BLOG POST
Why DEI Remains a Business Imperative in 2025
The business case for diversity, equity, and inclusion (DEI) in 2025 is stronger than ever.
While setbacks and challenges may persist, research consistently demonstrates that diverse workplaces are more profitable, innovative, and ultimately, successful.
What are the Benefits of DEI Initiatives?
Boosted Financial Performance
Companies with diverse executive teams are statistically more likely to outperform their competitors. A recent McKinsey report (2023) found that organizations with diverse teams are 39% more likely to outperform their peers, highlighting the direct link between inclusion and profitability. In McKinsey’s 2015 report a decade ago, the outperformance gap was only 15%.
Enhanced Talent Attraction and Retention
In today’s competitive job market, DEI is a powerful competitive edge for employers looking to attract and retain top talent.
Recent data shows that 76% of job seekers and employees report that a diverse workforce is an important factor in their decision-making when evaluating companies and job offers. Additionally, 69% of millennials and Gen Z employees are more likely to stay with a company for 5+ years if it has a diverse workforce.
This emphasis underscores the importance of DEI in building a strong employer brand. It also highlights the role of DEI in fostering a positive employee experience and ultimately achieving a competitive advantage when hiring.
Improved Innovation and Problem-Solving
Diverse teams bring a wealth of perspectives, experiences, and backgrounds to the table.
This diversity of thought fuels creativity, challenges conventional thinking, and leads to more innovative solutions to complex problems.
In fact, one study found that diverse and inclusive teams make better decisions 87% of the time. This enhanced decision-making translates to significant business gains, with companies boasting above-average diversity reporting 19% higher innovation revenue.
In rapidly evolving industries, this ability to adapt and innovate through diverse perspectives is crucial for long-term success.
Increased Employee Engagement
When employees feel valued, respected, and included, they are more engaged and productive.
Deloitte research highlights the significance of this. They reveal that 83% of millennials are actively engaged when they believe their organization fosters an inclusive culture, compared to only 60% when they don’t.
DEI initiatives foster a sense of belonging and create a more inclusive work environment where all employees feel valued and respected. This leads to increased employee morale, reduced turnover, and improved overall job satisfaction.
5 Strategies for Future DEI Success
1. Ensure your DEI efforts don’t adopt a one-size-fits all approach for multiple locations.
For bigger companies that have locations in multiple places, consider adapting your DEI approach to fit the laws and cultures of each place. For example, a company operating in both British Columbia and Ontario should adapt its DEI programs to comply with the distinct legal frameworks of each province while upholding its core organizational values.
2. Equip your leaders to lead the way.
Leaders need to be prepared to handle the many different aspects of DEI. They must be able to understand and connect with people from all backgrounds, be aware of different cultures, and support everyone on their team. Training that helps leaders develop emotional intelligence, understand different cultures, and become active allies will help them create a truly inclusive workplace.
3. Leverage technology and AI accordingly – but beware of biases.
Technology provides us with powerful tools to advance DEI. Artificial intelligence (AI) can help identify and minimize bias in hiring, analyze pay equity, and gauge employee sentiment. However, it’s crucial to remember that AI algorithms can also reflect and perpetuate existing biases. Ensure your business is carefully monitoring and addressing these potential biases to ensure that technology is used responsibly to promote a more inclusive workplace.
4. Support employee-led programs and initiatives.
Employee Resource Groups (ERGs) are groups of employees within a company where employees who share a common identity or experience can connect and support each other. These groups, such as those for women or 2SLGBTQIA+ individuals, can significantly enhance a sense of belonging and contribute to your company’s DEI goals. When employees actively lead these groups, they feel more invested in your company’s success and can offer valuable insights into the unique challenges and needs of underrepresented groups.
5. Track DEI progress with clear and transparent metrics.
Setting clear goals for DEI that you can measure, and making sure leaders understand what their roles are in reaching those goals, builds trust with employees and external stakeholders who work with your company. This might involve providing dedicated training on inclusive leadership practices, allocating resources for DEI initiatives, and holding regular check-ins to assess progress and address any roadblocks.
The Future of Business is Built on DEI
The business case for DEI in 2025 is undeniable. Organizations that embrace diversity, equity, and inclusion can unlock significant benefits, including improved financial performance, increased innovation, and a stronger competitive advantage. Commitment to DEI is essential for long-term sustainability and success as a business in an increasingly interconnected and diverse world.
Looking to implement DEI initiatives in 2025 that drive real impact?
We’re here to help! Get in touch to learn more about implementing DEI initiatives that will drive meaningful change within your organization and across the waterfront.
