Executive orders related to DEI were issued early this year, and I’ve been concerned (of course) and curious about how they would affect employees, workplace cultures, and business results. And, how have most people reacted to these changes?
Eight months later, we’re starting to find out.
According to a new study, there continues to be widespread employee support for DEI efforts. Catalyst, a highly respected DEI research firm, and the Meltzer Center for Diversity, Inclusion, and Belonging conducted a large-scale survey from Jan. 20-Feb. 11, 2025. A recent article in Forbes delved into the report, and as a long-time practitioner in this space, I found the results heartening!
Support Across the Board for DEI
The survey found that high employee support for DEI crosses demographic lines. One finding was that DEI support was nearly identical among women and men. Among those surveyed, 91% of women and 88% of men reported that DEI programs are very or somewhat valuable. The same was true of different racial and ethnic groups, including Black (96%) and Latino/a/x (91%) participants. And 87% of employees who identified as white also agreed that DEI programs are very or somewhat valuable.
Another recent study shows wide, bipartisan support of DEI. GlobeScan (an international insights and advisory company) recently surveyed a representative sample of 1,004 U.S. adults. A remarkable 72 percent of those surveyed said companies should demonstrate commitment to DEI. In the survey 56 percent of Republicans reported support for DEI commitments as well.
More Inclusion, Better Results
What I didn’t find surprising in the Catalyst/Meltzer study is that employees reported very high levels of support for internal organizational efforts to create more belonging and inclusion. Among other efforts, that includes establishing ERGs (employee resource groups), improving accessibility for people with disabilities, mentoring programs, and leadership training.
At Inclusity, we’ve always believed that creating inclusive workplaces will lead to diverse workforces who are engaged, are empowered, and contribute to their fullest potential. Because there’s such a strong link between engagement and productivity, inclusive cultures also improve business results. Research backs that up; Deloitte reported that organizations that establish inclusive cultures are twice as likely to meet or exceed financial targets and eight times more likely to achieve better business outcomes.
The Backlash for Businesses that have Eliminated DEI Efforts
One new development is that we are starting to see that businesses that have scaled back or eliminated DEI are now experiencing negative consequences. The media has focused on the impact on large corporations like Target, Tractor Supply, and Lowes, which all have reported social media backlash, boycotts, reduced engagement, and a decrease in financial results.
These companies aren’t the only ones though, as surveys of U.S. business leaders confirm. According to a survey by Resume Templates, two-thirds of business leaders who cut DEI said there have been unfavorable ramifications. That includes diminished morale (37%), increased internal conflict or division (33%), and loss of customers or partners (18%). In a Resume.org study, half of the companies that have eliminated DEI say that morale is down, and 1 in 5 say they’ve seen an increase in reports of discrimination and bias. Not to mention that fewer underrepresented people are being hired or promoted in companies that eliminated DEI programs.
When the executive orders were issued, we knew that dismantling DEI would make companies vulnerable to lawsuits. There is a risk in not actively creating inclusive workplace cultures, where all employees have an equal opportunity to thrive.
DEI is Not Risky Business
Thankfully, many businesses have maintained their commitment to cultivating inclusive cultures, where employees are engaged and supported. Yet, considering increased federal scrutiny, many are still grappling with how to continue DEI-related programs and commitments while mitigating risk.
Remember, the term DEI is broad! It’s not possible to say all DEI is risky in a legal sense, even though it may appear to be. We have to look at programs or practices to understand what is lawful and what could be considered risky. For example, mandatory DEI-related training or maintaining diversity targets are risky. Whereas programs available to everyone, like mentoring and inclusive leadership training, are safe.
There are a number of resources to help companies navigate the legalities:
- The Legal DEI Project provides comprehensive information that helps businesses clarify the legality of DEI initiatives
- Free resources at Equal Employment Opportunity Leadership Groupare available for employers seeking to defend DEI practices against legal challenges
- Catalyst And Meltzer Center 2025 Report on Legal DEI is the report I mentioned, which offers extensive risk-assessment guidance
I’ve worked in the field of inclusion, diversity, and equity for almost 40 years, so I’m no stranger to the ebbs and flows in this work. That said, I’ve never seen such a dramatic shift in support for it as I have this year. I’ve been critical of some “traditional” DEI approaches that only served to alienate or blame people. That’s why I started Inclusity – to help build inclusive cultures by engaging and connecting ALL employees. When you have a welcoming culture of belonging, it benefits all individuals and is vital to long-term business success. And isn’t that what we all strive for?
