Budget Cuts And High Turnover: What’s The Future Of Corporate DEI?
Diversity, equity, and inclusion (DEI) commitments have seen a downward trend from its high point in 2020.
New data from ROI communications has shed light on the state of DEI-related budgets, diversity officer roles, and predictions for the future of corporate DEI.
A Decline From 2020’s high point
Roles for DEI first increased following the Black Lives Matter protests in 2020, with tech companies, in particular, pledging to boost their diversity efforts.
A global leadership consulting firm, DDI found that many companies are regressing their DEI programs.
According to Bloomberg, listings for DEI jobs have dropped 19%.
Now, employee engagement and internal communications agency ROI has revealed it has seen a 55% reduction in requests for DEI-related communication support year over year.
The ongoing DEI work that ROI supports its clients with has seen budget reductions upwards of 30%, almost double the reduction compared to the average of 15% for other employee-focused work.
Hiring for the Chief Diversity Officer (CDO) position has also declined, with tenure rates for CDOs at a third of their c-suite counterparts.
DEI roles have also had a one in three chance of turnover, which is 12% higher than non-DEI roles.
Despite the downturn, ROI noted that DEI sentiment and support remain steadfast and consistent, particularly in companies with DEI foundations before 2020.
Those organizations benefit from having weathered previous marketplace downturns while understanding DEI as a critical component to innovation, particularly in the tech and energy sectors.
Predictions for 2024
ROI listed its predictions for trends in the DEI space in 2024, which include CDOs narrowing their focus and leaning into data and metrics to showcase progress against specific objectives.
Reduced DEI roles will resurface as functions within departments such as HR, Product Development, and Recruiting.
Companies will undergo a regrouping and restructuring of publicly stated DEI goals, and there will be a reduction of ERG and community engagement financial commitments.
