The Business Case for Prioritizing DEI and Well-Being: How Inclusion and Mental Health Drive Organizational Success

Incorporating Diversity, Equity, Inclusion, and Well-Being into Corporate Strategy Is No Longer Optional—It’s Essential for Business Growth and Employee Success

In recent years, the business landscape has undergone a profound transformation, driven by powerful social movements, a global health crisis, and an increased recognition of the importance of employee well-being. While the case for diversity, equity, and inclusion (DEI) has been building for decades, the tragic events of 2020—such as the deaths of George Floyd, Breonna Taylor, and Ahmaud Arbery, along with a rising tide of anti-Asian hate incidents—ushered in a new urgency for change.

The pandemic also laid bare the personal toll that isolation and grief can have, pushing people to acknowledge their emotional and mental health in ways that were previously stigmatized. This new reality has brought to the forefront an undeniable truth: employees cannot be productive when they are struggling with physical or emotional well-being. The question is no longer “Can you work when you’re unwell?”—it’s “How can we help you thrive?” in the face of these challenges.

The Ripple Effect of Poor Mental Health on Business

While it’s no secret that mental health issues can significantly impact our personal lives, many organizations still underestimate the deep toll it can take on their bottom line. According to the World Health Organization (WHO), approximately 15% of working-age adults experience a mental disorder at any given time, with depression and anxiety costing the global economy a staggering $1 trillion annually due to lost productivity.

In the United States alone, the American Psychiatric Association Foundation reports that employees with depression miss an average of 31.4 workdays per year and lose another 27.9 workdays to unproductive presenteeism, totaling an estimated cost of $44 billion annually. Furthermore, anxiety and chronic stress take an equally damaging toll, reducing focus, decision-making capacity, and overall performance—ultimately leading to costly mistakes.

It’s clear: the need for mental health support is not just an ethical imperative but a financial one. As workplaces become increasingly aware of this fact, the pressure is mounting for businesses to take a more active role in supporting their employees’ well-being.

The Interconnectedness of DEI and Well-Being

While discussions around DEI may feel like they’ve plateaued, particularly given the backlash that sometimes accompanies such initiatives, a survey of 600 C-suite leaders from companies with over 500 employees in 2024 found that 80% remain steadfast in their commitment to DEI. In fact, many organizations have gone a step further, rebranding their DEI functions or integrating them with talent management to create a holistic approach to inclusion.

But DEI goes beyond just “inviting” employees to meetings or team activities—it’s about making sure their voices are heard and that they feel included in decisions that affect them.

More importantly, a growing body of research has demonstrated the undeniable link between workplace inclusion and mental well-being. In fact, more than 60% of employees engage in “covering” parts of their identity at work—concealing aspects of who they are in an effort to fit in and be accepted. This constant pressure to cover can have profound negative impacts on both mental health and overall well-being.

A key component of the US Surgeon General’s Framework for Workplace Mental Health and Well-Being is the concept of “connection and community.” Research has shown that loneliness and a lack of emotional support at work are strongly correlated with an increased risk of self-harm, suicide ideation, and a range of physical health issues, including heart disease and stroke. When employees don’t feel they belong, it creates a vicious cycle that negatively impacts both their mental and physical health.

Moving Beyond the Pandemic: Why Well-Being Still Matters

The end of the COVID-19 pandemic doesn’t mean that employees no longer need support. In fact, the pressure from rising inflation, geopolitical instability, and other global factors continues to take a toll. Employees are still navigating uncertainty and stress, making mental health initiatives more critical than ever.

Organizations that are successful in fostering well-being aren’t just checking off boxes—they are actively investing in the mental and emotional health of their teams, ensuring that employees are supported both personally and professionally. For companies to thrive in this new landscape, mental health and DEI need to be integrated into the fabric of organizational culture and strategy, rather than treated as secondary concerns.

The Role of Data and AI in Measuring Impact

Despite the challenges, there is growing evidence that businesses are committed to making DEI and well-being a core part of their operations. However, as with any business initiative, organizations must demonstrate a clear return on investment (ROI) for DEI programs. This is where data and artificial intelligence (AI) come into play.

For years, measuring inclusion has been a complex and elusive task. While tracking diversity—such as the number of women or minority employees—is relatively straightforward, inclusion is a much more nuanced concept that has been difficult to quantify. However, with advancements in AI and data analytics, organizations now have access to powerful tools that allow them to better understand the dynamics of inclusion within their workforce.

By analyzing data from sources such as employee surveys, Slack conversations, and feedback forms, companies can gain a deeper understanding of how employees are truly feeling and whether they feel included. AI-powered tools can help businesses identify trends, detect issues, and make data-driven decisions to improve inclusion efforts. Rather than asking, “What can we do?” leaders are increasingly asking, “What can’t we do?”

For instance, imagine a workplace where AI reminds employees to reconnect with colleagues they haven’t spoken to in a while or suggests meeting times that accommodate team members across different time zones. This is not science fiction—these tools are already being implemented in progressive organizations.

One example comes from Alight, which uses AI to analyze claims, wealth, HR, and search data to predict employee needs, including mental health and musculoskeletal problems, even before they become claims. By integrating these predictive capabilities, organizations can provide more targeted, proactive support to employees, reducing future claims and improving overall well-being.

The Ethical Considerations of AI in DEI

While AI offers tremendous promise in enhancing inclusion and well-being, it’s essential to approach its use with care. Ethical considerations such as transparency, accountability, and privacy must remain top of mind. Companies must be mindful of how they collect, analyze, and use employee data to ensure that their AI initiatives are both effective and responsible.

AI and data analytics are powerful tools that can help organizations create workplaces where employees are not just present but truly engaged, connected, and supported. But to fully realize their potential, these technologies must be implemented in a way that respects employees’ rights and fosters an inclusive, supportive environment for all.

Conclusion: A Business Imperative for the Future

As organizations continue to navigate the complexities of a post-pandemic world, the need for comprehensive DEI and well-being programs has never been more critical. By prioritizing mental health, inclusivity, and employee connection, companies can drive higher productivity, reduce turnover, and ultimately improve business outcomes. With the power of data and AI, businesses can now measure and act on inclusion in ways that were once unimaginable, making the business case for DEI and well-being stronger than ever.

In the years to come, companies that embrace the interconnectedness of DEI and well-being will not only be seen as responsible employers—they will be the ones leading the charge in creating healthier, more productive, and more equitable workplaces. The choice is clear: the time to invest in your employees’ mental and emotional health is now, and it’s an investment that will pay dividends for years to come.