What Is DEI?

DEI stands for diversity, equity, and inclusion. Let’s examine the full DEI meaning as it applies to the workplace:

• Diversity: The presence of individuals from different backgrounds, varying by age, race, ethnicity, religion, gender, and socio-economic status. A diverse workplace includes people from backgrounds that may traditionally be underrepresented.

• Equity: This addresses fair, equal distribution of resources, respect and opportunities. It might include actions such as accommodating disabilities or providing mentorship opportunities to level the playing field.

• Inclusion: All participants feel a sense of belonging in the workplace, with employees from different backgrounds feeling equally included, valued, and respected.

While there’s no singular diversity policy for Australia, organisations must comply with relevant legislation like the Workplace Gender Equality Act of 2012. This requires larger businesses to submit annual reports on gender equality and inclusion.

It’s also unlawful for employers to discriminate due to any protected attributes, including age, disability, gender identity, and sexual orientation, according to a series of federal anti-discrimination laws. For further compliance advice, the Diversity Council of Australia is a good first port of call.

While Australian businesses must fulfil all legal anti-discrimination requirements, diversity and inclusion should go above and beyond these minimum standards.

Well-crafted DEI initiatives offer an array of tangible benefits.

The benefits of diversity

A diverse workforce is an innovative one. By drawing viewpoints from a variety of backgrounds, your organisation gains the wisdom of diverse perspectives and experiences where creativity thrives – ultimately lending a competitive advantage, particularly in a global market. In fact, research finds that diverse companies earn 2.5 times higher cash flow per employee, with 35% improved productivity.

The benefits of equity

Equity ensures equal opportunities for all employees, regardless of background, opening new doors for growth and development. By making all employees feel valued, companies can improve engagement and retention rates.

Equitable opportunities also help attract top talent throughout the hiring process. Committing to DEI hiring practices combats unconscious bias that can seep into sourcing, casting a wider net for your team.

The benefits of inclusion

As with equity, inclusion benefits the workplace with a more positive company culture and improved employee satisfaction. When individuals feel supported through an inclusive work environment, they’re more likely to contribute valuable ideas. In turn, greater engagement improves productivity and performance.

A diverse, inclusive work environment is widely viewed as positive. According to Forrester research, 60% of sales teams found that DEI initiatives contributed to their success.

To be successful, diversity and inclusion policies should be built into the heart of your overall business strategy.

Set clear goals

Create a roadmap for success by defining your organisation’s DEI goals. For best success, follow the SMART system to ensure these are specific, measurable, attainable, relevant and time bound.

For example, you might decide you wish to increase the representation of employees with a disability on your leadership team. Commit to a measurable goal, such as increasing representation by 10% within the next two years.

Track progress with specific KPIs

Remain accountable while pursuing your DEI initiative by setting up systems to track and measure success. Generate workforce demographic reports and commit to sharing with all stakeholders for better transparency.

Implement a top-down approach

Diversity and inclusion in the workplace start at the top. Diverse leadership is essential for steering the company in a way that’s inclusive for all employees. Recruit underrepresented groups to leadership roles, using tools such as mentorship, development, training and sponsorship for outreach. 

Encourage employee-led input

Improve inclusion by creating employee resource groups (ERGs). These are led by and for workers from underrepresented communities, such as Aboriginal and Torres Strait Islanders or LGBTQ+ employees. The goal is to provide support and opportunity for professional development, all while fostering a greater sense of belonging.

Diversity and inclusion policies in the workplace cover everything from flexible working arrangements to gender-neutral toilets and inclusive language.

A common example is pay equity. With a pay equity policy, an organisation commits to fairly compensating all employees regardless of protected characteristics or background. This policy is supported with tools such as transparent salary structures and audits.

Build a more diverse talent pipeline using data-driven tools from LinkedIn. With LinkedIn Talent Insights, you’ll be able to set inclusive recruiting goals and use real-time insights to expand your search.

LinkedIn Recruiter also allows you to hide candidate photos and names, offsetting any potential unconscious bias. Diversity nudges improve your talent pool gender composition, while a skills-first hiring strategy encourages greater equity throughout the hiring process.

According to Australian HR Institute (AHRI) research, while 84% of HR professionals report DEI as being important, only 49% believe their organisation is providing adequate focus on these policies. With this gap between intent and action, there’s still work to be done when it comes to diversity and inclusion in the workplace.

By integrating bias-removing tech solutions like LinkedIn Talent into the hiring process, you’ll be able to meet diversity quotas, all while promoting a more innovative, inclusive, and positive work environment.