DEI in 2025: Equity, inclusion & real change at work
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Diversity and inclusion at work are under pressure currently, but organisations that double down will be the ones that thrive. Recent data reveals a significant shift in corporate commitment to DEI: the percentage of S&P 500 companies linking executive compensation to diversity, equity, and inclusion metrics has plummeted from 52% to just 22% in a year’s time! This backlash highlights the growing scrutiny on diversity and inclusion strategies and the risks of retreating from them.
Despite these challenges, equity and inclusion in the workplace remain critical. Companies that promote equality, diversity and inclusion not only enhance employee engagement but also drive innovation and performance. This article will explore why diversity and inclusion at work are important and provide practical strategies for HR and L&D leaders to build an inclusive workplace culture that fosters long-term success.
We’ll deep-dive into:
- Why diversity and inclusion at work are important
- Data that builds the business case for DE&I
- The human case for diversity and inclusion at work
Why are equity and diversity important at work?
Diversity and inclusion at work remain under scrutiny amid political, social, and corporate debates, but their importance has never been greater. Despite backlash and shifting expectations, DEI initiatives continue to be essential. Not just as a moral imperative, but as a strategic advantage. Organisations that embed equity and inclusion in the workplace build resilience, foster innovation and position themselves to thrive in a rapidly evolving environment.
The case for equity and diversity is twofold.
- From a human perspective, inclusive workplace cultures create a sense of belonging, promote fairness and enhance psychological safety.
Employees who feel seen, heard, and valued are more engaged, motivated and committed. Which in turn reduces turnover and supports long-term career growth.
- From a business perspective, companies that prioritise diversity and inclusion strategies enjoy higher innovation, improved problem-solving and stronger financial performance.
A workforce that reflects diverse experiences and perspectives is better equipped to anticipate challenges, serve global markets and drive competitive advantage.
Gartner research indicates that in a diverse workforce, performance improves by 12%, and intent to stay increases by 20%. This highlights the business case for diversity in enhancing employee performance and retention.
In short, equity and diversity at work are not optional. They are essential for both people and performance. By recognising their value and actively promoting equality, diversity and inclusion in work, HR and L&D leaders can foster an environment where everyone thrives.
This is particularly urgent given recent Gallup data, which shows that currently only 33% of employees worldwide report thriving in their lives overall, highlighting the significant opportunity for organisations to make a real impact through inclusive workplace practices.
The business case for DE&I
Despite recent setbacks in diversity, equity and inclusion initiatives, the business case for DEI in Europe remains compelling. Organisations that prioritise DEI are better positioned to attract top talent, enhance employee engagement and drive innovation.
DEI as a Driver of Employee Engagement
Employee engagement is a critical factor in organisational success. According to the same report from Gallup, only 21% of employees globally are engaged in their work, with Europe reporting even lower engagement levels. In France, for instance, only 19% of employees are engaged, contributing to significant productivity losses.
And as every HR & L&D leader knows, engaged employees are more productive, have lower absenteeism rates and contribute to a positive workplace culture. The study found that organisations with highly engaged teams experience 78% less absenteeism, 23% greater profitability and 17% higher productivity in sales. Which makes a clear business case for DE&I initiatives to be in business interest.
DEI and Innovation
Diversity and inclusion at work are powerful drivers of innovation. Diverse teams don’t just bring different perspectives—they spark creativity, enhance problem-solving, and create lasting impact. McKinsey’s “Diversity Matters Even More” report confirms this: companies in the top quartile for gender diversity on executive teams are 39% more likely to financially outperform their less diverse peers.
But diversity alone isn’t enough. Equity and inclusion in the workplace are what transform representation into results. Research shows that without inclusive practices, gender diversity does not automatically lead to greater creativity. In fact, A study of more than 4,000 video game development teams found that inclusion amplified the creative benefits of diversity, directly linking higher innovation to how well diverse voices were integrated into team decisions.
The conclusion is clear: promoting equality, diversity and inclusion in work isn’t just about fairness—it’s about building an inclusive workplace culture that converts diversity into measurable business success.
The human case for DE&I
While the business case for diversity and inclusion strategies is compelling, the human case is equally critical. Equity and inclusion in the workplace are what create cultures where people feel respected, valued and able to bring their whole selves to work. An inclusive workplace culture strengthens belonging, boosts psychological safety, and increases employee engagement. All factors that directly influence retention and wellbeing.
However, achieving meaningful DEI impact requires authenticity and consistency. Temporary or superficial initiatives—such as token representation or short-term campaigns—can do more harm than good, undermining trust, damaging credibility, and signalling that diversity and inclusion are not genuine priorities.
Rolls-Royce, the UK-based aerospace and defence company, for example faced significant backlash after scaling back its DEI programs in 2025. The company ended support for employee inclusion networks, including those for LGBTQ+ staff. Next to that they removed DEI references from their website. This move was perceived by many as a retreat from genuine commitment to diversity and inclusion, leading to criticism from employees and stakeholders alike. Such actions highlight the importance of authentic DEI efforts and the potential consequences of superficial initiatives.
Employees quickly recognise when diversity and inclusion at work are treated as box-ticking exercises rather than genuine, long-term commitments. True progress comes when organisations go beyond representation and embed equity into everyday practices. Ensuring that diverse voices are not only present but heard, respected and influential.
When HR and L&D leaders promote equality, diversity and inclusion in work with authenticity, they lay the foundation for stronger connections, higher morale, and a workforce that is motivated to contribute its best. In this way, DEI is not just a strategic initiative, it becomes a human commitment that transforms culture from the inside out.
How to promote equality, diversity and inclusion in the workplace
It’s clear that building an inclusive workplace culture requires more than good intentions, it demands practical action. HR and L&D teams play a pivotal role in embedding diversity and inclusion strategies, ensuring that DEI initiatives are authentic, sustainable and effective.
Here are five concrete ways to promote equality, diversity, and inclusion in work:
5 ways to promote equality, diversity and inclusion at work
- Bias-free hiring & promotions
Ensure job postings, candidate sourcing and promotion processes are free from bias. Adopt structured interviews, diverse hiring panels and clear criteria for advancement to support fairness and representation.
- Build an inclusive workplace culture
Create spaces where all employees feel valued and heard. Encourage open dialogue, celebrate diverse perspectives, and establish employee resource groups to strengthen belonging and psychological safety.
- Interactive DEI learning
Provide regular learning opportunities focused on unconscious bias, inclusive leadership and cultural competence. Make training interactive, relevant and linked to real workplace scenarios to increase engagement and impact.
- Track and measure progress
Regularly collect and analyse data on diversity metrics. For example inclusion perception and employee engagement. Use these insights to refine your DEI initiatives and strategies and hold leadership accountable for progress.
- Make DEI part of everyday work
Think beyond one-off initiatives. Include equity and inclusion in team meetings, performance reviews, goal setting and decision-making. By making DEI part of day-to-day operations, organisations ensure it is seen as a long-term commitment, not a temporary focus or project.
Buidling an inclusive workplace culture, from top to bottom
Inclusive behaviour starts at the top. It’s that simple. When senior leaders visibly model equity, transparency and empathy, they set the tone for what’s expected throughout the rest of the organisation.
However, with everything DE&I related it’s not enough for leaders to support DE&I in theory. Their actions matter more; who they hire, how they promote, how they hold themselves and others accountable.
Research confirms this link between leadership and real inclusion: according to the EY European DEI Index, only 7% of organisations surveyed are actually building a genuinely inclusive workplace culture. What separates those 7% is strong, inclusive leadership. Leaders who listen, act and embed equitable practices in every level of the organisation.
Practical behaviours that reinforce equity include:
- Leaders sharing decision-making power, involving diverse voices in strategy and planning.
- Transparent communication about DEI goals, metrics and progress.
- Recognising and rewarding contributions from underrepresented groups.
- Providing psychological safety: leaders admit mistakes, invite feedback and encourage people to speak up without fear.
These practices turn DEI from a checkbox into culture. When leadership consistently shows that equity and inclusion are core values, not optional extra, you build trust. Which strengthens belonging and creates an inclusive workplace culture that can weather scrutiny, resistance and change.
An inclusive workplace culture, the key to future-ready organisation.
The urgency is clear—why are equity and diversity important at work? Because they are not just moral imperatives, but the foundation of a future-proof, resilient and high-performing culture. The most competitive organisations will be those that transform diversity and inclusion strategies into everyday practice, creating inclusive workplace cultures where people thrive and innovation flourishes.
Future-proof your workforce with GoodHabitz. Discover how we help organisations promote equality, diversity and inclusion in work and build inclusive, future-ready workplaces.
Evy Moonen is the Content Marketing Manager at GoodHabitz, crafting content and strategies that help HR and L&D professionals build thriving learning cultures. When she’s not busy doing that, you’ll find her traveling, exploring the mountains, sipping great coffee, getting lost in a book or podcast, or enjoying time with her family. Any leftover energy? That usually goes into CrossFit, because why not turn coffee into burpees.
