Kyle Samuels is the founder & CEO of Creative Talent Endeavors (CTE) and an iconoclast in the world of executive search and HR consulting.
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The summer of 2020 seemed like a promising moment. As the Black Lives Matter movement hit its apex, the topic of diversity, equity and inclusion seemed to be on every executive’s mind. It became a mainstay of corporate meeting agendas. Left and right, companies took a stand, making pledges to change workplace cultures and discriminatory hiring practices.
There was a palpable feeling of hope, a sense that something good could actually happen. As both a Black man and a recruiter, I watched with a keen eye as organizations hired chief diversity officers to implement and supervise their cultural overhauls. I saw the formation of dozens of employee resource groups designed to create unique, welcoming spaces for minority workers.
But three years later, the DEI movement at large seems to be hanging by a thread. The change so many hoped for has failed to materialize. Instead of being a banner year for progress, 2023 was marred by mass layoffs and shifting political moods. This left many DEI promises unfulfilled or, in some cases, discarded entirely.
Looking beyond the economic headwinds and the political theater, there’s a clear reason so many DEI initiatives appear to be collapsing, and it boils down to return on investment and how executives talk about these efforts. If leaders want their DEI initiatives to succeed, they must begin with a clear explanation of why they’re undertaking such an effort.
Many Companies Focused Too Heavily On Acquisition, Not Intention
One of the most consequential shortcomings of the DEI movement is that, quite often, companies’ reasonings failed to reach further than “It’s just the right thing to do.” While many leaders’ hearts are in the right place, they've wrongly assumed that everyone already understands why diversity and inclusion need to be a priority.
Diversity is a sensitive topic that's frequently misunderstood or misrepresented. This means those at the top have extra work to do in communicating its importance and explaining their unique approach to accomplishing goals. As more companies began jumping on the DEI train, I had a direct sight into their new efforts through my recruitment work. Companies would specifically ask for “diverse” candidates—more women, more people of color—but their reasons for seeking these candidates, or how they intended to support them once they were hired, wasn't always apparent.
At many organizations, the internal messaging concerning these hiring changes and support structures was also lacking—or nonexistent. Some prioritized more socially oriented DEI resources, such as affinity groups and ERGs, instead of building a strong, intentional support structure for new “diverse” hires. In their frenzy to make rapid change, leadership neglected to develop meaningful key performance indicators or other success benchmarks. And when it comes to corporate initiatives, one thing I know to be true is that if you don’t measure it, it doesn’t matter.
Metrics And Motivations Must Be Connected
Without an adequate understanding of executives’ DEI motives and goals or any tangible ways to track success, employees don't have an easy way to understand the true value of diversity efforts. In reality, diversity initiatives can create big benefits for company performance. According to global consulting firm McKinsey, companies that prioritize gender and ethnic diversity are much more likely to financially outperform those that do not.
But companies must expand their definitions of "diversity" beyond race and gender to include background, educational experience and geographic location. The days of hiring someone to check a box are over. Many job-seekers and candidates can tell when a company is hiring someone just to fill a demographic gap. Professionals want to know that their lived experiences will actually be welcomed and elevated, what a company’s intentions are and whether there's a road map for how they’ll fit in.
If organizations truly want their DEI initiatives to have a meaningful, lasting impact, they must communicate with candor and clarity about their motivations, metrics and goals, and, yes, the monetary value of diversity. The DEI movement may have taken some serious hits recently, but it doesn’t have to spell doom for the cause. As toothless efforts continue to fade, those who prioritize transparency, intentionality and measurability will shine and attract top-tier talent. And as I look ahead to upcoming hiring trends, I’ll be keeping a close eye on the companies who are doing it right.
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