What is diversity, equity, and inclusion (DE&I) in the workplace

Diversity, Equity, and Inclusion (DE&I) in the workplace refers to a set of principles and practices that fosters an environment where all employees feel valued, respected, and included. These principles enable companies to unlock their employees’ potential while also cultivating a sense of belonging. But what does each term truly mean in practice, and why are they so critical to the success of modern businesses?

This article will explore the essentials of DE&I, discussing its definition, significance, and the challenges organisations face in implementing meaningful DE&I strategies.

What is diversity in the workplace?

Diversity in the workplace refers to the presence of a wide range of individuals with different backgrounds, experiences, and perspectives within an organisation. It’s about fostering an environment where every individual’s unique traits and skills are appreciated and leveraged to drive innovation and shared problem-solving mindset.

At OneAdvanced, we support diversity by encouraging diverse hiring practices and offering opportunities for employees to share their cultures and experiences with others. This diversity enables us to better understand our customers’ needs and challenges, ultimately allowing us to deliver more innovative and tailored solutions.

Why does diversity matter in the workplace?

A diverse workforce brings undeniable value to an organisation. By incorporating varied perspectives, experiences, and problem-solving approaches, diversity ensures enhanced creativity and innovation. These traits are critical for organisations to adapt to challenges, identify new opportunities, and maintain a competitive edge in an increasingly globalised market.

At OneAdvanced, we not only recognise the importance of diversity but actively work to address inequalities through actionable initiatives. Our Diversity Pay Gap Report provides valuable insights into representation across ethnicity, sexuality, and disability within our company. For example:

• Non-white employees represent 13.33% of the highest career levels, closely aligning with the UK Census figure of 18.3%.
• 11% of our workforce identifies as non-heterosexual, surpassing the 2021 UK Census figure of 10.6%.
• 53% of the workforce self-identifies as having a disability, lower than the UK average of 17.8% but showing progress in representation across senior levels.

We have also achieved notable benchmarks, such as women holding 41% of senior-level roles, which significantly exceeds the UK tech industry average of 5% and increased representation of underrepresented ethnicities, employees with disabilities, and LGBTQ+ employees. While this highlights our efforts, there is still work to do in creating a complete diverse work culture.

Examples of diversity

Diversity in the workplace can include but is not limited to these examples:

• Gender diversity: promoting an equal gender balance and challenging gender stereotypes.
• Cultural diversity: embracing different cultures, languages, and customs within a workforce.
• Generational diversity: recognising and leveraging the strength of different age groups in the workplace.
• Ability diversity: ensuring that employees with disability, whether apparent or not, have equal opportunities for success.
• Ethnic diversity: celebrating and supporting employees from diverse racial backgrounds and cultural traditions.

What is equity in the workplace?

Equity in the workplace refers to creating a fair environment where everyone has access to the same opportunities and resources while acknowledging and addressing individual needs and potential barriers.

Implementing equity in the workplace is a proactive process. You must assess existing policies, identify disparities, and take measurable steps to address inequities. This might include conducting transparent pay audits to close pay gaps, or eliminating bias in hiring and ensuring equal access to training and development opportunities for all employees, regardless of their background or identity.

Why does equity matter in the workplace?

Equity in the workplace is essential for fostering a culture of fairness and inclusion, ensuring all employees can thrive personally and professionally. When individuals feel they are treated fairly and have access to the same opportunities, they are more likely to be motivated, productive, and innovative. Furthermore, equity enhances decision-making by bringing diverse perspectives together, which leads to better, more thoughtful outcomes. But sadly, only 28% of employees strongly agree that their workplace is equitable, according to Gallup. This highlights the need for organisations to take focused action.

At OneAdvanced, we understand the business advantages and positive social impact of equity. This commitment is evident in our Diversity Pay Gap Report, which highlights steady progress across key areas. For instance:

• The mean gender pay gap has reduced to 0.9%, a significant drop from 6.8% in 2022.
• The mean ethnicity pay gap decreased slightly to 19.4%, alongside a median ethnicity pay gap reduction by 4.1 percentage points to 20.2%.
• The mean pay gap for LGBTQ+ employees decreased marginally by 0.2 percentage points, now at 15.2%, while the median pay gap increased to 21.8%.
• The mean pay gap for employees with disabilities rose to 14.8%, with the median pay gap increasing by 3 percentage points to 26.3%.

By holding ourselves accountable through transparency and taking proactive measures, we strive to create a workplace where everyone feels valued and can succeed.

Examples of equity in the workplace

Some examples of equity in the workplace include:

• Accessibility accommodations: Providing necessary accommodations for individuals with disabilities to ensure they have equal access to opportunities and resources.
• Mentorship programs: Offering mentorship schemes to support career development for underrepresented groups within the organisation.
• Flexible work arrangements: Providing flexible work options to accommodate individual needs and promote a healthy work-life balance.

What is inclusion?

Inclusion is the practice of creating a workplace where every individual feels valued, respected, and supported to contribute fully, regardless of their background, identity, or circumstances. Unlike diversity, which emphasises on representation, inclusion ensures that diverse individuals feel that their voices are heard, and ideas are considered. This also involves actively addressing unconscious bias, encouraging collaboration, and building an inclusive atmosphere.

Why does inclusion matter in the workplace?

Inclusion is a critical factor in creating a thriving workplace where employees feel valued and empowered to succeed. When individuals feel included, they are more likely to be engaged, productive, and loyal, which directly contributes to an organisation’s overall success. At OneAdvanced, we are committed to fostering an inclusive work environment that celebrates diversity and addresses disparities.

Progress has been made in increasing the representation of underrepresented groups across the organisation in 2recent years. This includes improvements in the representation of disabled employees, individuals within the LGBTQ+ community, as well as underrepresented ethnicities. These achievements reflect our dedication to building an inclusive workplace, though we recognise there is still more work to do.

We also understand that inclusion goes beyond just increasing representation. It involves creating a culture of respect, acceptance, and support for all employees regardless of their background or identity. Feeling included and accepted at work can lead to improved mental health, job satisfaction, and overall employee well-being. It also promotes a sense of belonging and helps individuals perform at their best.

Examples of inclusion in the workplace

Some examples of fostering inclusion in the workplace include:

• Inclusive leadership: Foster a leadership style that values diverse perspectives and promotes equity within the team.
• Inclusive policies and practices: Implement policies that ensure fairness and equal opportunities for all employees.
• Mentorship and sponsorship programs: Provide mentorship opportunities to support growth and development for underrepresented groups.
• Inclusive decision-making: Involve diverse voices in decision-making processes to create more equitable outcomes.
• Employee engagement and feedback: Actively seek and act on feedback to enhance inclusion and employee satisfaction.

Differences between diversity, equity, and inclusion in workplace

While diversity, equity, and inclusion are often used together, they are distinct concepts that serve different purposes in creating a fair and inclusive work culture.

Benefits of DE&I in workplace

With the rising focus on environmental, social, and governance (ESG) principles, integrating diversity, equity, and inclusion (DE&I) initiatives into your organisation can deliver significant benefits.

Improve organisational performance and work culture

According to the Annual Trends Report, more than three-quarters (77%) of respondents indicated that a DE&I (Diversity, Equity, and Inclusion) strategy has either a ‘positive’ or ‘significantly positive’ impact on organisational performance and culture. This is largely because individuals from diverse backgrounds bring a wider range of perspectives, skills, and ideas to the table, fostering innovation and creativity. In turn, this helps organisations become more adaptable, resilient, and better equipped to meet the needs of a diverse customer base.

Create larger talent pool

Embracing DE&I can help you tap into a wider pool of talent. According to Glassdoor, an online job portal, three-quarters of job seekers and employees consider DE&I as a major factor when evaluating job offers and companies. This means that organisations with strong DE&I practices are more likely to attract top talent compared to those that ignore these aspects. As a result, companies can gain a competitive edge in the job market and access a diverse range of skills and experiences.

Increase employee retention

Our latest Report reveals that retaining talent is the top challenge for UK organisations, negatively impacting their ability to prosper. Prioritising DE&I can help organisations to improve retention rates. Employees who feel a sense of belonging, valued, and included are more likely to stay with the organisation for a longer period, reducing turnover rates.

Strengthen customer relationships

Establishing a strong DE&I strategy can have a positive impact on customers because they look for organisations that align with their values and foster diverse and inclusive practices. A study by Accenture found that Inclusion and Diversity (I&D) influences customers’ purchasing and switching behaviours. In fact, 42% of customers say they     would pay more to shop with companies committed to I&D. This demonstrates that DE&I initiatives not only help in attracting and retaining customers and building strong relationships with them.

Boost employee engagement

DE&I can significantly enhance employee engagement and motivation. When employees feel valued, included, and genuinely supported, they’re more likely to develop a strong sense of belonging and commitment to their work. This translates to increased productivity, higher job satisfaction, and improved overall well-being. Ultimately, it creates a positive workplace culture where employees are more engaged and motivated to go above and beyond to contribute to the company’s success.

Improve decision-making

According to Cloverpop, diverse and inclusive teams make better decisions 87% of the time. This is because individuals from varied backgrounds, experiences, and perspectives bring unique insights that challenge conventional thinking and foster more informed choices. At OneAdvanced, our commitment to ‘Bettering Society’ is deeply rooted in one of our core promises: ‘Better for People.’ We prioritise investing in our employees and providing them with opportunities for professional growth and development. By empowering our people, we enable them to make impactful decisions that drive the success of both our company and the broader community.

Drive greater innovation

One of the key benefits of incorporating DE&I in the workplace is increased innovation. When individuals from diverse backgrounds come together, they bring a variety of perspectives, experiences, and ideas to the table. This fosters creativity and promotes out-of-the-box thinking, leading to more innovative solutions and products.

Foster trust and respect

Prioritising DE&I promotes trust between colleagues, leading to stronger working relationships, improved communication, and greater collaboration. By creating a culture of inclusion, organisations can foster a sense of belonging within the workforce. As a result, employees are more likely to support each other, work towards common goals with mutual respect, and drive overall organisational success.

Create healthy and productive work environment

Organisations that focus on DE&I develop a healthy and productive work environment for their employees. By promoting fairness, equal opportunities, and respect, organisations can build a strong foundation for employee well-being. This includes addressing systemic barriers and disparities to ensure all individuals have access to resources and support they need to thrive. As a result, this creates an atmosphere of trust and inclusivity where employees are more likely to be motivated, engaged, and satisfied with their jobs.

Drive long-term success

When organisations actively integrate DE&I principles into their operations, they not only enhance workplace culture but also position themselves for long-term success. By leveraging this collective potential of diverse workforce, organisations can adapt to changing markets, meet the needs of a broader customer base, and gain a competitive advantage. Ultimately, it propels organisations towards sustainable growth and success.

Challenges of implementing DE&I in the workplace

While the benefits of diversity, equity, and inclusion in the workplace are enormous, implementing these initiatives come with its own set of challenges. Some of these include:

Disparity in commitment

One of the key challenges in implementing DE&I strategies is the variation in commitment levels across organisations and professionals. According to recent findings, while 30% of respondents view their organisation’s DE&I strategy as ‘Very important,’ linking it directly to leadership performance objectives, only 25% describe these strategies as ‘Fundamental,’. Interestingly, this level of prioritisation appears strongest among Governance & Risk professionals, where 32% define their DE&I approach as fundamental. However, among HR professionals—who are often expected to champion these initiatives—only 19% share this view. This disparity highlights a troubling inconsistency in strategic emphasis, revealing that DE&I is not yet uniformly embraced across all sectors and leadership levels, posing a significant barrier to meaningful progress.

Less use of technology

The absence of technology in recruitment and onboarding processes presents a significant obstacle to advancing DE&I strategies. While 65% of organisations are leveraging technology to promote diverse hiring and onboarding, 36% admit to using little or no technology at all. This gap reveals a missed opportunity, especially considering the availability of user-friendly, proven solutions designed to reduce bias and improve inclusivity. Modern tools not only streamline hiring processes but also foster a culture of fairness and inclusivity from the very beginning of the employee experience. Therefore, prioritising technology is no longer optional; it’s a critical enabler for meaningful DE&I progress.

Decline in generating pay gap reports

Our latest survey findings reveal a striking decline in organisations conducting Diversity Pay Gap reporting. This year, only 7% of respondents shared that they voluntarily report on Diversity Pay Gaps, beyond the mandatory Gender Pay Gap reporting. This figure is a sharp drop from last year (2023-24), where 33% of organisations reported on both, and an even more significant decrease from 2022-23, where 57% indicated they published Diversity Pay Gap reports.

It’s challenging to understand why this downward trend exists, especially when Diversity Pay Gap reporting is such a critical tool in assessing an organisation’s DE&I standing. These reports offer actionable insights, help identify disparities and serve as a foundation for implementing meaningful changes. For employees and potential candidates, they also signal a company’s commitment to equity and inclusion—an increasingly important factor in attracting and retaining talent.

Disconnect between employees and the company’s DE&I objectives

A significant challenge in achieving a diverse and inclusive workplace is the lack of connection between employees and the company’s DE&I goals. Often, employees may not fully understand or be aware of the organisation’s DE&I initiatives, leading to a disconnect between their personal values and those of the company. This can result in disengagement and even resistance towards diversity efforts within the organisation. To overcome this challenge, it is crucial for organisations to involve and educate employees about DE&I strategies, making them feel invested in the process.

Resistance to change

Change is often met with resistance, especially when it comes to implementing new policies or initiatives that may disrupt established norms. This is a significant challenge in promoting DE&I, as it often requires organisations to change their culture and processes fundamentally. To overcome this resistance, organisations must engage in open and honest communication with all stakeholders involved, explaining the importance of diversity, equity, and inclusion and how it aligns with the company’s values and goals.

Want to gain deeper insights into the importance of DE&I in the workplace and where companies in the UK are standing, download our Annual Trends Report today.

Download the Annual Trends Report