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Diversity amid distraction: HR Grapevine's 2024-25 DEI Snapshot
January 2025
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:
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.
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.
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