In a significant move, another American corporation has become one of the latest companies to announce a shift away from supporting events and other initiatives centered on diversity, equity, and inclusion (DEI). Like others who have taken similar measures, this decision to retreat from DEI commitments has broad implications for organizations of any size and industry. Amid internal and external pressure, organizations have new opportunities to uphold their commitment to diversity and inclusion without alienating employees and other key stakeholders.
In July 2024, a manufacturer of agricultural, construction, and forestry equipment released a statement on X, announcing a series of changes to its DEI approach. Saying the company was "listening to feedback and looking for opportunities to improve," the statement described several actions the company was taking:
While the above about-face on DEI is striking, it's not the only organization that has made such a shift. Other organizations have changed their policies, some after being pressured by social media influencers and activists who voiced their concerns. Examples include a chain that sells products for home improvement, agriculture, lawn, and garden maintenance, which eliminated its entire DEI function, and a more than century-old motorcycle manufacturer, which eliminated its diversity supplier program, among other actions.
Lately, there has been a growing trend of companies moving away from DEI or restating their diversity and inclusion goals. For example, multinational technology corporations and software providers have scaled back their DEI programs. The Society of Human Resource Management (SHRM), while confirming its commitment to DEI, recently announced it would drop the "equity" and instead use the term I&D (inclusion and diversity).
Despite the pressure some organizations have felt to abandon or scale back their DEI activities, overall support for diversity, equity, and inclusion remains strong. A recent Bridge Partners survey of C-level and HR executives found that 72% plan to enhance their DEI programs in the next two years. Organizations such as Heineken, IKEA, and Pepsico have already taken steps in this direction via programs aimed at diversity and inclusion in hiring, career advancement, and pay equity.
Though DEI remains a priority across industries, more organizations may respond to calls for a far less aggressive approach to diversity, whether from outside activists or employees who oppose diversity training and other initiatives. However, those contemplating reducing their DEI staff or programs should know the potential risks.
First, scaling back DEI programs can alienate diverse employee groups and customers who expect the organization to prioritize diversity and inclusion as a top strategic goal. Second, disappointed stakeholder groups may be motivated to call for protests and boycotts that could cause financial and reputational damage.
After the aforementioned manufacturer announced its retreat from DEI, the National Black Farmers Association (NBFA) called for a boycott of the company and the resignation of its CEO. The NBFA also noted that the company’s DEI announcement came only a month after agreeing to a Department of Labor settlement for race-based discriminatory hiring practices.
It's a widely accepted fact that job seekers value diversity and inclusion and include it among the criteria they seek in a future employer. In a Gallup survey, 42% of US employees said they would consider whether an organization was "diverse and inclusive of all types of people" when deciding whether to accept a job offer.
Besides meeting candidate expectations, there are many other reasons DEI should be a critical component of organizational recruitment efforts. Research has shown that attracting diverse talent results in higher innovation, engagement, problem-solving, and overall performance. Furthermore, prioritizing inclusive recruitment helps the organization avoid being labeled anti-diversity, thereby preserving its appeal to a broader range of potential applicants.
By integrating diversity, equity, and inclusion in each phase of the hiring process, talent acquisition teams can do the following:
Tip: Race, ethnicity, and gender are just a few aspects of diversity that organizations can address. By considering issues such as ageism, physical abilities, neurodiversity, and socio-economic background, organizations can be even more inclusive when recruiting talent.
With candidates clearly expressing a preference for inclusive employers, the ability to attract a diverse pool of talent is more important than ever. Recruitics’ Reach Network is uniquely positioned to support diversity efforts by leveraging a broad spectrum of job boards. We streamline outreach by conveniently and efficiently distributing job ads across thousands of job sites while managing everything within a centralized marketing budget. This seamless approach allows organizations to maximize their exposure across various platforms, ensuring job opportunities reach a wide and varied audience.
Additionally, by expanding the talent market, the Reach Network provides access to the world's top job sites within one managed network. This significantly enhances an organization’s ability to advertise to a broader and more diverse candidate pool. By including job boards that cater to underrepresented communities, Recruitics ensures that your job ads reach candidates from different backgrounds, thus supporting your diversity recruitment goals.
Like other important business objectives, a diverse and inclusive organization doesn't develop independently. However, organizations don't have to choose between a massive DEI function or nothing. Instead, organizations aiming to address the concerns of diverse stakeholders can listen to differing perspectives while maintaining a balanced approach to DEI.
Here are three actions to help organizations get started:
The Equal Employment Opportunity Commission (EEOC) already requires large organizations to file demographic workforce data. However, if DEI is only an exercise in diversity numbers, many critics will likely remain skeptical. Instead of focusing solely on increasing the representation of specific groups, organizations can also educate employees and other stakeholders about the specific benefits of DEI. When everyone understands the many advantages of DEI, they will be more likely to appreciate and support it.
Of course, DEI initiatives vary between organizations and industries. However, organizations should be careful to adopt DEI initiatives that work within the context of their business rather than assuming what works somewhere else will fit into their culture. For example, unconscious bias training may be a great place to start in some companies. In others, it may be more sensible to focus on building awareness of what diversity means and what it looks like in the organization.
Organizations can ask critical stakeholders, including employees, customers, candidates, and local community partners, for input to determine which initiatives are the most skilled and qualified to fill the need. Feedback from surveys and focus groups will help the organization understand what's important to its stakeholders and which DEI initiatives they value or dislike the most.
One criticism of workplace DEI is that some diversity language and initiatives can promote division rather than inclusion, causing some groups, even those in the majority, to feel left out. To address this challenge, organizations can focus on promoting DEI so that all employees feel included. For example, expanding employee development programs to encompass greater diversity might be more effective than limiting certain programs to specific groups of employees.
The situations we’ve discussed thus far are poignant examples of the challenges organizations can face when navigating conflicting feedback on their diversity programs. However, it's essential to stay on course with DEI initiatives and consider long-term benefits over short-term pressures. A key area where organizations can progress is promoting diversity, equity, and inclusion in recruitment. Attracting diverse talent and integrating new hires into a thriving, diverse culture delivers lasting gains for teams, customers, and the organization.
For the best chances of success, organizations must continue listening to key stakeholders' needs and expectations—not just the loudest voices on social media.
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Whether you’re looking to fill roles with candidates of varying ages, ethnicities, or abilities, Recruitics' Reach Network helps you cast a wider net, bringing in a diverse mix of qualified applicants. This holistic approach to talent acquisition not only aids in meeting compliance standards but also builds a stronger, more inclusive workforce that reflects our diverse society.
