Increased controversy surrounding diversity, equity, and inclusion are causing “momentum” behind the movement to slow, according to an analysis from consulting firm Paradigm.
The company, which seeks to advise businesses on developing inclusive cultures, recently found that “economic uncertainty” and the “increasing politicization of diversity-related topics” dampened popularity for the movement, which had accelerated with the social justice movement the past three years. The analysis also accused “political rhetoric and lawsuits from conservative activists” of discouraging corporations from pursuing diversity.
Paradigm observed a four-point decrease in diversity budgets and a nine-point decrease in the share of organizations with a diversity strategy in the last year. The company cited the Supreme Court decision this summer to overturn collegiate affirmative action programs, which Chief Justice John Roberts said “unavoidably employ race in a negative manner, involve racial stereotyping, and lack meaningful end points,” as well as lawsuits that discouraged companies from biasing black female founders and launching fellowships for minority groups.
The firm therefore warned of “significant risk” to diversity programs and suggested moves to “adapt” inclusion strategies, such as collecting data on the outcomes of the programs and doubling down on diversity training. The report added that the Supreme Court decision would increase difficulty for companies to “hire a diverse workforce in the coming years” as less minority applicants enter the job market from universities.
Even as many employers desire to remain politically agnostic and focus on offering value to their customers, most large corporations increased their efforts to hire applicants with various identity markers after the death of George Floyd. Job search platform Glassdoor revealed in a study last year that 41% of workplaces offer diversity programs as a benefit, a slight decline from 43% in 2021 but a significant increase from 29% in 2019.
Critics of hiring with respect to diversity contend that the process harms talent procurement as companies decline to hire qualified applicants due to their race or sex. Another recent study found that resumes with preferred pronouns received 8% less interest than those without preferred pronouns, a potential sign that managers were wary of the politicized matter.
