Employers need diversity, equity, and inclusion (DEI) initiatives to foster a positive company culture where all employees feel respected, valued, and included. DEI is not only about the words you use, but the actions you perform. The current political climate has shifted the DEI landscape, confusing many employers about what is legally permitted. As a result, DEI may look different now, but the need remains the same.
What Is Diversity?
Diversity means the presence of people with different backgrounds, perspectives, and experiences. When diverse perspectives are valued, collaboration and innovation can thrive.
Diversity hiring practices focus on intentionally reducing bias to fairly consider everyone, regardless of race, ethnicity, gender, age, sexual orientation, disability, or socioeconomic status. People of all backgrounds are encouraged to apply, while employers focus on merit and potential without bias.
“Companies with diverse teams produced financial returns that were 33% higher than the industry average,” reports WGU. Diverse teams may also experience increased productivity. Considering a broader range of ideas from diverse team members results in better problem-solving and new ideas. McKinsey’s 2023 report, Diversity Matters Even More, found “companies with greater diversity on their boards of directors are more likely to outperform financially.”
What Is Equity?
Equity means treating everyone fairly and justly. Employers strive to ensure everyone has access to opportunities and that practices are fair and equitable. By acknowledging that everyone begins from different starting points, different resources and support are provided to level the playing field. Equity is not the same as equality, which assumes everyone starts from the same place and needs the same resources.
Diversity Resources provided this example to show equity versus equality in action:
“A manager is trying to coordinate personal time off for all employees during the holiday season.
Equality: All employees are encouraged to take their time off during the last two weeks of December.
Equity: Employees are encouraged to take time off based on their religious and cultural events, recognizing that Christmas may not be the only significant holiday for all.”
When employers openly share employee compensation, they are engaging in pay transparency. A similar yet different concept is pay equity, which focuses on equal pay for equal work. ADP thoroughly explains the difference between pay equity and pay transparency. Follow these seven steps to determine employee pay.
What Is Inclusion?
Inclusion means creating opportunities for everyone to be included and removing barriers. When an inclusive environment is created, employees will feel a sense of belonging, meaning they feel accepted and free to be their authentic selves.
When employers use inclusive language in all their external and internal communications, it helps employees feel a sense of inclusion and belonging. Job listings are often an applicant’s first impression of the company. Inclusive language in job listings encourages diverse applicants to apply.
When writing company policies, words matter. For example, choose to use gender neutral language in your dress code policy and focus on articles of clothing, not men’s clothes or women’s clothes. Use this guide for explaining business casual attire by focusing on the articles of clothing, not gender.
Vyond explains how to correctly use gender pronouns, which is important since it is a core part of a person’s identity.
“You can only be certain of someone’s gender pronoun when they have told you or made it clear in another manner. Because pronouns are a personal matter, using the correct pronoun shows someone you acknowledge and truly respect who they are.”
They suggest using this direct phrase to ask for pronouns: “What pronoun do you use?” Avoid using the word prefer since that implies that using the pronoun is optional. Do not make assumptions, and do not require employees to share pronouns. Instead, foster an environment where they will feel comfortable if they want to share them.
The History of DEI in the Workplace
A 2025 CNN article included the history of DEI, reporting that “the origins of DEI programs date to the Civil Rights Movement.” Employment discrimination and segregation became illegal in 1964 with the passing of the Civil Rights Act, which prohibits discrimination based on race, color, religion, sex, or national origin. The Equal Employment Opportunity Commission (EEOC) focuses on preventing employment discrimination. It was established by Title VII of the Civil Rights Act.
Many companies started offering diversity training in the 1960s and 1970s as a result of employees filing lawsuits with the EEOC and President Kennedy’s executive order in 1961 that introduced affirmative action. During the 1980s, with Ronald Reagan’s presidency, diversity efforts slowed.
Diversity.com explains that in the 1980s and 1990s, the focus was on building a business case for diversity, while in the 2000s and 2010s, the focus was on inclusion with the rise of inclusive terminology such as belonging and psychological safety.
George Floyd’s murder in 2020 was the catalyst for the rapid growth and expansion of DEI initiatives. According to a LinkedIn analysis, there was a 168.9% increase in chief diversity and inclusion officer roles from 2019 to 2022. However, this growth declined by 4.51% in 2022 as many diversity initiatives failed to deliver on promises and recession worries grew.
“In recent years, DEI has become a social and political lightning rod for lawmakers, corporate leaders and conservative activists who have sought to cast such initiatives as unfair and even racist, with some emboldened by the Supreme Court’s gutting of affirmative action.” – CNN
The Current State of DEI
Despite the current DEI pushback, Fast Company reports that only 19% of companies are actually decreasing their DEI funding, and over 20% plan to increase their DEI budget. The 2025 DEI Workplace Report shows the critical need for DEI and reveals that workplace discrimination and lack of psychological safety are still problems, leaving some employees fearful of speaking up.
“More than three out of four employees (76%) say they are more likely to stay in their job long term if their employer continues to support DEI, according to a large-scale survey published in June 2025. More than two out of five employees (43%) said they would quit their job if their employer stops supporting DEI.” – Forbes
In a LinkedIn article, Ciara Maxienne Richard offers many ways that organizations can reframe DEI initiatives in light of President Trump’s 2025 executive orders. She suggests reframing DEI as a business imperative, not social justice. Businesses should focus on shared values, wellness, professional development, manager training, compliance, inclusive communication, and data-driven approaches.
According to Diversity.com, “In 2025, effective DEI is less about slogans and more about systems: inclusive job design and equitable hiring practices, anonymous candidate screening, leadership development programs for underrepresented talent, and regular equity audits and internal listening sessions.”
As a result of the current DEI backlash, companies are using new terms to label and report on their efforts. Regardless of the labels used, it is important to understand a company’s diversity commitment and workplace policies surrounding it. Rebranding the name DEI does not change the need or the work being done.
“Companies from Delta Air Lines Inc. to Bank of America Corp. instead are embracing a new corporate lexicon in their reports to investors—selecting phrases like ‘inclusion,’ ‘merit-based hiring,’ and ‘belonging’—in the midst of the Trump administration’s moves to purge DEI programs in both government and the private sector.” –Bloomberg Law
DEI Acronyms
What originally started as diversity and inclusion (D&I) shifted to diversity, equity, and inclusion (DEI) around 2015. Currently, there are additional shifts to reflect new areas of focus and the current climate. Talentally explains the new jargon used today.
DEIB: Diversity, equity, inclusion, and belonging (DEIB) focuses on the importance of belonging, meaning people feel safe to be their authentic selves at work.
EDI: In equity, diversity, and inclusion (EDI), equity is placed first for emphasis instead of diversity. This reminds companies to avoid the pitfall of focusing only on diversity.
DEIA: Diversity, equity, inclusion, and ability (DEIA) is based on a federal law for workplaces to include people with disabilities.
JEDI: Justice, equity, diversity, and inclusion (JEDI) focuses on justice, which emerged in 2020 following George Floyd’s death.
How To Implement DEI at Your Company
“DEI is only effective when you implement it into your overall business strategy,” writes Harvard Business School Online. DEI strategies involve every aspect of your company, from hiring and pay to your policies and communication. With time and continuous efforts, DEI initiatives have clear financial and operational benefits.
Forbes reports, “In contrast to companies reversing their DEI commitments, others have doubled down on these initiatives, citing clear business advantages, cultural alignment, and long-term growth opportunities.” In order for leaders to drive DEI goals, Forbes recommends leading with a clear vision, prioritizing measurable outcomes, communicating skillfully, adapting to changing legal landscapes, and proactively engaging stakeholders.
Implementing DEI initiatives at your workplace while navigating the current climate can be challenging. CultureMonkey’s comprehensive DEI article includes over 100 actionable tips that you can start implementing today at your organization. They said, “Think of building DEI like training for a marathon: you start with awareness, add structure, and build endurance through consistent practice.” CultureMonkey provides five DEI steps to follow in order: assessment and awareness, setting clear goals, education and training, inclusive policies, and measurement and accountability.
With continuous action over time, you can improve diversity, equity, and inclusion at your company with meaningful changes, not performative actions. As a result of your commitment and steady work, employees from all backgrounds will feel celebrated, valued, respected, and accepted. They will feel they are treated fairly and given equal access.
From trainings to inclusive communication, there are many ways you can still act on your commitment to DEI. However, you may need to use different words to label and report on your efforts, given the current legal challenges and political shifts.
Table of content
Share
