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People are all different. We have unique experiences, backgrounds, and ways of thinking. That’s what makes us creative, innovative, and ultimately human. For businesses, embracing this diversity is about more than ticking boxes or doing the right thing. It’s a strategy that can mean better creativity and problem solving, plus build stronger connections.
But why does diversity and inclusion matter so much, and how can small businesses embrace it?
You may have come across terms like DEI (diversity, equality, and inclusion) or EDI (equality, diversity, and inclusion). They’re similar terms but the order of the wording reflects their focus.
There’s another term you may have heard of too. JEDI, stands for justice, equity, diversity, and inclusion. It’s the cornerstone of B Lab’s operations, the organisation behind B Corp certification.
Encouraging a diverse workforce means businesses are making the best use of skills and talent. This leads to better creativity, productivity, and understanding of customers.
Those businesses that embed diversity see 25% higher financial results. 76% of job seekers also consider diversity when choosing where to work. Baroness Martha Lane-Fox, President of the British Chambers of Commerce. 1.
However, if we look across the Atlantic, the new US government has pledged to scale back DEI initiatives. These changes are already being seen in the public sector. But look at the private sector and you’ll see many companies evolving or rebranding their policies instead. 2.
Meanwhile, in the UK, diversity remains an ethical and legal priority. The Equality Act 2010 protects individuals from discrimination based on nine characteristics:
Unfortunately, despite these protections, 45% of UK adults have experienced workplace discrimination. Ethnic minorities and women are particularly affected. 3.
A 2023 TUC (Trades Union Congress) poll found that two in three young women had faced workplace harassment. This sexual harassment, bullying, or verbal abuse of work led to mental health struggles or even leaving their job. 4.
The Worker Protection Act 2023, introduced in October 2024, places more legal obligation onto employers. Companies must take reasonable steps to prevent staff from being sexually harassed at work.
So it’s clear that legal compliance is important in the UK. But an EDI strategy goes far beyond this. It’s about creating a culture where employees feel safe, valued, and empowered to reach their full potential.
Regardless of company size, there are benefits to creating an inclusive workplace:
Here’s how small businesses can create a more inclusive workplace:
An example of this is a younger employee being overlooked for leadership roles, or an older worker being denied training.
Practical steps to prevent discrimination:
An example of this is a wheelchair user unable to access meeting rooms, or a dyslexic employee being penalised for spelling errors.
Practical steps to prevent discrimination:
An example of this is a transgender employee being called by their deadname or denied toilet facility access.
Practical steps to prevent discrimination:
An example of this is a married woman being seen as less committed to work, or an employer denying spousal benefits to same-sex couples.
Practical steps to prevent discrimination:
An example of this is a woman being passed over for promotion due to pregnancy or penalised for taking maternity leave.
Practical steps to prevent discrimination:
An example of this is a Black employee being constantly mistaken for another Black colleague, or a South Asian employee facing jokes about their accent.
Practical steps to prevent discrimination:
An example of this is a Muslim employee being denied prayer breaks, or a Jewish employee struggling to take time off for religious holidays.
Practical steps to prevent discrimination:
An example of this is a male employee being discouraged from taking parental leave or a female worker being paid less for the same role.
Practical steps to prevent discrimination:
An example of this is an LGBTQ+ employee feeling unsafe to come out or being excluded from social events.
Practical steps to prevent discrimination:
An example of this is a dyslexic employee struggling with written instructions or an autistic colleague being criticised for poor social skills.
Practical steps to prevent discrimination:
To create an inclusive workplace environment and business, consider the following steps:
Show a commitment to EDI through actions, not just policies. This could include understanding the perspective of employees, suppliers, and customers in under-represented groups before making changes.
Create a safe environment where employees can discuss concerns and suggest improvements. Offering training can also help develop an inclusive workplace culture.
Set EDI goals, then track performance to understand what’s working and what needs improving. You could include data against each of the nine areas, along with salary ranges, training, and retention rates for each.
Ensure EDI is reflected in all business operations from values and policies through to recruitment and product development.
Equip managers with EDI understanding and the knowledge of how to support diverse teams. This could include training in discriminatory behaviours, different cultures, and unconscious bias.
Embracing diversity and inclusion goes beyond legal compliance. It’s about building a workplace where everyone feels valued, respected, and able to thrive.
When businesses create an inclusive culture, they unlock creativity and problem solving. They strengthen relationships, enhancing their reputation and attracting both customers and employees.
Driving growth and success through diversity and inclusion doesn’t always mean big changes though. Even small, meaningful steps can create a more welcoming and dynamic workplace where everyone benefits.
Get in touch to learn more about The Business Village and how we support diversity and inclusion.
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