DEI efforts lose momentum after Supreme Court ruling: Report

As the topic of diversity, equity and inclusion (DEI) has become more politicized, a new report has found that DEI efforts have lost momentum over the last year. 

A report from Paradigm, a DEI consulting company, found that 54 percent of companies that have a budget for DEI initiatives, down 4 points from 2022.

The report, from September, followed the Supreme Court’s June ruling striking down the use of race-conscious admissions in higher education.

Paradigm’s report said that though there have been some positive strides over the last year in terms of DEI momentum, the overall loss of momentum poses high risk in the coming years. 

Only 26 percent of companies analyze their hiring practices by race or ethnicity, and only 31 percent measure by gender. However, companies fare slightly better when it comes to analyzing promotion rates: 33 percent of organizations analyze promotion rates by race or ethnicity, while 46 percent analyze by gender.

Collecting this data is important to identifying potential discriminatory practices, the report explained. Once these practices are identified, then programs can be implemented to counteract them.

But DEI practices have become increasingly polarizing.

“External forces are no longer pushing companies to invest in DEl; instead, in some cases, external forces are pushing back on companies’ investment in DEI,” the report said.

This year, Florida Gov. Ron DeSantis, who is running for the 2024 GOP presidential nomination, signed a bill into law banning Florida public colleges and universities from spending money on DEI programs.

“If you look at the way this has actually been implemented across the country, DEI is better viewed as standing for discrimination, exclusion and indoctrination,” DeSantis said at the time. “And that has no place in our public institutions.”

Still, while some companies offer DEI training, the Paradigm report found that only 35 percent measure the impact of such training. This comes as organizations’ human resources leader are deemphasizing the data and analytics, the report added.

Paradigm is now urging companies to prioritize DEI efforts.

“Regardless of the political climate, companies need data to understand their unique DEl challenges and opportunities and track progress,” the report said. “Going beyond simple representation metrics and regularly looking at data throughout your hiring, promotion, attrition processes — as well as feedback on the employee experience — will help companies craft the right long-term strategies and identify potential issues early.