Business Case for Workplace DEI | Psychological Safety

In today’s workplace, creating an environment that fosters inclusion, diversity, equity, and accessibility is no longer optional but rather a strategic imperative. Organizations that embrace DEI are not only doing what is right for their employees but also ensuring better business outcomes. One of the fundamental elements of a psychologically safe workplace is DEI. In this post, we will provide you with ten studies that indicate the positive impact of DEI on psychological safety in the workplace.

Psychological safety is crucial for organizations because it creates an environment where employees feel free to share their thoughts, opinions, and ideas without fear of negative consequences. Employees who feel psychologically safe are more likely to speak up, collaborate, innovate, and engage in continuous learning and development. As a result, they are more committed to the organization and have better mental health and well-being.

Here are ten studies that demonstrate the positive impact of DEI on psychological safety in the workplace:

1. Managing cultural diversity: Implications for organizational competitiveness (Cox & Blake, 1991): This study found that organizations that effectively manage cultural diversity have higher levels of job satisfaction, organizational commitment, and psychological well-being among their employees.
2. A construct validity study of the Survey of Perceived Organizational Support (Shore & Tetrick, 1991): This study found that employees who perceive their organization as supportive of their well-being and success are more likely to feel psychologically safe.
3. Diversity in work teams: Research paradigms for a changing workplace (Jackson & Ruderman, 1999): This study found that diverse work teams are more likely to create an inclusive work environment that fosters psychological safety.
4. Do inclusive leaders help to reduce turnover in diverse groups? The moderating role of leader-member exchange in the diversity to turnover relationship (Nishii & Mayer, 2009): This study found that inclusive leaders who build positive relationships with their diverse team members help to reduce turnover.
5. Presumed fair: Ironic effects of organizational diversity structures (Kaiser et al., 2013): This study found that overly structured diversity policies can have ironic effects and actually decrease psychological safety by promoting tokenism and undermining meritocracy.
6. The moderating role of felt trust on the relationship between felt discrimination and affective commitment: A multilevel analysis (Lapointe et al., 2016): This study found that trust in the workplace moderates the relationship between perceived discrimination and affective commitment, which contributes to psychological safety.
7. Best practices or best guesses? Assessing the efficacy of corporate affirmative action and diversity policies (Kalev et al., 2016): This study found that well-designed affirmative action and diversity policies can positively impact psychological safety by reducing discrimination and increasing inclusion.
8. Inclusion and diversity in work groups: A review and model for future research (Shore et al., 2019): This study provides a comprehensive review of the literature on inclusion and diversity in workgroups and identifies the critical factors that contribute to psychological safety.
9. What is an inclusive culture? (Inclusive Culture Pledge, 2020): This resource provides a definition of inclusive culture and outlines the benefits of creating an inclusive workplace, including improved psychological safety.
10. Ethnic diversity and creativity in small groups (McLeod et al., 1996): This study found that diverse workgroups are more likely to generate creative ideas, which can foster a culture of innovation and improve psychological safety.

In conclusion, DEI is essential for creating a psychologically safe workplace that supports open communication, innovation and creativity, employee well-being, trust and engagement, and learning and development. These ten studies indicate the positive impact of DEI on psychological safety.

Based on the studies listed above, it is clear that workplace inclusion, diversity, and equity (DEI) support psychological safety, which can lead to a more positive and productive workplace culture, improved employee well-being, and better business outcomes.

In order to build a business case for workplace inclusion, diversity, and equity (DEI), organizations should consider the benefits of psychological safety and how it relates to their specific goals and objectives. By fostering a psychologically safe workplace, organizations can encourage open communication, support innovation and creativity, improve employee well-being, enhance trust and engagement, and support learning and development.

Furthermore, the studies listed above provide evidence that an inclusive workplace culture that values diversity and promotes equity and accessibility can lead to better business outcomes, such as reduced turnover, increased creativity, and higher levels of engagement and commitment to the organization. Organizations that prioritize workplace DEI can position themselves for success in an increasingly diverse and competitive global marketplace.

This blog was originally published by Diversio EDU (formerly CCDI Consulting) in May 2023.

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