Why EDI Is Still an Important Conversation

 

By Shafana Mitha, aKollage Consulting Inc. for HRAI Newsletter

For years, I’ve been asked the same question: Why is investing in Equity, Diversity, and Inclusion (EDI) important for organizations? My answer hasn’t changed—because EDI is a win-win strategy. It opens opportunities for individuals from equity-deserving groups who bring merit but have been historically overlooked, and it enables organizations to thrive.

But before diving into what EDI is, it’s worth clarifying what it isn’t. EDI is not about cancelling or excluding your current workforce. Inclusion doesn’t mean removing existing perspectives—it means expanding them. When done right, EDI brings together varied experiences and viewpoints to strengthen your team, better serve your clients, and build more resilient organizations.

Organizations prioritizing EDI take meaningful steps to remove roadblocks—through inclusive recruitment, mentorship, equitable policies, and other support systems.  When delivering EDI programs, remember that Diversity Does Not Negate Merit. The goal is to create environments where diverse individuals can succeed based on their merit, not be hindered by systemic or unintentional barriers.

Let’s also be clear: diversity alone isn’t a magic wand. A diverse workforce will not automatically transform your organization. However, when paired with equity and inclusion, the benefits are powerful:

  • Understanding customer needs: A more diverse team brings a wider range of lived experiences, enabling greater empathy and insight into customer challenges.
  • Driving innovation: Homogeneous groups can fall into groupthink. Diverse teams introduce different ways of thinking, leading to more creative, effective solutions.
  • Reaching new markets: Employees with diverse backgrounds can connect with communities and customers that your organization may not have previously reached.

These benefits only emerge when people feel they can show up as their authentic selves, are respected, and are empowered to contribute meaningfully. Hiring for diversity without fostering inclusion and equity is performative—it won’t yield the desired results. To make real progress, organizations must build cultures where everyone feels welcomed, valued, and supported to grow and thrive.

1. Talent Attraction, Engagement, and Retention

  • Companies that embrace diversity and have inclusive HR policies attract top talent and experience lower turnover.
  • Inclusive environments are key to employee engagement, satisfaction, and productivity.

2. Innovation, Group Performance, and Decision-Making

  • Cognitive diversity improves problem-solving, speeds up decision-making, and leads to higher-quality innovation.
  • Diverse leadership teams are more innovative and generate higher returns.
  • Organizations with inclusive practices report up to a 59% increase in creativity and innovation, and a 38% improvement in assessing customer needs.

3. Reputation and Market Responsiveness

  • Inclusive cultures enhance organizational reputation—by up to 58% according to Catalyst.
  • Companies known for equity and inclusion have a competitive edge in attracting both top talent and diverse customer bases.
  • Inclusion improves an organization’s ability to understand and meet customer needs by nearly 40% (CCDI, 2022).

4. Financial Performance

  • Organizations in the top quartile for racial and ethnic diversity are 35% more likely to have above-average financial returns (McKinsey, 2020).
  • Increases in financial performance are directly linked to better decision-making, increased innovation, more efficient talent management, and stronger customer trust and loyalty.

EDI Is a Business Imperative—and a Moral One

The data is compelling—but the case for EDI extends beyond metrics. At its core, it’s about human dignity.

Diversity is our present and our future. It’s evolving and expansive. Supporting your current and future workforce through inclusive practices isn’t just a good business move—it’s the right thing to do to keep the best talent in your organization.

As the workplace continues to evolve, embracing Equity, Diversity, and Inclusion is not optional—it’s essential. Organisations that lead with intention, foster inclusive cultures, and remove systemic barriers are better positioned to attract top talent, respond to diverse customer needs, and drive meaningful innovation. Beyond the business case, EDI reflects a commitment to fairness, dignity, and shared success. It’s about creating workplaces where everyone—regardless of background—has the opportunity to thrive.

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