DEI has been getting more attention now than in previous years and is become a catch all phrase for the wrong reasons.

Diversity, equity and inclusion is becoming a political lightning rod for both sides of the aisle. Take away the noise and if DEI is done well, it is one of the most effective business strategies that can be implemented. DEI will directly improve workplace productivity, decrease absenteeism and strengthen retention.

It is extremely difficult to keep people engaged and perform at a high level in the present time. As HR professionals we are always navigating high employee turnover, burnout and ever-changing workplace expectations. Diversity, equity and inclusion can help HR professionals solve one of the biggest problems in the workforce.

This post will outline DEI and show how it can impact issues the workplace is facing now like absenteeism and outline policies HR teams can implement to create more inclusion.

What Does DEI Actually Mean?

DEI is not a vague concept, let’s dive deeper into its real world meaning:

• Diversity is people from different backgrounds, perspectives, and lived experiences.
• Equity is fairness and gives people access to resources they need to be successful even if that may look different from one individual to the next.
• Inclusion is culture, and it makes sure that people feel safe, heard and valued once they are hired.

Together, they drive a sense of belonging. And belonging is the secret sauce of any great workplace.

We’re not just talking about DEI hiring or hitting demographic targets. We’re talking about embedding inclusive practices throughout the entire employee lifecycle, from sourcing and interviewing to career development and exit interviews.

If you’re building a real talent strategy, DEI needs to be at the center of your people strategy, talent development, and employee retention strategies. Otherwise, you’re leaking talent and time.

Why DEI Lowers Absenteeism and Drives Performance

Now let’s connect the dots: DEI is a lever for solving absenteeism in the workplace.

Here’s how:

1. Psychological Safety Will Lower Absenteeism

Psychological safety is created through inclusion which in turn will reduce chronic absenteeism and support mental health. If employees feel included the far less likely to call out sick or disengage in the workplace.

Talkspace found that an inclusive environment is directly linked to lower stress and better attendance. That is why here at HR Manual, we preach that mental health resources and flexible hours are not perks, they are retention tools for HR Professionals.

2. Better Leadership Leads to Better Attendance

Leadership and talent development through proper DEI practices can build a strong organization when invested properly. To reinforce inclusive leadership at all levels of performance cycles, use tools like manger coaching, feedback loops, and peer recognition

3. Clarity and Fairness Drive Accountability

Career mapping, skills gap assessments and employee development training give employees a clear path for grow. Employees that understand the grown opportunities available to them are less likely to check out mentally and physically miss work.

Pair a solid talent development strategy with equitable access to training and you will help keep people motivated and accountable.

4. DEI Impacts Your EVP and Employer Brand

Let’s be honest, job seekers care about this. DEI hiring directly impacts your employer branding and recruitment branding strategies. Companies known for inclusive practices attract more passive candidates, reduce time-to-fill, and decrease excessive absenteeism post-hire.

Your EVP isn’t just compensation, it’s culture. And DEI builds culture.

Four DEI Policies to Reduce Absenteeism and Retain Talent

Let’s get specific. Here are four DEI-aligned policies that HR leaders should be implementing now:

1. Inclusive Hiring Practices and Structuring Interviews

• When screening resumes using automate software, ensure you are reducing bias
• Build diverse interview panels and adopt interview templates, interview scorecards, and competency-based recruitment techniques.
• Make interviewers accountable using interview preparation checklists and phone interview tips with inclusive phrasing guidelines.

This improves data driven recruiting, ensures alignment with your KPI recruitment process, and supports DEI recruiting strategy goals.

2. Mental Health and Wellness as Core Benefits

• Normalize mental health days and reinforce paid time off programs as strategic, not reactive.
• Offering mental health benefits and EAPs
• Spot the early signs of burnout and train managers to do so as well

These suggestions support workplace wellness, directly reduce absenteeism and enhance talent retention program.

3. Transparent Mobility and Career Pathing

• Use a career path mapping tool across all departments  to ensure that all employees have access to additional resources such as mentors or sponsors.
• When doing onboarding and performance reviews, incorporate additional training.
• Monitor internal movement by demographic to ensure fair access to high-opportunity roles.

This strategy builds your internal talent marketplace and supports talent management and succession planning which is critical for long-term workforce stability.

4. DEI Metrics That Drive Accountability

• Track absenteeism trends by demographic group and overlay with your employee net promoter score survey data.
• Add DEI progress to your performance management cycle and leadership evaluations.
• Publish quarterly DEI reports covering diverse recruitment, retention gaps, and promotion rates.

Use tools like recruiting analytics dashboards or your recruiting database to keep this process data driven.

How to Roll This Out Without Losing Buy-In

Implementation matters. Here’s a simple roadmap HR leaders can use to align DEI with broader talent acquisition strategy frameworks:

Phase	Action
Audit	Assess gaps in sourcing, hiring and attrition through step-by-step recruitment process and hiring strategies.
Design	Build targeted DEI policies by partnering with organizational consulting teams and using industry standard put out by SHRM and HRCI.
Deploy	Find departments with high absences and launch pilot programs using a recruitment trackers, and collect feedback through employee surveys
Evaluate	Tie success to performance KPIs like absenteeism rate, employee net promoter score, and reward and recognition program participation.

This isn’t about flashy one-off training, it’s about structural change aligned to your strategic talent management goals.

Final Thoughts: DEI Isn’t a Distraction, It’s a Business Strategy

Let’s stop acting like DEI is a liability. Done right, it’s a value driver. In a time when high volume recruitment and technical staffing agencies are racing to fill roles faster than ever, the companies who win long-term will be those that build inclusive, performance-focused cultures from the ground up.

So here’s the challenge: treat DEI like the strategic tool it is. Not just for hiring but for retention, engagement, performance, and business impact. Because if you care about absenteeism, productivity, and long-term growth, you should care deeply about DEI.

And if you don’t know where to start? Start here.

References (APA 7th Edition)

Gallup. (2023). State of the Global Workplace Report 2023. https://www.gallup.com/workplace
Talkspace for Business. (2025). The link between DEI and employee mental health. https://business.talkspace.com
Bain & Company. (2024). How DEI enhances organizational adaptability and performance. https://www.bain.com
Fuze HR Solutions. (2024). DEI workplace trends report. https://www.fuzehr.com