The Question about DEI

DEI was all the rage for the past couple of years, but now a number of larger companies are cutting back on their DEI programs. The reasons vary, but they generally hinge around lower financial performance resulting from focusing on DEI goals instead of business performance goals. The recent performance of the US Secret Service is held up as an example. The focus has been over-balanced toward numerical outcomes instead of providing opportunities. It can be a delicate balance – one that is can be difficult to attain – but one that can be worth the effort in the long run. One of the problems is with the “E” in DEI: “Equity” is generally interpreted as equal outcomes – with or without consideration of inputs, which can lead to internal problems. Ironically including inequities. Companies sponsoring such initiatives are finding it necessary to take a wide-scope view of their overall environment and provide resources needed to ensure success. For example, the Society for HR Management (SHRM) has retitled their program as “I&D.” An executive search firm survey in June found that 72% of C-Suite members surveyed plan to increase DEI commitments, while only 4% plan to reduce them. Conversely, a number of employers are dropping their use of the Human Rights Campaign scoring system, which has a particular agenda.

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