How a Strong DEI Strategy Creates Better Business Results

Creating an inclusive workplace doesn’t happen by chance—it requires deliberate planning, thoughtful implementation, and continuous focus. Developing a sense of belonging calls for a systematic approach concerning culture, policies, and organizational values. 

Building diverse teams and cultures has many benefits for both employees and businesses at large. It can give people a sense of psychological safety and confidence, which can yield better performance and financial results.  

How a Strong DEI Strategy Is Critical for Organizational Growth

Inclusive practices grant business benefits that go beyond compliance or optics. A strong DEI framework fosters a rich, collaborative culture where diverse perspectives are welcomed and celebrated. It provides employees with the psychological security and confidence to drive innovation and creativity. 

Inclusivity also enhances employee engagement by making everyone feel valued and heard, leading to lower turnover rates and longer tenure. Companies with a comprehensive DEI approach often enjoy a better reputation among customers and candidates alike. 

Implementing DEI programs can help unlock some or all of the following seven top DEI benefits:

1. Greater talent acquisition: A strong DEI policy can help attract top talent from different backgrounds. Ensuring team members feel valued and included can also create a stronger and more competitive workforce. 
2. Improved employee retention: Employees are more likely to stay at companies where they feel comfortable and connected to the mission. Research by Boston Consulting Group shows that committing to DEI can slash attrition rates by half. Stronger DEI policies directly correlate with lower turnover rates, which helps minimize the cost of recruiting and training new hires and increases retention of institutional knowledge.
3. Enhanced innovation: Diverse teams bring broad perspectives to conversations. They are better positioned to introduce novel solutions or look at problems from different angles, which can lead to breakthrough products and services that keep a company competitive.
4. Increased employee engagement: When employees feel respected and included, they’re more likely to engage deeply with their work and the company mission. Engaged employees are also more productive and hold a more profound sense of community with their colleagues and teammates. 
5. Improved customer sentiment: Companies that commit to DEI attract more customers who are aligned with these principles. As consumers place increasing weight on the social implications of their purchases, brands with well-communicated inclusion practices will continue to attract loyal customers. 
6. Better decision-making: Diverse teams are less prone to groupthink and more likely to consider various options before making decisions. The holistic and data-driven approach to decision-making often produces better outcomes and helps teams avoid the pitfalls of a “status quo” mindset.
7. Stronger financial performance: Numerous studies show that companies with effective DEI policies financially outperform less diverse organizations. This could result from the innovative and cohesive advantages of inclusive team-building. 

6 Steps To Create a Successful DEI Strategy for Long-Term Impact

Developing a step-by-step plan for adopting inclusion programs can make a seemingly daunting task more manageable. By simplifying the process, organizations can create an achievable and measurable inclusivity strategy. 

1. Gain Leadership Buy-in

Long-lasting inclusive culture starts at the top. The support and commitment of management and executive teams are crucial for the successful implementation of inclusion efforts. Leadership commitment demonstrates a genuine dedication to diversity, equity, and inclusion (DEI) at all levels of an organization.

However, gaining buy-in for a DEI strategy requires more than just verbal agreement. You also need intentional actions and policies that reflect the company’s commitment to inclusion and belonging. Crafting well-thought-out inclusive guidelines and policies provides a clear framework for expectations and accountability. Moreover, investing in inclusive leadership training ensures that leadership teams are equipped with the skills to actively foster an inclusive environment. 

Client spotlight: See how senior leadership at OCHIN led the way to more inclusion with help from Paradigm.

2. Conduct a Data-Driven Organizational Assessment

Before you make changes to your inclusion and belonging programs, it’s important to understand the baseline state of your workplace. Analyzing internal data and employee feedback alongside key metrics around diversity and program effectiveness helps business leaders identify organizational strengths and opportunities for improvement. The insights that come from analysis help leaders make informed decisions about where to allocate resources and how to tailor inclusion strategies to meet specific needs.

Measuring DEI maturity involves leveraging data to evaluate progress and impact. This process includes tracking diversity metrics over time, analyzing participation in DEI initiatives, and gathering employee feedback on the effectiveness of these programs. Such analysis provides a quantitative foundation for understanding an organization’s DEI journey.

Client spotlight: Learn how Advent used a data-informed approach to increasing inclusion across its portfolio companies with the help of Paradigm.

3. Design Targeted Objectives and Goals To Address Key Gaps

Inclusion programs and policies are tools to improve workplace culture, and choosing the right tools for the job increases the chances of good outcomes. For this reason, it’s essential to develop and use inclusion goals to address areas where disparities exist. Organizations must set clear, measurable targets directly tied to business objectives while integrating DEI efforts into culture and operations. 

Client spotlight: Read how NerdWallet used data and expert advice to improve representation and leadership diversity. 

4. Build Cross-Functional Teams for Strategy Execution

Well-structured and well-resourced teams bring together diverse talents and perspectives to drive innovation and problem-solving. They also help foster collaboration across departments, ensuring organizations approach new opportunities from multiple angles. This results in shorter project timelines and more innovative solutions, and it also positions cross-functional teams as key drivers of high-impact outcomes.

Client spotlight: Policygenius engaged Paradigm to help build and foster more diverse teams.

5. Measure Progress Through Inclusion and Demographic Data

Using a data-driven approach to inclusion and belonging offers tangible insights into the effectiveness of diversity programs. It helps organizations track progress, identify areas for improvement, and ensure activities support stated goals. By analyzing inclusion and belonging data, companies can make more informed decisions to create a more equitable workplace.

To measure progress toward DEI goals effectively, focus on quality over quantity in your metrics. KPIs (key performance indicators) should align with your organization’s objectives while providing meaningful insights regarding inclusivity. For instance, tracking employee feedback and differences in hiring and retention rates among groups can reveal actionable information. Careful KPI selection ensures a focused approach to identifying successes and opportunities for improvement.

Client spotlight: Learn how GoPro used the insights, tools, and expertise Paradigm provides to guide employee behavior and build a growth mindset.

6. Gather Employee Feedback and Sentiment for Context

Inclusiveness starts at the top, but its impact touches every level of the organization. Along with the data in your HRIS and payroll systems, employee feedback is one of the most valuable tools for improving inclusion and belonging. Candid feedback provides real-time insight into the effectiveness of diversity initiatives, allowing organizations to make informed adjustments. This feedback loop ensures that DEI efforts are responsive, relevant, and genuinely supportive of all employees’ experiences and needs. 

One caveat to this approach: Take care to craft employee surveys most likely to reveal useful information. Confidential or anonymous surveys may be the best way to encourage helpful candor.

Client spotlight: Find out how Zillow Group partnered with Paradigm to uncover deep data insights, connect them to the employee experience, and drive inclusion.

DEI Maturity: 5 Tips To Advance Your Inclusion Strategy

Every company is on its own journey toward more inclusive programs and practices. Measuring ongoing progress helps organizations understand their current programs’ maturity levels and make more informed decisions about the next steps. 

By making intentional efforts to advance your inclusion strategy, you can unlock the benefits of diverse, cohesive teams and move toward more effective policies and systems.

1. Develop a Strategic Approach

Creating a comprehensive DEI strategy will help you outline the steps necessary to achieve your objectives. Your action plan should focus on the initiatives that will drive measurable impact in your organization, whether that’s an unconscious bias training program, changes in recruitment practices, policies that promote an inclusive culture, or all of the above. 

Expert guidance can help you build and execute better strategic plans. See how Paradigm Blueprint can connect you to data assessment and expert advice for better planning and outcomes.

2. Implement Tailored Training

Offering inclusive training holds immense value for organizations aiming to cultivate a culture of inclusion and diversity. DEIB training on relevant topics equips employees with the understanding and skills to appreciate diverse perspectives, fostering a work environment where everyone feels valued and respected. 

By addressing biases and promoting inclusivity through diversity training, companies can significantly improve the overall employee experience, leading to enhanced team cohesion, increased creativity, and a more productive and harmonious workplace.

Paradigm offers a blended diversity training program with in-person and online learning on a range of topics to help build more awareness and inclusion in your workforce.

3. Improve Inclusive Hiring

Inclusive hiring practices are essential for attracting a diverse workforce, which enriches organizational culture, drives innovation, and makes companies more competitive. By embracing diversity in recruitment, businesses tap into a broader talent pool with a wide array of experiences, backgrounds, and perspectives that lead to dynamic and innovative results. 

4. Build Mentorship Programs

When woven into the performance management process, mentorship and peer support programs act as catalysts for personal and professional development. Pairing junior employees with seasoned mentors facilitates the transfer of career and institutional knowledge while accelerating skill acquisition and boosting morale. Additionally, work-study programs can further enrich this learning ecosystem by providing hands-on experience for those just entering the workforce.

5. Establish Employee Resource Groups (ERGs)

Employee resource groups (ERGs) offer a platform for underrepresented individuals to come together to voice their unique perspectives and receive support. McKinsey reports that 90 percent of Fortune 500 companies have ERGs to support underrepresented groups. 

By empowering employees from various backgrounds, ERGs enhance creativity, innovation, and understanding across the organization. They also provide valuable networking opportunities, professional development, and mentorship for long-term employee and organizational success. 

Hone Your DEI Strategy With Paradigm

Implementing a well-crafted, holistic inclusivity program helps companies create a cohesive workplace where employees feel valued and empowered. With the right data, training, and expertise, organizations can make informed decisions that strengthen teams and lead to more successful work environments. 

To learn about our strategy-building programs and expert consulting, get in touch with a Paradigm expert today. 

March 10, 2025

If you want to learn more about DEI strategy for business growth, contact us today!