Diversity, Equity & Inclusion

(DEI)

Glossary of HR Terms Diversity, Equity & Inclusion (DEI)

What is DEI?

Diversity, Equity, and Inclusion (DEI) is an organizational framework that promotes representation, fairness, and belonging in the workplace. Diversity refers to the presence of differences in backgrounds, identities, and perspectives. Equity ensures fair access to opportunities, resources, and advancement. Inclusion fosters a culture where all employees feel valued, respected, and empowered to contribute fully.

Why it matters

DEI is essential for creating fair workplaces, improving employee engagement, and driving business performance. Organizations with strong DEI initiatives often experience higher innovation, better decision-making, stronger employer brands, and improved financial results. Beyond business benefits, DEI reflects ethical responsibility and compliance with anti-discrimination laws.

Where it fits in the HR stack

DEI cuts across every layer of the HR stack. In talent acquisition, it ensures diverse candidate pipelines and unbiased hiring. Within performance management and compensation, it promotes fairness and equity. For engagement and retention, it fosters inclusive cultures and addresses systemic barriers. In learning and development, it drives training on unconscious bias, allyship, and inclusive leadership. DEI also connects with people analytics to track representation, pay equity, and inclusion metrics, enabling organizations to measure and improve outcomes.

Common use cases/Examples

  • Implementing blind recruitment to minimize bias in candidate screening.
  • Conducting pay equity audits.
  • Launching Employee Resource Groups (ERGs) to foster community.
  • Running unconscious bias and inclusive leadership training.
  • Tracking DEI metrics such as representation, promotion rates, and inclusion survey results.

Examples of companies that use it

  • Global leaders like Microsoft, Accenture, and Salesforce, which publish annual DEI reports and set public diversity goals.
  • Enterprises like Johnson & Johnson and Procter & Gamble, investing heavily in inclusive leadership programs.
  • SMBs and startups using platforms like Diversio or Lever to embed DEI practices in hiring and culture early in their growth.

FAQ

Equality gives everyone the same resources, while equity recognizes different needs and provides resources accordingly to ensure fairness.

Common metrics include workforce representation, pay equity, promotion rates, employee engagement survey results, and retention of underrepresented groups.

No. DEI spans the entire employee lifecycle—from hiring and onboarding to development, promotion, and retention, ensuring fairness and belonging throughout.

Research shows diverse teams are more innovative, make better decisions, and achieve stronger financial performance.

Yes. SMBs can start with inclusive hiring practices, fair pay audits, and culture-building initiatives, scaling their DEI programs as they grow.