DEI pushback an opportunity for employers to highlight intention behind diversity, inclusion initiatives: expert

Read: Ford, Lowes among employers pulling back from DEI policies

“But in fact, good equity, diversity and inclusion work is about removing barriers and biases that prevent qualified talent from succeeding. I think when employers say they’re moving away [from DEI], it sends the message that they never understood the concept to begin with.”

In August, Ford Motor Co. and Lowe’s Companies Inc. were among the latest employers to back off DEI policies while facing pressure from conservative groups.

According to a report by the Associated Press, Ford’s CEO Jim Farley sent a memo to all employees outlining the changes, including a decision to stop taking part in external culture surveys and an annual survey by the Human Rights Campaign that measures workplace inclusion for LGBTQ2S+ employees. Similarly, the report noted Lowe’s said it would discontinue its involvement in the HRC’s annual survey and will also stop sponsoring and participating in events, such as festivals and parades, that are outside of its business areas.

Earlier this month, Molson Coors Beverage Co. said it will stop requiring its hiring process to fulfil specific “representation goals” and will no longer participate in the HRC’s ranking program, according to a report by the Canadian Press.

Read: Molson Coors ends DEI policies, moves to ‘broader view’

These announcements were met with backlash from groups representing the LGBTQ2S+ community, with some calling the abandonment of such initiatives a step backward. However, as many companies embraced DEI in the wake of George Floyd’s murder in 2020, the opposite reaction is currently taking place as politically conservative organizations take issue with diversity initiatives, says Grocholsky.

“I think [some employers] are fearful that they will instead receive criticism for doing this work. They’re essentially making trade-offs around what’s more important — integrity and doing the right thing or placating naysayers who might criticize and judge them.”

By pulling back on DEI initiatives, employers may also see an impact to their bottom line and talent pool. A 2023 survey by Out Leadership found the vast majority (92 per cent) of global LGBTQ2S+ employees consider potential employers’ reputations around LGBTQ2S+ inclusion when searching for a job. Similarly, a 2023 survey by Eagle Hill Consulting found more than half (53 per cent) of U.S. workers said DEI is a key factor when considering a new job, a percentage that increases among millennials (63 per cent) and generation Z (77 per cent).

Read: Lack of LGBTQ2S+ inclusivity costing employers, says expert

“I think we’re going to see more consumers veering away from those brands that are pulling back on their DEI commitments,” says Grocholsky. “I think we’re also going to be seeing talent not want to work for those employers. [These employees] may not share their ideas because they don’t feel like they can candidly share a different view or experience. When that happens, organizations fail to innovate.”

To avoid engaging in performative DEI, it’s important for employers to prioritize fairness in their diversity and inclusion initiatives. She adds that when an organization add DEI initiatives sincerely, they’re ensuring all aspects of how they operate and make decisions are fair, that there’s evidence to substantiate how decisions get made and that guidelines and parameters are in place to help keep individuals and systems operating with transparency, consistency and accessibility in mind.

“I think there’s misconception about DEI that companies aren’t going to hire someone based on merit. Companies always want to hire the most qualified person for the job, but there must also be a recognition that the way in which employers can assess qualifications or evaluate competency is prone to stereotypes.”

Read: Survey finds 53% of U.S. workers say DEI a key factor when searching for new job