The Crumbling of DEI: What Does It Mean for the Future of Work?

The recent decision by Lowe’s to scale back its DEI initiatives, driven by external pressure, has sent shockwaves through the corporate world. Unfortunately, this trend is not isolated. We’re witnessing a disturbing pattern of cuts to DEI teams and a decline in prioritization of these initiatives across various industries.

What does this mean for the future of the workforce? How will the repercussions impact underrepresented groups and minorities already in the workplace? And how can HR teams and leaders effectively address these pressing concerns?

In this Q&A, Sarah Reynolds, CMO of HiBob and a nonbinary c-suite leader, shares her valuable insights on the troubling backtracking of DEI initiatives.

Seeking more solutions? Register for HR Daily Advisor’s Sept. 20th webinar discussing the current state of DEI and strategies for navigating challenges.

What do companies’ cuts of DEI activities and teams mean for the prioritization of these initiatives in the workplace?

The recent, highly publicized cuts to DEI-focused programs, departments, and jobs raise serious concerns about how organizations will keep focus on the core principles of DEI&B (Diversity, Equity, Inclusion, and Belonging) without dedicated resources. DEI programs are not just “nice-to-have” footnotes in a CSR (Corporate Social Responsibility) report or on a webpage about company culture; they are essential to creating a workplace where everyone feels seen, heard, and respected. And while the language we use to talk about the work that helps us move the needle may be shifting, our prioritization of this work should not.

Even if the perception of DEI effectiveness has been called into question, the work is far from over, and the importance of this work at every level has not diminished. At its most basic, compliance with federal, state, and local anti-discrimination laws is not optional, nor is compliance with equal opportunity and equal pay laws. Hiring and retaining top talent isn’t negotiable, nor is creating a work environment that fosters innovation and encourages creative thinking outside the box. Companies that continue to invest in this work – regardless of what they call it – will find themselves better positioned to attract great people, build strong teams, and ultimately succeed – which is why recent studies show that 72% of companies are quietly ramping up their DEI efforts, despite the headlines.

What are the potential repercussions for members of underrepresented groups/minorities who are currently in the workforce?

For employees who identify as members of marginalized groups, an organization’s focus on DEI&B—or lack thereof—can impact every stage of the employee lifecycle. Will my resume ever make it to a hiring manager’s desk? Will I have a fair shot in the interview process? Will I be offered a competitive salary? Will I be judged by what my onboarding paperwork reveals about me? Will I feel safe in my working environment? Will my manager and my colleagues treat me with respect? Will I be recognized for the work I do every day? Will I get a raise? Will I be considered for the next big promotion? Will I ever make it to leadership?

As a queer, disabled, non-binary person, I look for a workplace that champions DEI&B to ensure that I’m joining an organization that will allow me to be myself, without requiring me to hide who I am to feel safe, be accepted, receive recognition, or get ahead. Without that commitment, how am I supposed to believe that a company will protect me from potential harm and reward me for my contributions when my very real lived experience has taught me that that’s not the case?

How should HR teams and leaders address these topics and potential fallout?

To be successful, it’s vital that both HR and business leaders convey that the underlying principles of diversity, equity, inclusion, and belonging remain embedded in their company’s core cultural principles and day-to-day operations. Leaders should reaffirm their commitment to making the workplace a supportive, rewarding, and discrimination-free place for all employees, not because they have to, but because it’s core to the company’s DNA.

But HR teams and business leaders alike should also be prepared to answer questions about their company’s commitment to DEI&B from candidates, employees, customers, investors, and even the press, depending on their company’s visibility. To effectively navigate these questions, they should:

• Keep abreast of the ever-changing compliance landscape that relates to DEI, ensuring their policies and practices remain compliant with federal, state, and local laws and making adjustments to avoid legal risk. 
• Communicate clearly about any changes that are made, articulating why the business may be required to adjust their approach in response to legal challenges.
• Align with senior executives and PR teams on both DEI&B strategy and messaging. Not all questions will be directed to HR, so HR teams should ensure that everyone is on the same page about how questions will be handled.
• Resist the urge to engage with bad-faith arguments. Know where your organization stands and articulate the business and cultural impacts that the work you do has, rather than falling down a rabbit hole of debate.

There is no one path that will be right for every organization, just as there is no one message that will please everyone. Keeping the focus on upholding the fundamental principles of DEI&B – even if the language you must use to describe the work evolves – is what’s critical to ensuring your organization continues to be a place where everyone can thrive.

How are HR leaders already starting to do this?

DEI&B didn’t become a topic of conversation overnight, nor will it disappear overnight. HR leaders who are committed to the core principles of diversity, equity, inclusion, and belonging know that while trends in this space may come and go, it’s easy to evaluate whether your organization is making real progress. Are your employees happy? Do they feel safe, welcome, and valued? Are they helping you to innovate and get better every day? Are they propelling your business forward? And ultimately, are they staying or are they leaving? The evidence of your culture lives not just in your people data, but also in your business performance.

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