Different Ways DEI Has Advanced Merit-Based Hiring That Makes Organizations Profitable

Harrison Mbuvi
Latest posts by Harrison Mbuvi (see all)

Would you hire an unqualified employee to oversee your business operations? I’m sure the answer is no. And this is what people get wrong about DEI. DEI compliments merit-based hiring.

DEI isn’t about quotas. 

Diversity, equity, and inclusion (DEI) doesn’t focus on hiring unqualified employees for jobs or recruiting people because of their age, sexual preference, school, gender, race, etc. It’s about recruiting employees because they have the qualifications regardless of their sexual preference, age, disability, ethnicity, race, gender, school, etc. 

And it’s about doing so with the understanding that, historically, numerous individuals have been denied work opportunities because of the factors above. Plus, research shows many benefits an inclusive workforce brings to the organization.

So, in this article, I’ll help you understand the frequent question of merit-based hiring. And help you understand how DEI has truly enhanced an effective merit-based hiring system.

What is DEI?

DEI stands for diversity, equity, and inclusion. These policies and programs arose because of the 1960s anti-discrimination laws and movement to prevent and correct discriminatory practices. 

DEI initiatives include programs, policies, and strategies to create equal opportunities for everyone.

DEI initiatives - merit-based hiring

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Let’s briefly define the key concepts: 

  • Diversity is the representation of individuals from different backgrounds at all levels in a company. A diversity of ages, class status, races, genders, disabilities, religions, military service status, and more.
  • Equity in the context of DEI focuses on impartiality and fairness. And checks whether individuals are fairly paid, promoted, and treated fairly.
  • Inclusion focuses on building a work environment where everyone feels respected, valued, welcomed, and empowered to participate in the organization’s growth.

Before DEI, Bias-Based Employment Systems Were Common, and Sometimes Still are

In recent years and especially in 2025, there has been a growing narrative that DEI initiatives are at odds with meritocracy — that DEI destroys a system where the “best individual for the job” isn’t hired and instead a “DEI hire” gets the position. This narrative is fundamentally flawed.

In reality, DEI efforts boost meritocracy by ensuring that qualifications, skills, and performance — not systemic or bias barriers become the determining elements in recruitment, opportunities, and promotions. 

Before DEI, the employment system could decide to include or exclude an individual based on nothing but gender, ethnicity, race, age, looks, etc. So DEI is there to prevent this unfairness when possible. But even with DEI initiatives in place, meritless and unfair hiring systems are still used to help individuals advance in their careers.

The Data and Findings for the Value of DEI

While the pushback for DEI continues, it’s important to know that DEI is still important for your leadership, team, and organizational success. 

I scoured the internet to find data that shows many different benefits of implementing DEI initiatives and how it contributes to hiring based on merit.

Here are a few studies:

  • Organizations with high diversity scores report 45% increased innovation revenue, while organizations with low diversity scores have only 26% innovation revenue on average, according to a study by BCG.
  •  A study by Forbes showed that more than $10 billion in revenue found that their diverse workforce greatly drove innovation within their company. 
  • According to a DDI’s Global Leadership study, organizations in the 10% for improved financial growth have 29% of leadership positions filled by women. While organizations with low financial growth have only 23% of women in leadership roles.
  • 58% of employees believe DEI is good for employee engagement, innovation, motivation, and creating a sense of belonging. For instance,  Nathan Mathews, CEO at Roofer.com has seen the employees’ innovation levels grow once they implemented DEI. He adds
    “When we started focusing on DEI, we saw an immediate difference in the quality of candidates we were hiring. With the roofing industry being traditional and behind on diversity, it gave us an edge in attracting top talent that other companies might overlook. Our team’s ability to solve problems and innovate improved quickly. For instance, after diversifying our workforce, we noticed a 30% increase in efficiency across roofing repairs and installations.”
  • Organizations with high levels of both employee engagement and gender diversity have 48% to 58% increased financial growth compared to organizations with low levels in both areas, according to a study by Gallup.
  • Different types of candidates, especially Gen Z, consider an organization’s diversity before sending a job application. Moreover, consumers also consider the diversity of a brand before buying anything, according to different surveys done by Seramount.
  • A study by HBR showed that diverse organizations are 70% more likely to capture new markets. And Zarina Bahadur, CEO at 123 Baby Box, has seen firsthand how diverse teams have helped their organization reach new customers. She adds, “DEI strengthens teams, and strong teams drive profits. Our diverse team has unlocked new markets, improved decision-making, and built a product that resonates with a broader audience. We’ve expanded our reach to over a million customers and scaled influencer marketing efforts that grew revenue 4X. The right hires move a company forward. The wrong ones slow it down. DEI makes sure we get it right.”

8 Ways DEI Policies Build an Efficient Merit-Based Hiring System

When organizations halt their DEI initiatives, it shows a lack of understanding of what DEI stands for. Yes, every organization wants to recruit qualified candidates. And this is what DEI tries to promote. Though no system is perfect, DEI gets organizations closer to a true merit-based hiring system than any other hiring system organizations have tried before.

The goal of diversity, equity, and inclusion programs is to build a true merit-based employment system where recruiting, salaries, promotion, and retention are decided without discrimination towards individuals.

So here are some of the ways the implementation of DEI has helped to create a true merit-based employment system:

DEI Policies

1. DEI and Merit-Based Hiring: Improving Candidate Assessment Methods

Traditional candidate assessment methods rely on subjective evaluations. Thus denying more qualified diverse candidates opportunities. While DEI practices advocate for more equitable and rigorous assessment practices. For instance, DEI ensures there’s use of:

  • Blind resume screening: Blind recruitment hides details such as a candidate’s name, address, hobbies, college, and graduation year. These details can allude to the candidate’s race, religion, and gender identity, thus influencing the hiring decision. David Haskins, CEO at  WrongfulDeathLawyer.com has seen first-hand the benefits of blind resume screening. He adds, “DEI has been important in ensuring we hire based on competence rather than background. Early on, we saw a pattern: Most resumes were from the same schools, networks, and backgrounds. We were missing out on outstanding attorneys because they didn’t fit the traditional mold. So we modified the way we recruit. We stripped names and schools from resumes and concentrated on trial experience, client feedback, and community involvement. That single move boosted the diversity of our final interview pool by 35% and led to some of our best hires.”
  • Skills-based evaluation over education qualifications: Traditional recruitment systems often rely on degrees and the number of work experience. This disadvantages candidates from different backgrounds who may have faced systemic challenges to going to school. Promote the use of structured interviews: A structured interview ensures all candidates get asked the same questions regardless of their background. This way, no candidate gets preferential treatment.

2. Boosting the Talent Pool with DEI and Merit-Based Hiring

A fair merit-based employment system can only thrive on access to a huge pool of qualified applicants. And DEI policies play an important role in expanding this pool by removing barriers that historically exclude applicants from underrepresented groups. This process involves:

  • Expanding the sourcing and looking beyond the popular job boards by going to specific platforms where you’ll find diverse candidates. For instance, Laurence Bonicalzi Bridier, CEO at  ArtMajeur by YourArt increased their sales by hiring from less common locations. She adds, “In the art world, ‘merit’ is frequently judged by traditional criteria such as big-name galleries, art school pedigrees, and industry connections. These filters, however, exclude incredible talent. We had to overcome that bias to hire for impact. For instance, an unexpected advantage we discovered is employing multilingual talent from underrepresented locations. Rather than focusing on candidates from traditional art hubs such as Paris or New York, we looked for those who could bridge cultural gaps. As a result, our collector base grew substantially in Asia and Latin America, which are now our fastest-growing markets, accounting for a 54% increase in international sales.”
  • Building a diverse interview panel to ensure every candidate gets a fair chance during the interview.
  • And attending diversity-focused career events where you’ll find qualified diverse candidates.

3. DEI and Merit-Based Hiring: Enhancing Employee Retention

Different studies show that some candidates won’t apply to a job opening if an organization doesn’t value DEI. So, employees are more likely to stay for long with an organization that values DEI. 

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This also leads to higher employee satisfaction that translates to increased collaboration and productivity among team members. Kevin Shahnazari, founder & CEO of FinlyWealth adds, “We measure success through hard numbers. Since implementing structured DEI hiring practices, our team’s productivity metrics have increased by 35%, and employee retention has jumped from 24 months to 36 months on average. Diverse perspectives have directly enhanced our product development – our latest feature serving underbanked communities came from insights shared by team members with firsthand experience.

These metrics prove that DEI doesn’t just align with merit-based hiring – it enhances it by finding exceptional talent in overlooked places.”

4. Promotion of Data-Driven Hiring Insights

DEI enhances the use of data to improve the hiring process in different ways, such as:

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  • Urging organizations to identify and address bias in their hiring data

Through DEI, organizations can look at their hiring data and ask themselves questions such as, what is merit-based hiring according to our applicants? Are certain groups getting discriminated against in the interview process? Are the tools we use promoting bias? And how come we never get to hire candidates from such groups? This way, the organization can work to eliminate barriers to hiring diverse candidates.

  • Using data to set hiring goals

Through the data, an organization can set goals to improve its overall recruitment process. 

For instance, you can use the data to remove the barriers you’ve seen that prevent female candidates from applying to your job openings. 

5. Enhanced Performance Evaluation Process

A Harvard Business Review study shows that even performance reviews contain different types of bias. Studies have shown that employees from underrepresented groups are more likely to get vague feedback from their managers rather than actionable feedback. Plus, the way women and men employees receive feedback also comes with different types of bias.

So, DEI practices promote the implementation of a standardized, clear, and skills-based evaluation process. This way, the advancement of each candidate becomes based on their actual contributions and not the traditional subjective performance evaluations.

6. DEI and Merit-Based Hiring: Use of Inclusive Language in Job Descriptions

The traditional hiring process didn’t bother about the inclusivity of the job description’s language. But the language you use in your job descriptions either encourages or discourages prospective candidates from applying. 

So DEI practices seek to examine job descriptions to identify any bias towards different types of prospective candidates. Then, through DEI, you can assess ways to change the language to attract different candidates.

For instance, a report from LinkedIn shows that women apply for 20% fewer jobs than men. Because they feel they need to be 100% qualified. So if one of your diversity goals is to hire more women employees, through diversity practices you can adjust your job post language to make it more appealing to women.

To simplify the process of ensuring your job description language is free from bias, use a tool like Ongig’s Text Analyzer to help you write bias-free job descriptions. The software can detect biases like age, disability, neurodiversity, gender, LGBTQ+, race, ethnicity bias, etc, that can prevent different types of candidates from applying to your job openings.

ongig bias scanner

7. DEI and Merit-Based Hiring: Increased Customer Understanding and Satisfaction

Different studies have shown that diverse companies are more profitable. This is because of the customer satisfaction that diverse employees bring. For instance, a diverse workforce enhances customer satisfaction in these ways:

  • Enhancing diverse perspectives: Employees that reflect your customer base’s diversity are in a better area to understand the customers’ pain points, preferences, challenges, and needs. Hence, you can design your services and products to fulfill the needs of your different customers.
  • Improved communication: A diverse workforce can adapt their communication style to fit your entire customer base. For instance, they can change the tone according to the customer’s culture, communication preference, and native language. Wesley Kang, founder of  Realtor 1099Cafe, has seen first-hand how language and communication drive business growth. He adds, “Merit-based hiring took on new meaning when we started focusing on cultural fluency. Our team’s diverse language skills opened up entirely new market segments. For instance, during the last quarter, our multilingual agents closed 40% more deals because they truly understood their clients’ needs and cultural nuances. That’s not about quotas, though, but about having the right skills to serve our community. Our most successful agents bring unique perspectives from their backgrounds. For instance, one team member’s understanding of multi-generational Asian household dynamics helped us close our biggest deal this year. She spotted opportunities other agents missed because she understood the cultural context.”

8. DEI and Merit-Based Hiring: Continuous Monitoring of the Recruitment Process

DEI practices advocate for the regular review of the hiring process to identify any areas for improvement toward a true merit-based hiring system. This is in contrast with the traditional hiring system, which continues with the same “merit” based hiring unfair systems despite recognizing bias in the process.

DEI advocates for the setting of metrics to identify any challenges in hiring after a certain period. For example, with DEI, you can set a goal to identify why people living with disabilities don’t apply to your job openings. And through this, you’ll pinpoint the problem and find a solution.

5 Best Practices for Implementing Effective DEI and Merit-based Hiring Strategy

There isn’t a one-size-fits-all approach to implementing a successful DEI strategy. 

DEI best practices

There are various diversity and inclusion practices to implement to find what works for your organization. Some of these practices are:

  • CUSTOMIZE YOUR DEI STRATEGY

Your DEI strategy must be unique to your company. It’s baseless to follow what you’ve seen your competitors doing. So, your customization should start with studying your current DEI position. For instance, how inclusive is your work environment? How is the representation of your employees? Do people living with a disability have a smooth application process?

  • ESTABLISH YOUR DEI GOALS

After looking at the state of your organization, set your goals. For instance, your goals might be to:

  1. Reduce the bias in your recruitment process by X%
  2. Review and update your anti-discrimination policies by Q2
  3. Boost representation of people of color in the X% and X% departments
  4. Build a disability inclusive workplace by Q3
  • GET LEADERSHIP COMMITMENT

For an organization’s DEI culture to succeed, the company’s leaders need to buy in. This is because they set the tone for the rest of the workers. To get leadership support, educate your leaders on the importance of implementing DEI. And show them the profitability a diverse talent brings.

  • BUILD A CULTURE OF INCLUSION AND BELONGING

A DEI strategy won’t succeed if all your employees don’t feel safe and that they belong. So create an environment of inclusion through open communication. For instance, let all your employees know they can discuss any challenges with your leaders.

  • REVIEW AND ADJUST YOUR DEI STRATEGY

After setting your DEI strategy, set up ways of tracking your progress. For example, to track your progress, do this:

  • Check your employee engagement through engagement surveys. This will let you know if minority employees feel supported. And if they are getting equal chances to grow in their careers.
  • Conduct focus groups with your employees to know their personal experiences.
  • And track if underrepresented groups are applying to your job openings. 

Tips to Navigate the Current DEI Pushback

Despite the data backing up the benefits of DEI, there’s still a growing pushback. This arises due to misconceptions that people don’t understand that an inclusive environment benefits all employees. 

DEI pushback

There are, however, different ways to still push for DEI initiatives in your organization, such as:

  • Communicating the “why” of DEI: Let your employees understand that DEI isn’t about taking opportunities from some groups and giving them to another group. But it’s about giving opportunities to all qualified people by removing the systemic barriers that have been in place for years.
  • Highlight the benefits: Let everyone in your organization understand the positive impact of DEI. Show how a diverse workforce increases innovation, profitability, and good decision-making.
  • Use a data-driven approach: Use data to highlight how DEI has had a positive impact on business outcomes. Through the data, your leaders will also get compelled to provide more resources. 
  • Enhance collaboration: Involve all employees from different backgrounds and levels when shaping your DEI initiatives. When everyone in the organization feels involved, they are more likely to own the initiatives and become advocates for change. 

Building a Reputation as an Employer of Choice with DEI and Merit-based Hiring

A strong commitment to DEI can make a company stand out in a crowded job market, especially when it comes to attracting top talent. So, when you show that you value diverse backgrounds and offer an equal opportunity for all candidates, you build a reputation as an employer of choice. This not only helps recruit the best-qualified candidates. It also sets your company apart from others in the private sector. Any company known for its DEI efforts will often see a larger pool of job applicants eager to join a workplace that values fairness and inclusion.

How DEI Enhances Recruitment

A merit-based system that prioritizes skills and experience over factors like racial diversity or political affiliation helps you ensure you’re hiring the most qualified candidates. So, when hiring managers focus on a candidate’s skills-based hiring, they are more likely to bring in top talent. Focus on things like professional experience, interpersonal skills, and educational achievement, instead. In this process, job qualifications and a candidate’s ability take precedence over other factors that may not directly relate to the role. These irrelevant factors generally include things like national origin or socioeconomic advantages.

Attracting the Right Talent

A company that embraces skills-based hiring over degree-based hiring gives candidates a fair shot based on their abilities and experiences, not just their educational credentials. This approach helps identify the best candidate for the job, regardless of where they come from or what their socioeconomic background may be. HR leaders can also attract talent by ensuring their selection processes are rooted in the merit principles outlined in civil service laws like those in the United States Code. This open approach can attract diverse candidates who may not have had opportunities in more traditional recruitment processes.

DEI’s Role in Long-Term Success

As you commit to DEI, set yourself up for long-term success. Any company that has a reputation for treating employees fairly and fostering an inclusive environment can expect to see higher retention rates and increased job satisfaction. This leads to greater productivity and profitability over time. So, when employees feel valued for their skills and hard work, they are more likely to stay with the company. Thus, contributing to a positive work culture. DEI isn’t just a good thing to do. It’s also a good argument for why companies should invest in it as part of their hiring strategy.

In the end, when companies make merit-based recruiting a priority, they are not only following the laws of the United States of America or meeting affirmative action requirements; they are also building a workplace where the best talent can thrive, regardless of their background. This approach not only helps organizations recruit the right people, but it also sets the stage for ongoing growth and success.

DEI and Merit-based Hiring FAQs

1. IS DIVERSITY, EQUITY, AND INCLUSION MORE IMPORTANT THAN MERIT, PERFORMANCE, AND COMPETENCY?

DEI, performance, and merit aren’t conflicting elements. A good DEI strategy ensures all qualified applicants get equal opportunities in recruitment, promotion, and evaluation. This way, the systemic biases that are a source of exclusion for qualified candidates aren’t considered. Competency, performance, and merit are important in recruitment and promotions, and DEI builds a level playing field for all applicants regardless of their background, age, gender, disability, race, and more.

2. WHICH IS MORE IMPORTANT: HIRING FOR DIVERSITY OR HIRING ON MERIT?

Both DEI and hiring on merit are important, and they complement each other. DEI initiatives increase hiring on merit by ensuring that skills, qualifications, and performance are the determining factors in recruitment and not systemic or bias barriers.

3. DOES DEI NECESSITATE HIRING OF INDIVIDUALS WHO MAY NOT POSSESS THE REQUIRED QUALIFICATIONS FOR A JOB, SOLELY BASED ON CHARACTERISTICS UNRELATED TO JOB-RELATED CAPABILITIES?

No organization would hire an unqualified person because of color. What DEI does is remove the systemic barriers that prevent some groups of employees from getting hired. This ensures that everyone qualified gets an opportunity regardless of their background, such as race, age, gender, etc.

Why I Wrote This:

Our mission here at Ongig is to help you build an inclusive organization. One way we do that is by transforming your job descriptions to attract top-tier talent. Our Text Analyzer software analyzes every word of your job descriptions to ensure they are inclusive to all candidates.

Shout-outs:

  1. Nathan Mathews, CEO at Roofer.com
  2.  Zarina Bahadur, CEO at 123 Baby Box
  3. David Haskins, CEO at  WrongfulDeathLawyer.com 
  4.  Laurence Bonicalzi Bridier, CEO at  ArtMajeur by YourArt 
  5. Kevin Shahnazari, founder & CEO of FinlyWealth
  6. Wesley Kang, founder of  Realtor 1099Cafe

by in Diversity and Inclusion