Companies are scaling back on DEI despite high value among workers

DEI roles surge, then retract

Back in 2020, DEI positions in corporate America soared amid a multitude of tragedies and protests. The Society for Human Resource Management reported in 2020 that DEI roles increased by 55%.

But today, many of these roles face an uncertain future. Workforce analytics firm, Revelio, found that attrition rates for DEI positions have surged among companies that have conducted layoffs, outpacing non-DEI attrition last year by a rate of 33% to 21%. And a recent analysis from Live Data Technologies revealed that chief diversity officers have been more vulnerable to layoffs than other human resources counterparts, experiencing 40% higher turnover.

Employees and job seekers prioritize DEI, but many employers aren’t delivering

Eagle Hill Consulting’s research finds that workers and job seekers place a high value on their company’s commitment to DEI in the workplace. Our nationwide survey finds that more than half of U.S. employees say DEI is a key factor when considering a company for employment. That share grows among younger workers, with 77% of Gen Z and 63% of Millennials marking an organization’s diversity efforts as a top consideration.

Despite this support, less than a third (29%) of employees say their company has taken more action to demonstrate its commitment to DEI in the past six months. This aligns with recent DEI job cuts.

Certain segments of the workforce are more likely to report that their employers have taken more DEI action. Among them are workers who identify as having a physical impairment (46%), LGBTQ (40%), military veterans (40%), and neurodiverse (39%). Nonwhite employees are also more likely to report their employers have taken additional DEI action in recent months, including 39% of Asian/Pacific Islander employees, 35% of Hispanic/Latino workers, and 33% of African American/Black employees. 

Yet, the overall trend remains. The majority of employees report that their organization’s DEI initiatives have either stagnated or decreased over the last six months.

DEI initiatives impact your employees well before their first day

Our research makes it clear that all workers place a high value on bringing their authentic self to the job, feeling a sense of belonging and connection at work, and identifying with their colleagues and leaders. Moreover, when considering a new job, prospective employees want to see that a future employer is committed to DEI in the workplace and stress the significance of hearing about their inclusion practices during the recruitment process. Overwhelmingly, it is important that they hear employee perspectives are valued (85%), employees feel safe bringing their authentic selves to work (80%), leadership is transparent in decision making (80%), and the company has a collaborative culture (75%).

Seeing oneself reflected throughout the organization is another key factor for employees when weighing the decision to take a new job. Nearly two-thirds (63%) say it’s important the company has employees they identify with, and 59% say it’s important there are leaders with whom they identify. 

The bottom line: While corporate America may be cutting back on DEI roles, employees aren’t cooling on their desire for inclusion.