Emerging from the Civil Rights Movement in the 1960s, Diversity, Equity, and Inclusion (DEI) gained traction as laws like the Civil Rights Act of 1964 and affirmative action came into effect, prohibiting discrimination in education and employment based on identities like race, color, religion, sex, or national origin. 

Early DEI efforts included diversity training, encounter groups, and the use of hiring tests. During this period, diversity training focused primarily on legal compliance and surface-level awareness. While encounter groups intended to improve race relations, their outcomes were mixed, with some White participants gaining insight into racial discrimination in America and others resisting a process in which they felt attacked. In addition, the implementation of hiring tests, designed to promote fairness, suffered from inconsistent enforcement and frequently overlooked deeply ingrained biases in recruitment processes. Despite well-intentioned motives, these approaches often oversimplified the complex nature of systemic inequality, relying instead on isolated interventions aimed at changing individual hearts and minds.

More recent efforts to address disparities such as all-staff implicit bias training and the Implicit Association Test (IAT) may promote understanding, but often fall short in actually changing explicit bias or behavior. Paradoxically, some instances of implicit bias training can backfire, hampering the advancement of people with marginalized identities. 

The failures of past efforts to effect real change, punctuated by legal battles and shifting cultural norms, continue to shape the evolution of DEI in America. While backlash, economic uncertainty, and DEI's politicization have cast doubts on its future, DEI remains a critical factor in attracting and retaining talent. We found that when employees believe their employer prioritizes diversity, equity, and inclusion, they are 28% more likely to recommend their employer to a friend or colleague and 22% more likely to see themselves still working at their employer in two years' time compared to employees that don’t. Additionally, employers that demonstrate a commitment to getting DEI right financially outperform their peers. 

While the language used to describe DEI may vary (EDI, DEIA, DEIAB, IDEA, etc.), the primary goal remains the same—to create workplaces and communities where all people can thrive. In this article, we’ll clear up some common misconceptions and offer our take on the future of DEI.

DEI is Not a Corporate Culture War

According to the Pew Research Center, 56% of employed US adults believe increasing DEI at work is a good thing. However, opinions tend to be divided along demographic and political lines. This New York Times article attributes some of the recent resistance to DEI to an overemphasis on identity groups.

While recent media coverage suggests DEI is dying, citing recent layoffs of DEI executives across the country, we see things differently. The small and midsize organizations we work with are not scaling back their DEI efforts—in fact, the majority have seen significant gains over the past few years as they’ve prioritized employee needs and implemented their data-informed action plans. For example, between 2021 and 2023, the City of Cincinnati Department of Transportation saw improvements in their employee survey scores for staff overall (+12%), women (+22%), BIPOC (Black, Indigenous, People of Color) (+29%), employees with disabilities (+26%), parents of kids under 18 (+21%), and non-managers (+18%). In addition, ArtsWave, Bethany House Services, FEG Investment Advisors, Freestore Foodbank, Cincinnati Symphony Orchestra, Curiosity, Great Parks of Hamilton County, Greater Cincinnati Foundation, and The Ion Center all saw improvements in either their employee survey scores, organizational assessment, or both in their most recent certification cycle. 

Inevitably, DEI will become increasingly important to business leaders in the coming years. For starters, it’s what job seekers want: according to LinkedIn, 76% of employees and job seekers said diversity was important when considering a job offer. By 2045, the majority of the workforce will be Black and Latine/Hispanic. Additionally, women now outnumber men in the college-educated workforce. In order to serve changing markets, organizations will need diverse representation at all levels, as well as the insights and tools to work together and make decisions effectively. However, the lack of a universally accepted standard for effective DEI practices can leave employers and employees feeling stuck—it's not always clear where and how to start. A data-driven approach to DEI can provide leaders with a roadmap—and ultimately, a better return on their investments.

Building and Supporting the Best Teams of Tomorrow

In light of the overturn of affirmative action, many employers are rethinking their DEI strategy. It's worth noting that unlike higher education, the practice of hiring based on race or sex has never been allowed. When executed effectively, DEI should broaden opportunities for those with marginalized identities without limiting opportunities for others. Ultimately, the creation of fairer systems that mitigate bias, foster transparency, and hold all employees—leaders included—accountable to the organization's mission and vision benefits all stakeholders.

For example, when it comes to recruiting talent, employers can proactively build relationships with organizations that serve marginalized communities, such as HBCUs and disability advocacy organizations, by providing value—for example, paid internships, scholarships, and sponsorship. In doing so, they expand their understanding—and ultimately, broaden their pool of potential candidates. They may also choose to require minimum representation in all final candidate slates, making sure to provide hiring managers with the time and resources needed to source candidates. Through the implementation of these kinds of workplace systems, employers are able to effectively cultivate a more diverse workforce. Equity in the workplace translates to the deliberate removal of barriers to participation and progress, putting your organization’s values into action and ensuring your organization consistently thrives by attracting top talent and adapting to the evolving needs of the workforce.

If there’s one thing about traditional workplace systems that will ultimately lead to an organization's downfall, it’s the assumption that everyone has a universally shared experience. Employers dedicated to a data-centric DEI strategy are cultivating more robust cultures and relationships, fueled by deliberate people-focused strategies and innovative tactics that enhance employee experiences. Although disaggregated demographic data cannot establish or enforce quotas, it holds substantial value in understanding and improving organizational culture. In contrast, organizations that neglect to respond to the unique needs of their employees will likely struggle to stay competitive. 

Which DEI Solutions are Worth the Investment?

Understanding your workforce isn’t much different than understanding your target market. Determining what your employees need to succeed takes the right data, insights, guidance, and tools. The key ingredient, though, is executive buy-in. Overcoming resistance from the C-suite can be challenging. However, if you understand their objections, you can build a compelling case that positions employees as a top stakeholder. Focusing on structural change, rather than personal responsibility, will not only lead to more meaningful outcomes, but can also mitigate any perceived threats to people’s positive sense of self.

Now is a great time to revisit the DEI conversation with apprehensive leaders because there’s plenty of new data available about what’s working and what’s not. Otherwise, maintaining inefficiencies of the status quo is sure to result in lower employee trust and higher turnover rates. Even if past DEI efforts haven’t panned out, you can still achieve meaningful outcomes. It’s okay to let go of ineffective approaches to DEI. Workforce demographics and expectations are changing, so it’s wise to adopt a systems change approach sooner rather than later. 

Evolve Your DEI Strategy and Systems

Leaders that resist DEI efforts often don’t realize that they practice the tenets of DEI on a daily basis. At the end of the day, promoting fairness, providing for your team’s needs, and opening pathways to success are good for business. That’s exactly why the best courses of action will rise to the top and set people-centered organizations apart from the rest. DEI isn’t dying—it’s evolving.

Taking a data-driven approach now will give your organization’s leaders everything they need to make better decisions to create a best-in-class employee experience—providing a competitive advantage in a race to the top. 

Ready to explore your next steps? Take a look at what you can do with an Ellequate membership or contact our team today.

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