Jettisoning Your DEI Practices and Policy May Not Be in Your Organization's Best Interests
- Paul Falcone
- Jun 15
- 7 min read
HR executives and C-suite leaders may be experiencing significant pushback from their boards or other stakeholders about eliminating the "DEI" acronym from employee handbooks, policy & procedure manuals, internal employee communications, and the like. If you're feeling squeezed by the visceral nature of the DEI debate, become the voice of reason and gently lead your board members and other constituents through the considerations that follow.
Assuming you believe that "DEI," "Inclusion & Diversity," or similarly-themed initiatives do indeed reflect your organization's values and principles, push back and appeal to business reason and logic. While this is an emotional issue, a logical response may make sense to defend your company's stance on the importance of inclusion, belonging, equality of opportunity,
diversity outreach, and so much more. Aligning your organizational strategy with generational priorities and business goals may be the best place to start.
DEI is Not Affirmative Action
Remember, DEI is NOT affirmative action from the 1970s. It's not a zero-sum game where companies must have a particular number or percentage of diverse or female executives, staff employees, vendors, or the like (thereby excluding others). Affirmative action, rooted in the Civil Rights Movement of the 1960s, focused on measurable outcomes in representation. It was a legal and policy-driven approach designed to remedy past and present discrimination by providing opportunities to historically underrepresented groups, primarily in education, employment, and government contracts. And it was most associated with "limited preferences" or "plus factors" for certain groups, although explicit "quotas" have been outlawed.
In contrast, DEI is all about a spirit of inclusion and belonging so that employees can do their best work every day with peace of mind. Gaining prominence around the early 2000s, the D&I (Diversity and Inclusion), DEI (Diversity, Equity, and Inclusion) and DEI&B (Diversity, Equity, Inclusion, and Belonging) movement based itself on a broader framework aimed at fostering an inclusive work environment where diversity is valued, equity is ensured, and everyone feels a sense of belonging. It emphasizes systemic and cultural change within an organization--not numbers, ratios, or quotas.
Core Tenets of DEI
DEI intended to create a more holistic view of creating fair workplaces and societies. Here's a brief overview of the mechanics involved:
Diversity: Recognizes and values the presence of differences (e.g., race, gender, age, disability, sexual orientation, socioeconomic status, veteran status, generational differences, thought).
Equity: Focuses on fair treatment, access, and opportunities for all, recognizing that different individuals or groups may require different resources or support to achieve similar outcomes. It's about providing what people need to succeed rather than treating everyone identically. In other words, "equality of opportunity" was a core goal, not "equality in fact" where undeserving workers or students were hired or promoted simply to based on their race, gender, age, disability, or other protected status.
Inclusion: Aims to create a culture where everyone feels respected, supported, and empowered to participate fully and where their voices are heard and valued. The goal was to create the right and certain circumstances and culture where people could do their very best work every day with peace of mind--regardless of their differences.
Gen Y and Gen Z Priorities
There are plenty of surveys to be found capturing Gen-Y Millennial (45-and-under) and Gen-Z Zoomer (27-and under) priorities. A simple Google search will likely show the following Top 5 considerations (in no particular order):
Diversity of thoughts, ideas, and voices.
Career and professional development.
Corporate social responsibility, environmentalism, and sustainability.
Work-life-family balance/control/equilibrium.
Working for an ethical company, doing meaningful work, for a management team that cares .personally about its employees.
Here's why this is important: Gens Y and Z are the most studied generational cohorts in history. We know everything about them thanks to the Big 4 accounting firms, Big 3 management consulting firms, university research scientists, think tank researchers, and more. These two generations now make up about 54% of the U.S. workforce, but that percentage will be changing exponentially over the next five years as the Baby Boomers retire by 2031 (when the youngest Boomers turn 67). Building your workforce planning and staffing & retention strategies around these demographics makes good business sense because company alignment with employee (i.e., generational) core values will go a long way in building retention and minimizing turnover of key talent.
Eight Points about DEI Policies to Justify Continuing Your Company's Program and Practice
The following eight talking points may help your board members see the light (and logic) behind retaining your DEI, I&D, or similar programs, despite their being caught up in today's dramatic movements that often seek to exclude rather than include, to generalize rather than personalize. I hope you find the following talking points helpful and easy to customize based on your situation. . .
As an organization, we believe that everyone is welcome to do their best work every day with peace of mind, regardless of their ethnicity, socio-economic status, gender, background, or anything else.
DEI encompasses more than race and gender. It includes anything that makes us unique, including our military experience, age and generational affiliation, cultural and religious backgrounds, disabilities, and even marital and parental status. We believe that our differences are our strengths because they help us better understand and reflect our customer base.
Numerous studies confirm that companies with diverse boards, senior executive teams, and operational frontline employees tend to outperform organizations that are more homogenous in nature, especially in terms of financial results, innovation, and employee engagement. (McKinsey Report 12/5/2023: "Diversity Matters Even More--The Case for Holistic Impact") https://www.mckinsey.com/featured-insights/diversity-and-inclusion/diversity-matters-even-more-the-case-for-holistic-impact
We’ve recognized and honored Pride Month and Juneteenth previously, so to stop doing so now would likely be noticed by many of our employees and create unnecessary “drama” in terms of challenges to our organizational beliefs and values.
From a business marketing standpoint, we reach out to all backgrounds of consumers. We want our employee base to reflect the customers we serve, and everyone is welcome to benefit from our products, services, and our organization as a whole—both as an employer of choice and as a recognized service provider in the community.
We believe the “anti” movements now in play are intended to exclude people from full participation in society, and we don’t agree with them. If we opt to curtail our recognition of all or any of our employees, it could have lasting negative effects, well beyond this initial period of anti-immigrant and anti-diverse sentiment that we're experiencing at the moment.
We want to permit our employees to have and benefit from the same experiences as the customers we serve. If all customers are welcome, then all employees should be made to feel equally welcome. Recognizing and acknowledging our differences creates a stronger connection to our company and brand. A steady hand through this storm will lead to a greater sense of wellbeing for and trust among our employees.
It’s simply the right thing to do. We see that retailers and law firms that have “caved” to pressures from the federal government are facing significant backlash (think plummeting sales at Target as well lost clients at Skadden Arps and other law firms) that will likely not be forgotten over the longer term. Likewise, organizations that hold fast to their values are experiencing a positive impact on their workforce and business performance (Costco, Apple, Microsoft, and Delta Airlines, to name a few). We see no practical reason to make ourselves a target based on contemporary rhetoric that may soon be forgotten but that could have potentially devastating consequences to our business over the long term.
Rather than changing what we've started as far as recognition of our diversity programs, employee resource groups, or Pride Month and Juneteenth celebrations, it makes most sense to continue them and announce them proudly. This is our opportunity to retain and promote our belief systems, both to our customers and for our employees. Our stance won't be forgotten and will likely continue to generate a strong allegiance of followers, whether they be employees or customers, over the long term.
We're leaders, not followers, and we don't benefit from going along with the herd at a time when standing out helps reaffirm our commitment to our mission, vision, and values.
These aren't easy times, and much is under challenge and scrutiny. Let our better angels prevail by demonstrating our values of inclusion and belonging, doing what's right ethically, and keeping the workplace safe from the current fire storm right outside our door that's looking to upend the spirit of our employee programs and workplace culture.
As always, I'm happy to discuss this at your convenience and welcome your feedback. -- [CHRO Name]
A Steady Hand Wins Out Over the Long Term
No, these times aren't easy, and much of what we've come to identify with as a nation, company, or as citizens and consumers may feel like it's under attack. This is a critical time to look to the long view, not get lost in the moment, and stay true to your values. Remember, if Gen-Y Millennials and Gen-Z Zoomers continue to recognize "diversity of thoughts, ideas, and voices" among their Top 5 career and workplace priorities, then your organization would be wise to align itself with those broader preferences. In short, if the underlying culture you wish to foster and sustain includes fair access to opportunity, peace of mind at work, and a healthy sense of belonging, then jettisoning the policy that confirms those values may not be in your organization's longer term interests.
I hope you find some of these ideas helpful in engaging board members or other stakeholders who may look to challenge your organization's inclusive business practices and the spirit of trust, respect, and belonging that you've worked so hard to nurture over time.
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