The Business Case for Prioritizing DEI and Well-Being

• There has been a business case for inclusion for quite some time. But after the 2020 protests after the deaths of George Floyd, Breonna Taylor, and Ahmaud Arbery, along with the many Asian hate tragedies, there was a new focus on inequities and injustice leading to a new business case for inclusion.
• Companies could no longer wait for external or internal situations to spark change. In parallel, the isolation during lockdown, along with the grief, made it more acceptable to open up about not feeling okay.   
• Can you be productive when you are unwell? Whether it’s a physical issue or an emotional one, you are not operating at 100% when you aren’t feeling 100%. However, stigma holds us back from talking about mental health at work and seeking the help we need.  

Just because the COVID-19 pandemic is over doesn’t mean employees no longer need support. In fact, many employees have continued to need help because of numerous factors that are out of their control, including high inflation and global conflicts.

It’s no secret that poor mental health impacts our lives, but many don’t realize how it can also affect our businesses. According to the WHO, an estimated 15% of working-age adults have a mental disorder at any point in time. Depression and anxiety are estimated to cost the global economy US $1 trillion each year, driven predominantly by lost productivity. People living with severe mental health conditions are largely excluded from work despite participation in economic activities being important for recovery.

As reported by the American Psychiatric Association Foundation Center for Workplace Mental Health, employees with depression miss an average of 31.4 workdays each year and lose another 27.9 workdays to unproductivity—or presenteeism—which costs employers an estimated $44 billion annually.

Anxiety and chronic stress can also prevent employees from fully “showing up” to work, leading to reduced effectiveness and costly mistakes.

Given the high prevalence of mental health conditions globally, your organization is bound to employ people who could benefit from your help.

The Interconnectedness of DEI and Well-being  

It’s easy to think that the DEI movement is losing steam. However, a survey of 600 C-Suite leaders of companies with more than 500 employees in 2024 shows 80% remain committed to DEI.

Some organizations have created new names for DEI functions or combine talent with DEI into one. Inclusion goes far beyond being invited to meetings or team happy hours. It is also being included and having a voice in decisions that impact them.

Plus, the more research I read on employee well-being and mental health, the more obvious is the tight connection between DEI and well-being in the workplace.

Did you know more than 60% of employees engage in covering part of their identity in the workplace? People cover because they want to be included and feel like they belong, and they fear part of their identity prevents them from being accepted. It is not difficult to imagine the negative impact of constant covering on health and well-being.

One essential dimension of workplace well-being is “connection & community” according to the latest framework released by the US Surgeon General’s Framework for Workplace Mental Health and Well-being. Research indicates that feelings of loneliness and inadequate emotional support significantly correlate with a heightened risk of self-harm and suicidal ideation. Additionally, insufficient social connections are linked to an elevated risk of various health issues, including a 29% increased likelihood of heart disease and a 32% increased risk of stroke.

The solution: AI and data analytics

Despite the headlines of backlash on DEI, many organizations are just as committed to their DEI priorities as ever. However, there’s a growing expectation that DEI initiatives must demonstrate a positive return on investment (ROI). This is where data and AI come into play.

We cannot improve what we don’t measure. Measuring diversity is one thing, but quantifying inclusion is far more complex. Until recently, organizations have struggled to clearly quantify the level of inclusion because inclusion is a multifaceted concept. One common theme I’ve noticed in the leaders I’ve interviewed for this book is their focus on demonstrating business impact of DEI and well-being initiatives. Whether it’s the impact of employee resource groups (ERGs) on hiring or promotions or the healthcare cost reduction from implementing specific well-being programs, those who are successful in securing more funding, run their programs like a business. They don’t only focus on attendance for events or participation in programs, but instead, ask the tough questions of what business metric will this program improve and did we achieve that. These leaders either partner with analytics teams internally or external vendors to ensure the metrics are captured on day one.

The advancements in data analysis and AI technology have changed the game for measuring what previously seemed unmeasurable. By analyzing large amounts of text data from employee surveys, Slack conversations, and other sources, organizations can now gain a deeper understanding of their inclusion dynamics. The question on leaders’ mind is no longer “What can we do?” but “What can’t we do?”

Imagine a workplace where you receive personalized notifications reminding you to connect with a colleague you haven’t spoken to in a while. Or where your calendar suggests alternative meeting times to be mindful of the schedules of your team members in a different time zone. This isn’t the future—it’s already here.

Hilke Schellmann describes in her book, The Algorithm, how Alight combines claims, wealth, HR, and search data to predict the needs of employees. Imagine having personalized recommendations based on who you have added or taken off your insurance plan. Recommendations for doctors are based on care quality and cost. The company said it’d be investing even more heavily to predict mental health issues and musculoskeletal problems before claims are filed.

The use of AI-powered tools to enhance workplace belonging and inclusion is an exciting development. As we move forward, it’s essential to prioritize ethical considerations, ensure accountability, and promote transparency. A balanced approach is a must.

Written by Dr. Serena H. Huang, Ph.D. – an edited extract from The Inclusion Equation: Leveraging Data & AI For Organizational Diversity and Well-being (published by Wiley).
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