Contributors: Ramitha Muralitharan, Lauren Renaud, Rachel Bath, Michelle Willson, & Sagal Ali

DEI: What it means and why it matters

Imagine a world where everyone has fair and equal access to work that suits them and that they are qualified for. This is the power of Diversity, Equity, and Inclusion (DEI). DEI is about breaking down barriers and creating spaces where everyone can meaningfully participate and thrive.

What DEI Means

Here is what DEI means:^1,2

• Diversity: Recognizes the unique qualities of each person, like race, ethnicity, gender, sexual orientation, socioeconomic status, and disability.
• Equity: Means fair treatment, resource distribution, and access to opportunities. Equity removes barriers to level the playing field.
• Inclusion: Means valuing, respecting, and supporting all individuals, regardless of their background, to promote their participation and sense of belonging.

DEI ensures basic social and human rights.³ DEI also benefits employers. It expands their customer base, improves sustainability and competitiveness, boosts employee engagement, reduces turnover, increases productivity, and ensures compliance with laws and policies.^4,5,6,7

Recently, some organizations in Canada have started to pull back, rebrand, or remove their DEI programs due to rising anti-DEI sentiment.⁸ Cutting back on DEI programs harms workplace culture and can send a message to marginalized groups that organizational DEI efforts were just for show.⁸ Despite this trend, CCRW remains committed to DEI policies, reaffirming their importance for companies.

Merit and DEI: A Unified Approach

We often hear about DEI- versus merit-based hiring. However, DEI and merit-based hiring can – and should – work together.

Merit-based hiring focuses on a person’s skills, qualifications, and experience. Embedding DEI in merit-based hiring approaches recognizes that not everyone has historically had the opportunity to demonstrate their merit. Education, job networks, and resources are not equally available to all, making it harder for marginalized groups to be considered fairly for jobs.⁹

In Canada, our history of colonization, racism, and discrimination has created deep inequities, making it difficult for everyone to have equal access to education, healthcare, legal aid, employment, and housing.^9,10 These barriers still exist in the form of hiring biases, lack of leadership diversity, and limited advancement opportunities, making it hard to succeed based on merit alone. In other words, DEI-informed approaches to hiring consider factors like race, gender, and disability to increase the representation of qualified candidates.^8,11

In 2023, Statistics Canada reported that employment rate for those with disabilities was 47.1%, compared to 66.1% for people without disabilities.¹² Research from the International Labour Organization shows that workers with disabilities earn 12% less per hour on average than those without disabilities.¹³ Even after considering factors like education, age, and job type, there is still a 9% unexplained pay gap, suggesting that discrimination or systemic barriers could be contributing to this disparity.¹³

Many people mistakenly believe DEI programs give special treatment to marginalized groups, like racialized groups, 2SLGBTQIA+ communities, persons with disabilities, and immigrants. People also think these programs give them an unfair advantage that they didn’t earn.¹⁴ But this is far from the truth. DEI programs often offer opportunities that can benefit all employees, such as mentorship, leadership training, and transparent policies.¹⁵

DEI- and merit-based hiring reinforce each other. Bringing DEI principles into a merit-based system makes sure the hiring process is fairer and more inclusive for everyone. To build a truly merit-based workforce, we must remove barriers that exclude marginalized groups and embrace their diverse experiences and backgrounds.¹⁶

The Business Case and Beyond: Embracing DEI for Lasting Change

Employers who make DEI a priority become more appealing to job seekers and gain a competitive edge. Since 76% of job seekers consider DEI practices when deciding where to apply, organizations need to uphold these values to attract and keep top talent.¹⁷

An Accenture study found that businesses that prioritize including people with disabilities are 25% more likely to be productive, earning 1.6 times more revenue and 2.6 times more net income than their competitors.¹⁸ Companies with diverse leaders are 9% more likely to perform better than their competitors, while those without diversity are 66% less likely to succeed financially.¹⁹

Leaders are important in creating inclusive workplaces. When they fully support DEI, they build a culture that values everyone. By demonstrating these values, leaders attract top talent and improve employees’ sense of belonging. DEI is not just a checkbox. It is crucial for organizational success. Through diverse leadership, fair resource distribution, and ongoing learning, DEI helps create a thriving workplace.

DEI in Action

Organizations must do more than simply say they support DEI or hire people to meet their diversity goals. To make a real impact, they need to include DEI principles at every level of the organization. This means making DEI a core part of their culture and daily practices, not just through specific programs or initiatives.

Here are six ways to build a thorough and genuine approach to DEI:²⁰

• Commit to a clear DEI strategy and stick to it
• Identify and address existing inequities in the organization
• Create a practical plan to put DEI into action
• Regularly track progress and hold everyone accountable
• Apply DEI practices at every organizational level
• Make DEI efforts more meaningful by focusing on the real experiences of marginalized people

Here are some simple ways to use these strategies in workplaces. Make sure that marginalized groups have access to leadership roles and provide them with the resources and support they need to succeed. This might include creating mentorship programs that pair employees from underrepresented groups with senior leaders to help with their career development. It also includes offering support for underrepresented employees through professional certifications, further education, and networking opportunities.²¹

Expanding DEI to Include Accessibility (IDEA)

To ensure everyone can fully participate, accessibility must be part of the DEI framework. Accessibility means designing products, services, and environments to be usable by as many people as possible, meeting their needs and preferences.²²

At CCRW, we focus on inclusion, diversity, equity, and accessibility (IDEA) because we understand that people with disabilities bring valuable perspectives, skills, and contributions to our work, community, society, and economy. We embrace IDEA, making sure that all four principles are a key part of our strategy and practices.

References

1. Baker, J., & Vasseur, L. (2021, September). Toolkit for inclusion, diversity, equity and accessibility (IDEA) in research. Canadian Commission for UNESCO. Link
2. Culture Ally. (2025, February 6). The Importance of DEI and Why it Matters. Link
3. Canadian Labour Congress. (2025, March 21). Workers in Canada are pushing back against attacks on DEI policies. Link
4. Gill, L. (2021, May 18). Building a diverse and equitable business: The role of marketing. Forbes. Link
5. Jones Young, N. C. (2022). Adapting a new inclusive mindset in the hiring process. In Now Hiring (pp. 29–42). Emerald Publishing Limited. Link
6. Corporate English Solutions. (2023, November 20). The power of inclusion: How DEI initiatives boost employee engagement. British Council. Link
7. Accessible Canada Act (S.C. 2019, c. 10)
8. Bonnyman, C. (Host). (2025, March 5). Are DEI initiatives done in the workplace? [Audio podcast]. CBC News. Link
9. McKoy, J. (2024, September 20). Surge in discriminatory state laws threaten the health of multiple marginalized groups. Boston University School of Public Health. Link
10. American Civil Liberties Union. (2024, September 4). Systemic equality: Addressing America's legacy of racism and systemic discrimination. Link
11. Kjerulff, M. (2025, January 30). Understanding merit-based hiring: A path to fairness. Develop Diverse. Link
12. Vergara, D., & Hardy, V. (2024, June 13). Labour market characteristics of persons with and without disabilities, 2023. Statistics Canada. Link
13. Ananian, S., & Dellaferrera, G. (2024, August). A study on the employment and wage outcomes of people with disabilities. International Labour Organization. Link
14. Sumlin, C. (2025, January 31). What the end of DEI initiatives means. The Everygirl. Link
15. Rubin, J. (2025, March 31). DEI policy examples to strengthen workplace culture – a guide for HR teams. Change Engine. Link
16. Caley-Cook, M., Ellis, J., & Modley, P. (2025, February 19). DEI vs Merit-Based hiring – are they really at odds? AMS Expert Insights. Link
17. Glassdoor. (2014). What jobseekers really think about your diversity and inclusion stats. Link
18. Accenture. (2018). The disability inclusion imperative. Link
19. Hunt, D.V., et al. (2023, December 5). Diversity matters even more: The case for holistic impact. McKinsey & Company. Link
20. Scott, K. H., & DeLollis, B. (2023, October 31). Beyond the 'Business Case' in DEI: 6 steps toward meaningful change. Harvard Business School. Link
21. Join The Collective. (2024, August 22). Building a case for professional development funding. Link
22. McMaster University. (n.d.). Definitions. Accessibility Hub. Link