Psychological health and safety series #14: Creating an effective diversity, equity and inclusion policy

Credit: Adobe Stock/Nopadon.

A diversity, equity and inclusion (DEI) policy is essential for creating a workplace where all employees feel welcomed, valued, included and able to contribute fully, regardless of their background or identity.

A comprehensive DEI policy establishes a framework for a workplace celebrating differences, removing barriers to participation and ensuring fair treatment for all. From a psychological safety perspective, this policy is a must because it defines the expectations for all employees’ experiences, such as:

• Preventing feelings of exclusion or marginalization that profoundly negatively impact mental health
• Valuing unique perspectives and identities supporting psychological well-being
• Promoting diverse teams and collaborative workplaces where all voices are heard
• Reducing the psychological burden of “covering” or hiding aspects of identity
• Ensuring equitable practices so opportunities and recognition are available to all, reducing stress from unfair treatment

Workplaces with strong DEI practices have higher employee engagement, well-being and psychological safety levels. When all employees feel they can bring their whole selves to work without fear of discrimination or exclusion, they experience less stress and greater belonging.

Even the concept of diversity is diverse:

• Demographic diversity includes fundamental identity characteristics of race, ethnicity, gender identity and expression, sexual orientation, age and generational differences, national origin, citizenship status, language and accent variations.
• Physical and cognitive diversity recognizes the spectrum of human abilities. It includes visible and invisible neurodiversity disabilities (e.g., autism, ADHD, dyslexia), mental health conditions and differences in physical appearance and body size. This may impact how people process information and approach challenges, as well as problem-solving approaches, communication styles, learning preferences and personality types.
• Cultural and religious diversity acknowledges the richness of human beliefs and traditions, including religious beliefs and practices, cultural backgrounds and traditions, Indigenous heritage and immigration status, including refugee experiences.
• Socioeconomic diversity addresses the varied economic and educational backgrounds people bring, encompassing economic backgrounds and classes, educational attainment, first-generation college student status, and rural, urban and suburban geographic origins.
• Linguistic diversity is the presence of multiple languages spoken within a group or society.
• Professional and experiential diversity follows from different life experiences and career journeys, including varied or multiple career paths and professional backgrounds, military service, industry experience, diverse skills and expertise areas, and different leadership styles and approaches.
• Family and personal diversity recognizes the varied personal circumstances that shape individual perspectives, such as parental and caregiver status, marital and relationship status, family structure and responsibilities and unique life experiences and personal journeys.

Essential elements to include in a DEI policy are:

• Statement of purpose and commitment: Begin with a clear declaration of the organization’s commitment to diversity, equity and inclusion as core values. This statement should articulate why DEI matters to the organization as a principle and as a business strategy enhancing innovation, decision-making, employee experience, and well-being.
• Definitions and key concepts. There is confusion about many of the terms used in DEI policies, so an organization should define key terms. Defining terms will create a shared understanding and provide safe language for discussing DEI concepts. This could include terms like diversity, equity, inclusion, belonging, intersectionality, unconscious bias, microaggressions, allyship, privilege, social justice, cultural competency and system oppression.
• Scope and application. Define who is covered by the policy (typically all employees, contractors and partners) and in what contexts it applies (hiring, promotion, daily interactions, customer service, etc.). Make it clear that DEI principles apply to all aspects of the employment experience, relationships and workplace interactions.
• Protected characteristics and dimensions of diversity. Outline the dimensions of diversity recognized and protected within the organization, which typically include but are not limited to:
  • Race, ethnicity and cultural background
  • Gender identity and expression
  • Sexual orientation
  • Age
  • Disability (visible and invisible)
  • Religion or belief
  • Socioeconomic background
  • Family status
  • Language
  • Neurodiversity
  • Education and experience
  • Geographic location
• Roles and responsibilities. A clear definition of the responsibilities of all parties is essential for success. The employer and organization must create and maintain inclusive systems and practices, provide necessary resources and training, model commitment to DEI at leadership levels and hold the organization accountable for progress. Human resources and DEI offices should administer DEI initiatives, provide expertise and guidance, monitor outcomes, identify gaps and support implementation across the organization. Managers and supervisors are responsible for creating inclusive team environments and implementing DEI practices in daily operations. Individual employees must treat colleagues with respect and dignity, participate in DEI initiatives, speak up about concerns and contribute to an inclusive culture.
• Legal framework. Legislation may drive a significant portion of a DEI policy. Include references to relevant human rights, employment equity and anti-discrimination legislation governing workplace practices. This establishes the minimum requirements while acknowledging that organizational practices should aim to exceed legal compliance to create inclusive environments.
• Prohibited behaviours. Organizations must define behaviours that contradict DEI principles and will not be tolerated, including direct and indirect discrimination, harassment based on protected characteristics, bullying, microaggressions, exclusionary practices, stereotyping and derogatory language or jokes. Providing examples and training will help employees recognize these behaviours when they occur.
• Recruitment, selection and promotion practices. DEI principles should be incorporated into hiring and promotion through diverse candidate slates, structured interview processes, bias mitigation strategies, inclusive job descriptions, diverse interview panels, regular reviews of selection outcomes and accommodations throughout the process.
• Learning and development. The organization’s approach to DEI education should encompass required DEI training for all employees, specialized training for managers and leaders that includes cultural competence development, bias awareness and mitigation training, and inclusive leadership development.
• Communication and language. Guidelines for inclusive communication should establish standards for using inclusive and accessible language, translation and interpretation services, communication accommodations, respectful terminology, and multiple communication and feedback mechanisms.
• Reasonable accommodation. The organization’s approach to accommodation should detail the types of accommodations available and connect seamlessly with the organization’s broader workplace accommodations policy to ensure comprehensive support.
• Celebration of diversity. Organizations should celebrate diversity by recognizing cultural and religious observances to reinforce that diversity is valued and embraced. Employers may also consider diversity celebrations and events, inclusive facilities such as prayer or meditation rooms and all-gender restrooms, and supporting cultural expression.
• Reporting and addressing concerns. Clear procedures for addressing DEI-related concerns must include multiple reporting channels, confidentiality provisions, investigation processes, non-retaliation protection, resolution approaches and support resources for affected individuals.

Implementing a comprehensive DEI policy and integrating it with a broader psychological health and safety program acknowledges the fundamental connection between inclusion and psychological safety. When employees feel they belong and are valued for their authentic selves, they experience the psychological safety necessary to contribute and thrive fully. We encourage a Plan-Do-Check-Act approach to implement and monitor policies to ensure they perform as intended.

The primary goal of this psychological health and safety policies series is to promote psychological health and safety. Implementing a DEI policy thoughtfully can help set the expectation for how employees will be treated and help them feel safe and supported to bring their best selves to work, contribute fully, and experience professional success and personal well-being.

Want to learn more about psychological health and safety? Register for our Psychologically Safe Workplaces Summit on June 25, 2025.