Diversity, Equity, and Inclusion Report 2023

Part of DDI’s Global Leadership Forecast 2023 Series

In recent years, many organizations worldwide have asserted a strong commitment to diversity, equity, and inclusion (DEI). In this report, we examine how companies are following through on their commitments to DEI and how DEI impacts the strength of their leadership pipelines and of their business. 

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Table of Contents

By the Numbers

DDI’s Diversity, Equity, and Inclusion Report 2023 is part of our Global Leadership Forecast 2023 series, which surveyed 1,827 human resource professionals and 13,695 leaders from 1,556 organizations in more than 50 countries. This report delivers insight into the experiences and perceptions of groups who are underrepresented in leadership, and the impact of organizational diversity, equity, and inclusion practices.

Introduction

On the Brink of a DEI Backslide

Despite public promises of advancement, companies are on the brink of a serious backslide on DEI progress. And it comes at the cost of their own business success.

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Despite public promises of advancement, companies are on the brink of a serious backslide on DEI progress. And it comes at the cost of their own business success.

Terminology

Why We Use Certain Terms in This Report

We recognize that the language we use to represent people across many identities is important, and the nuances are complex. Read our note on the terminology we use to discuss gender, racial, and ethnic identity.

Read Note on Terminology

We recognize that the language we use to represent people across many identities is important, and the nuances are complex. Read our note on the terminology we use to discuss gender, racial, and ethnic identity.

01.

The Great Diversity Departure

Organizations may be more at risk of losing their highly talented women and minority leaders than they realize. And it’s likely not for the reasons they think.

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Organizations may be more at risk of losing their highly talented women and minority leaders than they realize. And it’s likely not for the reasons they think.

02.

Diversity Delivers at the Bottom Line

Some companies may be quietly shifting their attention away from DEI as other business challenges arise. However, companies that focus on succeeding in DEI are also more likely to see better business results.

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Some companies may be quietly shifting their attention away from DEI as other business challenges arise. However, companies that focus on succeeding in DEI are also more likely to see better business results.

03.

Companies Fail to Deliver on DEI Promises

In the wake of a flurry of company commitments to DEI over the past few years, many companies haven’t done enough to follow through in their practices. And leaders – especially experienced ones – are becoming more skeptical.

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In the wake of a flurry of company commitments to DEI over the past few years, many companies haven’t done enough to follow through in their practices. And leaders – especially experienced ones – are becoming more skeptical.

04.

Inclusion Drives Bench Strength

Amid CEOs’ increasing concern about the state of their empty leadership benches, companies need to expand their definitions of leadership potential. Those that are embracing more inclusive practices are seeing more strength in their bench.

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Amid CEOs’ increasing concern about the state of their empty leadership benches, companies need to expand their definitions of leadership potential. Those that are embracing more inclusive practices are seeing more strength in their bench.

05.

The Burnout Generation

Preparing next-generation leaders for higher-level roles is a top concern for most organizations. Unfortunately, younger generations are reporting more burnout, which should cause organizations to rethink the leadership culture they are creating.

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Preparing next-generation leaders for higher-level roles is a top concern for most organizations. Unfortunately, younger generations are reporting more burnout, which should cause organizations to rethink the leadership culture they are creating.

06.

Quality DEI Programs Deliver Results

Top company executives have often wondered whether the investment in DEI programs really pays off. The data shows that these programs do deliver better business results, but only if the programs are top quality.

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Top company executives have often wondered whether the investment in DEI programs really pays off. The data shows that these programs do deliver better business results, but only if the programs are top quality.

07.

Inclusion Doesn’t Require an Office

As many companies question the value of returning workers to the office, a key question centers on whether a remote work culture can be inclusive. The answer is a strong yes, but it depends on managers’ behavior.

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As many companies question the value of returning workers to the office, a key question centers on whether a remote work culture can be inclusive. The answer is a strong yes, but it depends on managers’ behavior.

Where to Focus

5 Crucial Components for DEI Success

There is no singular answer about how to drive DEI success. However, the organizations in our study that are finding success have adopted five crucial components in their DEI strategy.

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There is no singular answer about how to drive DEI success. However, the organizations in our study that are finding success have adopted five crucial components in their DEI strategy.

More from the Global Leadership Forecast 2023

Interested in seeing more of our research on the state of leadership and talent practices? Explore our flagship report, Global Leadership Forecast 2023.

Global Leadership Forecast Report 2023

View the Report

CEO Leadership Report 2023

View the Report

About the Authors