In recent years, diversity, equity, and inclusion (DEI) initiatives have faced increased scrutiny and debate. Although the moral imperative for DEI is strong, critics have questioned its impact on business objectives — the so-called “business case” for DEI. In a recent article in Employee Benefit News, I discuss how organizations must move beyond mere representation and embrace equity and inclusion to drive business success.
Recent research on team diversity has scrutinized the business case for DEI. A 2020 study challenged highly cited reports on the link between diversity and financial performance. And more recently, a 2024 meta-analysis found only a small correlation between team diversity and performance. But rather than undermining DEI efforts, these studies highlight an important point: Hiring a diverse workforce doesn’t guarantee business success.
To unlock the full potential of diverse teams, organizations must actively foster equity and inclusion. Equity means everyone has access to the same resources and opportunities, while inclusion means everyone feels valued and empowered to contribute their unique talents and perspectives.
Three scientific frameworks — neuroscience, social psychology, and organizational behavior — can offer insights on how to navigate the complex dynamics of DEI. In the neuroscience realm, scientists have found that our brains harbor unconscious biases that can get in the way of collaboration and undermine the benefits of diversity. Social psychologists have revealed the importance of psychological safety, trust, and belonging in creating inclusive environments. Meanwhile, organizational behavior researchers have identified key factors — such as shared goals, clear communication, and equitable distribution of resources and opportunities — that contribute to the success of diverse teams.
To help organizations create inclusive, equitable environments where diversity thrives, NLI has developed the DEI Impact Case. This science-backed framework emphasizes three key pillars:
- Diversity as a solution: This pillar encourages organizations to see diversity as a strategic asset to drive innovation, improve decision-making, and increase performance. This approach contrasts with the traditional view of diversity as a problem to be solved.
- Inclusive habits: Creating an inclusive environment at all levels of an organization involves establishing a culture of psychological safety, where everyone feels comfortable speaking up, diverse perspectives are sought, and the contributions of all employees are valued. Leaders must reward these behaviors and model them for their teams.
- Fair systems: For DEI efforts to be sustainable and effective, organizations must build fairness into their processes and systems. Examples include examining policies and practices for biases, creating equitable opportunities for all employees, and holding leaders accountable for creating inclusive workplaces.
By shifting the focus from representation to equity and inclusion, NLI’s science-based approach offers an alternative to the conventional diversity narrative. Studies have shown that inclusive teams are more innovative, make better decisions, and are more likely to achieve their goals. NLI’s DEI Impact Case provides a road map for organizations to create workplaces where diversity isn’t just a buzzword but a driver of growth, success, and innovation.
A version of this article appears in Employee Benefit News. To read the full article, click here.
