With a shifting political landscape and conservative activist investors, DEI programs at organizations have faced significant challenges and pushback. Companies have responded in a variety of ways – from making minor adaptations in existing programs to significantly reducing such initiatives. Recently, the latter approach from a major retailer resulted in calls for a 40-day customer boycott, and in a two-month period, this company saw a 23% decline in its stock price. More and more organizations have felt caught between competing pressures from regulations, investors, customers, and even employees, and may be struggling to define the path forward with all of these stakeholders in mind.

DEI stands for Diversity, Equity, and Inclusion—three interrelated values that guide organizations in fostering respectful, fair, and welcoming environments. Diversity refers to the presence of differences within a given setting, including race, gender, age, ability, and background. Equity means ensuring fair access, opportunities, and treatment for all, recognizing that people may start from different places. Inclusion involves creating environments where everyone feels they belong, are valued, and can contribute fully.

DEI programs are organizational initiatives designed to attract top talent, improve business results through innovation and better decision-making, and create environments and cultures where employees are dedicated to contribute at high levels. While the difference diversity introduces can have the potential to create discord, organizations rely on inclusive practices to minimize the negative and maximize the positive impact diversity can bring. Paraphrasing Andrés Tapia, a renowned D&I strategist, “diversity” represents the wide variety of available spices (all with unique characteristics), and “inclusion” is the deliberate action taken to mix those spices in order to create a harmonious and flavorful dish.

By promoting inclusion, organizations foster a culture where differences are not simply tolerated but actually valued and used for competitive advantage. Inclusive behaviors include mitigating unconscious biases, active listening, demonstrating empathy and respect for others, and providing equitable opportunities and rewards for achievements. Unsurprisingly, inclusive behaviors also drive engagement for all employees—not just “diverse” ones.

Employee engagement, defined as a high level of emotional commitment, motivation, and involvement in one’s work and company, has long been shown to result in:

• Increased productivity
  
  
• Higher profitability
  
  
• Better customer satisfaction and loyalty
  
  
• Lower turnover and absenteeism
  
  
• Improved collaboration and innovation
  
  
• Enhanced workplace safety
  
  
• An overall stronger company culture and reputation
  
  

The connection between inclusion and engagement is not hard to make when you consider the overlap that exists between these sets of behaviors.

Even if you are not tasked with deciding the organization’s response to DEI programs and associated initiatives, as a leader, you can still leverage the power of inclusive behaviors to enhance the performance of your team. Many of these behaviors are hallmarks of good leadership regardless of context.

• Active listening: Hearing the meaning and intent of others without the filter of your own opinion.
  
  
• Seeking multiple perspectives: Decisions and problems are best addressed when viewed in many ways. Use “round robins” to ensure that everyone has the chance to contribute.
  
  
• Setting clear expectations: Use transparent criteria to measure performance or determine promotions, etc. Hold everyone to the same set of criteria, and communicate any changes in expectations promptly.
  
  
• Developing employees: Provide opportunities for employees to build new capabilities that serve both the company’s needs and the employee’s aspirations.
  
  
• Giving timely feedback: Specific, behavior-focused feedback with clear impact helps keep employees on track to deliver goals, whether the feedback is complimentary or constructive.
  
  

The intent of modern DEI programs and practices is to optimize talent, innovation, and problem-solving, improve decision-making, enhance responsiveness to customer needs, and support long-term goals and strategies. Regardless of how your company approaches DEI programs, you can still reap these benefits by consistently using these leadership skills to drive performance. For more tools and leadership insights, visit Intentional Leaders.

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Written by Olivia Stewart, Talent Management and Development Leader

With over 25 years of experience in human resources, Olivia is a seasoned HR expert specializing in talent management. She develops culture and competency models that align with organizational strategy and drive performance. Her work focuses on engaging employees at all levels to unlock their full potential and deliver strong business outcomes. Passionate about people and performance, she brings a strategic, human-centered approach to every challenge.