Diversity amid distraction: HR Grapevine's 2024-25 DEI Snapshot

January 2025

Introduction

Just as in 2023, 2024 was a highly politicized year for diversity, equity, and inclusion (DEI) in America. Social media campaigns led by anti-DEI critics, a small but not insignificant rise in shareholder activism, and media noise about the value of diversity measures within corporate institutions has swirled around a growing list of high-profile businesses rolling back on DEI measures.

Ford, Toyota, Harley-Davidson, Boeing, Jack Daniels, Molson-Coors, Walmart, Tractor Supply, John Deere, and Caterpillar were among those to scale back previous commitments, with McDonald's adding its name to the list so far in 2025. Changes made by those businesses include the cancellation of sponsorships for LGBTQ+ events, the realignment of training programs and employee resource groups away from DEI topics, and in some cases, the disbandment of entire DEI divisions.

And yet, while those stories have occupied news headlines and social media feeds, HR Grapevine consistently heard from HR professionals and business leaders throughout 2024 that their commitment to DEI is unwavering; while some notable studies indicate that the majority of businesses are not walking back DEI promises.

One study of Fortune 500 companies released in December 2024 found that nearly all are maintaining their investment in DEI, with 485 continuing to actively promote DEI initiatives in company documentation.

Eager to take a temperature check on the so-called ‘DEI debate,’ HR Grapevine produced this 2024-25 snapshot report to examine:

  • Whether there are perceived differences in support for DEI between US-based employees, HR professionals, and C-suite executives
  • How attitudes toward DEI in HR professionals and executive teams changed from 2023 to 2024
  • Whether HR professionals are planning (or expect) significant changes in their (company’s) commitment to DEI in 2025

Our research appears to support the assertions of several of those HR leaders who we have met with in 2024: DEI is not up for ‘debate,’ and although many will continue to find ways to improve the quality and impact of their DEI strategies, few plan to scrap diversity programs altogether.

While HR professionals believe they and their employees may value DEI more highly than their company’s C-suite, the overwhelming majority expect their company’s investment in DEI to increase or stay the same in 2025.

Our findings are a timely reminder for people professionals to root DEI in long-term, data-backed HR strategy, resisting the temptation to become distracted by critics who who do not understand how DEI shapes employee engagement and business success.

Analysis

People professionals believe DEI is more important to employees and HR teams than it is to the C-suite.

Respondents rated the importance of DEI to both their company’s HR team and to their company’s staff at an average of seven out of ten. However, they rated the importance of DEI to their company’s C-suite at an average score of six out of ten.

DEI investment typically increased or stayed the same in 2024 compared to 2023, HR professionals report.

A small but not insignificant minority of respondents said their company’s investment in DEI decreased in 2024 compared to 2023 (14%). Meanwhile, almost two in five of HR professionals said DEI investment was slightly higher (34%) or significantly higher (4%). Nearly half of respondents (48%) said there was no year-on-year change to their company’s investment in DEI.

Competing business priorities and legislative changes could be slowing down investment in DEI; while employee feedback and leadership support are helping drive further commitment to diversity measures.

Respondents who said investment in DEI decreased in 2024 compared to 2023 cited competing business priorities (36%) and changes to the DEI regulatory landscape (18%) as the most common reasons for the drop. Increased C-suite buy-in (31%) and changes in employee expectations (28%) were the most common causes of DEI investment increases.

Employee support for DEI measures is only falling in a minority of cases.

HR professionals report that employee support for DEI programs is generally not going anywhere. Only 9% of respondents reported a drop in staff support for DEI in 2024 compared to 2023, while 34% said employee backing of DEI measures increased slightly or significantly. In the majority of businesses, however, commitment remained steady. 57% of HR professionals said there was no year-on-year change in employee commitment to DEI.

The majority of HR professionals plan to increase the scope of their DEI programs in the next 12 months.

Looking ahead to 2025, 50% of HR professionals said they expected their DEI programs to increase in scale over the next 12 months, either slightly (43%) or significantly (7%); while nearly one in ten people professionals (9%) said they expected their DEI programs to decrease in scale. 41% expected the scale of their DEI programs to stay the same.

Just as in 2024, this may be driven in part by securing greater investment from business leaders. While just 7% of respondents expected a decrease in their C-suite’s investment in DEI over the next 12 months, 38% expected an increase in investment from their executive team. 55% said they expected no change in C-suite investment in DEI.

Industry reflections

Anything worth fighting for is a good reason for healthy debate.

As a people professional and DEI advocate, it’s disheartening to see and hear how DEI is being dismantled, dismissed, and discarded. The good news is that this survey reveals many organizations still value DEI and that it is not going away. For any organization contemplating its next move on DEI, consider a new approach to revive it.

A carpenter’s rule is ‘measure twice cut once.’ When it comes to DEI, that rule becomes ‘measure twice, but don’t cut.’ Meaning, measure and understand the value of DEI in the workplace. Understand the why and purpose. Listen, learn, and understand employee experiences. But don’t cut it.

Instead, consider the four R’s for any change decision: review, reimagine, revise, and reset for effectiveness.

DEI is failing because it’s being treated as a program, an initiative, or perhaps a temporary ‘fix’ to societal discord. DEI is active and must be connected to the organization’s cultural values to be successful. And if the values of DEI are not important, then the C-suite must answer some tough questions about the importance of employee engagement, about whether their employees feel seen and heard, and about the organization’s meaningful actions toward building fair and objective business practices.

Now more than ever, DEI requires a mindset shift. In addition to DEI, also consider as equally important the values of access and belonging because they are not always automatically included. Everyone owns DEI, but HR and the C-suite must be aligned as partners.

Review policies, programs, services, and practices to ensure that DEI is organically embedded. Take the time to redefine and reimagine DEI and then make any necessary revisions. And, finally, reset intentional workplace practices for everyone to thrive.

Methodology

The analysis from HR Grapevine’s 2024-25 DEI Snapshot Report draws on responses from US-based HR professionals including HR and people chief executives, directors, VPs, heads, managers, and business partners, from a broad spread of industries and company sizes. Data was collected using an online survey tool.