In the context of an increasingly politicized discourse surrounding diversity, equity, and inclusion (DEI), a recent study reveals a noticeable deceleration in DEI initiatives over the past year.
Paradigm, a consulting firm specializing in DEI, conducted a report indicating that 54% of companies with allocated budgets for DEI initiatives have decreased by 4 points since 2022. This finding, based on data from September, coincided with the Supreme Court’s June ruling against race-conscious admissions in higher education.
Despite some positive advancements in DEI observed during the past year, the overall loss of momentum, as highlighted in Paradigm’s report, poses a significant risk for the future. The study underscores that only 26% of companies analyze their hiring practices based on race or ethnicity, and a mere 31% measure by gender. However, a slightly better scenario exists for promotion rates, with 33% of organizations analyzing promotions by race or ethnicity and 46% by gender.
The report emphasizes the importance of collecting such data to identify potential discriminatory practices. Once identified, corrective programs can be implemented. However, the report notes that DEI practices have become increasingly polarized, with some external forces pushing back against companies’ investments in DEI, rather than encouraging them.
This polarization is exemplified by Florida Governor Ron DeSantis, a 2024 GOP presidential nominee, signing a bill prohibiting Florida public colleges and universities from spending money on DEI programs. DeSantis justified this move by asserting that DEI is better perceived as standing for “discrimination, exclusion, and indoctrination.”
Despite some companies offering DEI training, the report reveals that only 35% measure the impact of such programs. Moreover, it highlights a trend where human resources leaders within organizations are de-emphasizing data and analytics.
Paradigm urges companies to prioritize DEI efforts, emphasizing the need for data to comprehend their unique challenges and opportunities in the DEI landscape. The report suggests going beyond simplistic representation metrics and consistently evaluating data across hiring, promotion, attrition processes, and employee feedback to formulate effective long-term strategies and identify potential issues early on.
