The recent Wall Street Journal piece points out that in 2025, companies are downplaying prominent DEI branding to avoid backlash—favoring terms like “employee engagement” instead—while still pursuing inclusive practices quietly. The suggestion? Forget the buzzwords and focus on genuine, broad employee well-being—even with a DEI lens.
In this Knowledge Corner article, we explore why this shift matters—and offer evidence-backed strategies that fuse inclusion with well-being, not just lunch-step challenges or gym incentives.
1. A Holistic Approach to Wellbeing Can Drive Culture, Belonging & Engagement, Just Like DEI
- Organizations with inclusive cultures are twice as likely to meet financial targets, three times as likely to be top-performers, and six times more innovative.
- A BetterUp study finds a sense of belonging boosts job performance by 56%, reduces turnover risk by 50%, and cuts sick days by 75%.
- Inclusive leadership—respecting unique strengths and providing growth feedback—directly enhances employee vigor and well-being.
- Takeaway: Employee wellbeing efforts aren’t just trendy—they creates environments where people feel seen, included, and energized.
2. Traditional Wellness Falls Short—We Need Holistic Well-Being
Most wellness programs focus on easy metrics: step counts, diet logs, biometric screenings. But those don’t address deeper needs.
- Well-being is rooted in autonomy, belonging, competence, and growth—psychological factors that DEI efforts, when done right, actively support.
- Research shows that inclusive workplaces and general well-being reinforce each other.
Example: A “get-to-know you tea hour” or storytelling session can be more impactful than a treadmill challenge, by breaking down social barriers and encouraging authentic connection.
3. Holistic Strategies: Where Inclusion Meets Personal Well-Being
Here’s how companies can transform traditional wellness programs into dynamic, employee-centered wellness:
a. Inclusive Leadership Training
- Managers should develop inclusive leadership—listening actively, recognizing microaggressions, and ensuring all voices are heard.
- Pair this with developmental feedback that respects personal career goals and growth.
b. Tailored Benefits, Not One-Size-Fits-All
- Offer flexible benefits that reflect different life stages and backgrounds: mental health support, remote work accommodations, childcare subsidies, faith accommodations bmcpsychology.biomedcentral.com.
c. Structural & Social Barriers Review
- Audit policies and workflows: Are certain employees excluded from promotions, social events, or leadership roles due to systemic biases?
- Fix structural blocks, such as opaque promotion criteria or scheduling systems that disadvantage caregivers.
d. Community & Belonging Initiatives
- Encourage programs addressing mental wellness, cultural celebrations, LGBTQ+ support, and external civic engagement.
- Provide time and budget for employees to lead or participate, not just attend.
e. Measure Beyond Steps
- Track psychosocial safety climate (PSC)—a high PSC leads to reductions in burnout, sick days, and improves engagement significantly.
- Measure inclusion sentiment, psychological safety, purpose-fit, and career growth—not just participation rates.
4. Tough Talk: DEI Backlash Means Trust-Centered Implementation
Current government policies deem DEI initiatives as divisive, dismissive, or “woke.” Though using the term “DEI” invites backlash from government authorities, the mission behind the term is still vitally important in building productive, engaged employees. That same mission is shared by employee wellness initiatives. Let’s turn this new government attitude into an opportunity to retool employee wellness programs.
- Shift from top-down mandates to trust-based practice—listening circles, staff co-designed programs, and transparent goals .
- Connect employee inclusion and well-being through shared narratives: “Improving inclusion lets more people bring their full selves, so we all thrive.”
5. The Business Case: DEI + Well-Being = Better Performance
Data connects diversity with stronger outcomes:
- Firms with high racial, ethnic, and gender diversity are 39% more likely to financially outperform peers.
- Inclusive cultures are linked to 35% higher innovation and 57.8% better reputation scores.
When folks feel included and cared for, they’re more engaged, take fewer sick days, and stick around longer. That’s a win for people—and the bottom line.
✅ Key Recommendations for Employers
|
Strategy |
What It Does |
|---|---|
Train Inclusive Leaders |
Builds belonging, satisfaction, and engagement |
Offer Flexible, Inclusive Benefits |
Addresses diverse needs beyond generic wellness |
Audit & Adapt Policies |
Removes systemic blocks to equity and wellness |
Empower Employees & Community Engagement |
Fosters belonging, mental health, and social impact |
Measure Psychosocial Health |
Tracks what truly matters beyond physical metrics |
❓ FAQs
1. Aren’t step challenges still helpful?
Yes, but only in a broader wellness strategy. Without emotional, social, and cultural support, they’re superficial.
2. How can smaller firms use more inclusive wellbeing?
Start small—listen to employee needs, pilot inclusive practices like flexible hours, caregiving supports, or safe conversation spaces.
3. What is inclusive leadership?
A leadership style that values all perspectives, offers growth feedback, and nurtures employee autonomy and purpose myhcg.com.
4. How do you measure psychosocial safety?
Through anonymous surveys assessing psychological safety, inclusiveness, stress levels, and growth satisfaction—linked directly to well-being outcomes .
5. What about political backlash?
Framework around trust, common wellbeing goals, and shared metrics. Wellness done right isn’t politically divisive—it’s human.
6. Does this actually boost performance?
Yes. Companies with mature inclusion strategies outperform financially and operationally—innovation, reputation, retention all improve.
Conclusion
DEI efforts may lose their sparkle in today’s climate, but the core intention—fostering belonging, trust, and structural equity—remains powerful and is central to effective employee wellbeing programs. Framing and implementing employee well-being through an inclusive, individualized, and psychologically safe lens does much more than counting steps. It builds cultures where individuals thrive—and organizations flourish. Wondering who can help? Wellness Law, LLC can! Ask about implementing a Wellness-Legal Partnership or have us audit your employee wellness program to ensure compliance and inclusiveness (they go hand-in-hand, you see).
Book a call with us today!