This Much I know

DE&I: the best retention strategy you’re not cashing in on

by Simon Kent | Sep 17, 2025

People don’t quit jobs, says Jo Major, Founder, Diversity in Recruitment, they quit cultures that drain them.

Inclusion at work is all about the human experience: how people feel when they show up, how they navigate your culture, whether they feel part of your values and yes, as overused as the phrase is – whether they can bring their whole selves to work.

Whenever I talk about the commercial benefits of DE&I, I always land on the biggest cost. Recruitment, talent acquisition, hiring… and ultimately retention.

I always kick off with a simple question:

Think back to a time you weren’t seen, heard or respected. Maybe you worked in a toxic environment. What happened to your mindset, your mental health, your commitment, your performance?

It’s the same story every time: inefficiency, quiet quitting, declining health and if you had the privilege, an eventual sharp exit.

I say privilege intentionally. Not everyone can afford their ‘stuff this’ moment and throw their office keys at the toxic boss. For many, circumstances keep them stuck. And for those with a marginalised identity, who probably fought harder than their majority colleagues just to get into the room, the risk of starting over can feel greater.

The grass isn’t always greener, and getting to those greener pastures can be a battle.

Great workplaces don’t happen by accident – why knew! 

They’re carefully curated: values, ethics, policies and behaviours all pulling in the same direction.

What do the best inclusive employers have in common?

Better tenure, higher levels of employee confidence, productivity, innovation and loyalty backed by engagement surveys consistently show that people recognise the culture is smashing it.

It doesn’t take a genius to connect this to DE&I and belonging, there’s a mountain of evidenced research to back it up:

  • Belonging halves turnover risk. High belonging is consistently linked to around 50% lower turnover, better performance and fewer sick days.
  • Where fairness and inclusion are visible, employees report less stigma when discussing mental health, higher trust and less burnout.
  • Inclusion reduces chronic stressors (bias, microaggressions, unfairness, workload without control), which lowers burnout and improves intent to stay.

And it isn’t just about ‘the vibe’. It’s about the foundations: workplace wellbeing, flexible or hybrid working, family-building benefits, equal pay, policies that protect and benefits that create equity.

People stay when they feel respected.
People stay when they feel accepted.
People stay when they see a future.

FACTS and all of this is built through an organisation’s DE&I strategy.

Why aren’t employers joining the dots?

Because too many still treat DE&I like a couple of lunch-and-learns and a sprinkling of cultural-awareness days. Out-of-touch wellness webinars and ERGs with zero budget or authority have never shifted the dial on equity and equality, IMO.

Plus nobody is showing the money, now I am not one for maths, but here goes…

Company of 1,000 people, average salary £50k, annual voluntary turnover 20% that’s 200 leavers.

Conservative replacement cost at 0.5× salary = £25k each (recruitment, lost productivity, impact on team), that’s £5 million a year out the door.

If serious belonging and DE&I design cuts attrition by 25% (i.e. 50 fewer leavers), you bank £1.25 million, before you even count fewer sick days and better performance.

That’s the business case right there!

Six powerful actions leaders can take

So, what can leaders actually do beyond a token lunch-and-learn and a few rainbow-coloured LinkedIn posts? Here are six powerful actions that don’t just tick a DE&I box, they keep your best people from quietly updating their CVs.

Inclusion → psychological safety → better mental health → lower intent to leave → actual retention.

1. Listen first
Short term: run listening sessions or anonymous surveys to understand employee experience with a focus on inclusion, psychological safety and equity
Long term: use the data to build DE&I-informed people strategies that address barriers, create accountability and align with your goals

2. Make managers your DE&I allies
Short term: upskill managers in inclusive leadership, bias awareness and equitable decision making
Long term: bake DE&I into performance management and leadership frameworks, linking it to progression, development and reward

Review your career pathways
People don’t leave companies, they leave stagnant roles, unfair systems and poor line managers.
Short term: audit who is progressing, who isn’t and why, look at access to development, stretch opportunities and mentoring
Long term: build equitable progression pathways, address barriers such as bias in promotion processes and track outcomes by demographic

4. Centre belonging in your EVP
Short term: refresh internal messaging and onboarding to reflect inclusion, community and equity in a real, meaningful way
Long term: co-create and evolve your EVP with employees, showcasing stories about lived experience, benefits that reflect different needs and clear commitments

5. Track, measure and tell the whole story
Short term: set clear DE&I-linked retention KPIs, turnover by demographic, inclusion scores, exit themes and share insights internally – be bold!
Long term: regularly publish DE&I and retention data, and link it to business performance to show why inclusion drives results

6. Design policies and benefits that reflect real lives
Short term: audit existing policies, benefits and working conditions through a DE&I lens. Check for outdated language, gaps or one-size-fits-all thinking
Long term: co-develop inclusive policies and benefits that support different identities and life stages, from flexible working and parental leave to menopause support, neurodiversity adjustments and equitable pay

Final thoughts

Retention isn’t a mystery, it’s a choice. Build inclusion into the way you lead and the way you work or keep writing those cheques to replace the people walking out the door. And please, let’s stop treating DE&I like a side hustle, it’s the engine of performance and profit

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