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Diversity, Equity and Inclusion in the Workplace

A majority of u.s. workers say focusing on dei at work is a good thing, but relatively small shares place great importance on diversity in their own workplace, table of contents.

• The value of DEI efforts at work
• The importance of a diverse workforce
• DEI measures and their impact
• How gender, race and ethnicity impact success in the workplace
• Acknowledgments
• The American Trends Panel survey methodology

Pew Research Center conducted this study to better understand how adults in the United States think about diversity, equity and inclusion efforts in the workplace. This analysis is based on survey responses from 4,744 U.S. adults who are working part time or full time, are not self-employed, have only one job or have multiple jobs but consider one their primary job, and whose company or organization has 10 or more people. The data was collected as part of a larger survey of workers conducted Feb. 6-12, 2023. Everyone who took part is a member of Pew Research Center’s American Trends Panel (ATP), an online survey panel that is recruited through national, random sampling of residential addresses. This way nearly all U.S. adults have a chance of selection. The survey is weighted to be representative of the U.S. adult population by gender, race, ethnicity, partisan affiliation, education and other categories. Read more about the ATP’s methodology .

Read more about the questions used for this report and the report’s methodology .

References to workers or employed adults include those who are employed part time or full time, are not self-employed, have only one job or have multiple jobs but consider one their primary job, and whose company or organization has 10 or more people.

References to White, Black and Asian adults include those who are not Hispanic and identify as only one race. Hispanics are of any race.

References to college graduates or people with a college degree comprise those with a bachelor’s degree or more. “Some college” includes those with an associate degree and those who attended college but did not obtain a degree.

References to disabled workers include those who say a disability or handicap keeps them from fully participating in work, school, housework or other activities.

All references to party affiliation include those who lean toward that party. Republicans include those who identify as Republicans and those who say they lean toward the Republican Party. Democrats include those who identify as Democrats and those who say they lean toward the Democratic Party.

Workplace diversity, equity and inclusion efforts, or DEI, are increasingly becoming part of national political debates . For a majority of employed U.S. adults (56%), focusing on increasing DEI at work is a good thing, according to a new Pew Research Center survey. But opinions about DEI vary considerably along demographic and political lines.

Most workers have some experience with DEI measures at their workplace. About six-in-ten (61%) say their company or organization has policies that ensure fairness in hiring, pay or promotions, and 52% say they have trainings or meetings on DEI at work. Smaller shares say their workplace has a staff member who promotes DEI (33%), that their workplace offers salary transparency (30%), and that it has affinity groups or employee resource groups based on a shared identity (26%). Majorities of those who have access to these measures say each has had a positive impact where they work.

Related : How Americans View Their Jobs

This nationally representative survey of 5,902 U.S. workers, including 4,744 who are not self-employed, was conducted Feb. 6-12, 2023, using the Center’s American Trends Panel . 1 The survey comes at a time when DEI efforts are facing some backlash and many major companies are laying off their DEI professionals .

Some key findings from the survey:

• Relatively small shares of workers place a lot of importance on diversity at their workplace. About three-in-ten say it is extremely or very important to them to work somewhere with a mix of employees of different races and ethnicities (32%) or ages (28%). Roughly a quarter say the same about having a workplace with about an equal mix of men and women (26%) and 18% say this about a mix of employees of different sexual orientations.
• More than half of workers (54%) say their company or organization pays about the right amount of attention to increasing DEI. Smaller shares say their company or organization pays too much (14%) or too little attention (15%), and 17% say they’re not sure. Black workers are more likely than those in other racial and ethnic groups to say their employer pays too little attention to increasing DEI. They’re also among the most likely to say focusing on DEI at work is a good thing (78% of Black workers say this), while White workers are the least likely to express this view (47%).
• Women are more likely than men to value DEI at work. About six-in-ten women (61%) say focusing on increasing DEI at work is a good thing, compared with half of men. And larger shares of women than men say it’s extremely or very important to them to work at a place that is diverse when it comes to gender, race and ethnicity, age, and sexual orientation.
• There are wide partisan differences in views of workplace DEI. Most Democratic and Democratic-leaning workers (78%) say focusing on DEI at work is a good thing, compared with 30% of Republicans and Republican leaners. Democrats are also far more likely than Republicans to value different aspects of diversity. And by wide margins, higher shares of Democrats than Republicans say the policies and resources related to DEI available at their workplace have had a positive impact.
• Half of workers say it’s extremely or very important to them to work somewhere that is accessible for people with physical disabilities. About three-in-ten workers (29%) say this is somewhat important to them, and 21% say it’s not too or not at all important. A majority of workers (76% among those who do not work fully remotely) say their workplace is at least somewhat accessible for people with physical disabilities.
• Many say being a man or being White is an advantage where they work. The survey asked respondents whether a person’s gender, race or ethnicity makes it easier or harder to be successful where they work. Shares ranging from 45% to 57% say these traits make it neither easier nor harder. But far more say being a man and being White makes it easier than say it makes it harder for someone to be successful. Conversely, by double-digit margins, more say being a woman, being Black or being Hispanic makes it harder than say it makes it easier to be successful where they work.

A majority of workers (56%) say focusing on increasing diversity, equity and inclusion at work is mainly a good thing; 28% say it is neither good nor bad, and 16% say it is a bad thing. Views on this vary along key demographic and partisan lines.

Half or more of both men and women say focusing on increasing DEI at work is a good thing, but women are more likely than men to offer this view (61% vs. 50%). In turn, men are more than twice as likely as women to say it is a bad thing (23% vs. 9%).

About two-thirds or more of Black (78%), Asian (72%) and Hispanic (65%) workers say that focusing on DEI at work is a good thing. Among White workers, however, fewer than half (47%) say it’s a good thing; in fact, 21% say it’s a bad thing. But there are wide partisan, gender and age gaps among White workers, with majorities of White Democrats, women and those under age 30 saying focusing on DEI at work is a good thing.

Workers under 30 are the most likely age group to say focusing on DEI at work is a good thing. About two-thirds (68%) of workers ages 18 to 29 say this, compared with 56% of workers 30 to 49, 46% of those 50 to 64, and 52% of those 65 and older.

Views also differ by educational attainment, with 68% of workers with a postgraduate degree saying focusing on DEI at work is a good thing, compared with 59% of those with a bachelor’s degree only and 50% of those with some college or less education.

Democratic and Democratic-leaning workers are much more likely to say focusing on DEI at work is a good thing (78%) than to say it is a bad thing (4%) or that it is neither good nor bad (18%). Views among Republican and Republican-leaning workers are more mixed: Some 30% say focusing on DEI at work is a good thing, while the same share (30%) say it’s a bad thing, and 39% say it’s neither good nor bad.

A majority of workers say their employer pays the right amount of attention to DEI

When it comes to the focus of their own employer, 54% of workers say their company or organization pays about the right amount of attention to increasing diversity, equity and inclusion. The remainder are divided between saying their employer pays too much (14%) or too little attention (15%), or that they’re not sure (17%).

Women are more likely than men to say their employer pays too little attention to increasing DEI (17% vs. 12%). In turn, men are more likely than women to say too much attention is paid to this where they work (18% vs. 10%).

Black workers (28%) are the most likely to say their company or organization pays too little attention to increasing DEI, compared with smaller shares of White (11%), Hispanic (19%) and Asian (17%) workers who say the same.

Views on this question also differ by party. While half or more of both Republican and Democratic workers say their company or organization pays the right amount of attention to DEI, Democrats are more likely than Republicans to say their employer pays too little attention to it (21% vs. 7%). In turn, Republicans are more likely than Democrats to say their employer pays too much attention to DEI (24% vs. 6%).

While a majority of workers say focusing on increasing diversity, equity and inclusion at work is a good thing, relatively small shares place great importance on working at a place that is diverse when it comes to gender, race and ethnicity, age, and sexual orientation. About three-in-ten workers say it’s extremely or very important to them to work somewhere with a mix of employees of different races and ethnicities (32%) and ages (28%), while 26% say the same about having about an equal mix of men and women. And 18% say this about having a mix of employees of different sexual orientations at their workplace.

Women are more likely than men to say it’s extremely or very important to them to work at a place that is diverse across all measures asked about in the survey. For example, there are 11 percentage point differences in the shares of women compared with men saying it is extremely or very important to them to work somewhere that has a mix of employees of different races and ethnicities (37% vs. 26%) and about an equal mix of men and women (31% vs. 20%).

Black workers are among the most likely to value racial, ethnic and age diversity in the workplace. Some 53% of Black workers say it is extremely or very important to them to work somewhere with a mix of employees of different races and ethnicities, compared with 39% of Hispanic workers and 25% of White workers who say the same; 43% of Asian workers say this is important to them. (There is no statistically significant difference between the share of Asian workers and the shares of Black and Hispanic workers who hold this view.) And while 42% of Black workers highly value working somewhere with a mix of employees of different ages, smaller shares of Hispanic (33%), Asian (30%) and White (24%) workers say the same.

When it comes to diversity of sexual orientation, 28% of Black workers and 22% of Hispanic workers say it is extremely or very important to them to work somewhere that is diverse in this way; 15% each among White and Asian workers say the same.

Workers under age 50 are more likely than those 50 and older to say racial and ethnic diversity in their workplace is extremely or very important to them (35% vs. 26%). Workers younger than 50 are also more likely to say having about an equal mix of men and women is important to them, with workers ages 18 t0 29 the most likely to say this (34% vs. 26% of workers 30 to 49, and 20% each among those 50 to 64 and 65 and older).

There are also differences by educational attainment, with larger shares of workers with a postgraduate degree than those with less education saying it’s extremely or very important to them that their workplace is diverse across all measures asked about in the survey. For example, 44% of workers with a postgraduate degree say having a mix of employees of different races and ethnicities is extremely or very important to them, compared with 34% of those with a bachelor’s degree only and 27% of those with some college or less.

Democratic workers are much more likely than Republican workers to say working somewhere that is diverse when it comes to gender, race and ethnicity, age, and sexual orientation is extremely or very important to them. In fact, about half of Democrats (49%) place great importance on having a mix of employees of different races and ethnicities where they work, compared with 13% of Republicans. And there are differences of at least 20 points between the shares of Democrats and Republicans saying it’s extremely or very important to them to work somewhere that has about an equal mix of men and women (39% of Democrats say this vs. 12% of Republicans) and a mix of employees of different ages (39% vs. 17%) and sexual orientations (27% vs. 7%).

Overall, a majority of workers say their workplace has a mix of employees of different ages (58% say this describes their current workplace extremely or very well). Smaller shares say their workplace has about an equal mix of men and women (38%) and a mix of employees of different races and ethnicities (46%) and sexual orientations (28%). These assessments do not vary much across demographic groups.

Half of workers place great importance on working at a place that is accessible for people with physical disabilities

Half of workers say it is extremely or very important to them to work somewhere that is accessible for people with physical disabilities; 29% say it is somewhat important and 21% say it is not too or not at all important to them.

Highly valuing an accessible workplace varies by gender, race and ethnicity, and party, but there is no significant difference in responses between those who do and don’t report having a disability.

About six-in-ten women (58%) say it is extremely or very important to them that their workplace is accessible, compared with 41% of men.

Black workers are more likely than workers of other racial and ethnic groups to place great importance on their workplace being accessible: 62% of Black workers say this is extremely or very important, compared with 51% of Hispanic, 48% of White and 43% of Asian workers.

A majority of Democrats (59%) say it is extremely or very important to them to work somewhere that is accessible for people with physical disabilities; 40% of Republican say the same. Some 27% of Republicans say this is not too or not at all important to them, compared with 15% of Democrats.

There is no statistically significant difference in the shares of workers who have a disability and those who do not saying it is extremely or very important to them to work somewhere that is accessible for people with physical disabilities. But workers who do not have a disability are more likely than those who do to say this is not too or not at all important to them (21% vs. 15%).

Among those who don’t work fully remotely, about three-quarters of workers (76%) say their workplace is at least somewhat accessible for people with physical disabilities, with 51% saying it is extremely or very accessible. Some 17% say their workplace is not too or not at all accessible, and 8% are not sure.

When asked whether the company or organization they work for has a series of measures that are typically associated with diversity, equity and inclusion efforts, a majority of workers say their employer has policies that ensure everyone is treated fairly in hiring, pay or promotions (61%), and 52% say there are trainings or meetings on DEI where they work.

Smaller shares say their workplace has a staff member whose main job is to promote DEI at work (33%), a way for employees to see the salary range for all positions (30%), and groups created by employees sometimes known as affinity groups or employee resource groups (ERGs) based on shared identities such as gender, race or being a parent (26%).

Responses do not vary much by most demographic characteristics. However, workers with at least a bachelor’s degree are consistently more likely than those with less education to say each of these five measures is available where they work.

Workers tend to see positive impact from policies and resources associated with DEI where they work

Among those whose workplace offers each policy or resource, a majority of workers say each measure has had a somewhat or very positive impact where they work. About a third or fewer workers say each resource has had neither a positive nor negative impact, and about one-in-ten or fewer say each of these has had a somewhat or very negative impact.

Democrats and Republicans are about equally likely to say their workplace has these measures in place, but Democrats are more likely than Republicans to say the impact of each has been positive by margins ranging from 10 to 32 points (among those who say their workplace has these measures). For example, 66% of Democrats who say their workplace has a way for employees to see the salary range for all positions say this has had a somewhat or very positive impact, compared with 56% of Republicans who say this. And while about three-quarters of Democrats (74%) say having a staff member whose main job is to promote DEI at work has had a positive impact, fewer than half of Republicans (42%) say the same.

Women are more likely than men to say each of these policies and resources has had a very or somewhat positive impact where they work. This is mainly driven by gender differences among Republicans: There are double-digit differences in the shares of Republican women and Republican men who say many of these resources have had a positive impact. For example, 58% of Republican women say having a staff member whose main job is to promote DEI at work has had at least a somewhat positive impact where they work, compared with 31% of Republican men who hold this view. The same share of Republican women (58%) say having affinity groups or ERGs has had a positive impact, compared with 38% of Republican men who say the same.

Among Democrats, majorities of both men and women offer positive assessments of these resources in their workplace, but Democratic women are more likely than Democratic men to say having trainings or meetings on DEI at work have had a positive impact (72% vs. 65%).

While there are differences by race, ethnicity and age on overall attitudes about DEI in the workplace, there are no consistent differences along these dimensions in how workers with access to these policies and resources at their workplace assess their impact.

About half of workers who have participated in DEI trainings in the last year say they’ve been helpful

Out of all workers, about four-in-ten (38%) have participated in a DEI training in the last year. A similar share (40%) did not participate or say their workplace does not offer these trainings, and 21% are not sure if their employer offers these trainings.

Looking only at those whose company or organization has trainings or meetings on DEI, about three-quarters (73%) say they have participated in such trainings in the past year. And assessments of these trainings tend to be positive, with 53% of workers who’ve participated saying they were very or somewhat helpful. About a third (34%) give a more neutral assessment, saying the trainings were neither helpful nor unhelpful, and 13% say they were very or somewhat unhelpful.

While men and women are about equally likely to have participated in trainings on DEI in the past year, women are more likely than men to say the trainings have been at least somewhat helpful (60% vs. 46%).

Republicans and Democrats are also equally likely to say they’ve participated in these trainings in the past year, but Democrats are far more likely than Republicans to say the trainings have been helpful (66% vs. 36%). About one-in-five Republicans say they’ve been unhelpful (19%), compared with 9% of Democrats.

While both Democratic men and women offer similar assessments of the DEI trainings they’ve participated in, there are gender differences among Republican workers. Republican women are more likely than Republican men to say the trainings they’ve participated in have been helpful (47% vs. 28%). Conversely, 22% of Republican men, compared with 14% of Republican women, say the trainings have been unhelpful.

Few workers are members of affinity groups or ERGs at work

While 26% of workers say there are affinity groups or employee resource groups (ERGs) where they work, members of these groups account for a very small share of workers overall. Just 6% of workers say they are members of an affinity group or ERG, with 58% of workers saying these groups are either not available at their workplace or that they aren’t a member. Another 37% say they are not sure if their workplace offers these groups.

Among workers who say there are affinity groups or ERGs at their workplace, 22% say they are personally a member. Women are more likely than men to be members of these groups (28% vs. 16%). And 28% of non-White workers say they are a member of an affinity group or ERG, compared with 18% of White workers. 2

When asked about the impact a person’s gender, race or ethnicity has on their ability to succeed at work, workers tend to say these characteristics neither make it easier nor harder to be successful at their workplace.

Still, when it comes to gender, workers are more likely to say being a man makes it easier to be successful where they work than to say it makes it harder (36% vs. 6%). In contrast, a larger share says being a woman makes it harder to be successful than say it makes it easier (28% vs. 11%).

Men and women have different views on the impact gender has on a person’s ability to succeed where they work. Some 44% of women say being a man makes it at least a little easier to be successful, including 24% who say it makes it a lot easier. This compares with 29% of men who say being a man makes it at least a little easier to be successful.

Similarly, 34% of women say being a woman makes it harder to be successful where they work, compared with 21% of men.

Women under age 50 are especially likely – more so than women ages 50 and older or men in either age group – to say being a man makes it easier to be successful where they work and that being a woman makes it harder. For example, 38% of women ages 18 to 49 say being a woman makes it harder to be successful where they work. This compares with 29% of women 50 and older, 25% of men younger than 50, and an even smaller share of men 50 and older (13%).

When it comes to views about how race or ethnicity affects people’s ability to succeed at work, 51% of Black workers say being Black makes it harder to be successful where they work. This is significantly higher than the shares of Asian (41%), Hispanic (23%) and White (18%) workers who say the same about the impact of being Black.

Similarly, about four-in-ten Asian workers (39%) say being Asian makes it harder to be successful in their workplace, a higher share than workers of other racial and ethnic groups who say the same about being Asian.

Hispanic, Black and Asian workers are about equally likely to say being Hispanic makes it harder to be successful where they work. A smaller share of White workers say the same about being Hispanic.

When asked about the impact of being White in their workplace, workers across racial and ethnic groups are more likely to say it makes it easier than to say it makes it harder to be successful. This is especially the case among Black and Asian workers. About half of Black (52%) and Asian (51%) workers say being White makes it easier to be successful where they work, compared with 37% of Hispanic and 24% of White workers who say the same about being White.

Previously released findings from this survey found that Black workers are more likely than White, Hispanic and Asian workers to report that they have experienced discrimination or have been treated unfairly by an employer in hiring, pay or promotions because of their race or ethnicity at some point in their careers (though not necessarily where they currently work). Women are also more likely than men to say they’ve experienced such discrimination because of their gender.

There are large partisan gaps in views of whether gender, race or ethnicity make it easier or harder to be successful at work. Some 47% of Democratic workers say being a man makes it at least somewhat easier to be successful at their workplace, compared with 25% of Republican workers. Democrats are also more likely than Republicans to say being a woman makes it harder to succeed (37% vs. 17%).

Democratic and Republican women are more likely than their male counterparts to say being a woman makes it harder – and being a man makes it easier – to be successful where they work. The differences between Republican women and Republican men are particularly striking. About a quarter of Republican women (26%) say being a woman makes it harder to be successful, compared with 10% of Republican men. And while 36% of Republican women say being a man makes it easier to be successful where they work, just 16% of Republican men say the same.

Democratic workers are more than three times as likely as Republican workers to say being White makes it easier to succeed where they work (48% vs. 13%), and they are also more likely than Republicans to say being Black, Hispanic or Asian makes it harder. About four-in-ten Democrats (39%) say being Black makes it harder for someone to succeed at their workplace, compared with just 9% of Republicans. Similarly, 30% of Democrats say being Hispanic makes it harder to succeed, compared with 8% of Republicans. And while smaller shares in both parties say being Asian makes it harder to succeed, Democrats are more likely than Republicans to say this (16% vs. 6%). These partisan differences remain when looking only at Democrats and Republicans who are White.

• For details, see the  Methodology  section of the report. The analysis in this report is based on U.S. workers who are employed full time or part time, who are not self-employed, and who have only one job or have multiple jobs but consider one their primary job (99% of workers who are not self-employed have one job or a primary job). Additionally, the analysis is restricted to workers at companies or organizations with at least 10 employees as certain federal requirements such as non-discrimination mandates apply to larger workplaces. ↩
• Non-White adults include Black, Hispanic, Asian and other races besides White, as well as people who identify as more than one race. The sample sizes among Black, Hispanic and Asian workers who have affinity groups or ERGs at work are too small to analyze separately. ↩

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• A-Z Publications

Annual Review of Organizational Psychology and Organizational Behavior

Volume 6, 2019, review article, diversity in the workplace: a review, synthesis, and future research agenda.

• Quinetta M. Roberson 1
• View Affiliations Hide Affiliations Affiliations: Villanova School of Business, Villanova University, Villanova, Pennsylvania 19085, USA; email: [email protected]
• Vol. 6:69-88 (Volume publication date January 2019) https://doi.org/10.1146/annurev-orgpsych-012218-015243
• First published as a Review in Advance on October 31, 2018
• Copyright © 2019 by Annual Reviews. All rights reserved

Fueled by socioeconomic trends that changed the composition of organizational workforces, the term workforce diversity was coined in the 1990s. Since then, both researchers and practitioners have strived (and struggled) to understand the concept, its effects in and on organizations, and strategies for managing such effects. In this article, I provide an overview and interpretation of the current literature to examine its purpose, progress, and direction. Highlighting key conceptualizations of the construct, theoretical foundations, and empirical findings on diversity and diversity management, I discuss the evolution and current state of the field and synthesize this information to propose a future research agenda. In doing so, I seek to identify theoretical, empirical, and practice areas of opportunity for advancing scientific knowledge about the meaning, substance, and outcomes of diversity as well as the implementation of diversity science in organizations.

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DEI Practices That Have an Impact

As many organizations strengthen their commitments to diversity, equity, and inclusion in the workplace, leaders need clarity on specific positive actions they can take..

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At Work/22, MIT Sloan Management Review ’s recent two-day virtual symposium, a range of guests shared their insights into the challenges leaders will face in the year ahead. Among the participants was Stephanie Creary, an assistant professor of management at the Wharton School, who coauthored a large-scale research study that shows what practices really underlie positive diversity, equity, and inclusion (DEI) outcomes.

Creary’s research is driven by an attempt to understand efforts around DEI through their potential for good. Positive outcomes from DEI, she says, include employees feeling that they are known and understood for who they are, and that they’re developing allied relationships in the workplace. “We have decades of research saying how fraught diversity, equity, and inclusion can be,” she noted. “How do we change that?”

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A May 2021 research report she coauthored at Wharton, “ Improving Workplace Culture Through Evidence-Based Diversity, Equity and Inclusion Practices ,” describes evidence-based insights that identify which specific actions lead to which kinds of changes.

“When we talk about evidence-based diversity, equity, and inclusion practices, we’re using similar language that they use in the field of medicine,” Creary said. “If you have medicine sitting in a medicine cabinet, you don’t just take it randomly for any problem that you have. You pick medicine that’s designed to address the specific needs that you have.” In the same way, she set out to map DEI practices onto outcomes.

Creary said that she has heard “so many dehumanizing things” about middle management and DEI — specifically, that managers present roadblocks and obstacles to DEI efforts. Instead, she said, think of middle managers as people who have a lot of work to do, and consider that the company might have to do a better job of meeting them where they are. “How do we begin to translate all of the opportunities into middle manager language?” she asked. “What are specific tactics that they need to become familiar with?”

Part of her work has been to identify seven practices that lead to DEI outcomes — diversity recruiting initiatives, education and training, internal diversity partners, managerial involvement, mentoring and sponsorship, physical visibility, and workplace policies — and then map them onto 12 different outcomes.

She found that certain bundles of practices are more influential in driving certain outcomes.

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Understanding organizational barriers to a more inclusive workplace

McKinsey’s research has shown that diversity can help organizations increase innovation, reconsider entrenched ways of thinking, and improve financial performance. 1 Vivian Hunt, Dennis Layton, and Sara Prince, “ Why diversity matters ,” January 2015; Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle, “ Delivering through diversity ,” January 2018. Organizations can take full advantage of the perspectives of a diverse workforce only if leaders and employees enjoy a sense of inclusion, 2 Sandra Sancier-Sultan and Julia Sperling-Magro, “ Taking the lead for inclusion ,” November 2019. which we define as the degree to which an individual feels that their authentic selves are welcomed at work, enabling them to contribute in a meaningful and deliberate manner. We also know from our work that individuals’ sense of inclusion is influenced by their experiences with the organization as a whole, the organization’s leaders, and peers or team members. 3 We will explore these three levels that affect inclusion in a forthcoming publication. For our recent McKinsey Global Survey on the topic, 4 The online survey was in the field from September 10 to September 20, 2019, and garnered responses from 1,920 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. The survey was also sent to McKinsey’s networks of LGBTQ+ senior leaders and garnered an additional 110 responses among those groups. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP. we approximated inclusion by combin­ing survey respondents’ reported feelings of authenticity, belonging, and comfort participating in the workplace. 5 We define respondents as feeling “very included” based on responses to four statements tested in the survey: “My organization is an inclusive place to work,” “I belong at my organization,” “I feel comfortable raising my opinions or ideas,” and “I am able to be myself at my organization.” Respondents answered these questions on a five-point scale, and we scored “strongly disagree” or “not at all” responses as a 1 and “strongly agree” or “entirely” as a 5 before averaging individuals’ responses to these statements. An average score higher than 4 is considered “very included.” Our survey research finds that respondents of all backgrounds encounter barriers to feeling included—and that women, respondents who are ethnic and racial minorities, and those who identify as LGBTQ+ encounter additional challenges. 6 LGBTQ+ refers to lesbian, gay, bisexual, transgender, and queer individuals, and those of other sexual orientations and/or gender identities.

Analysis of the survey results, which were collected before the COVID-19 pandemic and before events in the United States spurred conversations around the world about racial justice and equity, shows that respondents who feel very included in their organizations are nearly three times more likely than their peers to feel excited by and committed to their organizations. What’s more, respondents from all demographics say they have taken organizations’ inclusiveness into account when making career decisions and would like their organizations to do more to foster inclusion and diversity. While leaders may have shifted their focus to urgent strategic needs amid the pandemic, organizations can consider using this time of historic disruption and heightened discourse about injustice to advance inclusion and diversity rather than allowing these priorities to recede . For those seeking to create a more inclusive workplace, the survey results point to specific factors that organizations can address.

Many do not feel a strong sense of inclusion and report barriers to achieving it

According to our latest findings, many employees have considered organizations’ inclusiveness while making career decisions, yet almost half of all respondents do not feel very included at their organizations. Most respondents, regardless of their gender, race, ethnicity, gender identity, or sexual orientation, say they encounter barriers to a sense of inclusion. 7 We also analyzed the results of respondents who were male, non-LGBTQ+, and not ethnic or racial minorities, and their inclusion-rate findings were consistent with the overall sample’s.

A look at demographic segments of the workforce suggests that certain employees are especially prone to feeling less included (Exhibit 1). Entry-level employees through senior managers make up one such group; they are much less likely than senior leaders to report a strong sense of inclusion. Also, the women who responded to our survey are less likely than the men to indicate that they feel a strong sense of inclusion. While LGBTQ+ respondents’ degree of inclusion appears to be a bright spot, this finding is likely influenced by that sample skewing toward more senior employees. 8 We sought to bring additional LGBTQ+ leaders into the sample. As a result, the sample of LGBTQ+ respondents has more senior leaders than other groups. Fifty-five percent of the LGBTQ+ respondents are senior leaders, whereas 41 percent of all other respondents are.

A sense of inclusion is strongly linked with employee engagement. Respondents who feel very included are much more likely than others to say they feel fully engaged—that is, excited by and committed to their organizations. Among respondents who feel very included, nearly three-quarters say they are entirely engaged. By comparison, just one-quarter of respondents who do not feel very included say they are completely engaged with their organizations. Furthermore, respondents who feel very included are 1.5 times more likely than others to believe their career advancement is outpacing their peers’.

Thirty-nine percent of all respondents say they have turned down or decided not to pursue a job because of a perceived lack of inclusion at an organization.

Responses suggest that an inclusive environment, in which employees feel strong positive bonds that enable better performance, is an important con­sideration for employees as they plan their careers. Thirty-nine percent of all respondents say they have turned down or decided not to pursue a job because of a perceived lack of inclusion at an organization (Exhibit 2). LGBTQ+ and racial- or ethnic-minority respondents are more likely than others to report choosing not to pursue a job for this reason. Even still, among respondents who do not identify as LGBTQ+ or as ethnic or racial minorities, 38 percent say they have made such a decision.

Overall, respondents often indicate that their organizations should do more to build inclusion in the workforce. Thirty-five percent of respondents say their organizations put too little effort into creating a diverse, inclusive environment. By comparison, just 6 percent say too much is being done.

The results also point to several issues that might hinder respondents’ sense of inclusion. One is a disconnect between the individual capabilities that employees value most and their perception of which capabilities matter most to their organizations. When asked to identify the leadership competencies they and their organizations value most, 37 percent of respondents say the one that is most important to them is not among the three most valued by their organizations. This mismatch is associated with feeling less included, but primarily among women. Women respondents are much less likely than men—and also less likely than respondents in the other demographic categories—to feel very included if they view their top competency as not being among those their organizations value most (Exhibit 3).

Additionally, the survey found that 84 percent of all respondents have experienced workplace micro­aggressions, which are everyday slights rooted in bias. In every subgroup—by gender, gender identity, minority status, or sexual orientation—more than eight in ten respondents report these indignities. For example, more than a quarter say they have needed to correct others’ assumptions about their personal lives. Those who say they aren’t sure whether they have experienced any of the microaggressions we asked about are significantly more likely to feel very included than respondents who report experiencing one or more. Respondents who have experienced more than one of these microaggressions are even less likely to feel included than those who report just one.

The survey found that 84 percent of all respondents have experienced workplace microaggressions, which are everyday slights rooted in bias.

Women, minority, and LGBTQ+ respondents face additional challenges

Women and ethnic- or racial-minority respondents are likelier than others to say their careers have advanced more slowly than their peers’. These respon­­dents, as well as LGBTQ+ respondents, also report experiencing more microaggressions at work than other respondents (Exhibit 4). For example, respondents in each of these demographic cate­gories are much more likely than others to say they have been excluded from social events and have heard derogatory comments or jokes about people like them.

It’s also common for these individuals to say they have felt uncomfortable discussing identity-related topics in the workplace—and research demon­strates that feeling unable to speak openly or share ideas with team members and peers without a risk of judgment or ridicule can hinder an individual’s experience of inclusion and their performance. 9 Joy Burnford, “Building authentic courage: The essential foundation for successful diversity and inclusion,” Forbes , February 1, 2020, forbes.com; forthcoming McKinsey research. Thirty-seven percent of LGBTQ+ respondents say they have had an uncomfortable experience coming out—that is, sharing their LGBTQ+ identity—to colleagues in the past month (Exhibit 5).

Among racial- or ethnic-minority respondents who indicate they discussed identity-related issues at work in the past month, four in ten say they have felt at least slightly uncomfortable in such a situation. 10 This finding does not take into account responses from the 12 percent of ethnic- or racial-minority respondents who identify as LGBTQ+ and who were not asked this question.

A similar share of nonminority, non-LGBTQ+ women say the same about discussing gender. More than one-quarter of racial- or ethnic-minority respondents and a similar share of women respondents say they have avoided talking about these topics when they would have liked to discuss them, largely because they were unsure how colleagues would respond or they didn’t want to be seen as different.

Four tested factors most associated with employees’ inclusion

Compared with respondents who say too little is being done to increase organizational inclusion and diversity , those who say their organizations devote the right amount of effort are 1.9 times more likely to feel very included. Responses also suggest which factors matter most for creating inclusive environ­ments. The survey tested 26 organizational practices and employee experiences to see which factors are strongly linked with an individual’s sense of inclusion. The factors that stand out primarily involve the identity and actions of organizations’ leaders (Exhibit 6). 11 The survey analyses tested these analyses using multivariate weighted linear regressions.

1. Diverse, inclusive leadership

Responses suggest that both the presence of diverse leaders at an organization and an organiza­tion’s focus on inclusive leadership (for example, leaders empowering others) are correlated with indi­viduals feeling included. When respondents say leaders at their organizations are diverse, they are 1.5 times more likely than peers from organizations without diverse leaders to feel very included. Furthermore, regardless of whether an organization has achieved diverse leadership, its leaders’ actions can nurture inclusion. At organizations where leaders focus on inclusivity through acts such as building team cohesion, respondents are 1.7 times more likely than those at other organizations to feel very included.

2. Meritocracy and initiatives to increase fairness in performance evaluations

A meritocratic company culture is strongly associated with a sense of inclusion. When respondents say that a culture based on merit has been a top-three factor in their career advancement, they are 1.3 times more likely than others to feel very included. Initiatives to increase fairness in performance evaluations have a similar link to inclusion: people who report these initiatives are 1.4 times more likely than others to feel very included.

However, the data show gender-related differences in the impact of a meritocratic culture. Women senior leaders are less likely than their male counterparts to say they are helped by meritocracy at work. They are also more likely to attribute their success to other factors, such as respect for their educational background or prior work experience. While 40 percent of men say meritocracy has boosted their careers, less than one-third of women say the same. 12 Whether women miss out on the rewards of meritocracy or are just more cognizant of others’ support was not investigated.

McKinsey’s original survey research

3. sponsorship.

Respondents who say colleagues at their organi­zations have gone out of their way to create professional-advancement opportunities for them also are more likely than others to feel a strong sense of inclusion. Respondents with at least one such sponsor are 1.6 times more likely than others to feel very included. The findings also suggest that individuals benefit from having more than two sponsors. While half of respondents with one or two sponsors feel very included, 72 percent of those with three to five sponsors feel very included.

Other findings indicate that sponsorship aids the career advancement of underrepresented employees. Senior leaders who are LGBTQ+ or ethnic or racial minorities are more likely than other leaders to say that sponsorship relationships have positively influenced their careers.

4. Substantive access to senior leaders

More than half of all respondents say that mean­ingful interactions with senior leaders have aided their career advancement. This exposure to leaders is linked with a sense of inclusion: respondents who say interactions with leaders aided their advancement are 1.2 times more likely than others to feel very included.

Not all employees are equally likely to report benefiting from access to leaders. Prior research has shown that women are less likely than men to have substantive interactions with senior leaders. When looking at what senior leaders who completed this year’s survey say most helped their careers advance, women’s responses differ from men’s. While 57 percent of senior leaders who are men indicate that interacting with leaders helped them progress, just 45 percent of women leaders report the same.

Diversity wins: How inclusion matters

Looking ahead.

Employees’ sense of inclusion can contribute to an organization’s performance and talent retention . Individuals who say their employers invest the right amount of effort into improving organizational inclusion and diversity are more likely than others to feel very included within their organization. Many respondents want their organizations to do more to create a diverse, inclusive work environment. As workforces acclimate to the next normal following the pandemic, organizations can use this time as an opportunity to make changes that build a highly inclusive culture —rather than allowing inclusion and diversity to take a back seat. Based on our survey findings, organizations and leaders can take the following actions to help employees feel a stronger sense of inclusion.

Include all employees in conversations about inclusion. Removing barriers to inclusion requires that actions support all employees, regardless of their gender, gender identity, race, ethnicity, or sexual orientation. While many inclusion discussions effectively focus on underrepresented populations, our data suggest an opportunity to expand these conversations to recognize that inclusion applies to and can benefit all colleagues.

Several approaches can help. Organizations can launch “allies” programs to encourage all employees to help combat microaggressions. They also can use tactical inclusion reminders, known as “nudges,” to influence employee behavior. These might include calendar notifica­tions to include quieter team members in group discussions or to acknowledge team mem­bers for their contributions. To assess their progress in creating a more inclusive workplace, organizations can run detailed employee-experience surveys at least annually, maintaining common questions to track improvements on inclusion and engagement over time.

Build more representative teams. Increasing the share of diverse leaders starts with increasing and retaining the numbers of employees from underrepresented groups throughout the organization. Beginning with recruitment, organizations can set incremental goals for underrepresented groups by geography and population and can closely track progress toward those goals as they do for any other business objective. Tracking must also occur in the promotion process. Business units should put forward multiple candidates from underrepresented groups for each leadership opening and then report on advancement of employees in these segments. Formalized succession planning and sponsorship programs, too, can help increase the presence of underrepresented leaders.

Reducing bias in the hiring and promotion processes can lift the numbers of employees from underrepresented groups. One action that can help counter bias is appointing “bias watchers,” respected leaders who are trained to call out unconscious bias in talent-related discussions. Because effective leader­ship takes many forms, it can also help to formalize clear criteria for leadership positions, including leadership competencies that are less traditionally recognized, such as relationship building, along with criteria such as entrepre­neurship. These criteria can be used in feedback conversations and performance reviews to ensure organizations value a wide range of competencies.

• Adopt inclusive behaviors. Given our survey data suggesting that feelings of inclusion often stem from inclusive leadership, it is important that individual leaders demonstrate inclusive behaviors. These can include participating in “allies” programs that support underrepresented groups, hosting open and honest conversations about people’s unique identities, calling out microaggressions when they see them, and posting signs of visible support for those groups in leaders’ offices. Regardless of whether a formal sponsorship program exists, leaders can serve as sponsors, recognizing rising talent from underrepresented groups and ensuring awareness of and access to professional-advancement opportunities for these individuals. Leaders can also help underrepresented colleagues develop mean­ingful support systems by creating opportunities for connectivity, which can improve retention. Finally, it is impor­tant that leaders commit to edu­cating themselves on diversity, inclusion, and bias by attending trainings and reading the latest research, just as they would approach any other core responsibility at work.

The contributors to the development and analysis of this survey include Peter Bailinson, a consultant in McKinsey’s Washington, DC, office; William Decherd, a partner in the Dallas office; and Diana Ellsworth and Maital Guttman, a partner and a senior regional manager of diversity and inclusion, respectively, in the Atlanta office.

They wish to thank Aaron De Smet, Sundiatu Dixon-Fyle, Kevin Dolan, Ruth Imose, Tanya Lee, and David Mendelsohn for their contributions to this work.

This article was edited by Heather Hanselman, an associate editor in the Atlanta office.

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The importance of inclusion in the workplace

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Learn why inclusion in the workplace is important for individuals, teams, and the organization.

From climate change, to geo-political unrest, to a surge in AI adoption, major global trends continue to upend many certainties about our people, our customers, and our society.

To survive in the face of increasing complexity and disruption, organizations need talent that matches the world they operate in. In other words, they need diversity.

To thrive, companies need to unlock the power and potential of all that talent, including women, people of different races, ethnicities and socioeconomic status, and those with different physical and cognitive abilities. In other words, they need inclusion.

Organizations that get both elements right are at a huge advantage. Research shows that diverse and inclusive organizations, when compared to their peers, are:

• 87% more likely to make better decisions, according to Korn Ferry Research
• 75% faster at bringing products to market, according to the Center for Talent Innovation

But while the value of diversity is widely recognized and understood, the importance of achieving inclusion in the workplace can be overlooked.

Below, we examine three key benefits of inclusion in the workplace.

Inclusion in the workplace makes diversity work

A study by the Canadian researcher N. J. Adler has revealed that, while diverse teams do indeed outperform and out-innovate homogenous teams, they can also at times be significantly less effective.

Image Source: Nancy J. Adler, International Dimensions of Organizational Behavior, 4th ed. (Cincinnati, OH: Thomson South-Western, 2002).

The reason for this is that if diversity is not handled properly then chaos can ensue. Managing groups of people with varying thought patterns and behaviors takes real empathy and skill—much more so than when everyone in the team shares similar backgrounds and experiences.

The solution to this is inclusive leadership. Inclusive leaders are leaders who can empower team members to take risks, manage their own development, and bring their authentic selves to work. They are collaborative, transparent and culturally agile. Most important, they fully embrace the value of diversity in today’s workforces.

Even when diverse teams are managed by skilled inclusive leaders, they may be outperformed by homogenous teams in the early stages of working together because disruption and conflict can result when different perspectives, experiences, backgrounds, thinking, and communication styles are brought into a team.

Image Source: Charlotte Sweeney and Fleur Bothwick, Inclusive Leadership: Defining Guide to Developing and Executing an Impactful Diversity and Inclusion Strategy (London: Pearson Education, 2016), 171. Graph is adapted from Katherine W. Phillips, “How Diversity Makes Us Smarter,” Scientific American 311, no. 4 (October 2014): 42–47; and Bruce W. Tuckman, “Developmental Sequence in Small Groups,” Psychological Bulletin 63, no. 6 (1965): 384–399.

Given time, however, a diverse team led by an inclusive leader will significantly outperform a homogenous team, however well-managed it may be. In other words, inclusion makes diversity work—and the two of them together make a formidable combination.

Inclusion in the workplace leads to improved engagement and decision-making

What would happen if you could move every employee closer to their highest levels of performance? Imagine the positive impact it would have not just in terms of collaboration, innovation and engagement, but also on your desired business outcomes.

The evidence suggests that this is exactly what happens when you achieve true inclusion in the workplace. Korn Ferry research shows that inclusive teams make better decisions 87% of the time. According to Salesforce, 73% of employees are empowered to perform their best when they feel their voices are heard in the workplace.

Create a workplace where all people feel they can be themselves—where they are supported, respected, and valued both for who they are as individuals and for their unique contributions—and you can unleash the potential of everyone in your organization.

Inclusion in the workplace drives growth

We saw above that inclusive leaders are skilled at getting the most out of diverse teams and creating workplaces where everyone is empowered to achieve their full potential.

But that’s not all they can do.

In the 21st century, every company’s biggest challenge is to create growth. And, as the diagram below illustrates, the solution to this challenge is depends on inclusive leadership. No wonder diverse and inclusive organizations are 70% more likely to capture new markets and 19% more likely to see higher innovation revenue.

Image Source: Andrés T. Tapia and Alina Polonskaia, The Five Disciplines of Inclusive Leaders White Paper (Korn Ferry, 2020).

Inclusion is key to building workplaces of the future.

The case for the value of diversity is clear: diversity and inclusion increases company performance in nearly every metric that matters. Getting both elements right puts you at a significant competitive advantage.

To survive and thrive in the future, organizations need to do more than simply diversify their talent pools. They also need to design inclusive workplaces that meet the needs of all their employees and enable everyone in the organization to achieve their full potential.

To learn more, contact us here .

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10 Proven Actions to Advance Diversity, Equity, and Inclusion

Our research finds evidence that 10 specific tactics—some common, others underused—are particularly effective at advancing diversity, equity, and inclusion in the workplace.

By Julie Coffman, Elyse Rosenblum, Andrea D'Arcy, and Laura Thompson Love

• August 11, 2021

As America’s largest companies and their CEOs increasingly embrace a new leadership role in advancing racial equity, they face a confounding question: What really works? Despite decades of research and a growing corporate focus on diversity, equity, and inclusion (DEI) over the past few years, many executives are unsure what actions are most effective at increasing diverse representation, improving feelings of inclusion, or making progress on other DEI goals.

Written in collaboration with

Integrating DEI into organizational practices is nuanced, complex work—and relatively nascent. Robust, comparable multiyear DEI outcomes data is hard to come by. Even among those companies most committed to defining and measuring DEI progress, results take time, and there are few benchmarks against which to measure them.

Many studies exist of specific employer DEI efforts or practices that have led to strong DEI outcomes, but parsing through that literature to make data-driven decisions is challenging. At Bain and at Grads of Life, we frequently hear C-suite leaders say, “I don’t know where to start,” or “the amount of information and tools is overwhelming.” Many simply want a blueprint for what’s been effective for other companies.

To that end, we have developed a short list of the strongest evidence-based DEI actions, based on a thorough review of more than 100 research sources, primarily academic literature, and informed by our experiences supporting our clients and engaging with DEI thought leaders (see our methodology below).

Ultimately, we found 10 actions worthy of increased employer attention and investment today:

Express C-suite commitment and formalize accountability

Adopt a skills-first approach to talent acquisition

Diversify talent pipelines through work-based experiences

Provide family-sustaining wages and benefits

Communicate skills-based career pathways

Offer voluntary DEI training for all

Listen to and learn from experiences of employees

Invest resources in cross-training and upskilling

Create mentoring and sponsorship programs

Build a diverse supply chain

Each of the actions above resulted in one or more positive outcomes for an organization’s diverse or underrepresented talent, including:

• improved rates of recruitment and hiring;
• increased levels of representation in an organization;
• increased feelings of engagement and belonging; and
• increased rates of retention and internal promotion.

We also examined how widely implemented these actions are, and, for those not yet widely implemented, we examined the biggest barriers to accelerating adoption. We evaluated these actions within a framework that spans all the core areas of business operations (see Figure 1).

The most effective diversity, equity, and inclusion strategies span key areas of business operations inside and outside of the company’s walls

Our analysis also revealed that half of the 10 actions are not yet mainstream despite the strong research behind them. Employers should prioritize these actions and explore how to overcome potential barriers to implementation. The remaining actions are already quite common, yet companies need to be aware of important nuances in order to implement them effectively. While many employers already have experience with these actions, there are ways to connect them more effectively to DEI strategy and outcomes (see Figure 2).

The 10 most effective actions include 5 that are not yet mainstream and 5 that, though common, can often be deployed more effectively

We also found that a combination of several, or all, of these actions is more powerful than any one action on its own. While many of these actions alone can drive improvements, when taken together, the actions are mutually reinforcing: The more you implement, the greater likelihood of seeing strong DEI outcomes. In conjunction with this report, Bain & Company and Grads of Life have released The DEI Opportunity Identifier, a self-assessment tool that allows companies to assess themselves against all the DEI actions described here as well as many others.

How Is Your Company Doing on Its DEI Journey?

To assess your best opportunities to advance, explore this demo version of the DEI Opportunity Identifier built by Bain & Company and Grads of Life.

In each of the individual action pages that comprise this report, we present a synthesis of insights from the research about the action, analyze what it takes to successfully implement each action, and explore why some of the actions are not yet pervasive among US employers despite their strong evidence base.

How employers can take action

Many employers have already articulated or expanded a commitment to diversity over the past year. There are several concrete ways employers can use the information in this report to help fulfill those commitments.

• Connect and learn: Consider joining a local or national business coalition committed to adopting actions such as the ones articulated here. OneTen, the Business Roundtable’s Multiple Pathways Initiative, CEO Action for Diversity & Inclusion, and the New York Jobs CEO Council are all examples of corporate coalitions focused on taking action to increase equity through employment. Many of them engage in frequent peer learning, knowledge sharing, tool development, and, in some cases, technical assistance on implementation.
• Assess and invest: Explore which of the 10 key actions outlined in this report are ripe for further investment at your company. While these actions are defined to be universally applicable to companies of all sizes and industries, DEI looks different at every company, and each company is at a different place on its DEI journey; individual context remains essential in analyzing what to do from here. We encourage employers to conduct a self-assessment on progress against goals using the Opportunity Identifier and to explore ways to apply the evidence-based actions described here to their organizations.
• Measure and report: Similar to most business strategies, DEI comes with continuous learning and improvement. There is still much to discover about the nuanced approaches to these actions that are most effective in driving results. We encourage employers to rigorously measure outcomes of each intervention and, where possible, report on those outcomes to employees, researchers, and other employers to help inform working knowledge in this field.

How investors can take action

Investors are increasingly interested in, and demanding, meaningful human capital data as one means of assessing a corporation’s total value. Over the past two years, a global outcry for racial justice, coupled with the effects of the Covid-19 crisis, have resulted in increased scrutiny from investors, consumers, and other stakeholders on environmental, social, and corporate governance factors that help paint a picture of a company’s total social impact. We encourage investors to use the data and evidence in this report to monitor and measure key human capital actions and their outcomes among the companies in which they invest and to use their position to influence companies to be more transparent on DEI data.

We hope that other stakeholders, including members of the philanthropic community, grassroots organizers, and policymakers, also find value in the findings summarized here and will take the opportunity to share relevant insights with their networks. Investments into DEI have positive effects that go far beyond the four walls of a corporation; they ultimately lead to greater community and national prosperity and well-being.

This report would not have been possible without the significant research, analysis, writing and editing support of Kelly Graham, Joana Ortiz, Alanna Rodgers, and Nandita Jariwala. We thank them for their significant contributions.

About Grads of Life

We work with leading employers to create inclusive talent strategies that deliver both social impact and business benefits. Through our data-driven approach, we help companies understand their current positioning and create customized engagements to help them achieve their goals.

Further - Our Global Responsibility

Further is our collective ambition to create a more sustainable, equitable, and inclusive world. A journey to transform businesses and communities for the better.

To arrive at the list of research-backed actions presented in this report, we began with nearly 200 actions that we believed, through our own expertise and knowledge of the literature, positively influenced DEI outcomes. We reviewed more than 100 academic research sources, drawing primarily on 3 groups of literature: DEI research, academic and business literature on frontline workers of color, and literature on “good jobs” or “quality jobs.”

To be included in our study, a practice must demonstrate at least one “positive DEI outcome” for businesses with respect to supporting diverse talent. “Diverse talent” is a broad set of distinct employee groups defined by specific demographic characteristics, including but not limited to individuals who are women, racially diverse, LGBTQ and/or gender nonconforming, employees with disabilities, and military veterans. Many of the research sources we reviewed focused specifically on Black, Latinx, and women employees.

Positive DEI outcomes are defined as:

• improved rates of recruitment and hiring of diverse talent;
• increased levels of representation of diverse talent within an organization;
• increased feelings of engagement and belonging among diverse talent; and
• increased rates of retention and internal promotion among diverse talent.

The actions covered in this report represent a synthesis of the 200 initial actions considered. We combined several granular actions to improve readability and action orientation.

Pervasiveness

We define pervasiveness as follows:

• more common—practice observed in greater than 50% of companies from available sources;
• less common—practice observed in less than 50% of companies from available sources.

We reviewed four sources of data to arrive at our understanding of pervasiveness:

• Just Capital’s Corporate Racial Equity Tracker, a publicly available online database with analysis of the 100 largest companies and the prevalence of 22 data points related to racial equity, roughly half of which are reflected in this report;
• (This survey was fielded in October 2020 among Year Up’s 18,000 alumni, largely millennials and Gen Zers, who are representative of the full American experience. We received 552 completed survey responses from alumni with varying backgrounds. Respondents were 56% male and 42% female, with 98% being between 20 and 38 years old. The majority were nonwhite, with 40% identifying as Black or African American, 32% as Hispanic or Latino, 14% as Asian, 5% as white, and 4% as two or more races.)
• data from more than 500 entries on the Opportunity Navigator, a free and publicly available self-assessment tool created by Grads of Life and Talent Rewire that invites self-assessment on key actions related to diversity, equity, and inclusion, 100% of which are reflected in this report; and
• after reviewing these three sources, we added an additional layer of analysis based on our respective client work and anecdotal observation of pervasiveness.

Limitations and key assumptions

The actions included in this report may not represent the only actions with a strong evidence base, and we encourage and invite feedback and suggested additions based on additional literature and academic insight.

We recognize that our calculation of pervasiveness is an imperfect measure and that the sources referenced are a sample of companies but not an exhaustive review.

We additionally acknowledge our bias in the analysis of actions, including the “why it works” and the “adoption curve” sections. As consultants working with organizations on DEI strategy for more than 20 years, we recognize that our experiences and anecdotal observations working in partnership with companies inherently influence our analysis of each practice.

Finally, we recognize that understanding what drives DEI outcomes is, overall, still a nascent academic field. We have been advised by several leading academics in this space that there is still much to uncover about which contextual factors and sets of actions lead to improvements over time, and ultimately, employer willingness to share their experiences with these actions, along with their outcomes data, is a key necessary step in improving the body of literature further.

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What works: evidence-based ideas to increase diversity, equity, and inclusion in the workplace.

    Download a PDF of the Full Report

What Works: An Introduction

David S. Pedulla

Together, the chapters in this report offer a wealth of evidence-based insights about how managers can increase diversity, inclusion, and equity in their organizations. Of course, the report can be read cover to cover. But, you can also dive right in to a particular chapter that addresses a pressing issue for your organization. Each chapter can stand alone. Additionally, at the end of each chapter, the authors have included citations to the articles and resources that they have drawn on in their analysis. These reference materials may be of use to you as well. 

Download the PDF

Chapter 1: Do Implicit Attitudes and Beliefs Change over the Long-Term?

Tessa E.S. Charlesworth & Mahzarin R. Banaji

In this essay we report analyses performed on a unique dataset that reveal the first evidence that ISC can, in fact, change over the long-term (10 years). Importantly, we also show that ISC does not always change, and sometimes even changes in harmful directions. We describe evidence that shows both positive and negative trends, where positive trends refer to change in the direction of neutrality (zero bias), and negative trends refer to no change or reverse change, away from neutrality. 

Chapter 2: Metrics, Accountability, and Transparency: A Simple Recipe to Increase Diversity and Reduce Bias

Elizabeth Hirsh &  Donald Tomaskovic-Devey

The best organizational research shows that the magic recipe for achieving diversity is no different from the steps necessary to achieve other business goals. In order to change behavior, firms must develop appropriate goals and metrics, share thems. with stakeholders, and embrace accountability for outcomes. In the case of diversity, this means firms must collect diversity data and analyze them by examining flows over time and comparing them to similar organizations.

Chapter 3: Making Discrimination and Harassment Complaint Systems Bette r

Frank Dobbin & Alexandra Kalev 

For decades, employers have used formal grievance procedures to handle both discrimination and harassment complaints.But complainants often face career-ending retaliations. Procedures that provide confidentiality for the accused can prevent serious investigation and protect serial abusers. To avoid the pitfalls of the formal complaint system, employers should adopt a menu of alternatives, including ombuds programs and dispute resolution systems. The formal grievance system can then be reserved for cases where the misbehavior is particularly egregious. 

Chapter 4: Using Technology to Increase Fairness in Hiring  

Kelly Trindel, Frida Polli & Kate Glazebrook

Although the current state of public conversation around technology in employment selection highlights the potential danger and recent missteps, it is important to keep in mind that traditional analog recruitment and hiring approaches have resulted in a situation that is not working for women and racial/ethnic minority group members. Carefully designed technological solutions cannot be ignored as viable alternatives to a biased human approach. 

Chapter 5: Overcoming the Small-N Problem  

Iris Bohnet & Siri Chilazi

Small samples negatively affect the quality of the information we use when making group-based estimates. Small samples have higher variability than large samples, so data about a handful of female and minority leaders are less informative than the data about the large cohort of their male and white counterparts. 

Chapter 6: Context Matters: Moving beyond “Best Practices” to Creating Sustainable Change

Lori Nishiura Mackenzie & JoAnne Wehner

Enhancing diversity and inclusion are priorities for many organizations, yet leaders often lack a clear direction as to how to create the desired change. The aim of the Stanford VMware Women’s Leadership Innovation Lab is to combine academic and realworld insights to develop strategies that will help organizations make their workplaces more diverse and inclusive. To gain this insight, we lead research at companies from a range of industries, including technology and professional services, and meet with leaders at all levels of the organizations. 

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A Leadership Guide to Diversity & Inclusion in the Workplace

Despite mounting evidence that demonstrates the substantial benefits of diversity, equity, and inclusion (DEI) initiatives in organizational success (Krause, 2022), many organizations are slow to make meaningful headway on this issue (Dixon-Fyle et al., 2020).

This leadership guide is designed to help leaders identify barriers and challenges to implementing DEI initiatives and to equip them with actionable insights to leverage the advantages of diversity and inclusion in the workplace.

By embracing DEI, companies position themselves strategically for enhanced innovation, improved financial performance, and increased employee engagement. They also fulfill their moral and ethical responsibilities to their employees, local communities, and society more broadly.

Before you continue, we thought you might like to download our three Positive Leadership Exercises for free . These detailed, science-based exercises will help you or others adopt positive leadership practices and help organizations thrive.

This Article Contains

What are the benefits of a diverse workplace, 5 strategies for leaders to foster diversity and inclusion, how to overcome challenges and address resistance, 5 key elements of successful diversity and inclusion initiatives, recommended dei books, useful resources from positivepsychology.com, a take-home message, frequently asked questions.

Diversity, equity, and inclusion comprise a set of values and practices within a wider business strategy that aim to drive fairness and equity within the working environment for “people of different races, ethnicities, religions, abilities, genders, and sexual orientations” (McKinsey, 2022, para. 1).

Investing in DEI can be fruitful for business-related outcomes and for employee wellbeing. Krause (2022) suggests that DEI is a vital foundation from which workplace wellbeing and optimal performance can emerge.

While many organizations will inquire about the return on investment of DEI efforts, there is much more to be gained than profit maximization. That being said, evidence suggests that diverse and inclusive leadership teams are 21% more likely to outperform their peers in terms of profitability (Dixon-Fyle et al., 2020) and have 19% higher revenue due to increased innovation (Lorenzo et al., 2018).

The following list details other equally important advantages of fostering diversity and inclusion in the workplace:

Increased innovation, creativity & problem solving

Reynolds and Lewis (2017) found that diverse teams solve problems faster than homogeneous teams by bringing more innovative ideas and creative solutions to challenges.

Enhanced decision-making

Diverse teams can positively influence decision-making. The inclusion of diverse voices helps to avoid groupthink, encourages critical analysis, and promotes a culture of continuous learning and improvement (Robinson & Dechant, 1997).

Improved employee performance, engagement, and reduced turnover

A diverse and inclusive environment fosters a sense of belonging and value, which can positively impact job satisfaction , retention, and engagement (Albrecht & Andreetta, 2011; Brimhall et al., 2017; Gallup, 2022).

Better understanding of global markets

A diverse workforce mirrors a diverse customer base, providing insights into different markets and cultural nuances. This understanding can be valuable for organizations looking to expand globally or cater to diverse customer needs (Robinson & Dechant, 1997).

Enhanced reputation and brand image

Companies that prioritize diversity are often seen as socially responsible and progressive. A positive reputation for diversity and inclusion in the workplace can attract customers, clients, and investors who value these principles (Rao & Tilt, 2016).

It is evident then, that building a diverse workforce that reflects the world we live in can have critical implications for individuals and businesses.

Implementing workplace DEI strategies more broadly can also have spillover benefits for society, such as more acceptance and pursuit of equal societies and greater societal and global wellbeing (Krause, 2022).

As such, it is important that organizations and leaders accept their responsibility to foster DEI in their workplace and are fully committed to seeing their strategies through, even in the face of setbacks and challenges.

Furthermore, DEI must be viewed as a long-term strategy rather than a set of short-term initiatives. A systemic approach is required to implement positive change (Zheng, 2022).

For these strategies to have a positive impact, they must be implemented comprehensively and consistently, such that diversity, equity, and inclusion are woven into the very fabric of the organization. This requires ongoing commitment and proactivity from leaders and managers.

Here are five key strategies leaders should focus on to promote diversity and inclusion in the workplace:

1. Lead by example

Leaders must demonstrate a commitment to diversity, equity, and inclusion through their actions and behaviors. Inclusive leadership training (Kuknor & Bhattacharya, 2020) can help leaders promote openness and transparency, build awareness of personal biases, enhance cultural competency, and empower others.

For more information on inclusive leadership, you may enjoy this TED talk by June Sarpong.

2. Create inclusive policies and practices

Organizations should establish comprehensive diversity, equity, and inclusion policies, paired with practices and processes that ensure fairness and equal opportunities for all.

These policies should be regularly reviewed and updated to address evolving needs and challenges.

3. Provide diversity and inclusion training

Providing regular training sessions can help raise awareness about unconscious bias, microaggressions, and the importance of DEI. It is the responsibility of organizations and leaders to equip their employees with the skills required to challenge and overcome biases in the workplace.

4. Promote diverse hiring and advancement opportunities

It is vital that organizations audit their hiring processes and make them more inclusive.

This means expanding hiring pools and addressing bias in both job criteria and interview processes. Mentoring and sponsorship programs can be a great way to further support underrepresented talent.

5. Foster inclusive culture and communication

Leaders must look to build a psychologically safe workplace culture that values open communication and collaboration.

This can be paired with establishing employee resource groups or affinity networks and celebrating cultural events to bolster a sense of understanding, community, and support among employees.

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Resistance to DEI efforts in organizations can stem from a variety of factors, often rooted in organizational culture, individual beliefs, and perceived threats.

Despite some recent backlash against DEI (where Elon Musk spoke against DEI; Hart 2023), it is more crucial than ever that organizations and leaders push for parity. But doing so requires hard work, oftentimes internally.

So before leaders forge ahead with their DEI strategy, it is important to identify possible sources of or reasons for opposition.

Lack of awareness and unconscious bias

Some individuals lack awareness of the benefits of DEI or the challenges faced by underrepresented groups. This lack of awareness, coupled with unconscious bias, can negatively influence decision-making and contribute significantly to resistance.

Recommendation : Provide education via training, workshops, guest speakers, and access to leadership books and video resources. Caveat: beware unconscious bias training as a cure-all. Some research suggests it does little to eradicate bias (Noon, 2018).

Fear of change

Change can always be a scary proposition, even when it is a positive change. Some employees may be concerned that DEI efforts will disrupt established norms, leading to discomfort or uncertainty about their roles within the organization.

Recommendation: A communication plan where the goals and intent of DEI programs are clearly stated can help allay fears of uncertainty. Appreciative inquiry can also be a helpful tool to galvanize hope around organizational change.

Perceived threat to power dynamics

Individuals in positions of privilege may feel that DEI efforts challenge their status or perceived advantages. Resistance can be rooted in a fear of losing power, influence, or opportunities as the organization becomes more diverse.

Recommendation: Fostering empathy through compassion training can be an effective tool to address resistance stemming from relinquishing power and control. Building compassion toward others creates understanding and reduces ego-defensiveness (Neff, 2011).

Addressing resistance to DEI efforts requires a multifaceted approach that involves a lot of deep work. However, addressing these underlying issues before starting out on a DEI journey may offer a greater chance of success.

1. Significant resource allocation

If organizations really want to make progress with DEI, they have to commit resources to the program. This should include monetary, material, time, management, and expertise/intellectual resources.

2. DEI management

Organizations must consider how to carefully manage their DEI strategy. One of the most effective approaches is to create dedicated roles and teams for DEI and hire individuals with expertise, such as organizational psychologists, sociologists, behavioral scientists, and leaders with DEI certifications (Plaut, 2010).

3. Evidenced-based targets

Data is vital for creating change because it can reveal insights into an organization’s DEI gaps and allow for real-time monitoring of progress toward goals.

It is also important that organizations create targets that are grounded in evidence, using academic research and practical positive feedback .

4. Core business leadership accountability

For cultural and organizational change to occur, there must be support and buy-in from the leadership and executive levels (Sashkin, 2012). Moreover, there must be accountability when DEI issues emerge. For example, how do leaders manage instances of microaggressions in the workplace?

5. Include diverse voices in the process

When approaching DEI, diverse voices must be central to shaping organizational values, policies, practices, and strategies.

However, this does not mean pushing the burden of fixing structural inequalities onto individuals from historically marginalized backgrounds. Rather, employees should work collaboratively to co-create inclusive workplaces that make sense and work for all.

If organizations are able to commit to these best practices, DEI programs have a greater chance of creating positive change.

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Given the popularity of DEI as a movement, concept, and moral position, books on how to navigate diversity and inclusion in the workplace and support equality in society are increasing.

The following list outlines five excellent reads that provide a breadth and depth of knowledge on key topics such as bias, race, trans rights, and how to build successful DEI programs.

These books offer valuable perspectives on different aspects of DEI, providing practical insights, research-based knowledge, and tools for creating more diversity and inclusion in the workplace.

1. Blindspot: Hidden Biases of Good People – Mahzarin R. Banaji and Anthony G. Greenwald

This book is an essential read for anyone seeking to understand and mitigate the impact of unconscious bias in the workplace and beyond.

Find the book on Amazon .

2. How to Be an Antiracist – Ibram X. Kendi

Kendi challenges readers to move beyond non-racism and actively work against racist structures. Drawing on personal experiences and historical analysis, Kendi provides a guide for individuals and organizations committed to fostering antiracist practices.

This book is instrumental in shaping discussions around diversity, equity, and inclusion, encouraging readers to critically examine their beliefs and actions.

3. The Transgender Issue: An Argument for Justice – Shon Faye

Through a combination of personal narrative, social commentary, and critical analysis, Faye delves into the complexities of transgender identity, shedding light on the social, cultural, and political factors that shape the lives of transgender people.

The Transgender Issue  serves as an essential resource for anyone seeking to better understand and support transgender individuals in today’s society.

4. DEI Deconstructed: Your No-Nonsense Guide to Doing the Work and Doing It Right – Lily Zheng

Critically, Zheng emphasizes the importance of intersectionality and the need to address systemic inequalities to create meaningful change.

As such, DEI Deconstructed  serves as an invaluable resource for leaders, HR professionals, and individuals committed to advancing DEI in their organizations and communities.

Find the book on Amazon.

5. I’m Not Yelling: A Black Women’s Guide to Navigating the Workplace – Elizabeth Leiba

Through personal anecdotes, interviews, and research, Leiba sheds light on the unique challenges and systemic barriers faced by Black women in the workplace.

Leiba also offers practical strategies and advice for Black women to advocate for themselves, navigate office politics, and thrive in their careers. As such, this book is an influential resource for those seeking support and guidance in their professional journeys.

For a bumper crop of useful exercises and worksheets to help leaders who are keen to build an agenda for diversity and inclusion in the workplace, look no further than PositivePsychology.com.

One good place to start is by exploring the building empathy worksheet. This worksheet is useful for groups and enables individuals to engage in perspective taking. Being able to listen and place ourselves in the shoes of others is key to fostering social empathy (Segal, 2011).

Closely linked to empathy is compassion. Leaders can benefit hugely from practicing compassion, both toward themselves and others. This compassion worksheet is focused on maintaining positive relationships with others by introducing four new ways to show appreciation and care to others.

Self-esteem is another critical psychological resource that all leaders could benefit from cultivating. This self-esteem journal helps individuals foster positive beliefs about themselves and their capabilities by reflecting on meaningful daily events. By leaning into self-acceptance and vulnerability, leaders will be in a much better position to build safe and inclusive environments for others.

Given the fact that resistance to DEI efforts can stem from a lack of awareness of one’s own biases, the Johari window exercise is a useful way to build self-awareness and shed light on beliefs and assumptions that need addressing.

If you’re looking for more science-based ways to help others develop positive leadership skills, check out this collection of 17 validated positive leadership exercises . Use them to equip leaders with the skills needed to cultivate a culture of positivity and resilience.

Looking to the future, Van Durme et al. (2023) argue that DEI must become a top area of focus for organizations. Dismantling inequality in the workplace is not an easy task.

But taking vital steps toward creating parity is possible. By incorporating the principles and practices above into DEI efforts, leaders can play a vital role in shaping a workplace that goes beyond acceptance to active celebration of diversity and inclusion.

This commitment to DEI can transcend the organization and contribute to a broader societal shift toward understanding, tolerance, and unity. In this way, DEI can be a formidable catalyst for positive change.

We hope you enjoyed reading this article. Don’t forget to download our three Positive Leadership Exercises for free .

Inclusion and diversity in the workplace refer to the values and practices that aim to ensure fairness and equity for people of different races, ethnicities, religions, abilities, genders, and sexual orientations (McKinsey, 2022).

They lead to increased innovation, creativity, improved decision-making, enhanced employee performance, and better understanding of global markets (Reynolds & Lewis, 2017; Robinson & Dechant, 1997)​.

By setting evidence-based targets and using data to monitor progress. This involves creating targets grounded in research and analyzing data to identify gaps and improvements​.

Companies can foster an inclusive culture that values open communication and collaboration, provide diversity and inclusion training, and promote diverse hiring practices to support employees with different thinking styles (Kuknor & Bhattacharya, 2020)​.

It ensures that diversity efforts address the varied and intersecting experiences of individuals, promoting a more inclusive environment that recognizes and values all aspects of a person’s identity​.

• Albrecht, S. L., & Andreetta, M. (2011). The influence of empowering leadership, empowerment and engagement on affective commitment and turnover intentions in community health service workers: Test of a model. Leadership in Health Services , 24 (3), 228–237.
• Brimhall, K. C., Mor-Barak, M. E., Hulbert, M., McArdle, J. J., Palinkas, L., & Henwood, B. (2017). Increasing workplace inclusion: The promise of leader-member exchange. Human Service Organizations: Management, Leadership & Governance , 41 (3), 222–239.
• Dixon-Fyle, S., Hunt, V., Prince, S., & Dolan, K. (2020, May 19). Diversity wins: How inclusion matters. McKinsey & Company. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters
• Gallup. (2022, May 11). Unleashing the human element at work: Transforming workplaces through recognition . https://www.workhuman.com/resources/reports-guides/unleashing-the-human-element-at-work-transforming-workplaces-through-recognition/
• Hart, R. (2023, Dec 15). Elon Musk Says DEI ‘Must Die’ and Criticizes Diversity Schemes as ‘Discrimination’. Forbes. https://www.forbes.com/sites/roberthart/2023/12/15/elon-musk-says-dei-must-die-and-criticizes-diversity-schemes-as-discrimination/
• Krause, W. (2022). Diversity, equity and inclusion as fertile foundation for workplace well-being, optimal performance, and planetary health. In J. Marques & S. Dhiman (Eds.), Leading with diversity, equity and inclusion: Approaches, practices and cases for integral leadership strategy (pp. 263–279). Springer.
• Kuknor, S., & Bhattacharya, S. (2020). Inclusive leadership: New age leadership to foster organizational inclusion. European Journal of Training and Development , 46 (9), 771–797.
• Lorenzo, R., Voigt, N., Tsusaka, M., Krentz, M., & Abouzahr, K. (2018, January 22). How diverse leadership teams boost innovation . BCG Global. Retrieved January 23, 2024, from https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation
• McKinsey. (2022, August 17).  What is diversity, equity, and inclusion? https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-diversity-equity-and-inclusion
• Neff, K. D. (2011). Self‐compassion, self‐esteem, and well‐being. Social and Personality Psychology Compass , 5 (1), 1–12.
• Noon, M. (2018). Pointless diversity training: Unconscious bias, new racism and agency. Work, Employment and Society , 32 (1), 198–209.
• ​​Plaut, V. C. (2010). Diversity science: why and how difference makes a difference . Psychological Inquiry , 21 , 77–99.
• Rao, K., & Tilt, C. (2016). Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics , 138 , 327–347.
• Reynolds, A., & Lewis, D. (2017, March 30) Teams solve problems faster when they’re more cognitively diverse . Harvard Business Review. https://hbr.org/2017/03/teams-solve-problems-faster-when-theyre-more-cognitively-diverse
• Robinson, G., & Dechant, K. (1997). Building a business case for diversity. Academy of Management Executive , 11 (3), 21–31.
• Sashkin, M. (2012). Leadership. In W. E. Rosenbach, R. Taylor, & M. A. Youndt (Eds.), Contemporary issues in leadership . Westview Press.
• Segal, E. A. (2011). Social empathy: A model built on empathy, contextual understanding, and social responsibility that promotes social justice. Journal of Social Service Research , 37 (3), 266–277.
• Van Durme, Y., Scoble-Williams, N., Eaton, K., Kirby, L., Griffiths, M., Poynton, S., Mallon, D., & Forsythe, J. (2023, February 2). Deloitte 2023 global human capital trends . Deloitte Insights. Retrieved January 23, 2024, from https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2023/future-of-workforce-management.html
• Zheng, L. (2022). DEI deconstructed: Your no-nonsense guide to doing the work and doing it right . Berrett-Koehler.

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The importance of diversity and inclusion for today’s companies.

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Bernard Tynes, SVP and Director of Marketing and Data Analytics,  Penn Community Bank .

Diversity and inclusion are essential today—something I have seen firsthand within Penn Community Bank. D&I allows organizations to be more inclusive of different ideas, cultures and lifestyles, leading to improved company culture. It also puts companies in the position to hire the best employees from a diverse and often untapped candidate pool while increasing customer satisfaction with their services.

I have found that diversity brings together people from different backgrounds, showcases a variety of perspectives and leads to innovation and creativity. When you bring people together from all walks of life—different genders, backgrounds and races—it’s amazing what we can accomplish. So, what are the benefits of D&I efforts and how can you implement them?

Utilizing Diversity & Inclusion

Having a diverse workforce means happier and healthier employees, customers feel more respected and managers have greater access to the talent and skillsets they need for their organizations to thrive. A study from Harvard Business Review found that diverse companies had a 19% higher innovation revenue. But even with those benefits, many banks have been slow to integrate diversity into their ranks . This reluctance may be due to misunderstanding what inclusion means for banking and how it improves all aspects of your operations.

As part of PennCB’s leadership team, I think it’s essential to focus on diversity if you want to do great business. Many consumers want to do business with institutions they can relate to personally, which requires a diverse staff and management team. This is especially true of diverse communities; we want our team to reflect the customers we serve. Plus, ethnically diverse companies are 35% more likely to outperform , while gender-diverse companies are 15% more likely to do so.

Maximizing Operations With Diversity

You’re missing out on talent if you’re not reaching different demographics in the communities that you serve. The definition of diversity and inclusion can be interpreted in many ways. Still, at its core, it is the understanding that everyone is unique and should be respected for their differences. This includes race, ethnicity, gender identity, sexual orientation, socioeconomic status, religion, age and abilities.

D&I efforts are needed to create an environment where everyone feels welcome and can contribute their best ideas and talents; a company’s success depends on its ability to innovate and develop new solutions. To do this, you need a creative workforce with various skillsets, which diversity provides.

There’s a lot of evidence in favor of having a diverse and inclusive workforce, not only in terms of creating new ideas, but also in creating an attractive environment for job-seekers. By 2025, estimates predict the workforce will be 75% millennials , which will continue to be another driving force for D&I. This segment of the workforce highly values diversity, with a 2016 survey reporting that 47% of millennials actively look for diversity in the workplace , meaning that diversity should also be a primary concern for organizations looking to attract the best and brightest employees.

At Penn Community Bank, diversity benefits us because it allows us to attract better talent and best serve different communities in our markets, which opens new opportunities for us to grow. A diverse workforce helps banks and companies attract new customers in the community, from all walks of life, as people want to do business with institutions that share their values. For many, those values are inclusion and diversity.

Creating An Inclusive Atmosphere

There are many ways that companies can enhance their inclusion efforts. Some simple things you can do include conducting training on cultural sensitivity, developing an employee resource group for people of diverse backgrounds and creating an inclusive environment in which everyone is welcome to voice their opinions. You can also reach out to local organizations that support diversity and inclusion and partner with them to spread the message.

Most importantly, companies must ensure their policies and practices reflect the importance of diversity and inclusion. This includes setting diversity goals, making a commitment to hiring a diverse workforce and tracking the diversity of the workforce. By embracing diversity and inclusion, you create a more equitable and inclusive workplace for everyone.

Monitoring D&I Efforts

Institutions can track their progress toward becoming more diverse and inclusive through resources such as employee groups. These are opportunities for employees to get together and help one another solve problems, enhance career development and share industry best practices. Diversity can also be measured through metrics that track the makeup of an organization’s leadership team, such as the ratio of diversity among, in the case of the banking industry, your tellers and other roles. Beyond your organization, you can promote diversity and inclusion through acts such as hosting events to show appreciation for diversity or rewarding scholarships locally, further connecting your organization with the community you serve.

When companies embrace diversity and inclusion, it leads to a more productive and profitable workforce. Diverse teams are often more creative and innovative , which leads to new ideas and solutions to ensure you remain competitive in a world increasingly focused on social issues and leveling the playing field for underrepresented groups. Companies that embrace diversity also tend to be more successful in reaching a wider audience. All in all, it’s clear that embracing diversity is not only the right thing to do, but it’s also good for business.

The importance of diversity and inclusion in banking is something that many people don’t think about, but it’s the key to maximizing operations in this industry and beyond. The benefits speak for themselves; it offers an inclusive atmosphere that will help you attract a diverse group of employees, which can be leveraged to brainstorm new ideas for your company.

We need more diverse thought leadership not just from women or minorities, but across all spectrums. I’ve seen firsthand the importance of an institution being dedicated to creating opportunities for current and prospective employees while improving the customer experience through D&I efforts.

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Why Dropping the E in DEI Is a Mistake

• Enrica N. Ruggs
• Oscar Holmes IV

The Society for Human Resource Management’s decision to remove “equity” from its DEI framework sets a dangerous precedent that flies in the face of decades of research.

The Society for Human Resource Management (SHRM) has decided to remove “equity” from its inclusion, equity, and diversity (IE&D) framework, now promoting “inclusion and diversity” (I&D) instead. This decision sets a dangerous precedent that flies in the face of decades of research about DEI in the workplace. It undermines efforts to create equitable workplaces and ignores the vital role of equity in fostering fairness and addressing systemic barriers faced by marginalized groups. Instead of scaling back their focus on equity, companies should: 1) Commit to achievable equity goals; 2) Implement and track evidence-based DEI policies and practices; and 3) Establish accountability and transparency.

Recently, the Society for Human Resource Management (SHRM), a leading voice of HR professionals, announced that it was abandoning the acronym “IE&D” — inclusion, equity, and diversity — in favor of “I&D.”

• Enrica N. Ruggs , PhD is an associate professor of management in the C. T. Bauer College of Business at the University of Houston. She is a workplace diversity scholar who conducts research on reducing discrimination and bias in organizations and improving workplace experiences for individuals with marginalized identities.
• Oscar Holmes IV , PhD, SHRM-SCP is an associate professor of management at Rutgers University-Camden and the creator and host of the podcast Diversity Matters . In his research he examines how leaders can maximize productivity and well-being by fostering more inclusive workplaces.

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