Making the business case for inclusion is more urgent than ever

Pollack: “There isn’t one unified experience. Inclusion leaders are managing concerns from a wide variety of stakeholders, many of whom come from completely opposite orientations to this topic.

They’re hearing from legal teams worried about new and outsized risks in continuing traditional inclusion strategies. From corporate affairs and communications, there’s a focus on managing brand integrity and responding to both employee sentiment and public marketplace sentiment.

At the same time, employees are saying they want the company to stay aligned with its core values — not just in name, but in action. They value programs that foster fairness, inclusion, and talent development. These programs shape the employers they choose and how much of themselves they bring to work. Inclusion leaders are trying to navigate all of this at once.”

Montes: “I agree—it’s probably one of the most challenging roles right now.  Inclusion leaders are under intense pressure from every direction, often with no clear win-win solutions.  They’re working hard to evolve their strategies and messaging — not to retreat, but to ensure the long-term sustainability of this work.

Measurement is a major challenge. Nearly every senior leader I speak with is grappling with how to demonstrate the business case using their own organizational data. They know inclusion impacts talent, innovation, reputation, and financial performance — but there’s anxiety around how to collect and use that data responsibly, and how to craft the right narrative around it.

Adding to the complexity, data that were once leveraged to inform talent management and identify gaps are increasingly being pulled back.  Ironically, this can end up reinforcing a flawed system, leaving leaders scrambling to find new ways to ensure fair outcomes and opportunity.

Compounding all of this is a growing concern over language — leaders are worried about how their words will be perceived, both internally and externally. In this climate, even well-intentioned efforts risk misinterpretation."

Pollack: “I’d also add that inclusion leaders are being asked to represent organizational strategies that can sometimes feel like they upend decades of work. They’re told the heart and soul of the commitment is unchanged, but in practice, the shifts can feel very real —both for them and for the employees they support. Acknowledging that tension is critical.” 

Montes: “There are several things to underscore. First, Catalyst is a nonpartisan nonprofit— which matters now more than ever. In a time when conversations about equity and inclusion are often politicized, we remain focused on what we’ve always done: bringing over 60 years of rigorous, research-backed, actionable content to advance women and drive workplace inclusion. No anecdotes or political spin — just evidence-based insight that helps leaders build fairer, more effective workplaces for business outcomes.

Second, we act as a force multiplier. Many inclusion teams are shrinking even as their work is expanding. Having a partner like Catalyst means access to over-the-shoulder guidance, timely insights, practical tools and learning solutions, and research that helps organizations navigate this complex moment.

Third, we have a broad reach. We work with nearly 400 organizations across industries and geographies, so we hear what others are experiencing and can bring that collective knowledge to the table. We also offer discreet guidance and resources that many companies don’t have the capacity to develop internally.

Catalyst has become increasingly agile —creating just-in-time tools and resources to help organizations navigate a confusing and fast-changing landscape with confidence and clarity.”

Pollack: “Thriving workplaces for everyone lead to thriving businesses. That’s our mission and that’s where inclusion becomes a true business driver.

Our long history matters here. We’ve evolved alongside our Supporters since our inception—think about how far the conversation has come since our founding CEO Felice Schwartz in 1972 wrote How to Go to Work When Your Husband Is Against It, Your Children Aren’t Old Enough, and There’s Nothing You Can Do Anyhow! We’ve weathered the pendulum swings, from the intense focus after George Floyd’s murder to today’s backlash, and we know more swings will come.

Also, I’ll add: Employees notice when organizations walk the talk. Catalyst’s recent research in collaboration with the Meltzer Center at NYU Law School shows that most employees support their organizations partnering with external entities that reflect inclusive values. These partnerships demonstrate that companies are acting on their commitments—not just talking about them—and that builds employee trust.”

Montes: “One key area of focus is employee resource groups (ERGs). Catalyst offers a comprehensive nine-part ERG Guide that helps companies build strong governance, address challenges, and develop high-impact ERG ecosystems. When done well, ERGs aren’t just employee communities — they’re business assets. Strong ERGs drive measurable outcomes in retention, brand perception, client engagement, and the recruitment of diverse talent. In other words, they directly influence the bottom line.

Another high-ROI area is inclusive leadership. In 2019, Catalyst introduced a unique inclusive leadership model that equips managers and supervisors to create environments where employees can thrive. Why is this so crucial? Because 45% of an employee’s experience of inclusion is shaped directly by their manager. That’s almost half — and it means the quality of leadership has a direct impact on engagement, performance, and retention.

When leaders are trained to foster psychological safety, teams become more innovative, more productive, and more loyal. That’s not just good culture — it’s smart business. Inclusive leadership doesn’t just build better workplaces; it builds stronger, more resilient organizations.”

Pollack: “More broadly, Catalyst offers research and tools that help leaders build durable, future-ready skills. It’s important that organizations are not just responsive to the current moment but also looking ahead to the future of work. As we move into a world of increasing AI use, where emotional intelligence (EQ) will likely outpace IQ as a key differentiator for success, Catalyst is focused on helping organizations prepare the leaders of tomorrow.

We also help organizations bring everyone meaningfully into the inclusion conversation, particularly through our MARC (Mutual Accountability, Real Change) work, which focuses on making sure everyone is not just invited to the table but fully engaged in shaping a shared vision of a fairer, more inclusive workplace.”

Montes: “Honestly, most organizations right now aren’t looking to grow these partnerships—they’re working hard just to sustain them.

But that makes the investment all the more important. When teams are lean, having a partnership like Catalyst becomes a critical multiplier. We provide research, guidance, and convening power that reduces the lift on internal teams at a very approachable price point.

And if you break it down in dollars and cents: For a global organization with 30,000 employees, a $45,000 annual investment amounts to $1.50 per employee per year. That’s a remarkably affordable entry point for a wealth of deep resources.”

Pollack: “Especially when you consider the average cost of turnover for a frontline employee is around $52,000—and that number goes way up for more senior roles. So that $1.50 per employee looks pretty compelling when you frame it against retention and engagement outcomes.

We also create spaces where leaders can connect with peers across functions—CHROs, general counsels, heads of communications—and learn from each other. That convening power is something unique Catalyst offers.”

Pollack: “One thing we’ve been seeing — and this is backed by the new Catalyst and Meltzer Center report, Risks of retreat: The enduring inclusion imperative — is that pulling back on inclusion comes with some big risks.

First, talent. Employees are paying attention to what their companies are doing around inclusion, and it affects their investment in their work and how they feel about staying or leaving. They want to work for organizations that are genuinely committed.

Then there’s the financial side. Consumers are more likely to buy from companies that align with their values and show they care about inclusion. It’s not just an internal matter — it directly impacts customer loyalty, too.

On the legal front, leaders are becoming more aware that stepping back from ‘DEI’ can create a workplace that feels less fair, raising the risk of discrimination claims. So, pulling back doesn’t make risk disappear; it just shifts it into a different, and potentially more damaging area.

And finally, reputation. Many leaders believe their organizations are still standing firm on their inclusive values, but employees often don’t see it that way. There’s a real gap between what leaders think they’re signaling and what people are actually experiencing.

Stepping back isn’t a neutral move — it sends a signal, creates risk, and can erode trust in ways that are much harder to rebuild later. That’s why this moment calls for thoughtful, deliberate, and forward-thinking action.”

Montes: “As Alix just said, understand that there are risks in retreating from inclusion efforts—and equal risks in changing nothing or changing everything too quickly. These decisions have long-term downstream effects. So don’t be myopic. Think beyond the moment and recognize the decisions you make now could have detrimental future outcomes.”

Pollack: “I agree with Kelly, and we have more great recommendations along these lines in our report. To that I’d add: Be kind to yourself and lean on community. Listen broadly, be responsive but not reactive, and remember that the choices you’re helping shape today should serve long-term evolution, not short-term reactions.”