Diversity study: Measuring the impact of DEI on employees’ mental health and society

The workforce is more diverse than many would guess, yet those that fulfill diversity criteria occupy leadership roles less often and tend to feel disadvantaged. Our diversity study reveals how bias, pressure, and unequal opportunities still shape the daily reality of many employees – with potential impacts on well–being.

To analyze the effects of diversity, equity and inclusion (DEI) on mental health and the resulting monetary gains for society and employers, WifOR Institute is collaborating with the Hans Böckler Foundation (HBS) in an in-depth analysis. Through three waves of representative surveys, we aim to measure key indicators that help companies address DEI challenges and promote more inclusive and healthy workplaces, where all individuals, regardless of demographic characteristics, can unlock their full potential.

Interested in how to effectively implement Diversity, Equity & Inclusion? Read our blog article here

Key findings of our DEI study

Companies are more diverse than many realize

Relevant preliminary results prove that diversity is not a marginal phenomenon in German organizations. Specifically, most interviewees fulfill at least one of the diversity criteria established by law: gender, age, ethnic origin, religion, disabilities/diseases, and sexual orientation. In the German context, we refer to:

People who identify as non-Christian, queer, and/or female
Individuals with disabilities or chronic diseases
Migrants or children of migrants
Those in the age groups under 30 and over 60 years old

For individual companies to assess how diverse they are, WifOR Institute has developed a diversity score in the past. This tool provides a performance rating from zero to ten based on key indicators.

WifOR Institute’s Diversity Score

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“Glass ceiling” linked to a lack of diversity

When analyzing leadership positions, the share of diverse people decreases. A larger share of interviewees indicated that their superiors are “not at all diverse”. However, only a small percentage supported that statement when referring to their peers. This suggests that employees from certain underrepresented groups face more barriers for advancing their careers and climbing the corporate ladder.

Some diverse employees feel disfavored at work

A clear case is seen, for example, with respondents who have a visible migration background, non-Christian beliefs, and disabilities. These groups relatively often report feeling disadvantaged.

Additionally, some interviewees pointed out that they are “pigeonholed” by superiors and colleagues. Others indicated that they feel more comfortable not sharing some of their characteristics (such as non-visible disability, non-Christian religion, or queer sexual orientation).

Many people work under adverse conditions and high pressure

Most employees – including those with diversity characteristics – report high workloads. Roughly half of them say they are expected to be reachable off-hours or while on holidays. Similarly, a smaller group also remarked that it is unlikely or impossible to fulfill responsibilities such as childcare or caring for relatives in their current labor situation.

Furthermore, the majority of respondents claimed to be often tired after work, while every third employee described their job conditions as psychologically very stressful. All of these factors generate additional pressure and may lead to the deterioration of mental health.

What does this diversity study mean for companies?

The analysis quantifies the effects of DEI and shows that the benefits of fostering an inclusive company culture are not only social but potentially also economic.

Well-being supports employee motivation and performance. Also, it is associated with fewer absences due to sickness and lower staff turnover. On the contrary, workplace stress and reduced health generate costs for organizations as productivity decreases, and healthcare expenses increase.

In addition, DEI practices foster spaces of free expression and innovation – which in turn influence an organization’s success – and help reduce gaps associated with salary, roles, and unpaid work.

By detecting the issues that most frequently affect employees of various groups and backgrounds, businesses can make informed decisions to reduce inequalities and prevent monetary losses. Consequently, companies should ensure more equitable workplaces, greater employee well-being, and fair opportunities for all.

Study method and further details

The diversity study is being carried out in three waves of representative telephonic surveys conducted by SOKO Institute. Questions were made to more than 2,500 individuals. The first wave of surveys is already finished, and its results will be published at the end of 2025. Explore the detailed project description (in German) here.