New Data Validates Business Case for Investing in Workplace Belonging

There have been numerous news stories, announcements, and even executive orders putting diversity, equity, inclusion, and belonging (DEIB) programs in the spotlight. However, comprehensive research from Perceptyx’s Center for Workforce Transformation shows that DEIB initiatives continue to drive significant positive outcomes for both employees and organizations, particularly when it comes to fostering a sense of belonging.

A Research-Based Approach to Employee Experience

Twenty years of studying employee experience at enterprise organizations has led Perceptyx to develop a comprehensive, validated model for understanding workplace dynamics. The Perceptyx People Insights Model (PIM) incorporates DEIB as a core factor, recognizing that employee perceptions of diversity, equity, inclusion, and belonging are fundamental to a comprehensive understanding of the overall employee experience.

This model draws on extensive research by I/O psychologists and real-world organizational data to identify the elements most critical to organizational outcomes. The model's validation comes from its practical application across industries and organization sizes, demonstrating its ability to capture the full spectrum of workplace experience factors that drive business results. Perceptyx has compiled these insights and practical implementation strategies in a comprehensive DEIB Guidebook, available for download, which details how organizations can measure and create sustainable change in their workplace.

Our model offers broad flexibility in its implementation. Organizations can access a broad range of benchmarked items beyond the core survey, or limit the scope of their listening to just one or two key factors, allowing them to measure specific aspects of employee experience that align with their current priorities and circumstances. That kind of adaptability ensures organizations can maintain focus on their unique drivers of success while adjusting their approach to measurement and action based on their specific industry, geography, or cultural context.

The Current Landscape

Forthcoming Perceptyx research examining more than 750 HR leaders and decision-makers from large global organizations shows sustained commitment to DEIB initiatives. Approximately 36% of organizations regularly gather employee feedback about DEIB through company listening events, nearly matching the previous year's figure of 37%. 

Additionally, 22% of organizations identify DEIB as a top business priority they aim to address through employee feedback programs — a figure that remains consistent across different organization sizes, industries, and listening program maturity levels. And despite headline hype about certain organizations scaling back these initiatives, a special February 2025 Center for Workforce Transformation Workforce Panel survey of 900+ full- and part-time employees across major industries reveals that more than 60% of employees haven't received any communication about DEIB changes in their organizations during the past six months.

The Business Case for Belonging

The Center’s broader Workforce Panel, with more than 18,500 respondents throughout the second half of 2024 demonstrates clear connections between belonging and key business metrics, revealing differences in outcomes between employees who feel they belong and those who don't.

• Engagement: Employees with a strong sense of belonging are nearly 22x more likely to be fully engaged (65% versus 3%).
• Retention: Those who feel they belong are three times more likely to intend to stay with their organization for at least the next year (84% versus 28%).
• Productivity: Employees who don't feel they belong are 1.8x more likely to report that work-related stress has impacted their productivity for three or more days in the previous week.

Beyond Policy: The Everyday Experience of Belonging

Perceptyx's 2024 Benchmark Data analysis reveals that belonging isn't primarily driven by formal DEIB policies. When researchers examined the top ten key drivers of belonging — the survey items an organization should act on that will most impact belonging – just one of them, treating all employees with respect, comes directly from the DEIB factor of the People Insights Model. This finding suggests organizations can foster belonging through various aspects of the employee experience, even without formal DEIB programs.

Key drivers of belonging include:

• Career Growth and Development: 3 of the top 10 drivers of belonging relate to career development. Employees who report a strong sense of belonging are 2.9x more likely to believe they can achieve their career goals at their current organization (79% versus 27%). They also report feeling better positioned for success and growth, and more energized by their work.
  
  
• Trust and Leadership: Employees with higher belonging scores are three times more likely to feel their opinions matter (79% versus 26%) and 2.8x more likely to trust senior leadership (77% versus 28%). These findings emphasize how leadership behaviors, beyond formal policies, shape workplace culture.
  
  
• Recognition and Value: Employees who feel they belong are 3.5x more likely to feel valued compared to those who don't (84% versus 24%). This suggests that creating an environment where employees feel appreciated for their unique contributions doesn't necessarily require formal programs.
  
  
• Respect in the Workplace: Those who report strong belonging are 2.3x more likely to say all employees are treated with respect (86% versus 38%), highlighting the importance of fostering a respectful workplace culture.

Employee Perspectives on DEIB

Recent data from the CWT’s February Workforce Panel also provides insights into employee attitudes toward DEIB programs:

• Approximately half of surveyed employees say their organization demonstrates a commitment to DEIB.
• A similar proportion consider DEIB programs important and wouldn't want to work for organizations without them.
• Only 1 in 4 employees express a preference for their organization to discontinue DEIB programs.
• Among organizations that have communicated DEIB policy or program changes, about 60% have announced program expansions, while 40% have indicated reductions.

The Impact of an Organization’s Stance on DEIB

Organizational approaches to DEIB significantly influence employee perceptions and engagement. Compared to employees at companies reducing DEIB initiatives, those at organizations announcing new programs are:

• 1.6x more likely to recommend their company as a great place to work, and
• 1.4x more likely to report a strong sense of belonging.

Of course, organizations face a variety of pressures regarding their DEIB initiatives, from legal requirements to stakeholder expectations. The Center for Workforce Transformation’s research suggests several approaches for maintaining positive workplace outcomes while adapting to changing circumstances:

• Focus on Core Drivers. Organizations can foster belonging by emphasizing fundamental workplace elements like career development, trust-building, and respectful treatment — aspects that drive belonging regardless of formal DEIB programming.
  
  
• Be Flexible with Implementation. While some organizations may need to adjust terminology or program structure, the underlying principles that drive positive outcomes can be maintained through alternative approaches focused on workplace respect and inclusion.
  
  
• Let Data Drive Decision-Making. Regular employee feedback and outcome measurement help organizations understand the impact of their initiatives and make informed decisions about program adjustments.

When It Comes to DEIB, Measure What Matters for Workplace Success

Our research shows that belonging drives concrete business outcomes through increased engagement, retention, and productivity. Organizations need reliable data to understand which workplace elements — from career development to leadership trust — most impact their employees' sense of belonging. 

Perceptyx's comprehensive listening solutions can help you identify and measure these key drivers while tracking progress on the metrics and moments that matter most to your business outcomes. To learn more about how Perceptyx can help strengthen your organization's approach to fostering belonging, schedule a meeting with a member of our team.

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