What will be the consequence for those companies that have abandoned it? What message have they sent and what pushback can they expect?
When companies cave to anti-DEI political pressure, they tell us they have a limited and outdated understanding of the world and only a short-term plan for business success. They are also telling us that they are not serious about competing in the market. Consider that McKinsey & Company found that “the most diverse companies are now more likely than ever to outperform less diverse peers on profitability.” On matters of cultural and ethnic diversity, McKinsey found that “top-quartile companies outperformed those in the fourth one by 36% in profitability, slightly up from 33% in 2017 and 35% in 2014.”
When companies cave to anti-DEI political pressure, they tell us they have a limited and outdated understanding of the world and only a short-term plan for business success
Calla Devlin | Managing Director at Open to All
Companies that retreat from DEI will almost certainly find themselves struggling and playing catch-up. Shunning employees and leaders with diverse demographic identities correlates to less innovation, smaller market share, and a more limited talent pool. These companies should prepare to lose business. The vast majority of millennials and Gen Z prefer brands that “have a point of view and stand for something,” according to Kantar Consulting. And, by the way, Gen Z is more racially and ethnically diverse than any previous generation.
If they subsequently find it more difficult to recruit from minorities or a wider pool of talent, how will that affect them?
A smaller talent pool from which to hire necessarily means lower quality hires. It is easy to understand why: The bigger that applicant pool, the greater likelihood of landing top candidates and forming a team with an array of strengths. Building a team with a variety of identities brings diverse experiences, perceptions, and skills, increasing a company’s ability to appeal to increasingly diverse customers, collaborators, and citizens. The US Diversity Index—a measure of the chance that two randomly chosen people will be from different racial or ethnic groups—was 61.1% in 2020, rising 6 points over 10 years, per Tableau.
What can workers at those companies do about it?
Workers should speak up to company leadership about the importance of maintaining a workplace where everyone has a sense of belonging. Talking heads on TV or social media influencers driven by an anti-DEI political agenda should not have more say over a particular company than the people who work there. An organization that gathers feedback and meaningfully acts on it is one that retains employees, competes for talent, and thrives in an increasingly pluralistic world. Open to All, a nondiscrimination nonprofit, offers an inclusion and belonging playbook for deepening support for DEI within the workplace.
Do employers need some re-educating/training around what DEI is supposed to be so that it isn't just meaningless box-ticking?
There is much myth-busting to be done: DEI is not about taking something from one demographic group and giving it to someone else. DEI does not give people jobs for which they are not qualified. And it does not involve shaming people from one group for what their ancestors did to others. The debate has become political, which unfortunately has led some companies to retreat from DEI in order to not “seem political.” The values that underpin DEI—empathy, inclusion, and a belief in the power of community—are traditional American values and should be part of every company in no small part because of their role in driving business success.
What should DEI in the workplace look like to you?
DEI is intended to allow everyone to meaningfully contribute to an organization’s mission—to feel respected, safe, and free to be their authentic selves, regardless of race, ethnicity, class, disability, sexual orientation, and gender expression, and all of the ways we differ. Whether through employee resource groups, apprenticeships, mentoring programs, pay transparency, expansive recruitment processes, and other steps toward creating an inclusive climate, a workplace with DEI is one where we all can thrive and contribute.