There’s been a lot of talk lately about the future of diversity, equity and inclusion at work. I’m here to tell you that, regardless of what you’re reading in the news, DEI is here to stay.
Your organization can’t afford to lose out on the countless benefits of DEI. Neither can your employees.
It’s more important than ever that you continue prioritizing DEI—and not retreat. To start, I’ll take you through some must-know DEI benefits. Then, we’ll explore the importance of DEI in the workplace.
Is DEI Illegal in 2025?
First, let’s clear the air: DEI is not illegal.
During our webinar “100 Days In: Cutting Through DEI Misconceptions and Mapping What’s Next,” Jonathan Hyman of Wickens Herzer Panza laid it out clearly:
DEI in and of itself is not illegal. There are certain practices you can’t do. You can’t hire someone because of their race. You can’t hire someone because of their gender. But that’s not what DEI is. That’s what people want you to believe DEI is. People want you to believe that DEI is all about preferences and quotas. It’s not.
Psst: Want to watch the whole webinar? You can check it out here.
The Importance of DEI in the Workplace
Diversity, equity and inclusion aren’t just buzzwords. When employees feel seen and valued, they show up and deliver.
Think about it: if everyone on your team has the same background, how much can you really accomplish? A successful team needs different perspectives to compete, grow and win.
But hiring diverse talent is just the start. Retention is where the real work begins. As an employee relations leader, you’re not a bystander—you’re a key player in driving DEI forward.
12 Benefits of DEI in the Workplace
I can spend all day talking DEI benefits in the workplace, but I’ve rounded up a few highlights. These include:
1. Happier Employees
92% of employees say it’s important to work for a company that values their psychological and emotional wellness, the 2023 APA Work in America Survey revealed. DEI can help.
Employees that feel safe at work aren’t only happier; they’re also great ambassadors for your organization and its culture.
Only 31% of employees report that they’re likely to recommend their organization as an employer to their peer networks, so there’s work to be done. Doubling down on DEI creates a sense of belonging and ultimately, boosts employee happiness.
2. Increased Employee Engagement
“Most employees agree that DEI improves workplace performance,” shares Hyman.
In fact, 91% of employees who feel they belong are engaged, compared to only 20% of those who feel they don’t.
Want to drive employee engagement? Start with belonging. It’s common sense: Make people feel valued and they’ll give it their all.
3. Improved Employee Well-being
Mental health issues are on the rise in the workplace. According to our Eighth Annual Employee Relations Benchmark Study, 70% of organizations surveyed said that they’ve experienced an increase in mental health cases.
The good news? A sense of belonging can combat mental health struggles. That’s where DEI initiatives shine.
4. Better Employee Retention
CFOs, you’re not going to want to miss this one.
Employee turnover is expensive. Gallup estimates that it costs between half and two times an employee’s yearly salary to replace them. But did you know that investing in DEI can boost employee retention too?
5. More Creativity
“Why do we want homogeny of viewpoints? If your workplace is all white or all male, all straight and all able-bodied, you have one viewpoint driving decisions,” says Hyman. “We shouldn’t want homogeny of viewpoints. We want diverse viewpoints.”
Diverse experiences fuel fresh ideas. And homogeny results in bland, uninspired work.
6. Better Collaboration
If your opinion isn’t respected or celebrated, why contribute? Employees will only bring their full potential to work when they have a sense of belonging.
“There’s better teamwork among diverse groups of employees,” shares Hyman.
7. Fewer Workplace Disagreements
When your organization celebrates differences, your people will, too. The result is less conflict and more connection.
Bonus points if you add an educational layer to your DEI efforts to build empathy. Conflict doesn’t stand a chance.
8. Enhanced Decision-Making
Imagine a room of men developing a product exclusively for women. Or consider a fully able-bodied team creating an advertisement for those who use wheelchairs.
It would certainly be possible to overlook something—resulting in a significant, potentially reputation-ruining error.
“When you don’t invest in DEI, you get a lack of variety in input, opinions and experiences. You get homogeny, which I think stifles growth and innovation,” says Hyman.
Diverse teams make better decisions. It’s as simple as that.
9. Better Customer Experiences
Your customers aren’t all the same. Your employees shouldn’t be either.
The more diverse your team, the better equipped it is to support your diverse customer base.
Think of it this way: You’re a global organization with only English-speaking customer service representatives. When a Spanish-speaking customer calls, you’ve isolated them, sending the message that their experience doesn’t matter to you.
10. Successful Business Outcomes
We all know happy customers lead to better financial outcomes. But here’s the reality check: over 50% of customers will jump ship after just one bad experience. And after a few? That number spikes to 73%.
Now think back to that customer service example I shared earlier. When your team reflects the diversity of the people you serve, they’re better equipped to connect, communicate and solve problems.
11. Reduced Likelihood of Legal Issues
“When you don’t invest in DEI, you are increasing the likelihood that someone from a diverse background[…]is going to sue the organization,” says Hyman.
From a compliance perspective, implementing DEI initiatives protects your company from potential legal repercussions, such as discrimination complaints, concerns about bias and even costly settlements.
12. Confidence in Knowing You Support Your Entire Team
I believe organizations have a responsibility to do the right thing. And there’s no question in my mind that investing in the benefits of DEI for employees is right.
Your organization should be a force for good in the world—and championing DEI is part of that.
Protecting Diversity, Equity and Inclusion with HR Acuity
The best DEI teams and ER practitioners don’t take a set-it-and-forget-it approach to DEI initiatives.
Instead, they’re constantly seeking out new ways to improve diversity, equity, and inclusion at work. Here’s one of my go-to suggestions: If you haven’t already, implement an anonymous reporting hotline to allow employees to report bad behavior without facing retaliation.
Or maybe you’re ready to take the next step in creating a more equitable workplace. Investigations management software helps your team navigate discrimination and harassment investigations better than ever before.
If you already have that set up, perhaps your team is ready to explore analytics. Data will help you quantify the benefits of diversity, equity and inclusion efforts.
Ready to Get Started?
Now that we’ve explored DEI benefits in the workplace, are you ready to take your next step towards creating a more transparent and equitable environment for your people?
If so, sign up for a curiosity tour today to discover how our purpose-built solution empowers the world’s most successful companies to protect their people and create a better place to work.
