DEI Programs Are Disappearing - Here’s How to Keep Inclusion Alive

As organizations navigate shifting landscapes and evolving priorities, many are scaling back or eliminating formal Diversity, Equity, and Inclusion (DEI) programs. But here’s the thing—inclusion isn’t just a program; it’s a practice that lives in the day-to-day actions of every team member. At Poly Labor, we know that even without the formal structures, fostering a culture of inclusion and consent is key to both people and business thriving.

The Real Value of an Inclusive Culture

Inclusion isn’t just about checking boxes—it’s about creating environments where people feel valued and empowered to do their best work. When inclusion is at the heart of an organization:

1. People Stick Around: Employees who feel heard and respected are more likely to stay, reducing turnover and preserving the unique knowledge that drives success. In fact, a Gallup study found that organizations with high employee engagement—which includes feeling heard—experience up to a 59% reduction in turnover (Gallup).

2. Innovation Flourishes: Different perspectives spark creativity. An inclusive culture fuels out-of-the-box thinking and breakthrough solutions.

3. You Reach More People: Understanding and connecting with diverse audiences isn’t just good practice - it’s good business. Diverse teams bring unique insights that help organizations craft products and services that resonate with a broader customer base, leading to increased market share and stronger brand loyalty.

4. The Bottom Line Gets a Boost: Diverse teams consistently outperform their peers, driving both profitability and growth. According to a McKinsey report, companies in the top quartile for ethnic and cultural diversity on executive teams were 36% more likely to outperform on profitability (McKinsey).

Psychological Safety: The Hidden KPI Driver

Psychological safety—where people feel safe to speak without fear of backlash—isn’t just a nice-to-have. It’s a cornerstone of high performance. Google's Project Aristotle found that psychological safety was the most important factor in building successful teams, with teams exhibiting high psychological safety outperforming others in effectiveness and innovation (Google). Here’s how it impacts key metrics:

1. Productivity Soars: Teams that trust each other are more efficient, creative, and collaborative. A Gallup study found that psychologically safe teams are 12% more productive and show a 27% reduction in absenteeism compared to teams lacking trust (Gallup).

2. Teams Perform Better: The best teams aren’t just smart - they’re open, honest, and supportive. According to Gallup, teams with high psychological safety demonstrate a 27% increase in performance compared to those lacking trust and openness (Gallup).

3. Innovation Metrics Climb: When risk-taking is encouraged, more ideas flow, and more projects succeed. Innovation can be measured through metrics like the number of new ideas generated, the percentage of revenue from new products, and time-to-market for innovations. According to Harvard Business Review, companies fostering psychological safety see up to a 20% increase in successful project outcomes, as team members feel empowered to experiment and share bold ideas without fear of failure (HBR).

4. Employee Satisfaction Grows: Psychological safety is a key driver of job satisfaction, influencing engagement and retention. Gallup research indicates that employees who feel psychologically safe are 3.5 times more likely to be engaged at work and report higher overall job satisfaction, directly contributing to lower turnover rates (Gallup).

How to Take the Right Actions

Scaling back DEI programs doesn’t mean scaling back on values. Here’s how to uphold inclusion and consent, even when decisions are tough:

1. Be Transparent: Communicate openly about changes, why they’re happening, and how inclusion remains a priority. In truth, this may be the hardest action. Companies are scaling back DEI efforts for several reasons, including economic pressures that prioritize cost-cutting, shifts in leadership or organizational focus, political or cultural pushback, and a belief that DEI goals have been met or can be integrated into broader initiatives. Some organizations also face challenges measuring DEI impact, leading to skepticism about its value. None of these reasons will feel good enough for employees who are part of the communities that benefit from these efforts. An iterative Change Management communication and feedback plan will be critical.

2. Support Employee Resource Groups (ERGs): Empower grassroots efforts to keep the spirit of inclusion alive. One organization we worked with reallocated a portion of their DEI budget and provided it to these groups to invest in efforts to keep the needs of these groups present for employees. They also leveraged the ERGs to provide insight and feedback before making changes so concerns could be addressed in advance.

3. Make Inclusion Part of Everyday Life: From hiring practices to daily meetings, embed inclusive behaviors in every corner of your operations. If you are a company that holds a belief that DEI goals have been met, look at the ways you have improved your operations and assume you haven't done enough yet. DEI goals are never really done, it takes work to make sure the culture stays pointed towards these efforts.

4. Lead by Example: Inclusive leadership isn’t about titles - it’s about actions. Show empathy, listen actively, and make equitable decisions. Brené Brown's research in Dare to Lead emphasizes that leaders who embrace vulnerability and practice empathy foster environments of trust and psychological safety. According to her findings, organizations with leaders who prioritize these qualities see increased team engagement and resilience. Brown's work also highlights that courageous leadership - which includes having tough conversations about inclusion - is essential for driving meaningful change and fostering innovation (Brené Brown).

5. Ask for Feedback—and Act on It: Regularly check in with employees about how to maintain an inclusive environment. Show them their voices matter. Ignoring feedback and failing to foster inclusivity can have serious consequences. According to a McKinsey report, companies that lack diversity and fail to prioritize inclusion are more likely to underperform financially, with those in the bottom quartile for diversity being 29% less likely to achieve above-average profitability (McKinsey). Additionally, disengaged employees in non-inclusive environments are more likely to leave, leading to higher turnover rates and increased recruitment costs. 

6. Keep Learning: Offer training and development opportunities focused on unconscious bias, cultural competency, and inclusive leadership. Growth never stops. We recently delivered Psychological Safety training to teams at a global food and beverage company, and the transformation was remarkable. Teams that once struggled with friction and miscommunication found new ways to connect and collaborate. By fostering open dialogue and trust, they didn’t just resolve lingering conflicts - they unlocked a new level of cohesion. Team members shared how they felt more understood, respected, and confident in voicing their ideas. With clear working agreements in place, these teams not only improved their communication but also created a resilient foundation for navigating future challenges with ease.

In Conclusion

Even as formal DEI structures evolve or diminish, the core principles of inclusion and consent remain vital. At Poly Labor, we believe that creating psychologically safe, inclusive spaces isn’t a trend—it’s the foundation for sustainable success. By embedding these values into daily operations, organizations can continue to innovate, grow, and thrive in an ever-changing world.

If you’re looking to deepen your organization’s commitment to inclusion, psychological safety, and leadership development, we’re here to help. Whether it’s through speaking engagements, tailored workshops, or consulting services, Poly Labor offers expertise to guide you in fostering sustainable, inclusive growth. Connect with us to explore how we can support your team in driving meaningful change.