March 2025 – DEI has become a societal megatrend that demands attention. While many companies made DEI initiatives a part of their business strategies, others are scaling back their efforts citing shifting priorities, economic pressures or even political and social pushback. The enthusiasm that once fueled widespread DEI adoption is now met with increased scrutiny. Some question the return on investment and the effectiveness of these programs, whole high-profile layoffs in DEI teams and budget reductions signal that the once unstoppable momentum of DEI may be encountering resistance.
Yet, stepping back from DEI is not without risks. In Romania, companies deprioritizing DEI may face not only reputational damage, but also legal and employee relations challenges. At the same time, workplace transformations driven by shutdowns, remote work and Great Resignation, have reinforced the need for inclusive and equitable policies.
The evolving landscape, along with the practice of the labour authorities seem to indicate that DEI remains essential for long-term business success. Companies must continue to prioritize DEI to engage their employees and thrive, whether as part of their ESG compliance or as a standalone strategy. And Romania is no exception. With an increase in employees’ claims related to discrimination and equal opportunities between men and women, Romanian labour authorities are taking note of how the companies implement DEI and inform their employees in this respect.
So, what exactly is DEI, and how can companies ensure they're implementing effective strategies? In this article, we'll explore the WHAT, the WHY, and the HOW of DEI strategies, giving the companies the tools, they need to create a workplace a truly diverse, equitable, and inclusive workplace.
What is DEI?
Diversity, equity and inclusion has become a buzzword in the business word, but what exactly do these three elements entail?
- Diversity means all the ways in which the people different within a given scenery.
- Equity means that the organization is impartial, fair and ensures equal treatment, access and opportunities to all the employees.
- Inclusion is about creating a workplace where everyone feels welcome and valued, fostering a sense of belonging.
But here is the thing: while all three elements are interrelated and mutually reinforcing, they each play a unique and essential role. A diverse workplace doesn't automatically guarantee an inclusive or equitable one. Similarly, an inclusive workplace isn't always diverse.
Thus, DEI is actually an umbrella term for all policies, strategies or programs that a company can implement to create and ensure a diverse, equitable and inclusive environment for its employees. And to truly succeed, the company must priorities all three elements equally, ensuring they're fully integrated into their organizational culture.
Why employers should continue to implement DEI strategies?
While implementing DEI strategies is crucial for any business to stay competitive in today's world, it also offers a range of benefits for employers. Here are just a few key advantages that make prioritizing DEI a smart business move.
1. Key to compliance with S in the ESG
ESG compliance is no longer just a concern for investors. Companies must now prioritize social responsibility and ethical practices to attract and retain employees, as well. While the “E” and “G” in ESG often take center stage, the “S” is just as important. A poor social rating can mask a company's positive efforts in other areas, potentially misleading investors.
That is why DEI is the missing piece in the ESG puzzle. By prioritizing inclusivity and equity, companies can create a workplace that culture that values and respects all employees, attracts top talent and demonstrates a commitment to social responsibility.
2. Boosting employee retention and engagement
The labor market is more competitive than ever, making it difficult for employers to attract and retain top talent. Today, the candidates / the employees assess job opportunities based not only on remuneration benefits; but also, on the overall package offered by the company, the quality of the workplace and whether or not adequate HR policies (especially DEI policies) are actually implemented. By creating an environment where every employee feels valued and respected, companies can foster a sense of belonging, driving higher engagement and productivity and lower attrition rates. When are less likely to leave the company employees when they feel they are treated fairly and equitably.
Prioritizing DEI is not just about retaining employees - companies that demonstrate a genuine commitment to DEI also enhance their employer brand, making them more attractive to potential candidates.
3. Driving innovation and better decision-making
Innovation and smart decision-making are crucial for a company's success, and companies that prioritize DEI are more likely to achieve both. By leveraging the unique perspectives and experiences of employees from different backgrounds, companies can make more well-informed decisions and develop innovative solutions to complex challenges. When employees feel valued and respected for their diverse experiences, they are more likely to share their unique perspectives and ideas, leading to fresh and innovative solutions.
Moreover, a diverse and inclusive workplace can facilitate more informed decision-making by offering a range of perspectives and insights. By considering a variety of viewpoints, companies can arrive at more well-rounded and informed decisions that reflect the needs and interests of all individuals.
How can employers implement DEI strategies?
After understanding the “why”, we should focus on the “how”.
Implementing DEI strategies requires a deliberate and proactive approach from employers. Here are some key steps to get started:
1. Develop a DEI plan: Employers should begin by assessing the current state of diversity, equity and inclusion in the organization. This involves gathering data, conducting surveys, and seeking feedback from employees to understand the existing culture, hiring practices and areas for improvement – key questions to assess may include: how does the workforce looks like on different hierarchical levels, who is leaving the company and from what positions, what is the promotion rate of the women compared to the men, is there is equal pay for equal work etc.
With this information, the company can develop a comprehensive DEI with specific goals, strategies, and metrics to track progress
2. Draft/ review HR policies: Employers should ensure that they have an anti-harassment/ non-discrimination policy as part of their DEI compliance efforts. This policy should clearly define what constitutes harassment and discrimination, provide examples of unacceptable behavior, and outline the procedure for addressing the claims.
Having a well-defined policy in place communicates the company’s commitment to maintaining a safe and respectful workplace and helps mitigate potential legal and reputational risks.
3. Train the employees: Providing training and education to employees is a key to raising awareness and understanding of DEI issues, while also ensuring compliance with the legal requirements. This can include workshops, seminars, and online courses on topics such as unconscious bias and anti-harassment / discrimination.
4. Measure progress: Companies should regularly assess the effectiveness of DEI initiatives by using metrics such as employee satisfaction surveys, retention rates and progress on diversity in leadership. These evaluations will not only track the effectiveness of the strategies, but will also help the company to identify areas for improvement.
Practical difficulties and what to expect
When it comes to implementing DEI strategies, the lack of a comprehensive legislative framework can be a major obstacle for employers. Without such guidance, it can be difficult to know how to proceed and what is expected of them in relation to DEI. This uncertainty can create a significant barrier to progress.
However, despite the slow pace of change, there have been small, but important steps towards a more regulated area in recent years. In Romania, amendments to legal provisions require employers to implement anti-harassment, as well as equal opportunities policies in the workplace and impose sanctions for their failure to comply. These developments provide hope that the legislative framework will eventually catch up with the reality in the field, giving employers a clear roadmap to follow.