses the internal processes of organizations related to diversity and inclusion.
- Over time, enhanced diversity and inclusion practices could lead to increased job satisfaction and potentially higher self-reported wellbeing scores.
- The financial cost of the policy implementation of $2,000,000 USD in year 1 and $18,225,000 USD over 10 years suggests a focus on establishing robust reporting systems and ensuring compliance.
- The size and complexity of the financial sector mean that while many employees are eventually affected, the direct, immediate impact will vary across organizations depending on their capacity and willingness to engage with diversity initiatives proactively.
Simulated Interviews
Financial Analyst (New York)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- I think having more diversity is always good, but I am unsure if just reporting data will change much.
- If the policy encourages my company to adopt better diversity practices, it could improve my work environment substantially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 9 | 7 |
Manager at mid-sized fintech firm (California)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- I'm skeptical that mandatory reporting will change hiring practices fundamentally.
- In a merit-based system, diversity should happen naturally if barriers are removed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Software Developer (Illinois)
Age: 29 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- It's encouraging to see more focus on diversity; it could make the workplace more inclusive.
- The policy might push companies to realize biases in their recruitment processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Human Resources Director (Texas)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- Reporting requirements are a critical step to holding companies accountable.
- I believe this could lead to meaningful changes if interpreted correctly by companies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Compliance Officer (Florida)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- This adds to our workload with uncertain benefit.
- I hope the policy ultimately benefits the organization's culture.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 8 | 7 |
Entry-level Analyst (Colorado)
Age: 27 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Diversity focus in onboarding made me feel valued.
- I believe continuous emphasis can enhance my career growth and satisfaction.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 9 |
| Year 20 | 10 | 9 |
Senior Executive (Georgia)
Age: 61 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- Public pressure will drive real change, not policy.
- Reporting is good for transparency, but I doubt it alone will achieve much.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Diversity Consultant (Massachusetts)
Age: 49 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 11/20
Statement of Opinion:
- The policy can be groundbreaking if companies take it seriously.
- Real change requires more than just mandating reports; it needs a shift in core values.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Bank Teller (Oregon)
Age: 35 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 14/20
Statement of Opinion:
- I don't think this policy will affect my daily work life directly.
- If it leads to more opportunities, that would be welcomed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
IT Specialist (Washington)
Age: 41 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 8.0 years
Commonness: 6/20
Statement of Opinion:
- Diversity and inclusion are critical in all company sectors, including IT.
- The policy might spark necessary changes in tech.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 9 | 7 |
Cost Estimates
Year 1: $2000000 (Low: $1500000, High: $2500000)
Year 2: $1900000 (Low: $1400000, High: $2400000)
Year 3: $1850000 (Low: $1350000, High: $2350000)
Year 5: $1800000 (Low: $1300000, High: $2300000)
Year 10: $1750000 (Low: $1250000, High: $2250000)
Year 100: $1700000 (Low: $1200000, High: $2200000)
Key Considerations
- The cost of implementing reporting mechanisms for diversity data at entities with 100 or more employees.
- The potential long-term benefits of increased diversity and inclusion in financial entities, despite upfront implementation costs.
- Balancing compliance costs with anticipated improvements in workplace culture and efficiency.
- The role of financial agencies in ensuring compliance and the scope of their increased responsibilities.