Publication date: February 14, 2025 

 

Diversity, Equity, Inclusion, and Belonging (DEIB) has been a hot topic in the workplace for years. But lately, some companies are scaling back their initiatives—citing economic pressures, political and social backlash, and funding concerns. 

Here’s the thing: DEIB isn’t going away. It’s shifting. And the data is clear—diverse, equitable, and inclusive workplaces don’t just feel better; they perform better. 

The Business Case for DEIB 

Still on the fence? Here’s why companies that stay committed to DEIB see stronger results: 

• Financial Performance: Companies with diverse executive teams are 36% more likely to outperform peers in profitability, and organizations with gender-diverse leadership are 25% more likely to achieve above-average profitability. (McKinsey, 2020) 

• Innovation & Decision-Making: Diverse teams are 70% more likely to capture new markets and 45% more likely to grow market share. (Harvard Business Review, 2013) 

• Employee Engagement & Retention: Inclusive companies are 6x more likely to be innovative and 3x more likely to be high performing. (Deloitte, 2018) 

• Consumer & Market Alignment: Consumers from diverse backgrounds wield $5 trillion+ in annual purchasing power and prefer brands that reflect their values. (Nielsen, 2022) 

• Economic Growth in Michigan: Closing the equity gap and lessening disparities in our communities holds the potential for a $92 billion gain in economic output here in Michigan. (WK Kellogg Foundation, 2018) 

Before DEIB: The Workplace Then vs. Now 

Workplaces haven’t always prioritized equity and inclusion. Many past norms unintentionally (or sometimes intentionally) excluded certain groups. Here’s how things have evolved: 

• Leadership & Hiring: Leadership teams of yesteryears were historically homogeneous (read: often very white and very male), with hiring often favoring personal networks over structured, unbiased processes. Today, organizations are implementing diverse hiring panels, unconscious bias training, and structured interview techniques to mitigate bias. 

• Pay Equity & Transparency: Wage gaps (particularly for women and people of color) went largely unaddressed, with little to no transparency. Now, pay audits and salary transparency initiatives are helping to close the pay gap and ensure fair compensation. 

• Work Schedules & Flexibility: The rigid 9-to-5 model left out caregivers (especially for fathers, non-birthing parents and adoptive parents) and differently abled workers needing accommodations. Flexible work policies, floating holidays, remote options for some jobs, and paid parental leave now provide much-needed agility for ALL people with kids, aging parents, different religious beliefs, etc. 

• Workplace Culture & Policies: Discrimination, microaggressions, and lack of clear harassment policies and trainings bred toxic environments. Companies now invest in DEIB training, employee resource groups (ERGs), inclusive policies, and accountability for upholding defined company values. 

• Career Growth & Development: Advancement often depended on “who you knew.” Today, clear and objective performance evaluations, mentorship programs, and leadership training are helping underrepresented employee progress. 

• Accessibility & Mental Health: Workplaces were rarely designed with accessibility in mind, uniforms were nearly one-size-fits all, and employees often had to hide struggles with anxiety, depression, or burnout for fear of stigma. Now, companies are improving accessibility for people of varying abilities and expanding mental health resources such as Employee Assistance Programs (EAPs). 

• Supplier Diversity & Community Engagement: Businesses rarely considered underrepresented suppliers or engaged with historically marginalized communities. More organizations are now actively seeking partnerships with businesses owned by women, people of color, or members of the LGBTQIA2S community.  

The shift from exclusion to inclusion has improved business innovation, retention, and employee engagement. While there’s still work to be done, DEIB efforts have undeniably created better workplaces for ALL. 

Where Do We Go from Here? 

We know progress isn’t linear. Some companies are doubling down on DEIB, while others are quietly pulling back. But organizations that abandon it completely risk long-term consequences—losing top talent, weakening engagement, and damaging their brand. 

At Cooper People Group, we believe inclusive workplaces are the foundation of thriving organizations. As trusted HR and business advisors, we champion environments where every individual—regardless of race, gender, age, background, ability, or identity—feels valued, respected, and empowered to contribute their best work.  

We know that women, people of color, older workers, formerly incarcerated individuals, immigrants, veterans, LGBTQIA2S employees, people with disabilities, and other historically excluded groups bring immense value to organizations. Inclusion isn’t just a checkbox—it’s a robust business strategy.  

“We think of diversity and often focus on race or gender. But diversity is about so much more—backgrounds, perspectives, talent, creativity, and innovation. When we create inclusive environments, we foster teamwork, authenticity, and belonging, which not only makes us better humans but also improves our bottom line.” 

-Graci Harkema 

Sources: 

McKinsey & Company. (2020). Diversity Wins: How Inclusion Matters. Retrieved from https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-wins-how-inclusion-matters 

Harvard Business Review. (2013). How Diversity Can Drive Innovation. Retrieved from https://hbr.org/2013/12/how-diversity-can-drive-innovation 

Deloitte. (2018). The Diversity and Inclusion Revolution: Eight Powerful Truths. Retrieved from https://www2.deloitte.com/content/dam/insights/us/articles/4209_Diversity-and-inclusion-revolution/DI_Diversity-and-inclusion-revolution.pdf 

Nielsen. (2022). Diverse Intelligence Series: Understanding the Inclusive Consumer. Retrieved from www.nielsen.com 

W.K. Kellogg Foundation. (2018). The Business Case for Racial Equity in Michigan. Retrieved from https://www.businesscaseforracialequity.org/