Diversity, Equity, & Inclusion (DEI) in the Workplace: Trends & Impact

Diversity, equity, and inclusion (DEI) initiatives are not new to most workplaces. However, the progress is often slow, which can be incredibly discouraging for employees who feel marginalized as well as for the people trying to make improvements to DEI policies in their workplace. One thing is clear though, DEI is becoming increasingly more important, especially to younger generations entering the workforce. It found that a whopping 99% of the more than 1,400 Gen Z survey respondents identified workplace DEI as important, with 87% responding that it is very important.

So, it appears now is a good time to start progressing those DEI initiatives. But it's not just because DEI is meaningful to employees and new recruits — it can also improve your corporate reputation and drive organizational performance.

How does DEI shape return-to-work plans?

As organizations ramp up return-to-work plans and people begin heading back to the office, it's a good time to re-examine your DEI practices, especially with the increased awareness of social, racial, and economic barriers highlighted by the pandemic and recent social movements. Of course, DEI is not just about making people feel included in the office, but organizations now have to consider hybrid or remote workers as well.

In recent return-to-work research by Perceptyx, we found equity was one of the most important factors in willingness to go back to an office environment, especially for women of color. Women of color are 12% more likely to want to return to an in-person workplace if they believe all employees are treated fairly. This was noted as a key driver for this demographic, yet did not impact other groups' desire to return.

When you consider additional factors, such as officism, bias against at-home or hybrid workers from their in-office colleagues, it can be even more impactful to already marginalized groups. When organizations are concerned about officism and equity strategy, anything that creates a bias creates essentially a double bias for groups who are already disproportionately impacted.

One survey found more black respondents want a fully or mostly flexible schedule compared to white workers. Likely, because, according to that same survey, there is a 26% increase in black respondents reporting that they are "treated fairly at work" from just one year ago, which is directly attributed to working from home because it's created a level playing field. They don't feel as excluded as they did when in the office environment.

Perceptyx research also found that employees of color are almost seven times more likely to strongly agree with staying at their employer for at least 12 months if they work in an environment of trust and respect. This is also true for white employees, but the magnitude of the impact is only about one-third as it is for people of color.

Additionally, employees of color are nearly twice as likely to strongly recommend their organization to friends and family as a great place to work if the company has a record and plan for recruiting and retaining a diverse workforce. White employees aren't nearly as impacted by this statistic with the desire to refer friends and family only being half as strong as their minority counterparts.

Employers who are perceived to be making DEI improvements by their employees are seeing rewards. Perceptyx found that organizations free from discrimination reduce burnout for all demographic groups across the board. Employees in these environments are twice as likely to look forward to going to work and half as likely to be physically or mentally exhausted after the workday. Therefore, DEI programs are working when implemented and are proving to have benefits for employees and the businesses. But there is still a lot of work to be done.

What are organizations doing to advance DEI?

In our recent DEI virtual forum attended by more than 30 senior HR leaders, members of the Perceptyx research and professional services teams led a discussion on what organizations are doing and what they hope to do in the future to improve DEI the workplace.

From the open conversations among attendees and facilitators, it quickly became evident that companies are prioritizing DEI, but each organization is unique in its approach and its progress. Some organizations are just launching their initiatives while other programs are more mature. Still others had established initial program plans but were forced to transition their tactics in response to the pandemic and other disruptions. However, there are many consistencies in strategy as well.

Common strategies identified by senior HR leaders include:

• Employee Resource Groups (ERGs): Creating cross-functional councils for education and initiative progression.

• Data Tracking: Monitoring demographics and trends via employee listening programs.

• Training: Implementing DEI best practices across all levels.

• Targeted Recruiting: Developing specific programs to attract and retain diverse talent.

Attendees also expressed the need for greater communication around these initiatives. It's not enough to just create the task forces, programs, and initiatives, you also have to communicate effectively about their overall goals and vision. It's important to make sure employees hear about what is being done to achieve DEI goals in a consistent and conversational manner — not in corporate or marketing speak. Another main point of discussion was centered around the importance of leadership and C-suite buy-in. There is real concern about programs falling by the wayside or being misunderstood when senior executives are not involved to serve as champions. But there is real accountability and a trickle-down effect of greater buy-in when executives are active advocates and participants in the program.

Frequently Asked Questions

What is diversity, equity, and inclusion in the workplace?

Diversity is a mix of people with different backgrounds and views. Equity makes sure pay, resources, and career paths are fair. Inclusion means each person feels respected and heard. Strong DEI builds trust, fuels ideas, and supports better business results. See how Perceptyx measures DEI.

Which DEI areas should employers tackle first?

Start with three basics:

• Track workforce demographics to spot gaps.

• Audit hiring and promotion steps for hidden bias.

• Run regular listening surveys so employees can share concerns safely.

These steps create a data baseline and quick wins you can build on.

How can leaders measure progress on DEI?

Track:

• Representation by role, level, and location.

• Pay equity across similar jobs.

• Promotion and turnover rates by demographic group.

• Engagement and inclusion scores from employee surveys.

Review these metrics at least twice a year and share results with employees.

How does hybrid or remote work change DEI efforts?

Remote options can level access for caregivers and people with disabilities, but they also risk "officism," where in-office staff get more visibility. Use clear performance goals, rotate meeting times, and give hybrid teams equal access to projects and leaders.

What is the "4 Ps" framework for DEI?

Many employers use the 4 Ps — Purpose, People, Process, and Progress — as a checklist:

• Purpose: Set clear DEI goals tied to business strategy.

• People: Recruit, develop, and retain diverse talent.

• Process: Build fair systems for pay, promotion, and feedback.

• Progress: Measure results and adjust plans.

The framework keeps DEI work focused and accountable.