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Diversity Recruiting Tools – Buying Guide


Harnessing the transformative power of diversity in the workplace isn’t just a goal; it’s a necessity for companies looking to thrive in a global market. Diversity in hiring enriches your team’s culture, fosters innovation, reflects a varied customer base, and enhances creative problem-solving through a blend of different perspectives.

But that’s not all, a diverse workforce can have a direct impact on your bottom line. According to McKinsey research, companies in the top 25% for ethnic and cultural diversity were 36% more profitable.

However, achieving a genuinely inclusive hiring process presents a unique set of challenges for organizations. This is where cutting-edge diversity sourcing tools can be a game changer. Designed to redefine inclusive hiring by making the recruitment process more efficient and effective, these tools are crafted to assist recruiters with not only identifying – but also engaging a broader and more diverse talent pool.

But how do you choose the right diversity recruiting tools for your business in a virtual sea of options with more popping up every day? To get your organization on the path to a more diverse workforce requires an in-depth exploration of your own internal needs and an understanding of the technology that is available.

Before we go any further, let’s gain a better understanding of what you need to know to lay the groundwork for a more inclusive, diverse, workplace and a more prosperous future.

Understanding Diversity Sourcing

So, what is diversity sourcing? Simply put, diversity sourcing is a proactive approach to recruiting that seeks out talent from underrepresented groups such as ethnic minorities, women, veterans, and individuals with disabilities. It involves looking beyond traditional recruitment channels to find candidates, with the goal of overcoming historical barriers to employment for these groups.

The Benefits of Embracing Diversity in Recruitment

Embracing diversity in recruitment is a strategic move that offers a myriad of benefits for organizations looking for an edge in today’s competitive landscape. By prioritizing diversity in recruitment, companies are able to tap into a wider talent pool, significantly reducing bias in the hiring process and fostering a culture of innovation.

This approach not only enriches the organization with fresh perspectives and unique skill sets but can also enhance the company’s brand image, making it more appealing to a broader demographic of not just potential hires but also customers.

Why Invest in Diversity Sourcing Tools?

Driving diversity in recruitment isn’t merely a trend; it’s a strategic move backed by compelling data that illustrates the very real benefits to organizations striving to build a diverse workforce. Let’s dive a little deeper into why businesses in today’s competitive talent landscape are investing in diversity recruiting platforms.

It Pays to be Diverse

This data presents a clear case: diversity is not just a moral imperative; it’s a financial one. Research shows a direct link between diversity and financial performance. For instance, in the most recent McKinsey Diversity Matters report, organizations with a strong commitment to diversity are 39% more likely to financially outperform their competitors.

The same report found that those in the bottom quartile for both ethnic and gender diversity are 66% less likely to financially outperform, a number that nearly tripled over the past 3 years. Clearly, it doesn’t just pay to make sourcing diverse talent a priority, it can be costly if you don’t.

Winning the Talent War

In the battle for top talent, accessing the untapped potential of underrepresented groups offers a significant competitive advantage. Diversity sourcing tools enable organizations to discover and engage with candidates who might otherwise remain overlooked, enriching the talent pool and enhancing the organization’s agility and resilience.

Cultivating a Culture of Belonging

At the heart of successful diversity initiatives is a culture that values belonging and inclusion. When employees see themselves reflected in their workplace and feel valued for their unique contributions, it boosts morale and productivity. A diverse workforce also better mirrors the diverse customer base many companies serve, enhancing customer experience and loyalty. Such a culture not only helps attract diverse talent but also plays a crucial role in retaining that talent.

Talent Retention

Speaking of talent retention, with the most diverse generation of talent pouring into the job market (Gen Z), prioritizing diversity is a key component to a successful recruitment strategy. In fact, one study found that 69% of Millennial and Gen Z workers surveyed stated they would be more likely to stay five or more years at a company with a diverse workforce.

Couple that with the fact that employee turnover can cost a company 33% of an employee’s salary and it’s easy to see why diversity is critical to your organization’s bottom line.

With benefits ranging from an innovation boost to the development of more inclusive recruitment strategies, the advantages of diversity in talent sourcing are clear. Building diverse teams is not just about filling quotas; it’s about leveraging the full spectrum of human potential to drive success and innovation in the modern workplace. In order to do that effectively, it’s critical to arm your team with the right diversity sourcing solutions.

Key Features to Look for in Diversity Sourcing Tools

It’s important to note that all diversity sourcing tools are not created equally. That’s why it’s crucial to have an understanding of what to look for to choose the right one for the unique needs of your business. Here are some things to look for:

  • Candidate Matching Reimagined: Look for tools that go beyond traditional resume keyword matching and prioritize a candidate’s skills and potential. AI-powered candidate matching is revolutionizing how we connect with talent by focusing on what individuals can do, not just their previous job titles. This approach opens the door to a broader array of candidates, ensuring a more diverse talent pool.
  • Bias Mitigation: An effective diversity sourcing tool should actively work to eliminate bias throughout the recruitment process. Features like flagging gendered language in job descriptions and suggesting inclusive alternatives are vital. Bias-free algorithms that screen candidates based on skills and potential rather than demographic information help create a level playing field for all applicants.
  • Reporting for Progress: Transparency and accountability are crucial in any DEI (Diversity, Equity, and Inclusion) initiative. Make sure the tools you’re considering offer robust reporting capabilities, including DEI metrics tracking and pipeline analysis. These features allow you to monitor your progress, identify areas for improvement, and spot bottlenecks in your recruitment process, ensuring your diversity goals are not just aspirational but achievable.
  • Ease of Use is KEY: In the fast-paced world of recruitment, user-friendly is the operative word when it comes to diversity sourcing tools. Seek out solutions that integrate seamlessly with your existing Applicant Tracking System (ATS) and offer an intuitive interface. Busy recruiters need tools that are straightforward and easy to use to maximize efficiency and get the most bang for your buck from your diversity sourcing efforts.

Best Practices for Implementing a Diversity Sourcing Tool

Selecting the best diversity recruiting software for your business is not the final step in your journey to building an inclusive and diverse workforce. The effectiveness of these tools also hinges on your implementation approach. First, it’s important to set clear, measurable goals related to your diversity recruitment efforts.

  • Define Clear Objectives: Before implementing a diversity sourcing tool, it’s crucial to define what success looks like for your organization. These objectives might include increasing the representation of underrepresented groups in certain roles, improving the diversity of your talent pipeline, or enhancing the inclusivity of your recruitment messaging. But have the conversation with your team to ensure your goals are aligned.
  • Ensure Seamless Integration: Whether you have an ATS or HR management software, it’s critical for a diversity sourcing tool to integrate smoothly with your existing recruitment ecosystem. Seamless integration ensures that candidate data flows effortlessly between systems, reducing manual data entry and the potential for errors.
  • Train Your Team: Training is essential to maximize the benefits of any new tool. Ensure your recruitment team understands how to use the tool effectively, including its features for mitigating bias, engaging with candidates, and analyzing DEI metrics. Regular training sessions can help recruiters stay updated on new features and best practices.
  • Engage in Active Sourcing: While a diversity sourcing tool can significantly enhance your ability to identify diverse candidates, success also depends on active sourcing strategies. This means engaging with potential candidates through social media, professional networks, and diversity job fairs. Personalized outreach can make a big difference in attracting diverse talent.
  • Monitor and Adjust Your Strategy: Analyze metrics such as the diversity of applicants, interview rates for underrepresented candidates, and retention rates of hires made through the tool to evaluate your progress. Be prepared to adjust your strategies based on this data to continuously improve your outcomes.
  • Foster an Inclusive Company Culture: Implementing a diversity sourcing tool is just one part of building a more diverse and inclusive workplace. Ensure that your company culture supports the retention and success of diverse hires by promoting inclusivity, equity, and belonging across all levels of the organization.
  • Solicit Feedback: Gather feedback from candidates, hiring managers, and recruiters on the effectiveness and user-friendliness of the diversity sourcing tool and the recruitment process. This feedback can provide valuable insights into areas for improvement and help refine your DEI strategies.

Legal and Ethical Considerations

As you implement diversity sourcing tools, it’s important to navigate the legal and ethical landscape carefully. Ensuring compliance with employment laws and regulations, such as the Equal Employment Opportunity Commission (EEOC) guidelines in the United States, is paramount. Here are some considerations to keep in mind:

  • Data Privacy: The use of AI and algorithms in recruiting raises important questions about data privacy. Ensure that the tools you use comply with data protection regulations such as the General Data Protection Regulation (GDPR) in Europe or similar laws in other jurisdictions. Be transparent with candidates about how their data will be used and ensure that their information is handled securely.
  • Bias in AI: While AI can help reduce human biases in the recruitment process, the algorithms themselves can be biased if not properly designed. Choose diversity sourcing tools that are transparent about their algorithms and actively work to mitigate any built-in biases. Regular audits of AI algorithms for bias are recommended to ensure fairness in the recruitment process.
  • Ethical Use of Technology: Finally, consider the ethical implications of the technologies you deploy. This includes respecting candidate autonomy, avoiding intrusive or excessive data collection, and ensuring that the use of technology aligns with your organization’s values and commitment to diversity and inclusion.

Free vs Paid Tools

When it comes to diversity sourcing tools, the market offers a variety of options, ranging from free to paid subscriptions. Each has its benefits and limitations, and understanding these can help you make an informed decision tailored to your organization’s needs.

Free Tools: If you’re just starting to explore diversity recruitment strategies, a free diversity sourcing tool can be an excellent starting point. They often provide basic features that can help widen your talent pool by tapping into diverse candidate networks.

However, the functionalities of free tools may be limited, lacking in advanced features such as AI-powered matching, comprehensive reporting capabilities, or integration with existing HR systems. For small companies or startups with tight budgets, free tools can serve as a valuable resource, but as your organization grows, you might find these tools less capable of meeting your needs as your business scales.

Paid Tools: Paid diversity sourcing tools typically offer a more comprehensive suite of features designed to streamline and enhance the entire recruitment process. These tools typically include advanced AI algorithms for candidate matching, robust bias mitigation strategies, and detailed reporting functionalities for tracking DEI metrics.

For organizations serious about making long-term, impactful changes to their diversity hiring practices, investing in a paid tool can deliver significant ROI. Not to mention the myriad of other ways the right tool can streamline the overall recruitment process.

Transforming Diversity Hiring and More with Arya

It’s safe to say the best diversity recruiting platform is one which offers solutions to the other challenges faced by recruiters and hiring leaders. A solution such as Arya, the AI-powered talent sourcing and engagement platform that is revolutionizing every aspect of talent acquisition and making it easy to reach your diversity hiring goals.

Build a Diverse Pipeline Faster with AI-Powered Automation: Using built-in diversity indicators and advanced AI to auto search, score, and rank candidates, Arya delivers a single, deduplicated list of the diverse candidates most likely to succeed in the role in minutes reducing time to submit by 50%.

Eliminate Recruiting Bias: The candidate masking capability in Arya removes bias from the sourcing process enabling recruiters to focus solely on a candidate’s fit for the role.

Reduce Diversity Sourcing Costs: With access to the largest proprietary talent database in the industry (850+ million sourced from 80+ channels across 150+ industries) with 68% of candidates coming from underrepresented groups, no more relying on costly specialty job boards to find diverse talent.

Final Thoughts

As we dive into the future of hiring, it’s crystal clear that having a diverse team isn’t just a nice-to-have, it’s essential for businesses that want to thrive. Research backs this up, showing us time and again that a mix of backgrounds and perspectives in the workplace leads to better financial outcomes, more innovation, and workplaces that buzz with energy and creativity. So, the big question isn’t whether we should focus on diversity in our hiring practices, but how we can do it best.

With 10+ years of AI evolution, Arya’s cutting-edge technology goes beyond traditional recruitment methods to do more than simply source candidates. Using hundreds of attributes and 7 multidimensional data points, Arya matches the right candidates to the right roles based on their likelihood of success, driving powerful recruiting outcomes.

Ready to see how Arya can transform your approach to diversity hiring? Book a demo today and step into a new era of hiring where diversity isn’t just a goal, but a natural part of how we build stronger, more successful teams.


  • https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
  • https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact
  • https://www.hcamag.com/ca/specialization/diversity-inclusion/7-in-10-millennials-offer-loyalty-in-exchange-for-diverse-workforce/439585
  • https://www.linkedin.com/pulse/real-cost-employee-turnover-what-you-can-do-rta-consulting-llc/

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