In the past year, DE&I (Diversity, Equity, and Inclusion) initiatives faced criticism from politicians and right-wing groups, partly due to a Supreme Court ruling against race-based affirmative action. A recent study by Paradigm, a DE&I consultancy, discovered varying trends in organizational DE&I efforts in 2023. Some companies ramped up diversity tracking, while others reduced spending and strategy, likely influenced by the affirmative action ruling impacting workplace initiatives.
The report titled “The State of Data-Driven DEI” analyzed DE&I data from 143 organizations in September 2023. It noted a six-point increase in companies appointing DE&I leaders, but a decrease in those budgeting for DE&I initiatives by four points. Additionally, there was a nine-point decline in organizations with a defined DE&I strategy. In specifics, while fewer companies collected employee feedback on inclusion efforts (down by 12%), more had goals for gender representation (up by 8%, reaching 34%) and race/ethnicity representation in leadership (up by 4%, reaching 20%).
The report highlighted a trend among HR leaders, expressing reduced focus on DE&I data due to concerns about diversity-related lawsuits. Notably, the American Alliance for Equal Rights, involved in the affirmative action case, targets some corporate DE&I programs, further intensifying apprehensions.
According to the report, external pressures now discourage some companies from investing in DE&I initiatives, marking a shift from previous pushes for such investments. Nevertheless, EY’s September report emphasized that DE&I remains a significant concern for most Gen Z and millennial employees. Karyn Twaronite, EY’s global vice chair of DE&I, reaffirmed the importance of DE&I as a workplace expectation across generations. She emphasized its role as a competitive advantage and a vital component in long-term growth strategies for companies.
Despite the shifting landscape and external pressures, the focus on DE&I persists as a critical factor for a diverse workforce and sustained business growth.
