Why Workplace Diversity and Inclusion Are Critical to Business Success

As some companies scale back their diversity, equity and inclusion (DEI) programs, others are doubling down—and with good reason. DEI isn’t just a moral consideration. Increasingly, it’s proving to be a business advantage.

According to Success, diversity, equity, inclusion—and more recently, belonging—contribute to stronger teams, improved performance and more innovative workplaces. Job seekers are taking note. LinkedIn reports 80% of workers want to join companies that support DEI. Pew Research Center findings also show most employees view DEI efforts as beneficial.

Diversity refers to the representation of different backgrounds—such as race, gender, religion, neurodiversity and age—within an organization. Equity ensures fair treatment by tailoring opportunities and resources based on individual needs. Inclusion involves integrating diverse perspectives and making employees feel psychologically safe and heard. Belonging, a newer DEI component, describes a culture where all employees feel valued, not just included.

True inclusion requires action beyond hiring quotas. If a company has gender diversity at entry levels but none in leadership, that workplace may appear diverse but isn’t inclusive. A diverse workforce without equitable access to growth is incomplete.

The business benefits are significant. According to McKinsey & Co., companies in the top quartile for ethnic diversity were 36% more profitable than those in the bottom quartile. When women are well represented in executive roles, profitability can jump nearly 50%.

Diverse teams also tend to be more creative and effective. Multicultural teams, research shows, are more likely to generate innovative solutions. Product design and marketing also improve with diverse input, enabling better reach across customer segments. Fenty Beauty’s success—offering foundation shades for a wide range of skin tones—is a prime example of DEI principles driving revenue and reshaping an industry.

Beyond profits, inclusive workplaces boost morale, trust and retention. Glassdoor reports 76% of job seekers consider diversity a key factor in evaluating employers. When employees feel supported and respected, they’re more likely to stay, perform and contribute to company success.

In short, embedding DEI into the workplace isn’t performative—it’s strategic. Organizations that prioritize inclusion today are better prepared for tomorrow.