In 2024, the conversation around DEI has shifted significantly, from being perceived as a fringe topic to emerging as a growing sector in its own right.

Based on extensive research, conversations, and data analysis, here are the 5 DEI trends set to define 2024, with exciting momentum building for 2025.

Intersectionality: the acknowledgement that DEI is about more than just gender and skin colour

The concept of intersectionality, first coined by Kimberlé Crenshaw in 1989, recognises that individuals are shaped by multiple identities (e.g., race, gender, sexuality, age, physical ability, and socio-economic status) and that these identities intersect to create unique experiences of discrimination or privilege. In the DEI space, focusing solely on gender or racial diversity often misses the nuances of how these identities interact and affect an individual’s experience at work.

We see more and more initiatives that increasingly consider these multiple identities when discussing and tracking DEI. For example, IBM (who has a long-standing commitment to diversity), recently broadened its DEI focus beyond gender and race to include neurodiversity, disability, and LGBTQ+ representation. The result of which saw overall employee satisfaction scores increase.

Integrating intersectionality into DEI strategies is key not just for enhancing employee satisfaction but also for driving business success. A McKinsey report shows that companies with more diverse workforces (not limited to race or gender but also including age, sexual orientation, and socio-economic backgrounds) outperform their peers financially by 36% in terms of profitability. Additionally, the European Women on Boards 2023 report revealed that companies with higher gender diversity at the senior level also saw higher representation of other marginalised groups in leadership (for example, in companies where women held 30% or more of leadership positions, there was a higher likelihood of LGBTQ+ representation).

Intersectionality ensures that DEI efforts are more holistic and inclusive, acknowledging that workers are not defined by a single dimension of diversity. As tech companies adopt this lens, they stand to improve employee retention and productivity by addressing the diverse challenges their workforce faces.

AI and bias: the rise of fairness as a consideration in AI applications and technology access

With the rapid rise of AI in daily use in hiring, talent management, and everyday workplace operations, concerns about algorithmic bias have (rightfully) grown. Unchecked AI systems can amplify existing biases related to race, gender, and other characteristics, leading to discriminatory outcomes.

Ensuring fairness and reducing bias in AI applications has become a priority for many tech companies, and we applaud this effort, especially given research, such as this 2018 MIT study, that shows that facial recognition systems have higher error rates for dark-skinned women (of 34.7%) compared to light-skinned men (0.8%). If we think about this relatively simple and older use case, it’s worrying to think about the potential biases that could arise in AI models should the balance not be readdressed.

Luckily, in 2023, the European Commission proposed an Artificial Intelligence Act that aims at regulating AI technologies and preventing discriminatory outcomes, which passed in August. Businesses will now be required to better vet the AI tools they use and implement checks and balances that ensure discrimination is avoided by AI systems, specifically around recruitment, promotions, terminations, task assignments and performance evaluations. Companies failing to meet AI fairness requirements could face heavy fines.

For the tech sector, addressing AI bias is not just a legal or ethical imperative but also a business one. Fair AI ensures equitable treatment of all employees and clients, enhancing reputation and fostering trust in AI applications.

Data-driven approaches: Using analytics to measure DEI impact and take more impactful actions

We are so thrilled to see a significant number of companies shifting from “check-the-box” diversity initiatives to data-driven DEI strategies, using analytics to measure their impact on performance, retention, and innovation. Leveraging data allows companies to track real progress and make targeted changes that enhance business outcomes.

And because at GENDEX we love data, here are some numbers to prove why using data is key to success (our motto is ‘what gets measured gets done’).

• A 2023 study by PwC found that companies using data analytics to inform DEI policies were 25% more likely to report higher employee engagement and 30% more likely to report improved innovation.
• A Harvard Business Review study in 2022 revealed that companies with data-backed DEI programs had a 19% higher innovation revenue (revenue generated by new products or services) than companies without such programmes.
• Intel is one of the leaders in applying data-driven DEI strategies. Since 2015, Intel has publicly released its DEI data, setting clear goals for improving workforce representation across gender, race, and other dimensions. By 2021, the company achieved 100% gender pay equity globally and increased underrepresented minority representation by 23% in the United States.

In sectors driven by innovation, such as tech and startups, data analytics is crucial for identifying DEI gaps, measuring impact, and sharpening a company’s competitive edge.

Mental health integrations: Incorporating mental health into DEI initiatives

Alongside DEI initiatives, mental health initiatives have grown, likely driven by the pandemic. Factors like race, gender, socio-economic status, and job roles can shape how individuals experience mental health issues, making it crucial to integrate mental well-being into DEI policies. We’ve seen the beginnings of this happening, and are excited to see how this trend continues to grow.

For businesses, ensuring that employees’ mental health is supported isn’t only a moral question, as we also now see data to show that good employee-mental health leads to good business outcomes, such as high retention rates. Deloitte’s 2022 Mental Health and Wellbeing report found that 82% of employees who feel that their employer is supportive of mental health initiatives are more likely to stay with the company, compared to 68% of those who do not feel supported. We also know, thanks to data from the World Health Organization, that marginalised groups tend to disproportionately be affected by mental health challenges (such as the pandemic) due to a range of factors, including a lack of relevant resources and stigma. Thus, ensuring DEI and mental health go hand-in-hand is key.

Integrating mental health into DEI policies can improve employee well-being, reduce burnout, and increase retention. Supporting employees’ mental health, particularly for marginalised groups, strengthens company culture and promotes long-term success.

Global and cultural adaptation: Tailoring DEI strategies to global contexts

Globalisation isn’t new, but with more and more businesses beginning to access and operate across different markets, ensuring that quality DEI strategies are in place, which are globally sensitive, is essential. No longer is the ‘bull in a china shop’ approach appropriate, and companies need to implement DEI strategies that resonate across different regions and cultures, as DEI challenges vary significantly across countries due to legal frameworks, cultural norms, and historical contexts.

In a Harvard Business Review article, Ella F. Washington explains the benefits for global companies tailoring DEI strategies to local contexts. Specifically, a “global-local” approach enables local leaders to create open communication, fostering a deep understanding of their workforce, community, and customers.

This ensures that DEI moves from abstract ideals to concrete actions.

For example, the European Commission’s Gender Equality Strategy 2020-2025 emphasises the need for a culturally adapted approach to achieving gender parity across its member states, recognising the diverse socio-economic and legal landscapes across Europe.

Google’s DEI efforts illustrate the power of localisation: in India, for instance, Google has focused on increasing opportunities for women in STEM and rural communities. In contrast, in the US, it has placed a stronger focus on racial equity initiatives. This localised approach has resulted in stronger community ties and more effective DEI programmes globally. This has also driven the creation of product features that expand their user base and positively impact their brand.

As mentioned, a lot of incredibly exciting work is going on in the DEI space right now, but the connecting red thread seems to be the desire to create nuance. As well as this, there is an acknowledgement that there is no one-size-fits-all approach to DEI, and that careful thought is key to creating personalised programmes that support the different needs of businesses and individuals more globally – and we are so here for it!

We’d love to know what DEI trends you’ve observed this year, and what you’re excited to see. We’re incredibly excited to share our own GENDEX data with you all soon, and to take a look forward into 2025.

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Written by Emily Hoffschmidt-McDonnell, researched by Rachel Bolte , and edited by Sophie Webber .

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