A few years ago, diversity, equity, and inclusion (DEI) were at the forefront of corporate priorities. Companies rolled out programs, hired chief diversity officers, and made bold commitments. Today, DEI has become a polarizing topic. Some organizations are doubling down, while others are quietly scaling back.
But here’s what hasn’t changed: workplaces still need inclusivity to perform at their best.
The companies that succeed will be the ones that treat DEI as a core business strategy rather than a compliance exercise. The key is shifting DEI from an initiative to a leadership competency that is embedded in everyday decision-making.
The DEI pendulum: from compliance to culture
DEI has evolved from affirmative action to equity-driven leadership, but its core purpose remains the same: ensuring fairness, access, and opportunity for all employees.
Historically, many organizations viewed DEI as a legal or reputational requirement. But today’s best-performing companies understand that diversity is not just about ethics; it is a business driver. McKinsey research consistently shows that companies in the top quartile for ethnic and gender diversity outperform their competitors financially by as much as 36%. Diverse teams are also 70% more likely to capture new markets, according to Harvard Business Review.
Yet, as DEI faces new political and social scrutiny, the approach is shifting. The focus must move toward:
- Embedding inclusion in everyday workflows – making inclusion a natural part of hiring, promotions, and team dynamics rather than a separate initiative
- Developing inclusive leaders – training managers and executives to foster cultures of belonging
- Enhancing cultural intelligence – equipping employees with the skills to navigate and collaborate across cultural differences
The real question is no longer, “Do we have diversity?” but rather, “Are we leveraging diversity to drive better business outcomes?”
From DEI as a checkbox to DEI as a business competency
Many companies struggle to move beyond surface-level diversity efforts. They focus on headcount rather than creating an environment where diverse talent thrives and contributes meaningfully. To shift the conversation, organizations must rethink how they define merit in the workplace.
The MERIT framework for inclusive workplaces
I developed the MERIT framework to guide companies in making DEI a sustainable, results-driven business practice:
- M – meaningful opportunities: open doors for advancement based on skills and potential, not just tenure or familiarity
- E – equity in access: ensure fair access to leadership programs, mentorship, and career growth
- R – results-oriented hiring and promotions: prioritize performance and impact rather than over-relying on traditional credentials
- I – inclusion as a leadership expectation: train leaders to actively create an environment where diverse perspectives are welcomed and valued
- T – talent empowerment: invest in upskilling and professional development to maximize the contributions of all employees
By embedding MERIT-based practices, companies can move beyond performative DEI efforts and make inclusion a measurable driver of business success.
The next chapter: DEI as a leadership skill
The future of DEI isn’t about quotas or box-checking. It is about building organizations where different perspectives fuel better decision-making, higher innovation, and stronger engagement. This requires:
Redesigning team collaboration – rethinking how teams work together across cultural differences, time zones, and communication styles
Leading with civility and open dialogue – shifting from fear-based DEI conversations to constructive, respectful discussions that allow for learning and growth
Embedding inclusion into leadership development – making inclusivity a fundamental leadership skill rather than an HR initiative
When organizations operationalize inclusion rather than treating it as an add-on, they future-proof their workforce and gain a competitive advantage.
The bottom line
Whatever term we use—inclusive leadership, cultural intelligence, workplace equity—one fact remains:
Companies that make inclusivity part of their business strategy will outperform those that view it as a passing trend.
The path forward is clear. The question is whether organizations are willing to evolve from DEI as an obligation to DEI as a leadership mindset. Those that do will attract top talent, increase innovation, and build resilient, high-performing cultures for the future. will transform work—it already has. The real challenge is ensuring companies and employees evolve alongside it.
This article is part of the Precision Matters series. In the series, HR and L&D leaders share their expert strategies for utilizing Learning & Development tools to craft precise, impactful business outcomes and foster organizational growth.
