The diversity, equity, and inclusion (DEI) backlash has set in. From slashed budgets to reduced DEI leadership, the corporate initiative that rose to prominence in 2020 now faces increased scrutiny. On top of the economic and political pressures leaders face, many are not measuring results from their DEI programs, and thus remain unsure of their impact. What’s more, this issue isn’t just about the effectiveness of the content. The lack of perceived “results” stems from a DEI silo—when DEI strategy is treated as an add-on rather than holistically woven into the organization’s core strategy.
Challenges stem from DEI silos
Siloing DEI efforts creates barriers to success, which could result in initiatives that make less impact. Common barriers include:
Misinterpreting changes in DEI sentiment: Leaders without DEI expertise don’t always know how to interpret DEI outcomes. For example, majority employee groups may express feelings of exclusion as DEI efforts center the voices and experiences of historically excluded employees. What majority employees are experiencing stems from being decentered rather than excluded, but their discomfort may make it appear that DEI efforts are having a negative impact. Seasoned DEI leaders will recognize the difference.
A lack of leadership support: For some executives focused on ROI, fiscal commitment to DEI may feel risky. With lukewarm approaches from the top, you get siloed initiatives and lower employee engagement. Without enough time or room in employees’ workload to participate, DEI efforts flounder.
A lack of measurement maturity: DEI drives business performance, including higher employee engagement, less turnover, and, according to one study, even a 6.8% higher stock price. However, benchmarking success requires purposeful tracking. However, the same study found that 42% of organizations didn’t have or report on DEI metrics. Without mature measurement in place, the business case can be lost.
Unfortunately, leaders facing these foundational challenges often back away from DEI commitments.
How to avoid silos
What drives DEI success? Integrating a holistic DEI approach directly into an organization’s core strategy. Every HR process and initiative within an organization could be infused with DEI principles, ensuring it’s equitable for people from all backgrounds. Offering dedicated time for DEI events is also crucial. It centers the employee experience and creates the space for true engagement and content absorption—and it helps to evade silos in DEI practice.
Organizations ensure that they’re infusing DEI principles into processes effectively by seeking guidance from those with deep knowledge, wisdom, and personal experience navigating those systemic workplace barriers DEI efforts are trying to dismantle. Leaders who invest in employee resource groups (ERGs) will have a better foundation for building and integrating effective DEI strategies.
One clear example of the effect holistic DEI strategies can have is Hinge Health. In 2023, their team heavily invested in employee resource groups (ERGs), and it paid off. Engagement scores among employees in at least one ERG jumped nine points compared to those not involved in any. High employee engagement impacts the bottom line—21% greater profitability to be exact—so the financial implications are powerful.
NASCAR also benefited from ERG investment, creating better organizational support, resources for growth, and opportunities to make an impact across the business. Embracing holistic DEI, the company fostered collaboration between HR liaisons and ERGs to ensure alignment across broader organizational goals.
Utilize holistic DEI frameworks
Shifting to a holistic integration of DEI strategy into your organization’s core strategy can feel daunting. The Global Diversity, Equity, and Inclusion Benchmarks (GDEIB) is a great place to start. It covers five important approaches to doing DEI work:
- building competence
- honoring dignity
- developing the organization
- advocating for social justice
- compliance
Not every DEI initiative will work toward all these goals at once, but covering some aspects of each across the breadth of the DEI strategy in your organization may amplify progress toward DEI in general.
The future of DEI may feel uncertain now, but leaders who weave DEI strategy into their broader processes will see success across the business. But ultimately, it’s important to remember that a truly inclusive culture is centered around people. Holistic DEI strategies give us a chance to make the workplace better for everyone.