By Hailey Mensik • December 17, 2024 •
Ivy Liu
This story was first published by Digiday sibling WorkLife
Corporate diversity, equity and inclusion programs came under fire in 2024 in the aftermath of the U.S. Supreme Court banning race-based college admissions in June 2023. While that decision was limited to universities, the effects rippled into corporate America throughout 2024.
Since then the state of DEI programs has eroded with Walmart the latest big corporation to announce rollbacks. Here’s a look at some of the most pivotal moments in 2024, which have contributed to the current state of turmoil regarding DEI initiatives as we head into a new year.
DEI uncertainty slowly spreads
Companies began facing threats and uncertainty regarding their DEI programs in January when nearly 40% of C-suite executives said that backlash against diversity, equity and inclusion programs increased since the Supreme Court ruled against race-based admissions, according to a report released at that time, from Littler, which provides inclusion, equity and diversity educational and training resources.
In that same survey, more than a third of business executives said their organizations faced uncertainty regarding how to proceed with their DEI programming. Between January and March, more than two dozen public companies, including JetBlue Airways and Molson Coors Beverage Co., mentioned DEI as a “risk factor” in their earnings reports, according to an analysis from Bloomberg.
SHRM drops “equity” from its DEI messaging
In July, the Society for Human Resources Professionals (SHRM) caused massive controversy when it announced plans to drop the word “equity” from its own DEI programs and messaging. The move spurred an uproar among HR professionals online, with some canceling their memberships to the HR trade association. Some called it a “glaring betrayal” that will weaken DEI initiatives and stunt progress.
SHRM claimed the change was prompted by numerous surveys with employers and staff which showed that the word equity caused more confusion than diversity and inclusion.
MEI vs. DEI discussion emerges
In the summer, high-profile executives like Elon Musk and Alexandr Wang, co-founder and CEO of AI tech firm Scale AI, began speaking out against DEI programs in favor of what they call “MEI” based hiring. They describe it as hiring based solely on one’s talent and ability to do the job well — often assessed by an impressive track record, or simply letting one’s accomplishments speak for themselves.
But workplace experts cautioned that merit-based hiring relies too heavily on one’s past accomplishments and formal professional experience than true skill, talent and ability to do a job well. Instead of exclusively considering merit, leaning into more skills-based hiring is a better approach, they said.
To read the full article over on WorkLife click here
https://digiday.com/?p=563565
