Diversity, equity and inclusion: there are more and more initiatives, programs and internal communities in companies. And yet the impact falls short of expectations. This is usually due to the way DEI is thought about.
After all, it is no longer just about internal culture or voluntary commitment. At European level, the topic is increasingly being anchored in regulation. Directives such as the EU Pay Transparency Directive, the Corporate Sustainability Reporting Directive or existing anti-discrimination laws oblige companies to demonstrably implement equality, fairness and transparency. Diversity, equity and inclusion in companies is therefore no longer a “nice-to-have”, but part of governance, compliance and risk management. Politically, the direction is clear.
Nevertheless, many organizations still act as if the topic can be dealt with in isolation. A training course here, an employee network there. Certainly valuable for individuals. But parallel to the “actual business”. That is precisely the error in thinking.
DEI is not an add-on program.
It is a contemporary, fair, well thought-out organizational and HR practice. With measures that should exist anyway, only made more consistent, transparent and inclusive. Scientific studies (e.g. by Dobbin/Kalev) and actual practice show that DEI is effective where decisions are made: DEI is effective where it intervenes in decisions and structures.
1. recruiting: Who comes into your system in the first place?
Many companies rely heavily on traditional channels such as employee referrals or platforms like LinkedIn. The problem is well known: Networks are homogeneous. Recruiting via recommendations often reproduces existing structures.
This is exactly where an inclusive sourcing strategy comes in. It specifically expands the talent pool, actively addresses groups and challenges existing barriers to entry. It is crucial that recruiting is active. If you only wait for broader groups of people to apply than before, you are implicitly deciding against diversity.
2. job advertisements: Deterrent or attractive?
Research shows that certain wording is a deliberate deterrent. Long lists of requirements or highly coded language mean that women or other underrepresented groups in particular are less likely to apply, even if they are qualified.
Organizations that revise their job descriptions often see two effects at the same time: larger and more diverse applicant pools and shorter time to fill. This is a classic example of how small structural adjustments can have a big impact.
3. interviews: Where bias has a direct effect
Unstructured interviews are among the greatest risk factors for bias. Sympathy, similarity and gut feeling play a bigger role than many believe.
Here, too, the research is clear: structured interviews in which all candidates are assessed using the same criteria are not only fairer, but also significantly more valid in predicting job performance.
Nevertheless, many organizations continue to work with informal discussion formats. Why? Because they seem more flexible. And people often feel more comfortable using supposed knowledge of human nature as a decision-making factor than conducting targeted and objective interviews. In practice, this often leads to inconsistent and biased decisions. Companies that take diversity, equity and inclusion seriously standardize decision-making processes where they are particularly susceptible to unconscious bias.
4th promotion: The diversity, equity and inclusion void
While the focus is often on recruiting, internal career processes often remain opaque. If it is unclear what is required for the next career step, informal factors are decisive. Proximity to managers, self-promotion or cultural fit gain in importance.
This is precisely where many injustices arise.
Transparent career and promotion models counteract this. They clearly define which skills are expected at which level and how development is possible.
Studies show that a lack of transparency puts women and people of color at a particular disadvantage because they have less access to informal information and networks.
5. leadership: the biggest lever is in everyday life
Most differences in everyday working life are not the result of guidelines, but of daily decisions made by managers.
- Who gets challenging projects?
- Who receives concrete feedback?
- Whose performance is made visible?
This is where unconscious bias has a particularly strong effect.
This is why effective diversity, equity and inclusion in companies is always part of management development. Not as abstract sensitization, but as concrete competence: fair distribution of tasks, clear feedback processes, conscious handling of bias.
Without this translation into day-to-day management, many DEI initiatives remain ineffective.
6. working environment: diversity, equity and inclusion are decided in everyday life
Inclusion is reflected, for example, in the daily experience of employees.
Flexible working models, accessible workplaces and clear communication structures are not “benefits”. They are prerequisites for people to be able to participate at all.
Studies show that such measures strengthen the loyalty and development of employees from underrepresented groups in particular.
This is often underestimated because it is less visible than large programs. At the same time, it is precisely here that it is decided whether diversity remains in place in the long term or is lost again.
7. remuneration: transparency as a trust factor
Salary processes are not transparent in many organizations. Decisions are made in individual negotiations or informal discussions.
Research shows that it is precisely this lack of transparency that reinforces inequalities. Women and other marginalized groups are more often sanctioned for negotiating behavior or receive less access to salary increases.
Transparent salary bands, clear criteria and regular analyses are therefore a central component of diversity, equity and inclusion in companies.
They not only reduce inequalities, but also strengthen trust in the organization.
8 Employee Resource Groups: Impact needs structure
Employee resource groups (ERGs) have become increasingly important in many companies. Examples of ERGs include women’s networks, networks for neurodivergence, networks for black people and people of color. At the same time, they often fall short of their potential.
Why? Because they run as voluntary initiatives without being clearly integrated into the corporate strategy.
ERGs are effective when they:
- have clear goals
- Preserve resources
- be supported by managers
- are involved in strategic processes
Then they can not only strengthen affiliation and empower the relevant colleagues, but also provide impetus for recruiting, product development or cultural change.
9. onboarding: the underestimated moment
The first few weeks at the company have a significant impact on whether employees feel like they belong or not.
Many onboarding processes focus on tools and processes. What is missing is context. Who belongs here? How do informal rules work? Which values are actually practiced?
Inclusive onboarding creates orientation and connection. It reduces uncertainty and accelerates integration. This is a decisive factor, especially for employees who do not conform to the majority norm.
10. data: No control without differentiation
Many companies measure employee satisfaction. Few look at the data in detail. The average value is convenient. But it masks differences between groups. Only when data is analyzed according to dimensions such as gender, origin or other diversity characteristics do inequalities become visible.
And only then can organizations take targeted countermeasures.
This is the point at which diversity, equity and inclusion in the company become a management issue rather than a communication issue.
Effective diversity, equity and inclusion means: fewer programs, more system
Effective DEI is created where central organizational processes are consciously designed fairly: Recruiting, promotion, leadership, remuneration, working conditions. This is precisely where it is decided whether diversity, equity and inclusion are created, i.e. whether existing systems can be designed in such a way that they function fairly.
Many organizations remain at the level of visibility and symbolism. Others go deeper and work on structures, even if this is more complex.
If you really want to promote diversity, equity and inclusion in your company, the question is no longer which initiative to launch next.
But whether your system is built in such a way that it enables equal opportunities.
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