Robert Sheen is founder and CEO of Trusaic, a purpose-driven technology company focused on pay equity, DEI and healthcare.
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After George Floyd’s death in 2020 and the ensuing public outcry, many employers launched DEI initiatives to avoid being perceived as out of step with a changing world. But they failed to make the necessary internal changes to nurture these initiatives. For example, some appointed DEI leaders but provided no tangible objectives. Others failed to connect DEI in meaningful ways to their business practices, hiring and promotion strategies or their missions and cultures. As a result, diverse hires declined and workers on DEI teams lost their jobs at a faster pace than their non-DEI coworkers.
These developments aren't unexpected, particularly as fairness and equity come under siege in American education, the military and the business world. For instance, in July 2023, the CEOs of the 100 largest U.S. companies received a letter penned by 13 Republican state attorneys general, who raised the specter of potential legal troubles for organizations that support DEI. These claims were based on the Supreme Court’s recent ruling that race can’t be a factor in college admissions. The AGs warned that could also apply to corporate hiring and employment practices, even going so far as to suggest that DEI programs might be construed as a form of discrimination. Indeed, a number of employers ditched their DEI commitments in 2023—commitments they’d made with great fanfare just a year or two earlier.
Despite this battle over workplace equity, many employers remain committed to building more diverse, fair and inclusive cultures. They continue to work toward closing historical gaps in pay, hiring, development and promotions among underrepresented groups.
4 Reasons To Keep DEI Commitments
But research has shown that DEI is good for business. It bolsters financial performance, innovation and the capacity to adapt and thrive. A committment to equity also helps attract and retain younger generations of investors, customers and employees—all of whom are demanding greater fairness and equity from the organizations they engage with. Here are four more reasons employers won’t abandon equity in 2024.
1. Title VII of the Civil Rights Act remains the workplace law of the land.
According to experts, the Supreme Court’s ruling on race in college admissions has no legal bearing on Title VII, which focuses on matters of employment and workplace discrimination. In fact, the affirmative action permitted in college admissions was already prohibited by the rules that govern workplace hiring and people practices. As reported by Bloomberg, in spite of employers’ progress in hiring and promoting underrepresented people, white professionals still hold a disproportionate share of the top jobs in the United States at S&P 100 companies. In short, Title VII remains the law because it’s warranted and because there’s still plenty of progress to be made in the workplace.
2. Failing to comply with equity and transparency mandates is bad business.
Since mid-2023, a flood of class action lawsuits have been filed against Washington State employers for alleged violations of the Equal Pay and Opportunity Act. Adidas, Home Depot and Marriott International are just some of the heavyweight employers facing these suits, and smaller organizations are on the hook as well. Millions of dollars are at stake, not to mention the reputations of these organizations.
Keep in mind that these lawsuits all focus on pay, which is only one aspect of equity. As legal momentum builds for equity in areas like hiring and professional development, and as pay equity laws spread to more states, ignoring equity and transparency laws simply doesn’t make sense.
3. Focusing on equity may be a better way to foster overall fairness.
Critics of diversity and inclusion programs often claim they create the very thing they’re meant to mitigate: discrimination. In reality, DEI isn’t intended to elevate certain groups over others. Its aim is to create more fair and representative workplaces. To achieve this, some employers are focusing on equity—providing all professionals with the opportunities and resources they need for success based on their unique needs—rather than on diversity or inclusion. This shift requires rethinking and possibly redesigning systems, processes and practices to give everyone a fairer shot at success. As DEI initiatives and the discourse around them evolve, pursuing equity is likely the best path forward.
4. Supporting equity is essential to talent attraction and retention.
The competition for talent never ends, and it’s not going to get easier any time soon. By 2030, global talent shortages could reach higher than 85 million workers due to aging/shrinking populations and older workers retiring. To woo and win younger generations, employers will need to align their values and cultures accordingly. This means openly supporting equity and fairness, which are prized by young and incoming professionals. Of course, workers of all ages seek these qualities in their employers. Randstad’s global Workmonitor research shows that 54% of workers will quit organizations where they don’t feel a sense of belonging.
Sadly, diversity ditching will likely continue to some degree in 2024. But so will the calls for greater equity and transparency from regulators, shareholders and employees. Organizations that heed these calls will position themselves for lasting long-term success.
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