Building a workplace that values diversity, equity and inclusion (DEI) starts with more than good intentions, it requires clear policies that set expectations and guide everyday decisions. For small businesses, a well-crafted diversity policy is a simple but powerful tool to help create a fair, welcoming, and legally compliant working environment.
In this article, we’ll walk through the key steps to creating a diversity policy that works for your business – without jargon, unnecessary complexity or a big budget.
Why have a diversity policy?
A diversity policy (also known as an equality or inclusion policy) sets out your business’s commitment to treating people fairly, regardless of their background. It provides a framework for promoting inclusive behaviours and helps protect your staff and your business from discrimination.
For small employers, the benefits include:
- Clear expectations for how staff, managers and customers should be treated.
- Legal compliance with the Equality Act 2010, which protects individuals from unfair treatment based on protected characteristics.
- Improved recruitment and retention, by showing potential candidates you’re committed to fairness.
- Stronger workplace culture, with a shared understanding of your values.
And the good news? A diversity policy doesn’t have to be long or complicated. What matters is that it’s relevant, actionable, and aligned with how your business actually works.
Step-by-step: writing a diversity policy for your small business
1. Start with a clear statement of commitment
Begin your policy with a short, simple statement that reflects your values and why diversity matters to your business. You don’t need corporate-speak-just an honest expression of your intent.
This sets the tone and shows that inclusion is a core part of your business culture.
2. List the protected characteristics
The Equality Act 2010 outlines nine protected characteristics. It’s good practice to refer to these explicitly in your policy to show you understand your legal obligations. These are:
- Age
- Disability
- Gender reassignment
- Marriage and civil partnership
- Pregnancy and maternity
- Race (including colour, nationality, and ethnic or national origin)
- Religion or belief
- Sex
- Sexual orientation
You can also mention any additional areas you want to include, such as socio-economic background or caring responsibilities.
3. Explain what fair treatment looks like
Use straightforward language to explain how you promote equality in your day-to-day operations. For example:
- Recruitment and selection decisions are based on skills and experience, not personal characteristics.
- Employees have access to the same opportunities for training and progression.
- Any form of bullying, harassment or discrimination is not tolerated and will be addressed.
Where possible, link your policy to real practices you already follow, or plan to introduce.
4. Outline responsibilities
Make it clear who is responsible for putting the policy into practice. For a small business, that might simply be the business owner or manager, supported by team leaders or supervisors.
You can also include a line about every employee’s responsibility to treat others with respect and to speak up if they witness unfair treatment.
5. Include a complaints or grievance procedure
Even in the most inclusive workplaces, issues can arise. Your diversity policy should include a brief explanation of how employees can raise concerns and what steps you’ll take to deal with them fairly and confidentially.
If you already have a grievance process or staff handbook, you can refer to it here.
Tips for making your policy effective
- Keep it practical: Use plain English, avoid jargon, and focus on what your business will actually do.
- Share it widely: Make sure all employees have access to the policy—whether that’s in a staff handbook, on your intranet, or as a printed copy.
- Lead by example: Managers and business owners should model inclusive behaviour every day.
- Review it regularly: Revisit your policy at least once a year or when your business changes significantly (e.g. hiring more staff, expanding services).
What about a separate DEI policy?
Some larger organisations have multiple documents covering equality, diversity, and inclusion separately, or even policies for different protected characteristics. For small employers, a single clear policy is usually sufficient, and often more effective. You can always expand on it later as your business grows.
Final thoughts
A diversity policy isn’t just a document to file away- it’s a reflection of your values as an employer. By taking the time to write one that fits your business, you’re sending a clear message to your team, your customers, and your wider community: that fairness, respect, and opportunity matter to you.
Start simple, stay authentic, and make sure your policy grows with your business. A more inclusive workplace is good for people, and good for business.
If you would like any further advice on creating a diversity policy, do get in touch.