"What does DEI mean in the workplace?" It's a question more companies are asking as employees, clients and stakeholders alike prioritize values-driven cultures. Diversity, equity and inclusion aren't just buzzwords — they're essential to building thriving work cultures that reflect the real world and meet the demands of today's workforce.
In this blog, we unpack the meaning of DEI, explore why it's essential in modern organizations, and show how Circles and its parent company Sodexo embed DEI into their DNA. Whether you're in HR, leadership, or just DEI-curious, these insights will help you understand the role DEI plays in shaping a healthier, more resilient workplace.
So, what is DEI in the context of human resources? At its core, DEI stands for diversity, equity and inclusion. While often grouped together, each component has a distinct role in building more human-centered workplaces.
When practiced together, these pillars foster workplace diversity, equity and inclusion that goes beyond compliance or check-the-box initiatives.
Diversity in the workplace isn't just about visible identities. It's demographic, yes, but it's also cognitive and experiential. When companies prioritize diversity, they gain access to broader perspectives, fresh ideas and richer collaboration.
Think of a team composed of multiple generations, varying cultural backgrounds, neurodiverse individuals and professionals with non-linear career paths. That range of experience fuels innovation.
According to a 2023 McKinsey report, companies in the top quartile for ethnic and gender diversity were 39% more likely to outperform their peers in profitability. That’s no accident.
So, what does DEI do in the workplace? It opens doors — for new thinking, better decision-making and meaningful growth.
Equity isn't the same as equality. Where equality gives everyone the same resources, equity asks: What does each person need to thrive?
In the workplace, equity looks like pay transparency, unbiased hiring processes and accessible career advancement paths. It also means acknowledging historic or systemic imbalances and actively correcting them.
Workplace diversity, equity and inclusion thrives when equity is embedded in everything from onboarding to performance reviews. This focus isn't just moral; it's strategic. Research from Gartner in 2023 found that employees in equitable workplaces were 3.2 times more likely to feel engaged and committed.
If you're wondering, "What does DEI mean in the workplace?" Equity is the answer to the fairness piece of that puzzle.
While diversity invites people to the table, inclusion ensures they have a voice once they're there.
Inclusion shows up in the little things: Whose opinions get heard in meetings? Are company events accessible to all? Does every team member feel seen and supported?
Strategies for inclusion might include:
The concept of diversity, equity and inclusion dates back to the 1960’s, although the letter “B” for belonging was added to the DEI acronym within the past few years — DEIB. The addition of the “B” recognizes that a sense of belonging is important for employees to feel welcome, secure and connected to their colleagues.
When employees feel a genuine sense of inclusion and belonging, they’re more likely to stay engaged and committed. According to Qualtrics' 2024 Employee Experience Trends report, employees working in environments that support flexibility and inclusivity — such as hybrid work models — report higher engagement, well-being and intent to stay compared to those in fully remote or in-office setups.
Still asking what does DEI do in the workplace? It creates cultures where people want to stay.
In today’s workplace, conversations once considered “off limits” — especially around politics and identity — are increasingly influencing company culture. For DEI-minded leaders, the challenge isn’t to silence these conversations, but to guide them with empathy, intention and inclusion. As Keith Spencer notes, over half of employees now avoid coworkers with differing views, which can erode trust and collaboration.
To lead inclusively, leaders must foster an environment where diverse perspectives are welcomed, and psychological safety is protected. That means setting clear norms for respectful dialogue, reinforcing shared values like dignity and equity, and modeling active listening that prioritizes understanding over agreement. When employees feel heard and respected — even in disagreement — it reinforces a culture of belonging.
Why is DEI important in the workplace? Because today's workforce demands it. And despite some pushback, most companies aren’t backing off from delivering on their commitment to DEI. According to USA Today, 96% of social impact leaders in 125 major companies say that their DEI commitments have either remained the same (83%) or have increased (13%).
Younger generations prioritize employers who walk the talk on social responsibility and inclusion. Customers choose brands that align with their values. And investors recognize that diverse teams outperform homogenous ones.
Beyond optics, DEI is crucial in building organizational trust. It signals that a company sees the humanity behind every role and is willing to do the work to support it.
If you're still asking, "What does DEI mean in the workplace?" understand this: It means designing environments where all people can do their best work.
When companies invest in DEI initiatives, they're not just checking a box. They're unlocking serious business value.
Workplace hospitality management services, like those offered by Circles, supports DEI by removing daily life obstacles so employees can focus on what really matters — doing their best work in an environment that values them.
When DEI becomes performative or poorly executed, the effects can be damaging. Employees notice when leadership says the right things but doesn’t follow through. That dissonance leads to:
A Glassdoor survey from 2023 showed that 1 in 3 employees would not apply to a company that lacked diversity. That should be a wake-up call.
What does DEI do in the workplace? Done right, it builds trust. Done wrong, it undermines it.
At Circles, DEI is woven into how we support clients and how we operate internally. Our workplace hospitality management services are designed with accessibility, personalization and care at their core.
As part of Sodexo, we're proud to share a global DEI vision. Sodexo has committed to gender equity and fair opportunities across all levels. In fact, as highlighted in this blog, 60% of Sodexo board members are women, and the company has committed to reaching gender parity in management by 2025. Circles US leadership team is over 87% female!
Circles cited diversity as a key workplace experience challenge, in its Q1/2 2025 Workplace Trends Report. As the workforce becomes more diverse and global, managing workforce diversity and inclusion in a global context means addressing diversity in physical spaces. Organizations need to ensure policies are culturally appropriate, equitable and delivered in an environment that respects and values differences.
In our eBook Culture by Design, Shaping a Workplace People Love, we discuss how positive work environments go beyond physical spaces to foster a culture where employees feel valued, heard and supported. (And we give three actionable examples of how to do that).
So, what does DEI mean in the workplace to us? It means real action, backed by measurable outcomes.
Ultimately, DEI isn't a trend. It's a strategy for long-term resilience and growth.
Companies that invest in workplace diversity, equity and inclusion are better equipped to handle change, attract loyal customers and retain top performers. They build cultures people want to be part of.
Organizations that prioritize DEI often see higher brand loyalty and more consistent performance during economic shifts. Why? Because their people are more engaged, connected and supported.
A thriving work culture isn’t just nice to have. It's a competitive advantage. Learn how DEI can inspire one.
So next time you hear someone ask, "What does DEI mean in the workplace?" you'll have a clear, confident answer — and hopefully, the inspiration to keep building something better.
