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What is DEI? A skeptic’s guide to understanding diversity, equity, inclusion, and belonging

What is DEI? A skeptic’s guide to understanding diversity, equity, inclusion, and belonging

What is DEI? A skeptic’s guide to understanding diversity, equity, inclusion, and belonging

Let's talk about DEI.
It seems like everyone's throwing this acronym around these days, but what does it really mean for your workplace? And why should you care–or even consider keeping the idea around in such a hot button political climate?  
At CLARA, we've seen firsthand how DEI principles transform organizations. Not just because they're the "right thing to do" (though they are!), but because they create stronger teams and better business outcomes for everyone.



So what exactly is DEI?

DEI stands for Diversity, Equity, and Inclusion. At CLARA, we actually prefer DEIB because we add that crucial Belonging piece. Let's break it down in plain English:
Diversity
Diversity is about mixing it up. It's having different people with different backgrounds working together. This includes:
  • People of different races and ethnicities
  • Folks across the gender spectrum
  • Various sexual orientations
  • Different ages and generations
  • People with disabilities
  • Various religious and spiritual beliefs
  • Different economic backgrounds
  • Various education paths
  • People from different regions and countries
  • Different thinking styles and perspectives

It's not just about checking boxes. Real diversity means having people in the room who see the world differently because they've experienced it differently.
Equity
Here's where people often get confused. Equality means treating everyone exactly the same - which sounds fair until you realize we're not all starting from the same place.
Equity recognizes that some people face more barriers than others. It's about giving people what they actually need to succeed, not just the same standard package. Equity looks like:
  • Identifying and tackling systemic barriers in your workplace
  • Making sure everyone has a fair shot at opportunities
  • Providing flexible resources based on individual needs
  • Ensuring fair pay and advancement for everyone

Think of it this way: if equality is giving everyone the same size shoe, equity is giving everyone a shoe that fits.
Inclusion
Diversity is having different folks at the table. Inclusion is actually listening to them.
An inclusive workplace doesn't just tolerate differences – it values them. It means:
  • Making sure everyone gets heard in meetings, not just the loudest voices
  • Taking diverse perspectives seriously in decisions (not just window dressing)
  • Creating physical spaces and processes that work for everyone
  • Encouraging open, honest communication
  • Calling out bias and discrimination when they show up

Basically, inclusion turns diversity from a nice statistic on your website into something real that shapes your company's culture.
Belonging
This is the piece that many organizations miss, and it's why we emphasize DEIB at CLARA.
Belonging is that feeling when you can walk into a room and just be yourself. You don't have to code-switch or hide parts of who you are. When people feel they belong, they:
  • Feel safe to speak up without fear of being shot down
  • Connect with what the company is trying to achieve
  • Know they're valued for their unique contributions, not despite them
  • Build real relationships with colleagues, not just professional facades
  • Feel they can grow and thrive as themselves

If diversity is being invited to the party, inclusion is being asked to dance, and belonging is being able to request your favorite song – and having people join you on the dance floor.



Why DEIB benefits everyone (not just some people)

Let's get real – DEIB isn't charity. And it shouldn’t be an “us vs. them.” The data shows it benefits literally everyone involved.
For individual employees
  • More chances to develop your skills and advance
  • Actually enjoying coming to work 
  • Freedom to bring your creative ideas to the table
  • Being able to speak up without fear
  • Building authentic relationships with co-workers 
  • Less stress from dealing with discrimination or "fitting in"
For companies (The hard numbers)
This isn't feel-good fluff – it's backed by serious research:
  • More money: Companies with diverse leadership teams are 36% more likely to outperform their competitors financially. That's not a small bump – it's significant money on the table. 1
  • Better innovation: Companies with above-average diversity get 45% of revenue from innovation, while those lagging behind only see 26%. Think about that gap! 2
  • Smarter decisions: Diverse teams make better decisions up to 87% of the time. Why? Because they don't suffer from groupthink and consider more angles. 3
  • Talent magnet: 76% of job seekers look at your diversity practices when deciding whether to join. In a tight labor market, can you afford to lose top talent? 4
  • Engaged employees: Organizations with strong DEIB show 46-58% higher financial performance when combined with high engagement. Turns out people work harder when they feel valued! 5
  • Customer insights: A diverse team naturally understands diverse customers better. Want to expand your market? Start with expanding your team's perspectives.



Real talk: where we stand 

We've made progress, but let's not sugarcoat the challenges:
  • While 60% of HR pros say their organizations do more than the bare minimum with DEI, that's down from 71% in 2021. We're moving backward in some ways. 6
  • Companies are cutting external DEI consultants – down from 66% in 2023 to 47% in 2024. 6
  • Dedicated DEI leadership roles have dropped from 56% in 2021 to just 41% in 2023. 6
  • About half of workers (54%) think their company pays the right amount of attention to DEI, while 15% say too little and 14% say too much. 7
  • There's a gender gap in DEI perception: 61% of women see DEI focus as positive, compared to 50% of men. 7



Creating true belonging (not just checking boxes)

At CLARA, belonging is our North Star. When people truly belong, they give you their best ideas, their real commitment, and their honest feedback.
Building belonging isn't rocket science, but it does require genuine effort:
  1. Leadership that walks the talk - No amount of cute posters can overcome leaders who don't demonstrate inclusive behaviors
  2. Ongoing learning about bias, cultural differences, and inclusive practices - One workshop won't cut it
  3. Measurable goals with real accountability - What gets measured gets done
  4. Policies that create fairness - Look at your systems, not just individual behaviors
  5. Employee groups that build community and influence policy



Let's clear up some DEI(B) myths 

There's a lot of misinformation out there that makes DEIB seem more controversial than it needs to be:

The myth: "DEIB is about giving unfair advantages to certain groups."
The reality: DEIB is about removing existing barriers that unfairly hold people back. It's like fixing a game that's been rigged, not creating a new rigged game.

The myth: "DEIB is just about race and gender."
The reality: DEIB includes all dimensions of diversity – thinking styles, abilities, backgrounds, experiences. It's about creating workplaces where everyone can thrive.

The myth: "If some groups win with DEIB, others must lose."
The reality: The data consistently shows inclusive environments benefit everyone. Success isn't limited – when we remove barriers for some, we create better systems that help all employees thrive.

The myth: "DEIB is just political correctness gone wild."
The reality: DEIB addresses real workplace challenges with proven business benefits. Companies don't invest in DEIB to be nice – they do it because it works.



Making DEIB actually work in the workplace

Let's get practical. Real change requires consistent effort, not just good intentions:
  1. Know where you stand - Use surveys, focus groups, and honest conversations to understand your current state
  2. Set targets that matter - Vague goals like "be more inclusive" don't cut it. Get specific and hold people accountable
  3. Audit your systems - Look at hiring, promotion, pay, and daily operations to find unintentional barriers
  4. Invest in real skill-building - Go beyond basic awareness to develop actual inclusive behaviors
  5. Grow inclusive leaders at every level - Frontline managers often make or break DEIB efforts
  6. Create communities that connect people and influence how work gets done
  7. Track progress honestly - Celebrate wins but be real about challenges

We've seen organizations transform when they approach DEIB with this kind of intentionality and commitment.



Where do we go now? 

At CLARA, we've learned that DEIB isn't a one-and-done project or a side initiative. It's core to how successful organizations operate in today's world.
When done right, DEIB creates workplaces where innovation thrives, employees bring their full brilliance, and businesses perform better. This isn't just good for some groups – it raises the game for everyone.
The companies that get this right today and in the future will have a serious competitive advantage. Those that dismiss it as "just politics" or "too complicated" will find themselves struggling to attract talent, connect with customers, and generate new ideas.
We're on a journey too – always learning, sometimes stumbling, but committed to creating workplaces where diversity is real, equity is practiced, inclusion is normal, and everyone experiences that powerful sense of belonging.



Ready to make DEI(B) work for your organization?

Let's talk. CLARA's solutions can help you build a workplace where everyone belongs and contributes to your success. No judgment, no politics – just practical approaches that work.



References

  1. Built In, "46 Diversity in the Workplace Statistics to Know," March 29, 2024. https://builtin.com/diversity-inclusion/diversity-in-the-workplace-statistics

  2. Doit Software, "2024 Diversity in the Workplace Statistics: Key Facts and Trends," June 26, 2024. https://doit.software/blog/diversity-in-the-workplace-statistics

  3. McKinsey & Company, "How diversity, equity, and inclusion (DE&I) matter," May 19, 2020. https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters

  4. Built In, "46 Diversity in the Workplace Statistics to Know," March 29, 2024. https://builtin.com/diversity-inclusion/diversity-in-the-workplace-statistics

  5. Engagedly, "25+ DEI Statistics to Explore in 2025," February 19, 2025. https://engagedly.com/blog/top-dei-statistics-you-need-to-know/

  6. Culture Amp, "The state of DEI in 2024: Key takeaways and insights," May 16, 2024. https://www.cultureamp.com/blog/dei-2024-trends ↩ ↩23

  7. Pew Research Center, "Diversity, Equity and Inclusion in the Workplace: A Survey Report (2023)," May 17, 2023. https://www.pewresearch.org/social-trends/2023/05/17/diversity-equity-and-inclusion-in-the-workplace/ ↩ ↩2