Is DEI Dead? Think Again. Here's What's Really Happening in Corporate America

3 data-driven reasons why DEI is more vital than ever, and how to defend your initiatives

Recently Diversity, Equity and Inclusion (DEI) initiatives have been in the news as both a negative slur and an ongoing point of contention among activists and governmental and corporate leaders. In August, it was reported that several well-known companies such as Ford Motor, Lowe's, Harley-Davidson, John Deere & Co. and Tractor Supply were backing away from their DEI efforts.

A Lowe’s memo stated that it would no longer take part in surveys for the Human Rights Campaign, an LGBTQ advocacy group, and it would no longer sponsor or take part in community events like festivals and parades. They also said they would combine groups representing diverse workers into one single group. (For the record, Lowe’s garnered a perfect score in HRC's 2023 corporate equity index, which looks at policies that protect LGBTQ employees).?

So, what’s really going on here?

Contrary to the CBS article’s statement that U.S. companies adopted DEI policies and programs in the wake of George Floyd's murder in 2020, these initiatives have been in place as best practices for more than three decades. In today’s competitive climate, they are only becoming more important and prominent in the way that organizations do business. And if they’re not, it spells trouble for the organization itself.???

I agree with Julie Kratz who writes in Forbes – 4 Evidence-Based Reasons Why DEI Pushback Is Not Working and that eliminating some minor external-facing activities does not mean that the strong corporate commitment to DEI is going away.

“While these are externally visible activities, these activities are a small part of actual DEI work. In reality, DEI work involves metrics, education, senior leadership engagement and more. These more substantial activities have not been the focus of recent conservative activism. Activists seem to be more concerned with publicly visible activities that do not have as much of an impact on the culture of the organization.”?

DEI expert Lily Zheng posted recently on LinkedIn, ‘If a company's DEI efforts could be undone via press release as a result of a few tweets, they weren't doing much.’”

When issues and comments arise in the press or the break room, DEI allies need a simple reply to why these efforts are important to not only the company but potentially their own department. There is a profound failure to understand the business case by those who are shouting about doing away with DEI.?

There are three key sound bites backed up by data that practitioners can use to defend their company’s DEI efforts.

• There are currently 9 million job openings in the US. Said another way, there are way more jobs than workers. It doesn’t matter what industry you are in, there are more opportunities than workers.?
• The current workforce is more than 50% millennial, more than 50% female and, in many states, more than 40% BIPOC. (see more data below)
• Employees are leaving because they look at the organization and do not see anyone who looks like them. They don’t see a path to grow their careers.

It's that simple!

Most leaders in state and local government have rarely worked in the private sector where the war for talent is real. They've never had to manage people or the bottom line in today's environment. They don't understand Millennials/Gen Z, LGBTQ+, BIPOC, and yes, young white men and women are voting with their feet. If you don't support them, they’re going to leave you.

DEI is good for the business case, and it’s an absolute lifeline in the war for talent, as I consistently preach. Particularly striking is how much DEI matters to the next generation of workers.

Kratz writes, “According to Monster, 83% of Gen Z prioritizes diversity and inclusion when looking for job opportunities. Many will not even apply or interview if the leadership team on the company's website doesn't have some diversity. This is the next generation of employees and consumers. Gen Z is poised to surpass Baby Boomers in workforce participation this year. To not focus on DEI is to risk being irrelevant.”

While companies may look like they’re pulling back on DEI initiatives, the smart ones that want to succeed are just diving deeper. They are recognizing how they can best address the many dimensions of diversity for the health and future of their organizations and taking the action steps needed to create a diverse, equitable and inclusive workplace.

Check out my white paper and LinkedIn article Overcoming Resistance to DEI Initiatives with Awareness, Accountability and Advocacy where I share the three tips I suggest to drive DEI engagement at successful companies.

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Related:

• The 4 Key Actions to Advance Women
• Four Barriers to Male Engagement. And How to Overcome them.