DEIB and employee mental health – why they’re connected

One of the more compelling findings in Indeed’s 2023 DEIB Report was how survey respondents ranked their organisation’s priorities for the year. With so much attention on the economic climate, it was surprising that employee mental health and wellbeing topped the list - ahead of company growth. And while it is reassuring that businesses are putting people first, it is also interesting to note that diversity, equity, inclusion and belonging (DEIB) ranked second to last.

We know that DEIB is a major contributor to healthy workplaces, but there is a real lack of understanding as to why. It is not just because diverse organisations make better business decisions faster and are more profitable – but because DEIB is deeply connected with employee mental health. And it is chronically undervalued as a way to help people from all walks of life thrive in the workplace.

The direct link between DEIB and mental health

Mentally healthy workplaces share one thing in common – their employees feel psychologically safe. According to Harvard Business Review this is defined as a “shared belief held by members of a team that it’s OK to take risks, express their ideas and concerns, to speak up with questions, and to admit mistakes – all without fear of negative consequences.”

Within a DEIB context, psychologically safety is closely tied to a sense of belonging. When employees feel accepted for who they truly are, they don’t feel the need to conceal any part of their identity. 

According to Deloitte, creating a culture of belonging relies on three attributes that mutually reinforce each other – comfort, connection and contribution. When these are present, people feel respected, fairly treated, and know how their strengths contribute to organisational success. They are also more productive, innovative and enjoy deeper, more meaningful connections with colleagues. And according to Indeed’s 2023 Workplace Happiness Report, 42% of Australians associate ‘workplace happiness’ with having good relationships with co-workers and managers. The critical role of belonging in creating psychological safety is why it has been formally included as a guiding DEIB principle at Indeed.
But employees who don’t feel a sense of belonging at work often feel the need to hide all or parts of their identity. They report higher levels of stress and anxiety, which leads to lower motivation, engagement, satisfaction and job performance. People who lack a sense of belonging also contribute to higher attrition rates, with a McKinsey survey finding that 51% of employees left their jobs for this reason.

The number of Australians hiding their identity at work is rising

Although three quarters of Australians think workplaces are doing enough to make people feel safe and included, there are other findings from Indeed’s 2023 DEIB report that suggest otherwise. 64% of Australians say they have felt unable to disclose their true selves to co-workers, and this increases for groups who have traditionally experienced workplace discrimination.

In fact, the number of people who feel the need to hide part of their identity some or all the time at work has actually risen over the past four years.

• 18% of Australians say they hide part of their identity all the time, a 7% increase from 2020.

• This has risen for people with disabilities (62% to 78%), single parents/caregivers (51% to 62%), LGBTQIA+ (67% to 72%).

• Only 29% of people say they never hide any part of their identity. This has fallen from 47%.

To reverse this trend, it is more important than ever that organisations take proactive steps to build cultures of belonging. This is not only good for employees but delivers significant benefits for business too. Deloitte research attributed belonging to a 56% improvement in job performance, a 50% reduction in turnover risk and a 167% rise in ENPS. It also reduced sick days by 75% and drove an 18x increase in employee promotions.

How to create a culture of belonging in your organisation

Creating a culture of belonging happens at an organisational and personal level. At an organisational level, the key levers for change are workplace culture, leadership behaviours and personal relationships. When it comes to individuals, there are four core elements of belonging that emerge when people are:

• Seen for their unique contributions
• Connected to coworkers
• Supported in their day-to-day work and professional development
• Proud of their organisation’s values and purpose

Driving cultural change doesn’t have to be costly or complex. Here are some initiatives you can implement now to make your workplace a psychologically safe place for workers and foster a sense of belonging.

Encourage openness and two-way communication

An important facet of a culture of belonging is trust, and this can only happen in an environment where employees are listened to and respected. Leaders should also be proactive in creating a reciprocal dialogue with employees and providing safe spaces for them to provide feedback. This can take the form of regular check-ins, team catch-ups and Town Halls. Digital feedback channels are another useful way for people to voice their opinions, as are employee communities.

Recognise skills, experiences and achievements - past and present

Too many of us make the mistake of only seeing our colleagues as their job titles. But every person has a career history they may not speak about in their day-to-day work. Recognising that every employee has a career history that equips them with valuable skills and experience breeds respect by acknowledging a person in their entirety. It also benefits the business to be able to tap into hidden skill sets.

Create psychologically safe spaces

To help employees connect, it is important for them to interact with each other outside the work environment. Employee communities, team events, off-sites and other initiatives encourage co-workers to know each other as more than colleagues. Special consideration needs to be made for remote and hybrid workers, who can often feel isolated by being physically separated from their cohort. Investing in extra meeting time and travel so they can join the team regularly can develop a sense of belonging for workers not able to work on-site.

Celebrate differences 

Making a point of sharing experiences highlights how diverse backgrounds enrich organisations. This doesn’t need to be its own session – leaders can dedicate time to regular team meetings for employees to share their stories and perspectives.

Engage leaders

Leaders and managers have the most influence by living the values of respect, safety and fairness and modelling them for others. They can cultivate belonging by championing the initiatives of people from marginalised communities, mentoring colleagues from diverse backgrounds, showing vulnerability by sharing their own stories and empowering others to do the same. Leaders should also regularly seek clarity around what people need to feel like they belong.

Create equal opportunities for career development

For employees to feel a true sense of belonging, they need to believe they will be judged in the same way as their colleagues when it comes to promotions. Checking for unconscious bias across recruitment, performance appraisals, L&D, and leadership pipelines is incredibly important to creating an equal playing field. Reviewing policies, processes and practices with a DEIB lens is also helpful for eliminating any biases for certain groups and giving traditionally marginalised cohorts the same opportunities to advance.