How DEI Fuels Profit, Retention, and Innovation in MSPs

20 May 2025

Diversity, Equity, and Inclusion (DEI) programs are often seen as something only large enterprises can tackle. But the research tells a different story. For Managed Service Providers (MSPs), even small steps in the right direction can lead to major payoffs: lower turnover, better teamwork, and stronger client relationships. This article unpacks what academic research says actually makes DEI efforts successful—and how MSPs can apply those lessons in a practical, approachable way. We also address one of the most common concerns among MSPs: "What if there just aren’t many women or diverse candidates applying?" But read on; there are solutions.

Introduction

Let’s be honest. DEI can feel like one of those things that only big companies with huge HR departments can afford to focus on. But for MSPs trying to build tight-knit, high-performing teams, DEI isn’t a luxury—it’s a smart business strategy.

Clients want to work with companies that reflect a range of perspectives. Technicians want to work where they feel valued and safe. Leaders want to grow teams that solve problems fast and bring fresh ideas to the table. DEI, done right, supports all of that.

And yes, DEI is good for your bottom line.

In fact, companies with diverse leadership teams outperform their peers financially. A 2020 McKinsey study found that gender-diverse companies are 25% more likely to earn above-average profits. Culturally diverse teams are more innovative and better at solving complex problems—which is exactly what MSPs do every day. Boston Consulting Group also found that diverse management teams generate nearly 20% more revenue from innovation. That means your DEI strategy isn’t just about doing what’s right—it’s about running a smarter, more profitable business.

But here’s the catch: many DEI efforts don’t work. Why? Because they focus on surface-level actions instead of deeper, research-supported strategies. What actually makes DEI efforts stick is structure, accountability, and culture. And the good news? You don’t need a big budget to make this work. You just need intention, consistency, and a willingness to learn.

This article distills what academic studies say are the five most effective practices for building real DEI into your organization—and how MSPs of all sizes can put those ideas to work.

1. Leadership Commitment: Make It Real and Measurable

The most successful DEI efforts start at the top. When leaders talk about DEI, prioritize it in meetings, and follow through with actions, it signals to the entire company that inclusion isn’t optional—it’s part of how you do business.

What the research says: DEI programs are more effective when leaders are held accountable for progress. According to Dobbin and Kalev (2016), DEI improves when managers—not just HR—are responsible for making it happen.

What MSPs can do:

Add a DEI discussion to your quarterly leadership meetings. What’s working? What needs improvement?
Set clear goals. For example: "Increase female representation in technical roles by 10% in 12 months."
Make DEI part of performance reviews for managers. Ask: How are you building inclusive teams?

2. Voluntary Participation: Ditch the Mandatory Training

We all want to believe that training solves everything. But academic research shows that mandatory diversity training can actually make things worse. When people feel forced to attend training, they get defensive. Voluntary learning opportunities work better—and foster real curiosity and engagement.

What the research says: Voluntary training and mentoring programs are far more effective than mandatory sessions. They create space for authentic learning rather than compliance-based checkboxes.

What MSPs can do:

Host optional lunch-and-learns or book clubs on DEI-related topics.
Create a resource library (videos, articles, podcasts) for anyone who wants to learn more.
Invite guest speakers to share personal and professional experiences—and make attendance optional.

3. Focus on Systems, Not Just Events

Having a DEI speaker or celebrating a heritage month is great—but it won’t move the needle if your hiring, feedback, or promotion systems are inconsistent or biased. Structural change is what builds trust.

What the research says: DEI efforts that change underlying systems are far more impactful than awareness-only initiatives. When people see fair, transparent processes, they’re more likely to believe in the culture.

What MSPs can do:

Use structured interview questions for all candidates.
Review job postings for biased language (e.g., words like "ninja" or "rockstar" can discourage applicants).
Create simple, clear career paths that explain how to advance—and apply them consistently.

4. Measure Progress with Real Data

If you track ticket response time or MRR, why not track inclusion? Data helps you identify patterns and make informed decisions. Even a basic survey can show where people are thriving or where you’ve got work to do.

What the research says: DEI programs that measure employee experience and track demographic data are more likely to succeed (McKinsey & Company, 2020).

What MSPs can do:

Run anonymous pulse surveys twice a year. Ask how people feel about belonging, respect, and fairness.
Track internal data: team composition by gender, race, and role; promotion rates; pay gaps.
Use what you learn to set meaningful goals—and share progress openly.

5. Make Inclusion Part of Everyday Work

Culture isn’t about what happens once a year—it’s about what happens in your day-to-day. That includes meetings, standups, Slack messages, and ticket escalations. Psychological safety—the belief that it’s safe to speak up or ask questions without judgment—is critical to team performance.

What the research says: Teams with higher psychological safety are more innovative and productive. Inclusive behaviors in daily work matter just as much as formal policies (Edmondson, 1999).

What MSPs can do:

Rotate who runs meetings or client debriefs.
Encourage team members to ask for help or push back respectfully.
Use inclusive language ("team," "everyone") and model it from leadership.

Common Pushback: “There Aren’t Many Women or Diverse Candidates in Tech”

We hear this a lot. And yes, the IT industry has real representation challenges. But that doesn’t mean the pipeline is empty—it means it takes more intention to find and support talent from underrepresented groups.

What the research says: The problem isn’t a lack of talent. It’s how and where companies look for candidates, and whether the workplace feels welcoming when they get there (Gaucher et al., 2011; Ashcraft et al., 2016).

What MSPs can do:

Partner with groups like Women Who Code, Blacks in Technology, or Techqueria.
Offer internships or job shadowing to local community college students.
Build relationships with bootcamps or non-traditional training programs.
Audit your website and job descriptions—do they show your company as welcoming?

Supporting Different Cultures Builds Better Teams

Cultural diversity isn’t just about race or ethnicity—it includes different communication styles, values, and work habits. Embracing these differences makes your team more flexible, thoughtful, and effective.

What the research says: Culturally diverse teams perform better in problem-solving and creativity, especially when leaders foster mutual respect and understanding (Stahl et al., 2010).

What MSPs can do:

Offer training on intercultural communication and team norms.
Acknowledge global holidays and scheduling needs.
Invite team members to share cultural insights during team meetings.

Conclusion

MSPs are lean, fast-moving, and filled with opportunity. DEI isn’t just a checkbox—it’s a tool for building stronger, more creative, and more resilient teams. By following research-backed practices, you can avoid wasted effort and create real cultural change.

And here’s the best part: you don’t need to be perfect. You just need to start.

Because when people feel like they belong, they stay. They grow. They solve problems faster. And your business grows with them.