Creativity to ensure DEI and Psychological Safety in the Face of Budget Cuts

At 1for2 Social Innovation, we’ve recently had some discussions with clients and prospects facing budget constraints related to investments in psychological safety and organizational culture, due to DEI fatigue (Diversity, Equity, Inclusivity) among leadership. While some see inclusivity and its outcome psychological safety at the workplace, as an area to cut, the majority recognize its profound impact on employee well-being.

To reinforce this, we revisit a 2021 BCG article by Matt Krentz, Ashley Dartnell, Dinesh Khanna, and Susanne Locklair we appreciated, highlighting how inclusivity boosts mental and physical health.

BCG’s research shows employees in inclusive environments are three times more likely to be happy at work and experience lower stress. This directly correlates with higher performance and lower employee turnover. According to BCG, 81% of employees in inclusive cultures are happy, compared to just 27% in non-inclusive ones.

Supporting employees’ mental and physical health is critical. So is creating an environment where people can be their authentic selves.

Key Findings:

• Inclusivity and Happiness: Employees in inclusive workplaces are three times happier.
• Productivity and Retention: Inclusive environments lead to lower stress and higher job satisfaction, reducing turnover.
• Organizational Performance: Companies with diverse leadership are 19 percentage points more innovative.

These findings align with those of a BCG study conducted with New York City’s Lesbian, Gay, Bisexual & Transgender Community Center, which found that LGBTQ+ employees who are out at work feel safer, more creative, and more empowered. Furthermore, companies with above-average diversity in leadership have EBIT margins that are 9 percentage points higher than those with less diverse teams.

At 1for2 Social Innovation, we are selective about our partnerships, ensuring alignment with our values. We remain committed to finding creative ways to challenge budget cuts, educate, train, and develop teams and organizations, and ensure psychological safety in the workplace.

We encourage leaders to view fostering these values not as a cost, but as strategic investments and I am, personally, welcoming discussions that challenge us to propose creative solutions.
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For more insights, read the full BCG article here.