The True Purpose of DEI: Creating Opportunity, Not Preferences

The concept of “rugged individualism” is deeply ingrained in our culture, and it is often seen as a heroic ideal.  However, my experience in the business world has shown me that success is not solely an individual achievement. The world is simply too complex for one person to navigate alone.  We all rely on the support and contributions of others, as well as the groundwork laid by those who came before us. Luck, timing, and being in the right place at the right time also play a significant role in success. Although it can be challenging to discuss in the current political climate, recognizing the interconnected nature of success is crucial for individuals, businesses, and society as a whole.

Diversity, Equity, and Inclusion (DEI) has become one of the most debated topics in corporate America. Unfortunately, much of the conversation has been overshadowed by misconceptions. One of the most common is that DEI initiatives exist to provide preferential treatment to one group at the expense of another. The debate over diversity vs. meritocracy often overlooks the fact that true meritocracy can only exist when everyone has a fair chance to compete.

In reality, DEI is about leveling the playing field, ensuring that everyone has equal access to opportunity, and creating workplaces where all individuals can thrive based on their talents and contributions but still account for people’s limitations (which everyone has).

When it has lapsed into preferential treatment, it is usually ordered by laws or court decisions to address the unwillingness of the system to move towards a fair and balanced outcome for all people. People have entrenched viewpoints.  They don’t want to give up their privilege and want to keep their advantages for very good reasons.

All of us want good lives, to have money, and to provide for our families. Anything perceived as a threat creates fear and drives reactionary behaviors. I hope to show that DEI is not a threat to anyone in a growing economy and, as the saying goes,

“A rising tide lifts all ships.”

At its core, DEI is about expanding access to opportunity, and in doing so, it strengthens organizations and economies. This is how DEI helps businesses grow—by ensuring that talent is recognized, developed, and fully utilized.

How Our Brains Process Information: The Role of Bias

Every day, our brains are bombarded with vast amounts of information. To navigate this complexity efficiently, we rely on mental shortcuts—cognitive processes that help us filter and categorize information quickly. This ability allows us to recognize patterns, make decisions, and function in a fast-paced world without becoming overwhelmed. These mental shortcuts, or heuristics, are essential for survival and productivity.

However, while these cognitive processes are beneficial, they also introduce bias. Bias is not inherently bad—it is simply the brain's way of simplifying decision-making. Personal bias, cognitive bias, categorization, and prejudice all stem from this natural filtering process. The challenge arises when these biases cause us to misinterpret information, make unfair judgments, or reinforce stereotypes that limit opportunities for others.

The Benefits and Pitfalls of Cognitive Bias

Categorization, for example, is crucial for learning and efficiency. We group similar things together to make sense of our environment. When we see a chair, we don’t have to analyze every aspect of it—we simply recognize it as a chair based on past experience. This ability is helpful in many aspects of life, from recognizing danger to making quick decisions in business settings.

However, categorization can also lead to overgeneralization. When we categorize people based on limited information—such as their gender, ethnicity, or age—we risk forming inaccurate assumptions about their capabilities or intentions. This is where bias becomes problematic.

Studies show that unconscious biases in hiring, promotions, and leadership decisions can limit diversity and exclude highly qualified candidates simply because they do not fit an expected mold. The benefits of DEI in business become clear when organizations remove these barriers, leading to stronger teams, better problem-solving, and a more innovative workforce.

Recognizing and Overcoming Bias for Better Decision-Making

Understanding that bias is a natural function of the brain allows us to take proactive steps to mitigate its negative effects. By acknowledging that everyone has biases, we can move beyond denial and focus on strategies to improve decision-making. Some ways to counteract bias include:

• Awareness and Education – Learning about different types of bias, such as confirmation bias or affinity bias, helps us recognize when we might be making decisions based on unconscious preferences rather than objective criteria.

• Slowing Down Decision-Making – Quick decisions often rely on bias. Taking time to analyze options and challenge initial impressions can lead to more informed choices.

• Seeking Diverse Perspectives – Engaging with people from different backgrounds helps challenge assumptions and broadens our understanding of the world.

• Using Structured Processes – Implementing blind resume reviews, standardized interview questions, and objective performance evaluations reduces the influence of bias in hiring and promotions.

The Business Case for Diversity

DEI is a business imperative. Studies have consistently shown that more diverse teams drive better business results.

• McKinsey & Company’s Diversity Wins report found that companies in the top quartile for ethnic and gender diversity were 25% more likely to outperform their industry peers in profitability.

• Boston Consulting Group found that companies with diverse management teams generate 19% higher revenue from innovation compared to companies with less diversity.

As all hiring managers know, we do our best in the hiring process and still make mistakes. I found that the single most important factor to a successful team is hiring, but also having the willingness to fire someone when it is clear they are not a good fit. DEI is not about protecting people; it’s about broadening the scope of expertise of the team you are building to make it stronger and more resilient.

Why does diversity drive better outcomes? Because diverse teams bring a wider range of perspectives, challenge groupthink, and are better equipped to serve diverse customer bases. In a rapidly evolving global marketplace, companies that embrace diversity are better positioned to adapt, innovate, and lead.

Addressing Systemic Bias in Hiring

One of the clearest examples of systemic bias in the workplace is how unconscious bias affects resume screening.

Research published in the National Bureau of Economic Research found that applicants with traditionally "white-sounding" names were 50% more likely to receive a callback than applicants with names associated with Black or Hispanic candidates.

Bias in hiring isn't about malice; it’s often about familiarity and unconscious preferences. However, when left unchallenged, these biases create barriers to opportunity. Addressing them through structured hiring processes, blind resume screening, and diverse hiring panels helps ensure companies select the best talent based on merit, not implicit bias.

Bias also lives in our networks. After a certain amount of time at work, we accumulate a lot of connections.  These connections form our network, and that is both a powerful and valuable commodity. These networks provide us both access and opportunity for growth and success. Yet, how diverse are our LinkedIn networks?  We naturally tend to gravitate to link with people we like and who we feel connected with. As an older white male, what do I have in common with a Hispanic millennial or a Gen-Z woman of color?  What would we even talk about? Yet, we all could benefit from connecting to each other’s networks.  How does a young Gen-Z entrepreneur break into my network, which is full of VCs, private equity leaders, and other already successful entrepreneurs? To enable this, I need to be willing to go out of my comfort zone and connect with people that my bias tells me have little or nothing in common with me.

Equity: Equal Pay for Equal Work

Equity is one of the most misunderstood aspects of DEI. While diversity is about representation and inclusion is about belonging, equity is about fairness—ensuring that everyone is compensated based on their contributions and qualifications. Yet, persistent pay gaps remain a reality.

• The U.S. Department of Labor reports that women in the U.S. still earn, on average, about 82 cents for every dollar earned by men, with the gap widening for women of color.

For DEI initiatives to be meaningful, organizations must commit to pay equity—conducting regular audits, increasing transparency, and ensuring that employees performing the same work receive the same compensation, regardless of gender or race.

Inclusion: Creating a Workplace Where Everyone Belongs

A truly inclusive workplace is one where every employee feels valued, heard, and able to contribute. Inclusion is not just about demographic representation; it’s about creating an environment where people of all backgrounds feel welcome and empowered to do their best work.

Inclusion also means making workplaces accessible for employees with disabilities.

The Americans with Disabilities Act (ADA) was a landmark step in ensuring workplace accessibility, yet many companies still fall short in providing necessary accommodations. From offering flexible work arrangements to ensuring office spaces and digital platforms are accessible, fostering inclusion means eliminating barriers that prevent talented individuals from fully participating in the workforce.

The Myth of Pure Meritocracy

Critics of DEI often claim they are defending a system of pure meritocracy, yet many of these same voices advocate for restrictive immigration policies, including the elimination of H1-B visas. If a true meritocracy were the goal, companies would be free to hire the best candidates, regardless of nationality. Instead, these anti-immigrant stances seek to artificially limit the talent pool, forcing companies to prioritize hiring less-qualified domestic candidates over highly skilled global professionals.

This is not the free market at work—it is an interventionist policy designed to shield certain groups from competition rather than allowing the most capable individuals to succeed on their own merits.

Anti-immigrant bias will lead to a less competitive technology sector, which is why I assume Elon Musk and other tech leaders are fighting to keep the program. At the same time, this selective enforcement of Visa programs to only support the industry with the biggest money and influence is inherently unfair. For instance, caring for wine vineyards is a complex process learned over many years of work. Shouldn’t vineyards also be able to hire the best people for their business?

Early in my career, I had a small software company with two employees.  One was an older man (I was 24 at the time) who had a lot of experience.  I later hired a grad student from China who was getting their Master's in Computer Science at UVA. My business wasn’t doing well, and I needed to let one of them go.  The graduate student was doing 3x the programming output of the older employee.  As a business, it was clear which one I should let go.

Does “America First” mean hiring Americans, or does it mean having globally successful companies? At some point, we have to choose. And who gets to choose how to navigate these extremely difficult decisions? The government? Business leaders?

We Can’t Afford Anti-DEI Advocacy

At its core, much of the opposition to DEI is about preserving privilege in the marketplace. While it may make sense on an individual level to resist policies that threaten a person’s advantages, as a society, ensuring equal opportunity for all leads to a more robust and dynamic economy. Research has consistently shown that diverse workforces drive higher productivity, innovation, and economic growth.

Moreover, the argument that immigrants and diverse hires take jobs away from others is based on a flawed, zero-sum assumption.

Economic growth is not static—when more people participate in the workforce, new jobs are created, industries expand, and innovation flourishes.

The reality is that the United States faces a declining birthrate, and without immigration, our workforce and economic growth will stagnate. According to the Pew Research Center, immigrants and their children have accounted for the vast majority of U.S. labor force growth over the last two decades.

If we want our economy to continue growing, we must embrace policies that welcome skilled workers rather than shutting them out.

Political Challenges

As DEI policies face increasing political challenges, businesses must decide whether to follow shifting regulations or uphold diversity and inclusion as a core business strategy. With President Trump rolling back DEI initiatives, companies that once prioritized equitable hiring, pay transparency, and inclusive workplaces may now face difficult choices.

Some companies are already shifting:

• Disney recently scaled back two DEI programs due to investor pressure and political scrutiny from the current administration. Meanwhile, other leaders remain steadfast.

• Sam’s Club CEO Chris Nicholas recently reaffirmed the value of inclusivity, stating that serving all of America is "the definition of being inclusive."

Yet, research consistently shows that diverse and inclusive workplaces drive stronger financial performance, innovation, and employee satisfaction—regardless of political shifts. The question is no longer if DEI is good for business but whether companies will continue investing in it despite changing policies.

With DEI policies facing political headwinds, do you believe companies should continue prioritizing diversity and inclusion—or will businesses shift their strategies to align with new regulations?

Moving Forward with Purpose

The purpose of DEI is not to advantage one group over another—it’s to ensure that all individuals, regardless of background, have the opportunity to succeed based on their talent and hard work.

Addressing bias in hiring, committing to equal pay, and fostering an inclusive culture are not just ethical choices; they are strategic imperatives that lead to stronger, more competitive organizations.

As leaders, we must reframe the conversation. DEI is not about division—it’s about fairness, opportunity, and the pursuit of excellence. By embracing these principles, we build workplaces that are not only more just but also more innovative, resilient, and successful.

This article was originally published on LinkedIn.