The DEI consulting firm Paradigm found 54 percent of companies have a budget for DEI initiatives this year, down 4 percent from 2022.
The report was published in September after the Supreme Court struck down affirmative action in higher education in a June ruling.
Only 26 percent of companies said they analyze race or ethnicity as part of their hiring practices, the report found, and only 31 percent measure gender.
Companies were more likely to include these factors in promotion decisions, according to the report, with 33 percent saying they analyze promotion rates by race and ethnicity and 46 percent by gender.
While Paradigm’s report warns of the risk to DEI efforts in the coming year if trends continue, DEI practices have become more polarized.
“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.
For example, Florida Gov. Ron DeSantis (R) signed a bill that bars Florida public colleges 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,” said DeSantis, a 2024 presidential candidate.
But Paradigm is urging companies to prioritize DEI initiatives.
“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.
The Hill’s Cheyanne M. Daniels has more here.
