Diversity, equity, and inclusion (DEI) are more than just buzzwords—they’re essential practices and policies that empower people from all walks of life to thrive in the workplace. DEI frameworks consider factors like race, gender, sexual orientation, and more, helping organizations create environments where everyone, especially those from marginalized groups, can succeed.
What Is Diversity, Equity, and Inclusion (DEI)?
DEI is a concept and practice that organizations use to recognize and value the differences among people, ensure fair opportunities for all, and foster a workplace where everyone feels welcomed and respected. Sometimes referred to as DE&I or IE&D, DEI encompasses policies and initiatives designed to make people of various backgrounds feel supported and equipped to perform at their best.
As Catalina Colman, former director of HR and inclusion at Built In, puts it: “We as employers need to make sure we’re including these individuals and giving them equity. It’s not just about having a job—it’s about having the same ability to get promoted, contribute, and make an impact in the workplace and the world as their peers.”
Creating this kind of environment requires a focus on all three pillars of DEI: diversity, equity, and inclusion.
Diversity: Embracing Differences
Diversity refers to the presence of differences within a given setting. In the workplace, this includes differences in race, ethnicity, gender, gender identity, sexual orientation, age, socioeconomic class, physical ability, veteran status, and even whether or not someone has children. These differences are what make teams richer and more dynamic.
Why Diversity Matters
Diversity isn’t just a moral imperative—it’s a business advantage. Different backgrounds bring different perspectives, which lead to better ideas and solutions. “From a business standpoint, diverse perspectives directly influence a product—how it’s made, who it serves, and how it functions,” says Colman. “More perspectives make for a better product.”
But beyond the business case, Colman emphasizes the societal impact: “If we give people equitable opportunities to not only be employed but to find purpose and passion in their work, our society can and will do great things. It’s a measurable good for everyone.”
Equity: Leveling the Playing Field
Equity is about ensuring that practices and programs are fair and impartial, providing equal opportunities for every individual to succeed. Unlike equality, which assumes everyone starts from the same place, equity acknowledges that people face different barriers and advantages.
Why Equity Matters
Equity requires employers to recognize and address systemic barriers. “Equity takes into account the fact that not everybody is starting at the same level,” explains Colman. “For example, a bank might say their loan application process is equal, but that doesn’t account for factors like student loans, familial debt, or socioeconomic status.”
By addressing these barriers, companies can create environments where everyone has a fair shot at success. “You’re not going to build diversity if you’re not taking steps to be more equitable,” Colman adds. Equitable workplaces not only support diverse teams but also inspire employees to bring their best selves to work. “Equity is why we go to work,” she says. “We want to be compensated fairly, challenged, and given the chance to contribute meaningfully.”
Inclusion: Creating a Sense of Belonging
Inclusion is the practice of ensuring that everyone feels a sense of belonging in the workplace. It’s about creating an environment where employees can be their authentic selves without fear of judgment or exclusion.
Why Inclusion Matters
An inclusive workplace doesn’t require employees to hide parts of their identity. “Employees shouldn’t have to worry about code-switching or shielding who they are,” says Colman. “They should be able to walk through the door without feeling like something about them has to change.”
Inclusion is what sustains diversity. Without it, employees from marginalized groups are likely to leave. “If a candidate walks into a workplace and they’re the only woman or BIPOC employee, they’re going to question the employer’s authenticity and values,” Colman explains. “People want to belong, plain and simple. They shouldn’t have to worry about being the token representative of a demographic.”
Why DEI Is Important: The Benefits of a Diverse, Equitable, and Inclusive Workplace
DEI isn’t just the right thing to do—it’s a strategic advantage. Here are some of the key benefits organizations can reap by embracing DEI:
- Stronger Recruitment: DEI has become a priority for job seekers. In fact, 75% of candidates and employees consider DEI a major factor when evaluating job offers. Companies that prioritize DEI are more likely to attract top talent.
- Higher Employee Retention: Inclusion plays a significant role in employee satisfaction. Feeling included accounts for 35% of an employee’s emotional connection to their work and 20% of their desire to stay with their employer. A DEI-focused culture reduces turnover and fosters loyalty.
- Increased Innovation: Diverse teams are more innovative. A Harvard Business Review study found that a 0.1-point increase in a company’s DEI ratings correlates to a 13% boost in its ability to adapt and innovate.
- Deeper Trust: Trust is built when companies follow through on their DEI commitments. If organizations fail to deliver, 40% of employees would consider leaving, and 56% would no longer recommend their employer.
- Improved Business Outcomes: Companies with diverse leadership teams are 33% more likely to outperform their peers in profitability. When people feel valued for who they are, they perform better—creating a win-win for employees and employers alike.
HR’s Role in Building a DEI Culture
Implementing DEI isn’t a one-person job—it requires collaboration and commitment across the organization. “There’s no quick fix,” says Colman. “You can’t achieve true diversity without inclusion and equity. These elements build on each other.”
HR professionals play a critical role in driving DEI initiatives, but they can’t do it alone. “Lean on your professional community,” Colman advises. “You don’t have all the answers because you don’t have all the perspectives.”
The shift toward DEI represents a significant change for HR. “We used to avoid these conversations, but now the call to action is about navigating discomfort and using it to elevate your workforce,” Colman explains. “It’s about doing the important work that’s long overdue.”
The Backlash Against DEI: What’s Happening?
While DEI has gained momentum in recent years, it has also faced significant backlash. Following the 2020 protests against systemic racism, many companies ramped up their DEI efforts. However, by 2024, some began scaling back these initiatives, often due to political pressure or budget constraints.
In 2025, the Trump administration took a hard stance against DEI, labeling federal DEI programs as “illegal and immoral discrimination.” Executive orders were issued to dismantle DEI initiatives, and private-sector companies like Google began rolling back their DEI hiring practices to comply with new regulations.
Despite this backlash, the importance of DEI remains clear. Organizations that prioritize diversity, equity, and inclusion are better positioned to innovate, retain talent, and achieve long-term success.
Frequently Asked Questions About DEI
What is DEI in the workplace?
DEI stands for diversity, equity, and inclusion. It’s about creating a workplace where people of all backgrounds feel welcomed, supported, and empowered to succeed.
What are examples of DEI in the workplace?
Examples include recruiting from marginalized communities, hosting DEI training sessions, and offering mentorship programs for underrepresented employees.
Why is DEI important?
DEI fosters innovation, improves employee satisfaction, and drives better business outcomes. It ensures that everyone has a fair chance to thrive, both personally and professionally.
Why is there backlash against DEI?
Some argue that DEI initiatives are costly or ineffective, while others believe they lead to reverse discrimination. However, the benefits of DEI far outweigh the challenges, making it a critical focus for forward-thinking organizations.
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DEI is more than a trend—it’s a cornerstone of modern workplace culture. By embracing diversity, equity, and inclusion, organizations can create environments where everyone feels valued, respected, and empowered to succeed. The journey toward DEI isn’t always easy, but the rewards are undeniable. Let’s build workplaces where everyone can thrive.