An Overview of DEI (Diversity, Equity, and Inclusion)

DEI is the acronym for Diversity, Equity, and Inclusion. These three interrelated values represent respect and fairness in the work environment. Owing to the changing business, cultural, and societal landscape, senior leaders benefit from committing to these principles as a strategic long-term business initiative. 

DEI initiatives and training in an organisation promote a healthier internal culture of employee well-being, establish trust, and overcome systemic inequalities. These act as catalysts in contributing to broader economic and social progress. Positive business outcomes include a strong brand reputation, broader customer base and loyalty, and risk mitigation. 

DEI Meaning 

DEI, or Diversity, Equity, and Inclusion, are three broad business and societal values used as workforce policies and procedures. These celebrate the identities of marginalised groups, focus on fair treatment without unconscious biases, and make all employees feel welcome to participate. 

In general, organisations must focus on integrating all three aspects parallelly so that the impact is useful to them. Let’s understand each of these DEI efforts in the context of each other to avoid misconceptions. 

What Does Diversity Mean?

Diversity in the workplace refers to acknowledging anyone who belongs to different demographics. 

There are also different areas or elements of diversity in DEI. 

1. Ethnic
2. Socioeconomic status
3. Disability
4. Gender
5. Sexual orientation

What is Equity in DEI?

Equity broadly refers to treating employees fairly, irrespective of their experience and background. Everyone should be given a fair chance to excel in their jobs. 

Equity is applied to the hiring process, salary/compensation, and resource allocation based on an individual’s needs. These are required for diversity and inclusion to work. 

Equity should also not be confused with the term ‘equality’ in the context of DEI. Equality refers to treating everyone equally. Equity as a policy, however, looks into the employee’s personal needs and/or gaps and focuses on filling them. 

What is Inclusion in DEI?

Inclusion in DEI is important for practising diversity. This aspect is the executable part where all employees, regardless of the diverse workforce. 

Modifications to DEI

Depending on the organisation’s priorities, DEI also extends to other elements or sometimes a different ordering of values. Some are 

1. DEIB, which includes Diversity, Equity, Inclusion, and Belonging
2. DIB, only Diversity, Inclusion, and Belonging
3. D&I, as Diversity and Inclusion
4. EDI, where Equity is given importance over Diversity and Inclusion
5. IED, where Inclusion is more important than Equity and Diversity
6. JEDI, which adds Justice, Equity, Diversity and Inclusion

Important Stats Showing How DEI Helps a Business

Here are some key facts about DEI from top studies done by globally known organisations.

1. Boston Consultancy Group says that diverse management teams achieve 19% more revenue. 
2. A McKinsey and Co. study found that companies with 30 percent female executives can outperform companies with fewer percentage of female executives. 
3. Gartner suggests that workplace performance increases by 12% when teams are diverse and inclusive. 

DEI in the Current Indian Landscape

According to IBEF, about 210 employers participated in the WTW’s Wellbeing Programmes India Survey of 2022–23. This survey found how DEI in the workplace has been leveraged in India so far.

1. 71% focused on inclusion and diversity training
2. 71% have accessible office spaces
3. 71% have been for gender-neutral workplace communication
4. 62% provided inclusive benefits options.

IBEF states that India has enacted a few significant anti-discrimination statutes, which align with the global movement towards inclusion and diversity.

1. Rights of Persons with Disabilities Act
2. Transgender Persons (Protection of Rights) Act, and 
3. Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome (Prevention and Control) Act.

While DEI is a global concern in organisations, it is essential to see that the same concerns differ from one country to another. So, multinational corporations setting up their offices in India must also look at DEI from a regional angle. This perspective comes from the Chief People Officer of Vocera, Lori Stahl, who says, 

“In India, there isn't the same concept of 'people of color,' but there are gender inequities and parity that's needed… Also, there is a religious component to their hierarchy, such as the caste system, which is sort of foreign to us in the U.S. So as we think about our diversity initiatives in general, we're going to have some foundational approaches that apply around the world and that we'll have to adapt culturally.” (Source: SHRM)

Adapting Inclusive Leadership in the Workplace 

One of the essential leadership skills that makes a DEI strategy work is being inclusive as a leader. An inclusive leader is not just one who motivates the workforce like a transformational leader would, they would be providing a culture of a thriving, diverse talent group. 

This is because this type of leader is aware of biases. So, they focus more on building self-awareness and developing intrapersonal communication skills, maintaining relevance to marginalised groups in diverse teams. And what better way to lead by example?

Courses such as Inclusive Leadership: The Power of Workplace Diversity from Coursera are quite good to get started in adapting this leadership style. You can go through some of the topics taught in the best inclusive leadership certifications online. 

But if you are in an upper-level managerial role, consider implementing DEI at your organisation in an informed way by taking electives on these topics in executive MBA courses online.