Diversity Equity Inclusion: Definitions, Impact, and Strategies

What are diversity, equity, inclusion, and belonging?

Diversity, equity, inclusion, and belonging (DEIB) are four related but distinct concepts that together describe how organizations acknowledge differences, distribute resources fairly, create welcoming environments, and foster authentic connection. At Perceptyx, we have reexamined how we define DEIB, focusing on each of these four pillars to establish a more precise point of view.

What is diversity?

Diversity is the spectrum of difference. In the workplace, diversity can refer to a range of identities such as – but not limited to – race, gender, religion, sexual orientation, ethnicity, nationality, socioeconomic status, language, (dis)ability, age, body size, parental status, veteran status, education, values and beliefs, and/or other social identities.

Diversity is:

• Valuing diversity of thought and experience – "non-traditional backgrounds”

• Awareness and acceptance of both similarities and differences among people

• Intersectionality and identity – we are defined by many aspects of our identity

• A commitment to action that increases representation throughout your organization, across levels and positions

• Innovation – more approaches and ways of tackling problems

Diversity isn't:

• Homogenous teams

• Limited ways of thinking

• Availability heuristic – only resorting to experiences that are easy to recall

• A quota

• Passivity or inaction

• “Fit”

What is equity?

Equity is an approach that ensures everyone has access and opportunity to reach their full potential. Equity recognizes that advantages and barriers exist, and that, as a result, we don’t all start from the same place. Equity is a process that begins by acknowledging this unequal starting place and making a commitment to correct and address the imbalance. Because new differences and barriers continually emerge, equity requires ongoing attention rather than a one-time fix.

Equity is:

• Fairness

• Access to opportunities that lead to similar outcomes

• Responsiveness to individual needs

• Balance

• An Individualized approach

• Pay equity

Equity isn't:

• Equality – same treatment

• Favoritism or imbalanced development

• Variable pay

• Lack of transparency

• Poorly-developed or antiquated decision-making criteria

• Sticking with the status quo

• Microinequities

What is inclusion?

Inclusion is what an organization does – the actions it takes – to ensure that its employees, including those with historically excluded identities, are welcomed, psychologically safe, supported, valued, and have a voice in the organization. Where diversity describes the presence of differences, inclusion is the active, intentional, and ongoing engagement with those differences to build a culture where people can contribute fully.

Inclusion is:

• Self-awareness

• Empathy

• Grace

• Camaraderie and collaboration

• Psychological safety and freedom of expression

• Collaborative conflict resolution

• Understanding the person and their environment (i.e., who you are is fostered by your environment)

• Open communication

• Transparency

Inclusion isn't:

• Silos

• Isolation

• Ostracism

• Tokenism

• Microaggressions/macroaggressions

• Over-indexing (can be exclusive of others)

• Selfish

• Unforgiving

• “Colorblind”

• Lack of accountability

• Lack of adoption (e.g., pronoun use)

• Lack of empowerment

What is belonging?

Belonging is being able to bring your authentic self to work, make meaningful contributions and connections, and own all of your identities without fear or risk of negative consequences. Organizational belonging offers a feeling of security, support, and acceptance. Belonging also signals that equity and inclusion structures are actually working: it is the point at which no one feels their place in the organization is in question.

Belonging is:

• Feeling valued

• Feeling like you’re part of something

• Authenticity

• Acceptance

• Trust and respect

• Security

• Honoring unique contributions

• Collaboration

Belonging isn't:

• Withdrawal

• Outcast

• Disingenuous or hiding oneself

• Unable to speak up or express belief

• Loneliness

• Ignored

• Disconnected

• Self-editing

• Code-switching

How does DEIB affect organizational performance?

Research demonstrates that organizations focusing on DEIB generally outperform industry averages through several key drivers of diversity:

• Talent Acquisition: Access to a wider, more diverse talent pool.

• Market Share: Increased market share driven by diverse perspectives.

• Innovation: Enhanced competitive ability through varied problem-solving approaches.

• Financial Stability: Gender-diverse boards are linked to lower stock risk and volatility.

How does DEIB affect employees?

From an interpersonal perspective, data gathered from several decades' worth of employee surveys, focus groups, and individual interviews have reinforced that inclusion is necessary for engagement, performance, and collaboration. Equitable organizations that encourage open communication about DEIB are more likely to have happy, engaged employees, appeal to young workers, and retain diverse talent. For people to do their best work, they need a genuine sense of belonging, recognition for who they are, and tangible support from leaders and peers.

Why does DEIB matter at work?

DEIB matters at work because employees who do not experience fairness, respect, and inclusion are measurably less engaged, more likely to burn out, and more likely to leave.

A study by Perceptyx of more than 1,500 working women showed that daily microaggressions are a fact of life for most women, ranging from having their expertise questioned, to lewd jokes, to unwanted touching. Two-thirds of women reported they experienced sexist behavior at least sometimes, and 25% report three or more offensive behaviors “frequently” or “always.” While men are often the perpetrators of a sexist incident at work, female managers and coworkers aren’t without fault. One-third of women reported that the most sexist thing they have ever heard in the workplace came out of the mouth of another woman.

Frequent interruptions and microaggressions lead to significant organizational costs for women:

• Engagement: Interrupted women are 50% less likely to be fully engaged.

• Belonging: They are 50% less likely to feel a sense of belonging.

• Burnout: They are 4x more likely to report being burnt out.

• Retention: These behaviors are primary drivers of high attrition among female talent.

How does DEIB affect employees in healthcare?

Perceptyx also wanted to understand how healthcare systems are handling DEIB. Partnering with an active learning forum where leaders from more than 50 organizations come together to understand critical topics, we were able to compile data from 93,000 respondents across 14 academic health systems. These members conducted organization-wide pulse surveys focused on DEIB and collected 600,000 unique responses.

The overall results showed respect is a positive foundation for DEIB in healthcare:

• 82.7% of respondents feel treated with respect by co-workers.

• 76.5% of employees feel a sense of belonging in their organization.

• 73% feel encouraged to be their whole, authentic selves at work.

• 62.7% feel their contributions are effectively recognized (noting a significant area for improvement).

From prior research, we know that recognition is a large indicator of employee engagement and a driver to retaining top talent. While recognition has a relatively low cost, it carries a high impact and provides the needed motivation that employees need to continue giving their best to the organization and, more importantly, their patients.

Perceptyx broke the data down by demographics and discovered the recognition element differs greatly by group. For instance, only 50% of black female clinical healthcare staff felt they are recognized for their work, while 75% of white male non-clinicians noted appropriate levels of recognition. Therefore, recognizing workers is an area in which consortium members can make significant improvements.

How does DEIB shape return-to-work policies?

Perceptyx asked a panel of 1,000 US workers about each concept individually and the topic as a whole. We inquired about how DEIB is impacting employees as they consider returning to a physical work environment, the link to their overall sense of health and well-being, and a number of other workplace outcomes.

We found that the notion of equity highly impacted women of color’s desire to return to the office. Women of color are 12% more likely to want to return to an in-person workplace if they believe all employees are treated or will be treated fairly regardless of age, race, gender, ability, etc. While equity is a key driver of willingness to return to work for women of color, interestingly, it did not impact other groups’ desire to return to the same degree.

In work-from-home environments, equity may mean ensuring all employees have WiFi/Internet access and providing it to those who don’t.

Remote work also offers specific equitable advantages:

• Each employee takes up the same amount of space in video conferencing calls and is equally included: those Zoom squares are all the same size and microphones are the same volume.

• People with disabilities are able to work where they are most comfortable or get access to audio assistance, without drawing attention to accommodations.

• There are fewer instances of microaggressions, especially for women of color (i.e., no unwanted hair touching, comments on their appearance, etc.).

Inclusion may be the key to curbing resignations. It is an active behavior and is the responsibility of all employees. While inclusivity matters to all employees, our panel research found that employees of color are almost seven times more likely to strongly agree that they will stay at their company for at least 12 months if they feel trusted and respected. While white employees also want to feel trusted and respected, it doesn’t have as much bearing on their willingness to stay with the organization. In fact, the magnitude of the relationship is only about one-third as strong.

Perceptyx's data shows that proactive anti-discrimination policies produce the strongest measurable outcomes across all DEIB categories. For some organizations, current DEIB initiatives aren't effective enough to create lasting change. Instead, some organizations are working toward taking a proactive stance against discrimination by acting to ensure the organization is free from bias and handling any incidents of discrimination promptly and completely. Based on our research, this has proven to benefit employees in unanticipated ways. In fact, employees who believe their organizations are free from discrimination experience less burnout than their counterparts. They are two times more likely to look forward to going to the office in the morning and only half as likely to be physically or mentally exhausted at the end of the workday. Burnout, and the effects of burnout, are hot topics these days, particularly as the pandemic has increased stress for almost all employee groups. For organizations looking to curb burnout, anti-discrimination should be part of the solution.

How can organizations take action on DEIB?

Organizations that measure and act on DEIB feedback outperform those that treat it as a one-time initiative. As the research above shows, DEIB performance influences retention, burnout, engagement, and recognition outcomes across every demographic group. A thoughtful listening strategy paired with a clear action plan separates organizations that close DEIB gaps from those that let them grow. We can help you develop and track the right metrics to understand how DEIB fits into your employee experience so you can drive continuous improvements over time. Schedule a meeting with a member of our team today to learn more.

Frequently Asked Questions

What Are Examples of DEI in the Workplace?

DEI in the workplace can take shape across hiring, compensation, communication, and leadership practices. Common examples include:

• Pay equity audits comparing compensation across demographic groups

• Anti-discrimination policies with clear reporting and resolution processes

• Recognition programs designed for equitable reach across roles, levels, and backgrounds

• Flexible work arrangements removing barriers for caregivers and employees with disabilities

• Psychological safety practices giving every employee a voice in meetings and decision-making

Perceptyx healthcare research shows why this matters in practice: only 50% of black female clinical healthcare staff felt they are recognized for their work, while 75% of white male non-clinicians noted appropriate levels of recognition. That makes structured recognition a concrete, low-cost DEI action.

Why Is There a Backlash Against DEI?

Some criticism of DEI centers on concerns that group identity is being prioritized over merit. Other objections stem from poorly designed training programs that increase tension, compliance exercises that do not change culture, and political opposition that has led some employers to scale back or rename DEI efforts.

Perceptyx data offers a counterpoint to those criticisms. Employees who believe their organizations are free from discrimination are two times more likely to look forward to going to the office in the morning and only half as likely to be physically or mentally exhausted at the end of the workday. Employees of color are also almost seven times more likely to strongly agree that they will stay at their company for at least 12 months if they feel trusted and respected.

The difference often comes down to whether organizations rely on shallow programs or structural practices. Mandatory training and quota-based hiring can create resistance when they are not paired with culture change. Listening strategies, recognition, compensation reviews, and anti-discrimination enforcement produce measurable outcomes because they change how employees experience fairness, inclusion, and opportunity.