The DEI Dilemma – How to Handle Changing DEI Policy
In the years since 2020, Diversity, Equity, and Inclusion (DEI) policies have experienced many challenges and changes. Prompted by the murder of George Floyd in the spring of 2020, many companies found themselves in the middle of a political and moral firestorm – being asked by their employees and customers alike to take a stance on what it means to truly support diversity, equity and inclusion; to show their support for underrepresented communities by developing policy and process around DEI initiatives; to elevate diversity hiring practices and evaluate pay and promotion; to create space for conversation around race and equity. In no uncertain terms, it was a high-exposure time for companies, and many were quick to join the movement. Yet, in today’s political, social, and economic climate, the attitudes around DEI have started to shift, and navigating these changes has posed a dilemma for many employers. Flex HR consultants are navigating these challenges every day, and we are here to support you as you evaluate your own positions and policies.
The DEI Movement
Although DEI efforts were always in the background, 2020 truly sparked a movement. Companies across the US, and even the globe, reacted to the unrest in America by developing DEI policies, hiring DEI teams, and communicating DEI support – internally and externally. As Simone Foxman of Bloomberg shared with PBS, “companies made hundreds of billions of dollars’ worth of commitment to say we want more diverse people in our work force, and we want to help diverse communities, chiefly people of color”.
This investment was real and tangible. LinkedIn analyzed trends in the C-Suite, and from 2019-2021, remarkably, hiring for the Chief Diversity and Inclusion officer role grew by 168.9%. One of the most high-profile companies globally, Google, published a blog outlining their commitments to racial equity. These commitments included the lofty goal of improving the “leadership representation of underrepresented groups by 30 percent by 2025”, as well as to “address representation challenges and focus on hiring, retention, and promotion at all levels”. Google’s goals came with equally significant financial investment, including the investment of an economic opportunity package of more than $175million to support Black business owners, as well as $100million YouTube fund to amplify Black creators on the platform.
Needless to say, companies understood the assignment – they needed to reckon with their current practices around diversity, equity, and inclusion and develop a new path forward.
DEI Under the Microscope
It seems that just as swiftly as the DEI movement began, it began to attract scrutiny. The heightened political climate of 2020 gave charge to the issue, and the lines began to divide – and they’ve remained so today. In many cases, corporations were caught in the middle. The desire to make and promote change started to be overshadowed by a growing resistance to “woke” issues like DEI.
Even proponents of DEI were becoming disillusioned. Some claimed that DEI was all talk and no action, including many of those DEI hires. Dominique Hollins, founder of the DEI consulting firm WĒ360, says companies “were giving the appearance of commitment without actually doing the right work for that commitment to be sustainable” (CNN). Some critics were even suggesting that DEI policies were racist and exclusive, the exact opposite of their intention.
The Current State of DEI
DEI has weathered many storms over the past few years, and employers are grappling with how to handle it. Some high-profile companies like Ford, Harley-Davidson, Lowes, and Molson Coors have canceled their policies entirely. There have been a series of legal actions that have given companies pause as well. Sparked by the 2023 Supreme Court ruling that effectively ended affirmative action in college admissions, many legal activists saw DEI as the next logical pursuit. Corporations were scrutinized and hiring practices were targeted, prompting many companies to back off their initial well-intentioned DEI stances. Several states even enacted legislation impacting DEI. ABC News reports that “at least 10 states have implemented restrictions on diversity, equity and inclusion, or DEI: Alabama, Florida, Idaho, Indiana, North Carolina, North Dakota, Tennessee, Texas, Utah and Wyoming.”
The Path Forward for DEI Initiatives
There’s no mistaking it: the DEI stakes are high, and corporations are being forced to walk a fine line. In times like these, having an engaged and informed HR department can help to advise employers on best navigating these political, social, and even legal challenges. The team at Flex HR is experienced and capable of dealing with even the thorniest of DEI issues. Our team is versed in the legal landscape for states impacted by DEI legislation and can help your organization ensure that there are no compliance concerns. We can also help you think through the broader concept of DEI – focusing not only on diversity and equity, but on the equally important – and often more understood – concepts of inclusion and belonging. We can walk you through the individualized needs for your company, because like many things, DEI is not one-size-fits-all. Finding your unique approach is best done under the guidance of an experienced partner.
Do you need support with evaluating your DEI initiatives? Reach out today to learn more about how Flex HR can help.
Contact Flex HR today to be your HR support at info@FlexHR.com.