Companies made big promises about improving diversity, equity, and inclusion after 2020. They hired special teams and leaders to work on these goals. But now, things are changing fast. Many businesses are cutting their DEI programs or making them smaller. Some companies are completely eliminating DEI teams, while others are hiring outside help instead.
This shift is not just about a few companies. It’s a big trend that’s affecting workplaces across the country. The change could impact how diverse and fair workplaces are in the future.
The Rise and Fall of DEI Jobs
Diversity, equity, and inclusion jobs grew a lot after 2020. Companies hired many people to work on making workplaces fairer. These jobs reached their highest point in early 2023. But then things started to change. The number of these jobs fell by 5% in 2023. It has gone down even more in 2024, dropping by 8% so far.
DEI Job Losses Outpace Other Areas
The rate at which people are leaving DEI jobs is concerning. It is happening twice as fast as people leaving other kinds of jobs. This means that DEI teams are shrinking faster than other parts of companies. It shows that companies might be focusing less on diversity work than before.
Big Tech Companies Make Big Cuts
Some well-known technology companies have made big changes to their DEI teams. Zoom got rid of its whole internal DEI team when it was cutting jobs. Snap also removed workers who helped keep employees from different backgrounds. Other big names like Meta, Tesla, and DoorDash have cut their DEI teams by half or more.
The Shift to Outside Help
As companies reduce their own DEI teams, many are turning to outside experts. Zoom, for example, plans to use consultants instead of having its own team. The company says this will help make inclusion a part of all their programs. This change shows how companies are trying new ways to handle DEI work.
Political and Legal Pressures
The move away from DEI work is happening at the same time as other challenges. There is more legal risk for companies doing this work. Some politicians are also speaking out against efforts to increase racial equity. Since 2023, lawmakers have proposed at least 65 bills that are against DEI programs.
High-Profile DEI Controversies
Recent events have put DEI efforts in the spotlight. The resignation of Harvard University’s first Black president was seen by some as a blow to DEI. Some people who do not like DEI programs said this event marked the beginning of the end for such efforts in important institutions.
Corporate Silence on DEI
Companies are talking less about their DEI work in public. When they report their earnings, they mention DEI much less than before. This could mean they are less focused on these issues or are trying to avoid attention in a changing social and political climate.
DEI Programs First to Go in Budget Cuts
According to Monster’s January 2023 Future of Work report, DEI programs are among the first to be cut when companies need to reduce costs. This trend is confirmed by other organizations like Glassdoor and Workhuman. Revelio Labs reports that DEI-related roles have seen a 33% loss in companies experiencing layoffs, compared to 21% for non-DEI roles. This data suggests that DEI initiatives are often seen as less essential during financial difficulties.
Decline in Chief Diversity Officer Hiring
LinkedIn’s assessment of over 500,000 C-suite hirings between 2019 and 2022 revealed a concerning trend. After significant growth in 2020 and 2021, the hiring of chief diversity officers (CDOs) declined in 2022. This was unique among C-suite positions, as CDOs were the only role to experience a hiring decline that year.
Legislative Challenges to DEI Programs
DEI programs are facing legislative challenges in some states. For example, Florida has banned public colleges and universities from spending money on DEI programs. Texas and other states are working on similar bills. The University of Texas System has paused all new DEI initiatives, while the Texas A&M University System has prohibited DEI statements in hiring.
Employee Expectations vs. Company Actions
Despite the cuts, many job seekers still value DEI efforts. Monster’s report found that about 40% of recruiters are hearing “more than ever” that workers expect to learn about potential employers’ DEI efforts during the recruiting process. This creates a gap between what employees want and what some companies are doing.
The “Last In, First Out” Phenomenon
Experts suggest that DEI programs are often cut due to a “last in, first out” approach. Reyhan Ayas, a senior economist at Revelio Labs, points out that many DEI roles were created recently and are therefore more vulnerable to cuts. This highlights the fragile nature of these relatively new corporate initiatives.
Questioning the Authenticity of DEI Efforts
Some experts believe that DEI programs are being cut because they were not genuinely supported from the start. According to Amy Hull, director and head of DE&I at Paycor, if companies created these positions for appearances rather than true commitment, it’s not surprising that they’re removing them when public attention wanes.
The Gap Between Perception and Reality
A study by Lever revealed a disconnect between how companies view their DEI efforts and how employees experience them. While 80% of employers claim to communicate about DEI during hiring, nearly half of employees who completed required diversity training felt it was just a checkbox exercise. This suggests that many DEI programs may not be as effective or meaningful as companies believe.
The Future of DEI in the Workplace
The future of DEI in workplaces remains uncertain. While some companies are cutting back, others are expanding their efforts. The key to successful DEI programs seems to lie in genuine commitment and effective implementation. As the landscape continues to change, companies will need to find ways to address diversity and inclusion that go beyond surface-level initiatives and create real, lasting change in their organizations.
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