Why DEI Still Matters—Even in 2025
In the face of recent federal administration initiatives to do away with the term DEI and shift the focus from “equity” to “merit,” it is crucial for organizations to reaffirm their commitment to a safe and welcoming workplace with equal opportunity—regardless of race, religion, ethnicity, gender, and sexual orientation.
No further discussion is needed about the benefits of a safe and inviting workplace—the impacts on employee mental health and wellbeing are self-evident. However, other less obvious benefits may also be reaped by diverse organizations. These benefits can be significant and are well documented in Diversity Matters, a research report published by McKinsey & Company.
By examining proprietary data sets for 366 public companies across a range of industries in the United States, Canada, the United Kingdom, and Latin America, the research uncovered strong evidence regarding the benefits of employee diversity and inclusion. A key excerpt notes: “The unequal performance across companies in the same industry and same country implies that diversity is a competitive differentiator that shifts market share towards more diverse companies.”
If you don’t have time to read the entire report, here’s a quick summary of key benefits:
1. Better Financial Performance
McKinsey’s research highlights a strong correlation between diversity and financial performance. Companies in the top quartile for racial and ethnic diversity are 35% more likely to financially outperform their industry, while those in the top quartile for gender diversity are 15% more likely to do the same. Conversely, low diversity correlates with poorer financial outcomes.
2. Broader Talent Pool
Embracing diversity and inclusion allows companies to access a broader talent pool. Inclusive environments attract and retain top talent from diverse backgrounds, enhancing the company’s competitive edge and reflecting a true commitment to equal opportunity—a top priority for today’s workforce.
3. Improved Employee Engagement and Retention
Inclusive workplaces foster higher engagement and retention. When employees feel valued, they are more satisfied and more likely to stay, reducing turnover and promoting workforce stability.
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4. Enhanced Company Reputation
A diverse workforce mirrors a diverse customer base, fostering empathy and stronger connections with clients. Companies known for prioritizing DEI are often more attractive to customers, partners, and investors—especially Gen Z and Millennials, who place high value on corporate social responsibility.
5. Innovation and Creativity
Diverse teams bring a variety of perspectives and problem-solving approaches, which drives innovation. In today’s fast-moving environment, this creative edge is essential for long-term competitiveness.
Pro Tip to Boost Inclusion
One of the most effective ways to foster inclusion is by offering a well-designed, inclusive employee wellness program. Strengthen it with thoughtful communication that underscores shared benefits and goals.
Two powerful DEI-aligned strategies:
Provide a wide range of culturally relevant, health-promoting content that resonates across your workforce.
Host engaging, non-intimidating group wellness activities that help employees build human-to-human connections and dissolve workplace barriers.
Final Thoughts
The benefits of diversity, inclusion, and equal opportunity are both well-documented and strategic. From enhanced performance and talent retention to improved reputation and innovation, inclusive practices pay dividends. One of the most practical ways to bring DEI to life is through an employee wellness program that supports real behavior change across a diverse workforce. By investing in inclusive wellness, HR leaders can reinforce belonging, drive engagement, and future-proof their organizations—creating workplaces that are not only equitable, but thriving.
