Diversity, Equity and Inclusion (DEI), Inclusion, Diversity and Equity (ID&E), Inclusion, Diversity, Equity and Accessibility (IDEA) – whatever you may call it, this field has grown enormously and come under enormous pressure to justify itself in recent years. With all social movements, comes backlash – and DEI backlash is no exception.  

A major shift in corporate culture since 2016 towards strategically implementing DEI measures in the workplace can be attributed to sociopolitical events, but much of the focus of DEI has been on the business case – or the Competitive Advantage of Diversity – which is to say, not only is a focus on DEI socially and morally right, but will yield better results in an organisation’s bottom line.  

With the promise of yielding social and financial benefit, to invest in DEI seemed like an obvious choice – and the number of DEI professionals working in the field leaped from around 5k in 2016 to about 250k today. 

There have been significant challenges along the way, mainly in the form of DEI backlash, against efforts to diversify upper echelons of the corporate, education and military sectors – claims that DEI initiatives are, at best, mindlessly “woke” and at worst are in themselves a form of discrimination against the dominant group of white Christian men.  

Some of this DEI backlash is ridiculous – DEI is not and has never been anti-white or anti-male.  There are, however, actors within the field itself who do the field few favours – dedicated to a single cause – be it gender equity, anti-racism or LGBTQI+ activism – with little nuance or care for intersectionality.  Narrow viewpoints lead to narrow strategies – and narrow outcomes. This can create conditions for emotive and destructive politicisation, polarisation, guilting, blaming and shaming.   

A data-driven approach can create conditions that allow for constructive change where everyone feels included and invested in positive transformation.  Let’s talk about why.  

  

The Political Landscape & DEI Backlash   

  

In the United States, DEI has become a political lightning rod.  

It is crucial to recognise in the face of DEI backlash that DEI is not about discrimination but about creating fair and inclusive work environments. The intent is to level the playing field for individuals who have historically faced discrimination and under-representation. Criticism that DEI replaces one form of discrimination with another is not only misinformed but distracts from the real goals of these initiatives.  

 One public figure who has spoken out against DEI is the world’s richest person, Elon Musk. The X, Tesla and SpaceX CEO posted on his own social media platform:  

  

  

  

It is tempting to think, Who cares what Elon Musk says?  He is, after all, only one person.  His voice, however, represents a significant part of a growing number of peoples’ views and experiences.  

The DEI backlash has not only been from the billionaire class. For example, Stephen Miller, a Trump administration alumnus most famous, or notorious, for his role in the anti-Muslim travel ban, has filed complaints with the US Equal Employment Opportunity Commission – upwards of a dozen of them – targeting DEI initiatives, hiring programs and even companies selling Pride merchandise.  

DEI is under fire from all sides of the political spectrum. Some DEI backlash, lacking apparent sincerity, clarity and depth, has justifiably been seen as performative. The current political landscape, especially in the United States, is showing that DEI backlash amounts to noise and obscures the genuine goals of DEI.  

Some companies are dropping entire DEI programs without hesitation.  Countless diversity practitioners have been let go. Others are choosing to “lay low”, and do the work more quietly.    

Still, many organisations are engaging in DEI without a data-driven approach – huge monetary sums are invested by organisations to find out about their target market, with little to no investment in understanding their own demographic data. This is leading to strategies that are little more than guesses – which leads to the further erosion of DEI as a field.  Poor investment leads to poor return, which leads, in turn, to organisations abandoning their efforts in the face of DEI backlash.

  

The Data-Driven Imperative  

  

Effective DEI, which avoids DEI backlash, is not about tick-a-box tokenism; it’s about harnessing the value of diversity to drive innovation, foster creativity and enhance decision-making. For business executives and DEI leaders, a data-driven approach is paramount. Here’s why. 

  

1. ESG: The “S” Stands for Social  

ESG (Environmental, Social, and Governance) criteria have become central to evaluating an organisation’s impact on society. The “S” in ESG signifies the importance of social responsibility, and an organisation’s dedication – or lack thereof – to DEI is a critical component of this and one of its most significant metrics. Companies that prioritise diversity and inclusion demonstrate their commitment to social responsibility and attract a broader investor base.  

Companies with robust DEI strategies that are resistent to DEI backlash are more likely to thrive in an environment where social responsibility is highly valued by investors, customers, and employees. 

2. Meeting Investor Expectations 

Increasingly, investors are interested in the DEI practices of companies in which they invest.  Many investors now demand transparency and accountability with regards to diversity data and DEI initiatives. Organisations that fail to meet these expectations, which can only be met through accurate data, risk losing investor support and facing reputational damage. 

3. Mapping the DEI Journey 

Mapping the state of diversity within an organisation will reveal gaps and strengths and facilitate the organisation to set measurable goals and targets. 

DEI leaders must advocate for the collection and analysis of diversity data to drive informed decision-making.  

With anonymised, disaggregated data, the blaming and shaming is bypassed and an organisation is freed to focus on actual goals and targets that they can share with their workforce to the benefit of the organisation as a whole. This is not a one-size-fits-all exercise. For example, while most organisations may benefit from greater gender representation, some organisations are deliberately more in service of one or other gender, in which case it is appropriate for them to have one or other gender dominate their workforce. 

This is where the competitive advantage of diversity (CAD) begins. 

4. Exploring the Competitive Advantage of Diversity (CAD) 

Organisations that prioritise the Competitive Advantage of Diversity (CAD) gain a competitive advantage. The ability to tap into diverse experiences and viewpoints is a strategic asset, making companies more adaptable and innovative. This positions them for long-term success. 

5. Attracting and Retaining Talent 

In today’s labour market, top talent seeks out employers who share their values, often considering diversity and inclusion. Companies with strong DEI credentials are more likely to attract a diverse pool of candidates. 

Furthermore, a diverse and inclusive workplace fosters a sense of belonging and reduces turnover rates, thus boosting employee satisfaction and keeping knowledge within the organisation. 

In a world where DEI is both an ethical and a business necessity, it is essential for organisations to ignore the pushback against DEI as the meaningless noise it is. While DEI has been politicised in some quarters, the undeniable truth is that a data-driven DEI strategy is not just the right thing to do, it’s the smart thing to do. Clearly thought-through and considered, DEI strategies align with ESG principles, enhance competitiveness, attract a wider talent pool, and meet investors’ expectations. 

DEI Beyond DEI backlash  

For business executives and DEI leaders, the message is clear: continue championing diversity, equity and inclusion initiatives with determination and purpose. Embrace a data-driven approach to map your DEI journey, establish clear objectives and measure progress. By doing so, you not only contribute to a fairer and more inclusive society but also position your organisation for sustained success in an increasingly diverse and demanding business landscape.   

With a data-driven approach to DEI, with transparency, measurement and action, organisations can expand the pool of talent they attract, retain that talent, and satisfy investors – all of which, ultimately, impact their bottom line.  This is the Competitive Advantage of Diversity. 

The choice is yours: lead the way in harnessing the Competitive Advantage of Diversity or risk being left behind by those who understand its transformative power.