Why is DEI Important in the Workplace?

How do you build diversity, equity, and inclusivity in your team? And why is it so important?

Here's the long and short of it: a diverse and inclusive workforce is a successful one. Not only are diverse and inclusive workplaces that focus on DEI as one of the main pillars of their company culture proven to be more productive and profitable as a whole, but they also produce happier employees who do more innovative work and stay in their positions at the company for longer. Plus, company benefits aside, a workplace with diverse team members ensures that everyone feels included, comfortable, happy, and like they belong in their chosen career.

Promoting DEI in your workplace isn’t just about hiring more people of color, women, and people of differing sexual orientations. If your organization isn’t doing the work to make those employees feel seen, heard, and cared for, you can still have a workplace lacking inclusion and equity. 

As an employer, your responsibility is to ensure that you focus on DEI and diversity initiatives. In the long run, you and your team will be all the better for it.

The internal benefits of DEI

1. Increased innovation and creativity 🎨

Imagine sitting in a meeting with the same voices contributing ideas week after week. Now, think about how energy would shift if you introduced new perspectives—people from different cultures, backgrounds, and experiences bringing in fresh ways to tackle challenges. That’s what diversity, equity, and inclusion (DEI) does—it infuses innovation into the DNA of a company!

A study by Boston Consulting Group (BCG) found that companies with diverse management teams had 19% higher revenues due to innovation compared to companies with less diversity. Why? A variety of viewpoints gave teams a competitive advantage allowing businesses to identify new opportunities and challenges in their industry.

When employees with diverse perspectives are encouraged to collaborate, they naturally approach problems in unique ways. It's like adding colors to a paint palette—suddenly, new shades and new possibilities open up.

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2. Better decision-making 🧠

Think back to a time when you were in a team setting, and everyone had the same viewpoint. How much debate and critical thinking really happened? Probably not much, right? Studies by Cloverpop found that diverse teams are 60% more likely to make better decisions than their non-diverse competitors. That's because diverse and inclusive teams encompass a wider range of perspectives, reducing the risk of groupthink.

Instead, they benefit from a healthy exchange of viewpoints that leads to better, more balanced decisions. The conversations become richer and more thoughtful, and as a result, better decisions are made.

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3. Higher employee engagement and productivity 🚀

Have you ever felt like you weren’t part of the inner circle at work? Or maybe you’ve watched talented people leave your company because they didn’t feel valued. This happens more often than companies realize, and it’s where DEI initiatives can make a major change. A study by Deloitte found that organizations with a diverse workplace are:

• 2x as likely to meet or exceed financial targets.
• 3x times more likely to be high-performing.
• 6x times more likely to be innovative and agile.

When companies actively promote an inclusive culture, they create an environment where diverse employees feel like they belong—and aren't just an afterthought. This sense of inclusion drives engagement, and engaged employees are not only happier but they're also more productive.

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4. Expanded talent pool 🌎

Consider this scenario: A highly skilled candidate is evaluating multiple job offers. They visit Glassdoor to research your company, and one of the first things they notice is how your company promotes diversity. They read about your inclusive policies, see diverse leaders featured on your website, and sense a genuine commitment to equity. Now compare that to a company that doesn’t prioritize DEI. Who do you think the candidate is more likely to choose?

According to Glassdoor, 76% of job seekers consider diversity an important factor when evaluating companies and job offers.

DEI is no longer a "nice to have"—it’s an expectation, especially for Millennials and Gen Z workers. They are drawn to companies that reflect their values. When you have an inclusive workplace full of diverse backgrounds, you’re not just attracting top talent, you’re showing potential hires that your company is a place where they can grow, thrive, and feel valued.

How DEI improves employee satisfaction and retention 💗

• Workplace diversity means happier, more engaged employees. Research shows employees in diverse and inclusive workplaces report higher job satisfaction and are more likely to stay with their employer long term.
• Inclusion creates a sense of belonging which is key to employee wellbeing. According to Harvard Business Review, employees who feel included are 3.5 times more likely to contribute fully to their workplace and more likely to be loyal to their company.
• A combination of these positive feelings leads to reduced employee turnover. A Center for Talent Innovation study found employees in inclusive workplaces are 75% less likely to leave their company compared to those in less inclusive environments.

The money you’re saving in recruitment and training costs can go back into investing in team building activities and other initiatives that shape a positive company culture.

The social benefits of DEI

In today’s socially conscious world consumers care about what companies stand for. It’s no longer enough to have a good product or service – people want to buy from brands that match their values too.

1. Combatting workplace injustice

In 2024 workplace inequality is still a big problem. People of color, women, LGBTQIA+, and disabled people face barriers to career progression and are severely underrepresented in leadership roles.

Think about this: despite making up almost half of the workforce, women make up only 28% of senior leadership roles according to a 2023 Catalyst report. 

DEI initiatives are there to break down these systemic barriers and create a more equal workplace, which has a ripple effect outside of the office as well.

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2. Corporate Social Responsibility (CSR)

Imagine a company that celebrates DEI internally but doesn’t practice it externally – maybe its marketing campaigns lack diversity or it doesn’t engage with the communities it serves inclusively. When a disconnect is that obvious, sooner or later it is going to affect how employees and customers view the company.

That’s why DEI and CSR should go hand in hand, creating a single narrative that shows your company doesn’t just talk the talk but walks the walk. An Edelman study found 64% of consumers make purchasing decisions based on a brand’s position on social issues.

How to get started 👉 Visit our blog to learn how to give back with Corporate Social Responsibility and charity team building events!

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9 practical ways to create a more inclusive work environment:

1. Create a DEI task force or council 👥

Set up a dedicated team or council to develop, monitor, and advocate for diversity and inclusion strategies across the organization. Be sure to include members from different departments and levels to get different perspectives and ensure that all voices are being represented.

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2. Unconscious bias training 🎓

Conduct regular training for employees to help them identify and overcome unconscious biases. This is essential for creating an environment where everyone can contribute and be fairly recognized, regardless of their background.

How to get started 👉Add Confetti’s Diversity and Inclusion Workshop to your training calendar! This experience is a great introduction to DEI concepts, cultural competence, cultural humility, microaggressions, types of bias, tokenism, cultural appropriation, and more.

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3. Review hiring practices 📝

Review your hiring and recruitment process to make sure it’s suited for a diverse population of applicants. This could mean using blind resumes to reduce bias, advertising jobs in diverse channels, using inclusive language in job postings, and actively recruiting from underrepresented groups.

How to get started 👉 Visit our blog to learn more about how to implement inclusive hiring practices! 

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4. Mentorship Programs 🤝

Create mentorship and sponsorship programs to support underrepresented employees, or even as a charitable effort to support students, interns, and other young professionals. These programs help bridge the gap between those early in their careers and leadership roles by providing guidance and resources for upward mobility.

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5. Employee Resource Groups (ERGs) 🧩

Support ERGs for different demographics (e.g. Women, LGBTQIA+, cultural backgrounds, parents) within the company. These groups create a sense of community, advocacy, and belonging, for a more interconnected and uplifted company culture.

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6. Pave transparent pathways for advancement 📈

Create clear and equitable pathways for promotions and career advancement so all employees – especially those from underrepresented groups – know how to succeed in the organization and feel supported in their learning and development journeys.

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7. Regularly review and adjust DEI initiatives 📊

DEI initiatives should never be stagnant. Always review your DEI policies and initiatives regularly, and ask for employee feedback to adjust as needed (that's where that DEI task force or council comes in handy!) Set measurable goals to track your progress to hold leadership accountable and show employees you’re committed to improvement.

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8. Inclusive leadership 🦸

Speaking of leadership, train leaders to be inclusive in their management style. Leaders should be empathetic, understanding, and willing to seek out diverse perspectives. This ensures that everyone feels represented in decision-making.

How to get started 👉 Host a Mindful Leadership Workshop for your team and department heads! They’ll learn empathetic skills to become more understanding, attentive, and respectful leaders. 

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9. DEI team building activities 🎉

A calendar full of Heritage Month celebrations and DEI team building activities is a way to foster inclusivity and strengthen team connections with fun in the process. By organizing activities like potlucks, workshops, and educational games, companies can celebrate diverse backgrounds and promote learning and empathy among employees. These activities enhance cultural awareness and create a sense of belonging, making employees feel more valued and engaged.

How to get started 👉 Browse Confetti’s collection of Diversity, Equity, and Inclusion activities to find experiences that are perfect for year-round celebrations.

Celebrate diverse backgrounds with Confetti!

At the end of the day, DEI makes a workplace extraordinary. Celebrating cultural diversity and the different heritages, genders, and sexual orientations that make up your workplace is a way to bring the entire team together, help employees feel a sense of belonging, and ultimately make your organization a much better place to work.

If you are struggling with developing remote workplace diversity and inclusion team building activities, start by thinking about the shared cultures that make up your workplace. Then, when your next team bonding experience rolls around, use that as an opportunity to learn about, celebrate, and promote diversity and inclusion. 

For more ideas on how to create a diverse and inclusive workplace, check out our ultimate diversity and inclusion guide.