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By recognizing cultural differences, organizations ease stress and allow people to bring their authentic selves to work, improving well-being, performance and retention, says Eddy Ng, professor of equity and inclusion in business at Queen’s University.

“If employees don’t feel like they belong, they don’t feel safe. They’re constantly paying what I call the inclusion tax and ultimately, they leave.”

Voluntary turnover in Canada fell to 10.2 per cent in 2025, according to a recent survey by Mercer. The drop from 15.5 per cent in 2023 points to some stabilization, the survey noted, but experts warn it also highlights the need for stronger recognition and belonging as part of employee wellness programs.

Read: Employers that foster employee belonging boosting engagement, retention, but more work to be done: survey

Diwali, known as the Festival of Lights, is one of the most significant celebrations in South Asian culture. At Ernst & Young, the holiday is celebrated with decorations, cultural performances and traditional food in its offices, while virtual events ensure employees in different locations can participate. The firm also runs learning sessions to highlight the history and traditions behind Diwali and partners with external organizations to support community-based celebrations.

“Recognizing cultural holidays like Diwali is crucial for employee well-being and engagement,” says Muriam De Angelis, diversity, equity and inclusion leader at EY Canada. “It promotes inclusivity, enhances morale and helps individuals feel valued and respected. These celebrations encourage a diverse workplace culture where people feel like they belong.”

Leaders and employee resource groups at EY help plan and promote events, encourage participation and raise awareness about their significance. The firm also ensures inclusivity by offering hybrid options and sharing resources so employees, regardless of background or location, feel part of the celebration.

Read:Employee belonging at core of DEI programs: expert

Ng says employers don’t need to celebrate every cultural holiday, but should prioritize the ones that reflect their workforce. “Doing so signals awareness and respect and it creates an environment where people feel less stressed, more authentic and more engaged.”

For EY, those outcomes are already visible. “We’ve found that employees who feel their culture is recognized and celebrated are more satisfied and that leads to higher retention and overall engagement.”