Lay the groundwork for meritocracy
Over time, organizations that maintain transparent, values-driven, and meaningful DEI efforts will not only (re)build trust but also position themselves as employers of choice in an increasingly diverse and competitive labor market. All companies face some level of disconnect between the aspirational goals of DEI and the tangible, lived experiences of a diverse workforce, necessitating a strategic pivot towards more impactful and measurable interventions
Inclusive meritocracy looks different for each organization: You need to know your organization’s culture, challenges, and, most importantly, your employees’ needs and wants.
This means asking hard questions: Do you know what merit means for your organization? Are your DEI efforts really serving you and your employees, or are you merely paying lip service to an idea?
1. Define the meaning of “merit” in your organization
Ensure that there is a clear shared understanding of what merit means and how it is defined, to minimize managerial discretion when applying the concept in decisions (Castilla & Benard, 2010). To address the paradox of meritocracy, organizations should focus on creating transparent, accountable, and equitable systems that promote fairness and inclusion beyond simply relying on traditional notions of merit.
Review the current organizational merit system for consistency, transparency, and productivity in terms of its contribution to the overall success. Main areas to pay attention to are:
- required skills and behaviors, especially for management and leadership positions
- performance and behavior measures
- criteria that talents need to fulfil to count as high potentials and qualify for development programs to benefit from support
- criteria that employees and managers need to fulfil to be rewarded and promoted
2. Know your employees
Analyze your employee base in a meaningful way: Perform an external and internal benchmarking using your HR data to get a clear sense where you stand when it comes to diversity. This goes beyond assessing the gender, age, nationality and education make-up of your employees to include key HR processes to assess whether they are meritocratic. For example, organizations should track internal promotions by gender, nationality, education, self-identified race or ethnicity, and the percentage of employees in each category.
Give your employees the opportunity to identify themselves: Tracking sensitive intersectional data enables companies to find and address gaps, customize solutions to meet the diverse needs of their workforce, pinpoint unresolved conflicts, and monitor progress in creating a diverse and inclusive culture (Joan et al., 2020; Ryan & Briggs, 2019). It also helps you recognize exclusionary or discriminatory behavior against members of specific groups early. Transparent, intersectional data highlights which groups are making progress—and which are not.
However, there is a unique obstacle in Switzerland that countries such as the US do not face when tracking intersectional data. In Switzerland, the revised Federal Act on Data Protection (FADP) classifies information about racial or ethnic origin, sexual orientation, disability, and sexual orientation as sensitive personal data, requiring a higher level of protection than ordinary personal data (FADP, 2020). Such sensitive characteristics can only be collected voluntarily, with the explicit consent of the individual and for a clearly defined purpose. We recommend incorporating voluntary self-identification questions into your anonymized employee engagement surveys. Consider including questions such as: “Which gender identity do you best identify with?” “Which of the following best describes your race/ethnicity?” “Do you have a disability (i.e., physical, mental, psychological, chronic illnesses or impairments)?”
3. Measure progress and learn from mistakes
Use smart indicators to measure inclusion progress: Foster a culture where inclusion is embedded in how merit is defined and rewarded. Embedding DEI indicators into existing business review structures also improves accountability. For example, instead of treating inclusion as an HR-only metric, organizations can assess each unit on collaboration, team diversity, and retention rates across demographic lines. This kind of integrated evaluation supports cultural change at scale (Park et al., 2025). Support psychological safety and well-being so all employees feel empowered to contribute fully.
St. Gallen Inclusion Index
Include all perspectives to understand employee needs: To do this, start by understanding the needs of your employees and tailor solutions specifically to them (Galdiero et al., 2024). What works in other companies may not work in yours; what works in other countries’ cultures may not fit your local culture. Conduct a thorough organizational analysis involving different perspectives, e.g., top management, supervisors, employees, customers, suppliers, etc., to determine fields for action.
Communicate progress, or lack therof: Measure and communicate progress toward your leadership, employees and beyond wherever relevant. Relate KPIs like a “better retention rate” or “higher loyalty rate” to saved hiring costs and consciously connect progress to the business case. But: Don’t just celebrate success, but acknowledge challenges. A credible DEI story depends not only on celebrating success but also on being transparent about challenges. While companies may fear that disclosing a lack of progress could harm their image or provoke criticism, research shows that transparency actually strengthens credibility. When organizations are open about their struggles to meet diversity goals, stakeholders perceive their commitment as more genuine (Apfelbaum and Suh, 2024). Internally, such open communication can improve employee retention and drive innovation (Garcia Martinez et al., 2017). This openness signals accountability and builds trust with employees, clients, and the broader public.
Communicate openly with your employees about DEI progress: Leaders should also use internal platforms like town halls to discuss key DEI metrics, invite input from employees, and explain how feedback will shape future action. This consistent and transparent communication turns DEI into a shared, ongoing practice rather than a one-time initiative. When leaders acknowledge the difficulty of long-term DEI progress, they demonstrate integrity and resilience—qualities that inspire greater support from within and outside the organization.
