The retreat from DEI hurts employees. Leaders can infuse inclusivity with joy.

Key points

• Recent surveys show that DEI retreat is hurting employees’ morale and companies’ profits
• DEI volatility is occurring in the context of widespread employee burnout or “quiet cracking.”
• Positive psychology research points to ways leaders can be inclusive while also boosting employee well-being.
• Studies on joy, strengths, allyship, and hope show how inclusive leaders can reimagine a better future.

By Meg A. Warren, Ph.D., and Chuck Shelton

In an era when DEI (diversity, equity, and inclusion) is under attack in the U.S., many companies have been feeling the pressure to retreat. But it’s now clear that stepping back from DEI isn’t pragmatic. One survey of business leaders in the U.S. found that 2 out of 3 say that after cutting DEI, their company suffered customer boycotts (as did Target) and diminished employee morale.

The Catalyst/Meltzer 2025 survey reports that U.S. employees are displeased with the DEI retreat by companies, and more than 2 out of 5 say they’d quit if their employer stopped supporting DEI. In fact, 1 in 3 leaders who rolled back DEI policies reported later reinstating them.

So rather than abandoning DEI, leaders are looking for ways to rebrand, reframe, and reimagine inclusive workplaces, despite external pressures and polarization. We propose reimagining DEI by harnessing the power of joy.

The kind of joy that poet Toi Derricotte called “an act of resistance.”

Understanding Joy and Why It Matters

Consider Black Joy — a celebration and affirmation of Black identity, voice, passion, strengths, achievements, and wisdom, in a context where Black communities are often silenced and rendered invisible. It’s a purposeful decision to be in and act from a place of joy, and it nurtures the confident hope that good things will happen, even when it doesn’t seem likely.

Joy matters now more than ever because employees are facing a burnout and mental health crisis, sometimes called “quiet cracking”, which has cost companies $438 billion in productivity loss.

Leaders need solutions that not only preserve an equitable and inclusive work culture but that do so in a way that builds joy, strengthens relationships, boosts employees’ psychological resources, and inspires hope in the face of widespread cynicism.

During times of pressure, the temptation is to become preoccupied with what we can’t do and retreat, or dig in our heels and push harder to continue doing what is familiar. Both approaches sap our well-being, risk alienating us from what animates and sustains us, and precipitate despair and burnout. Instead, we propose focusing on what we can do and making joy our asset for moving forward.

The Catalyst/Meltzer 2025 survey found that 88% of U.S. employees wanted to learn about allyship and inclusion. Research shows that joy has the power to fuel innovative thinking around being an ally in the current climate because it frees people to speak up about how we can improve our future and explore new ideas. It unfreezes defensive defaults and opens doors to curiosity, experimentation, and bold thinking. A culture of joy fosters trust among employees and an openness to interact more freely with colleagues – the hallmarks of inclusivity.

What Joy Isn’t and Is

It may seem tone-deaf to seriously consider pursuing joy when there is so much suffering around us, but joy is not about projecting false cheerfulness, forced or toxic positivity, ignoring pain or injustice, or pretending things are perfect. Leaders can’t scold, control, or coerce employees into hope and joy.

Rather, joy and hope mark a refusal to succumb to the weight of our problems; they supercharge constructive action and powerfully counter the cynicism that has been shown to exacerbate inequality. Inclusive leaders must often find the courage to challenge and reimagine systems. Joy is meant to fuel that courage, not deflect attention away from problems.

For instance, even in some of the harshest conditions of the slums of Kibera in Kenya, I (Warren) have witnessed community members fully acknowledge inequalities and violence but approach the discussions of solutions with tension-busting methods that create an uplifting emotional tone, reinforce their values, and deepen connection, meaning, and pride. You can see the palpable warmth in people’s smiles and the enthusiasm in their eyes, even as they roll up their sleeves and do the hard work of allies and inclusive leaders. They have plenty of reasons to experience despair and apathy. But instead, they have cultivated a culture in which it is acceptable, and are indeed encouraged, to intentionally choose joy and hope.

If joy can be experienced — and is helpful — in the slums of Kenya, why not here and now?

Joy for Inclusive Leaders

Leaders who role-model and invite joy create environments in which people feel seen, valued, and invited to bring as much of themselves to work as they choose. As we learn to lead more inclusively, joy at work delivers emotional safety and dignity. Joy reminds us about our shared humanity: We don’t have to wait for a crisis to discover the many profound things we have in common.

Here are 3 ways inclusive leaders can infuse joy into the workplace:

1. Recognize and Build Strengths. Joy gives us the chance to shift how we see ourselves and one another, allowing us to more clearly recognize each other’s strengths. This is important for rethinking how we approach DEI because research shows that the merit, strengths, and achievements of women and people of color are often ignored or misattributed to White men.

We can’t create fair systems and successfully navigate what Shelton (this post’s co-author) calls “The Merit Mess” if we don’t fully see each other’s strengths. My (Warren’s) team’s recent study shows that when leaders pivot equity conversations to shine the spotlight on their marginalized employees’ strengths, they create an uplifting emotional climate for themselves and marginalized employees, as well as observers. Inclusive leaders can “catch people doing things right” and recognize them in ways that they value.

2. Seed and Nurture Healthy Connections. In fractured times, differences of opinion can drive conflict. Any new political or social spark can inflame unresolved friction. Inclusive leaders need to support and advocate for their employees while also decreasing tension and polarization. When trust is low, leaders’ first order of business may be to create a strong relational foundation and cohesive work environment.

Active listening, checking in on employees’ well-being, collaborating to strategically navigate challenges, and “sponsoring” or opening influential doors for success can help build trust and reduce volatility. My (Warren’s) team’s research shows that these actions are valuable from the perspectives of marginalized employees, and my study conducted in 103 countries shows that these are also the sorts of behaviors that 93% of people who care about equity feel comfortable doing because it fits with who they are.

3. Move Beyond Cynicism. When joy is in short supply, we would do well to consider Jamil Zaki’s research that shows how cynicism suppresses action. He recommends “hopeful skepticism” — trusting others while maintaining openness to new evidence. It is a step on the road to joy and helps escape the “gravity well” of low expectation, while inspiring and sustaining effective action. In this manner, joy is grounded in rational optimism.

Joy is a justice practice. For inclusive leaders, it’s not a nice-to-have; joy becomes a radical, renewing, and relational force that deepens impact, strengthens trust, and makes the long road of inclusion an adventure.

Chuck Shelton is the founder and CEO of Greatheart Consulting, Seattle. For 40 years, he has equipped executives to grow their organizations through inclusive leadership.