Research indicates that, despite billions of dollars invested in diversity initiatives, many companies show minimal measurable progress. The “Diversity Myth” – the assumption that diversity automatically boosts innovation and performance – persists widely, yet does not align with empirical findings.

Two Major Challenges for Diversity in Companies

Slow Progress Despite High Investments: Many organizations allocate significant budgets to DEI programs, yet measurable progress remains limited. Despite substantial efforts and investments exceeding $7.5 billion in 2020 (McKinsey 2023), companies often encounter barriers that stall their diversity goals.

Political Backlash: In some countries, particularly in the U.S., diversity initiatives are increasingly subject to political pushback. Legislation that restricts or even prohibits DEI programs forces companies to abandon or scale back their diversity objectives. Prof. Shemla’s research addresses how companies can still make effective progress in the face of such challenges.

Research Findings: What Diversity Truly Brings – and When It Fails

1. The “Diversity Myth”: The widespread belief that diversity automatically enhances team performance does not hold up under scientific scrutiny. More than 30 years of research show that diversity does not necessarily lead to higher performance – often, the effects are neutral or even negative. Rather, heterogeneous teams require specific management practices and, without proper oversight, can face challenges such as lower cohesion and increased conflict.
2. Principles for Effective Diversity Strategies: Prof. Shemla and his co-authors identified core success factors for implementing DEI programs effectively. These include tailored strategies for different organizations and clear communication between leadership and employees. A key insight is that successful DEI programs must do more than create diversity; they should actively manage it.
3. Managing Diversity in Teams: Effectively managing diverse teams is crucial to unlocking the potential of diversity. Research shows that leaders should not only consider team composition but also how differences within teams are perceived. Shared values and clear goals foster positive team dynamics and improve collaboration in heterogeneous groups.

An Evidence-Based Perspective on DEI Initiatives

In the often-polarized discourse around diversity, Prof. Shemla’s research offers a grounded, nuanced perspective: diversity holds great potential, but its successful integration in companies demands active and well-designed management. This approach is intended to support companies in achieving diversity goals without falling into ineffective “one-size-fits-all” solutions.

Prof. Meir Shemla is a Full Professor of Organizational Behavior and Human Resource Management at EBS Business School (EBS Universität). His research focuses on:

• Diversity in organisations and its consequences
• Loneliness in the workplace
• Masculinity at work (for instance, how do organizational efforts to promote female leadership affect men, and how do men adapt to evolving workplace dynamics around gender relations and political correctness?)