Summary
Despite the contentious political environment, companies continue to support their diversity, equity, and inclusion (DEI) programs, with many planning to increase their investment in these initiatives over the next two years, according to a survey by Bridge Partners. The survey indicates a long-term commitment to DEI, though current political uncertainties may cause companies to be less vocal about their efforts. The survey results, released amidst heightened scrutiny from conservative critics, show a slight increase in the percentage of companies reducing DEI efforts compared to last year. The corporate DEI movement, which gained momentum after the murder of George Floyd, has stabilized, with companies maintaining and planning to grow their programs.
Continued Investment in DEI Amid Political Uncertainty
New data reveals that despite the divisive political landscape, companies are not abandoning their diversity, equity, and inclusion (DEI) programs. According to a global executive search firm Bridge Partners survey, most companies intend to increase their investment in DEI initiatives over the next two years. However, due to the uncertainty surrounding the upcoming presidential election, executives may pursue these investments more discreetly, stated Tory Clarke, co-founder and partner of Bridge Partners.
Survey Insights: Resilience in the Face of Political Tension
Bridge Partners conducted the survey in April 2024, polling 400 executives and HR heads from companies with at least $25 million in revenue or more than 250 employees. The results showed that only 4% of respondents plan to cut back on DEI initiatives, a slight increase from the 2% reported in the previous year’s survey. Despite the political scrutiny from conservative commentators and activists, companies demonstrate a long-term commitment to DEI.
Balancing Rhetoric and Commitment
Clarke noted that while companies might tone down their public rhetoric on diversity, their two-year investment plans reflect a sustained dedication to DEI. “The two-year run has given leaders an opportunity to think, ‘This is a cycle. It will probably get better; and when it does, I haven’t given up on this,’” Clarke explained. This indicates a belief that DEI efforts will endure beyond the current political climate, even if they are temporarily subdued.
The Evolution of Corporate DEI Programs
The corporate DEI movement gained significant momentum following the May 2020 murder of George Floyd. Companies without DEI programs quickly established them in response to the social justice movement. Bridge Partners Chief Business Officer Arthur Woods described a “correction” in the corporate DEI landscape, noting that initial enthusiasm has settled into a more stable, long-term commitment.
Sustained Growth and Importance of DEI Programs
The survey revealed that nearly three-quarters of respondents plan to “further build and enhance” their DEI programs, with almost 95% recognizing the importance of DEI in recruitment, hiring, and retention. Despite this, less than half of the respondents believe their executive team fully reflects the diversity of their employees and customers.
Building a Diverse Leadership Pipeline
To address this disparity, Clarke emphasized the need for a consistent, long-term approach to developing diverse leaders. “You can make spikes in the short term, but the longer-term piece has to be consistent,” she said. Without sustained effort, progress can easily be reversed, highlighting the necessity for ongoing commitment to DEI initiatives.