Ditching your DEI initiatives might provide short-term savings or political appeasement, but long-term? It’s a recipe for stagnation, talent drain and lost market share. In short, it’s a huge step backwards.
In recent times, a growing number of companies have been stepping away from their Diversity, Equity and Inclusion (DEI) initiatives. Notable examples include Meta, which has ended several DEI programmes, and The Walt Disney Company, which is reportedly reviewing its diversity, equity and inclusion efforts (source).
As a succession and talent expert with over 25 years of experience, I can confidently say that abandoning DEI policies is a misguided move. DEI isn't just about ticking boxes; it's about creating an environment where every employee feels valued and has the opportunity to thrive.
Why companies are backtracking – and why it’s a bad idea
Some organisations claim they’re rolling back DEI efforts due to shifting business priorities, economic pressures or even political backlash. But let’s be real – diverse workplaces drive better business outcomes.
Research has consistently shown that diverse teams lead to better decision-making and innovation. Companies that embrace DEI are more likely to attract top talent, understand diverse customer needs and outperform competitors. Plus, developing a culture of inclusion boosts employee morale and reduces turnover. When employees feel they belong, they're more engaged and productive.
A new hope
We are beginning to see some seeds of rebellion within the empires of global commerce. The world’s largest accounting firm, Deloitte, is one of the latest corporations to end its diversity, equity and inclusion (DEI) initiatives for its private and public practices. This seems to fly in the face of its own research that organisations with inclusive cultures are six times more likely to be innovative and agile.
However, the boss of Deloitte UK, Richard Houston, has signalled a split with the firm’s US arm by reaffirming its diversity, equity and inclusion (DEI) targets. Houston emailed staff saying that Deloitte UK will stay "committed to our diversity goals", continue to report annually on inclusion progress, and maintain its diversity networks. This comes after Deloitte’s US office reportedly made plans to 'sunset' its diversity goals, with the DEI webpage on its US site disappearing.
What happens when you ditch DEI?
When companies roll back DEI efforts, they risk damaging their reputation, alienating employees and reducing their competitive edge. Just ask the brands facing public backlash and employee dissatisfaction after cutting diversity programmes.
The move away from DEI isn’t isolated to Deloitte’s US office. Corporate America has been shifting to more conservative stances, particularly after Donald Trump’s election victory. Companies like Meta, Google, Amazon, Accenture, Bloomberg and McDonald’s have scrapped DEI initiatives, watered down language in company reports that could be seen as 'woke', or pulled out of industry climate groups.
What you should do instead
Rather than scrapping DEI, organisations should:
Embed DEI into talent management – Make diversity and inclusion a core part of succession planning, leadership development and hiring strategies.
Hold leaders accountable – Tie leadership KPIs to diversity and inclusion goals.
Focus on belonging – Employees should feel psychologically safe, valued and empowered to contribute.
The call to action
So, before you consider jumping on the bandwagon of ditching DEI, think about the long-term implications. Embracing diversity isn’t just the right thing to do – it’s the smart thing to do.
If you’re looking to strengthen your DEI strategies and ensure your organisation remains competitive, let’s connect. With my extensive experience, I can help you create a workplace where everyone thrives.
Contact me today for a free consultation and take the first step toward building a stronger, more agile, more diverse leadership pipeline matt@twentyoneleadership.com.
When the time is right, and you’re ready to transform your talent and succession strategy, let’s set up a 45-minute discovery call to see how my approach is right for you.
Take the first step towards a successful future! Book direct with me here.
Matt
