Is Corporate IE&D Dying? Maybe Not
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matt.gonzales@shrm.org
By Matt Gonzales
October 12, 2023
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​While companies across the U.S. are scaling back their inclusion, equity and diversity (IE&D) efforts, a new survey of 445 HR leaders by software firm Capterra revealed that many others have actually invested more heavily in IE&D in 2023.
The report found that over half (58 percent) of HR professionals with a dedicated budget for IE&D claim their companies are placing even higher importance on these efforts this year than previously. A majority of respondents (65 percent) say their budget actually rose in 2023.
"After seeing reports and speculation about DE&I cutbacks last year … and given the uncertainty around the economy, I fully expected businesses to report a decrease in DE&I budgets and prioritization in 2023," Brian Westfall, principal HR analyst at Capterra. "Instead, I found the opposite."
Among HR leaders surveyed:
86 percent agreed that the Supreme Court's decision to overturn affirmative action puts more pressure on employers to improve and monitor IE&D.
67 percent said they're investing more in dedicated IE&D headcount and diversity recruiting resources.
8 percent said their company's IE&D budget fell in 2023.
Why Are Inclusion and Diversity Budgets Growing?
Capterra researchers cited several factors that have influenced a rise in IE&D budgets.
The layoffs of inclusion and diversity staff in the tech industry didn't impact other private-sector employers. The report noted that the most significant IE&D cuts are set to take place in the public sector, where large state employers such as Texas and Florida passed legislation to eliminate such programs at public colleges and universities.
"I think the economy not spiraling as expected is playing a significant role" in employers keeping their inclusion staff, Westfall added.
In 2022, companies across the U.S. instituted hiring freezes, cuts to bonuses, and travel budget reductions as a way to "wait and see" what would happen with the economy and to start preparing for the worst, he said.
However, as Westfall explained, "when the clouds cleared and the chances of a recession dwindled, I think companies felt confident enough to keep spending on their important talent priorities, like DE&I.
"Despite the prevailing narrative that businesses are struggling right now, we find that companies are actually doing pretty well for the most part," he added. "A rising tide raises all ships, and that includes DE&I."
Three Ways to Elevate IE&D Programs
The report found that just 30 percent of HR leaders strongly agree that their company won't sacrifice IE&D during an economic downturn.
"I think DE&I programs got lucky that the economy didn't crash as expected," Westfall said. "But that doesn't mean they'll be safe from cuts if a recession actually takes place."
Westfall explained that organizations can emphasize IE&D's importance in three ways:
Add rank-and-file employees to your inclusion and diversity leadership teams.
Promote IE&D goals to all employees, not just managers and executives.
Communicate IE&D benefits, events and progress more frequently.
Reports have indicated that investing in inclusion and diversity supports recruitment and retention efforts . Many employees, particularly young professionals, want their companies to commit to IE&D:
A 2023 study showed that 44 percent of Generation Z and Millennial employees report having previously resigned from a job because the company's values—including those related to diversity and inclusion—did not align with their own.
Another 2023 study, focused on corporate IE&D , revealed that 66 percent of employees believe their company should commit more time and resources to IE&D initiatives than they currently do.
"It's become abundantly clear that employees want their companies and leaders to invest in DE&I," said Janeen Speer, chief people officer at software company Benevity in Calgary, Alberta. "And there are real consequences that businesses face when they choose not to do so."
Business Case For D and I
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Toggle navigation. Search. Search. ENTIRE SITE. SHRM Foundation. SHRM India. SHRM China. Reset Search. Membership Membership Membership Membership Join/Renew Benefits of Membership Membership FAQs Communities Communities SHRMConnect Chapters Executive Network Advocacy Team (A-Team) Emerging Professionals SHRM Northern California Students WorkplaceTech Community Volunteers Volunteers Membership Councils Mentorship Experience Special Expertise Panels Volunteer Leader Resource Center Volunteer Opportunities LOCAL CHAPTERS #ucc_LocalChapter. Certification Certification Decide Decide Why SHRM Certification Our Certifications Certification Handbook SHRM BASK FOR EDUCATORS FOR EDUCATORS Academic Alignment Teaching Resources Get Certified Get Certified Prepare for the Exam Exam Options & Fees Apply to Take the Exam Certify Your Team Certified Directory Recertify Recertify How to Recertify Qualifying Activities Certification Portal Become a Recertification Provider SHRM CERTIFICATION ACCELERATE YOUR CAREER Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. LEARN MORE. HR Today HR Today News News HR News HR Magazine All Things Work SHRM Blog Newsletters Podcasts Public Policy Public Policy SHRM Advocacy HR Public Policy Issues State Affairs Trends & Forecasting Trends & Forecasting Research & Surveys FEATURED RESOURCE PAGE Artificial Intelligence in the Workplace An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems. Resources Resources HR Topics HR Topics Behavioral Competencies Benefits California Resources Compensation Inclusion, Equity & Diversity Employee Relations Global HR Labor Relations Organizational & Employee Development Talent Acquisition Technology Workplace Topic Resource Hubs Legal & Compliance Legal & Compliance Employment Law State & Local Updates Workplace Immigration RESOURCES FOR RESOURCES FOR Enterprises Executives HR Professionals People Managers Students / Emerging Professionals Business Solutions Business Solutions SHRM Business Solutions Tools & Samples Tools & Samples Employee Handbooks Express Requests How-To Guides HR Forms & Checklists HR Glossary HR Q&As Interview Questions Interactive Tools Job Descriptions Policies Presentations Toolkits Sponsor White Papers ASK AN ADVISOR Need assistance with a specific HR issue? We can help! CONTACT AN HR ADVISOR SHRM HR Jobs #ucc_HRJobs. Learning Learning Career Career Managing Your Career Test Your HR Knowledge Leadership Development Programs Education Education SHRM Educational Programs Specialty Credentials People Manager Qualification (PMQ) Team Training & Development eLearning SHRM Books SHRM Essentials of Human Resources Webcasts For Educators For Educators HR Curriculum Guidebook & Template HR Program Directory Teaching Resources SHRM SPECIALTY CREDENTIALS Let SHRM Education be your guide. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. LEARN MORE. Events Events SHRM Events SHRM Events Employment Law & Compliance Talent Conference & Expo Annual Conference & Expo INCLUSION Northern California Events State & Affiliate Conferences Women in Leadership Institute CEO Academy Webcasts SEE ALL EVENTS Global Events Global Events SHRM India Events SHRM APAC Events Event Resources Event Resources Speakers Bureau Speak at a SHRM Event Speaker Directory Sponsorship & Exhibitor Information SHRM Annual Conference & Expo 2024 Chicago, IL | June 23-26, 2024 REGISTER NOW. SHRM HR JOBS. Hire the best HR talent or advance your own career. Post a Job. See All Jobs. LOCAL CHAPTERS. Find chapters in your area. Find Chapters. search. Reset Search. SHRM GLOBAL SHRM India SHRM MENA. Contact Us. Sign In. Join Now. matt.gonzales@shrm.org. By Matt Gonzales. October 12, 2023. LIKE. SAVE. PRINT. EMAIL. Reuse Permissions. Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item. ​While companies across the U.S. are scaling back their inclusion, equity and diversity (IE&D) efforts, a new survey of 445 HR leaders by software firm Capterra revealed that many others have actually invested more heavily in IE&D in 2023. The report found that over half (58 percent) of HR professionals with a dedicated budget for IE&D claim their companies are placing even higher importance on these efforts this year than previously. A majority of respondents (65 percent) say their budget actually rose in 2023. "After seeing reports and speculation about DE&I cutbacks last year … and given the uncertainty around the economy, I fully expected businesses to report a decrease in DE&I budgets and prioritization in 2023," Brian Westfall, principal HR analyst at Capterra. "Instead, I found the opposite." Among HR leaders surveyed: 86 percent agreed that the Supreme Court's decision to overturn affirmative action puts more pressure on employers to improve and monitor IE&D. 67 percent said they're investing more in dedicated IE&D headcount and diversity recruiting resources. 8 percent said their company's IE&D budget fell in 2023. Why Are Inclusion and Diversity Budgets Growing? Capterra researchers cited several factors that have influenced a rise in IE&D budgets. The layoffs of inclusion and diversity staff in the tech industry didn't impact other private-sector employers. The report noted that the most significant IE&D cuts are set to take place in the public sector, where large state employers such as Texas and Florida passed legislation to eliminate such programs at public colleges and universities. "I think the economy not spiraling as expected is playing a significant role" in employers keeping their inclusion staff, Westfall added. In 2022, companies across the U.S. instituted hiring freezes, cuts to bonuses, and travel budget reductions as a way to "wait and see" what would happen with the economy and to start preparing for the worst, he said. However, as Westfall explained, "when the clouds cleared and the chances of a recession dwindled, I think companies felt confident enough to keep spending on their important talent priorities, like DE&I. "Despite the prevailing narrative that businesses are struggling right now, we find that companies are actually doing pretty well for the most part," he added. "A rising tide raises all ships, and that includes DE&I." Three Ways to Elevate IE&D Programs. The report found that just 30 percent of HR leaders strongly agree that their company won't sacrifice IE&D during an economic downturn. "I think DE&I programs got lucky that the economy didn't crash as expected," Westfall said. "But that doesn't mean they'll be safe from cuts if a recession actually takes place." Westfall explained that organizations can emphasize IE&D's importance in three ways: Add rank-and-file employees to your inclusion and diversity leadership teams. Promote IE&D goals to all employees, not just managers and executives. Communicate IE&D benefits, events and progress more frequently. Reports have indicated that investing in inclusion and diversity supports recruitment and retention efforts . Many employees, particularly young professionals, want their companies to commit to IE&D: A 2023 study showed that 44 percent of Generation Z and Millennial employees report having previously resigned from a job because the company's values—including those related to diversity and inclusion—did not align with their own. Another 2023 study, focused on corporate IE&D , revealed that 66 percent of employees believe their company should commit more time and resources to IE&D initiatives than they currently do. "It's become abundantly clear that employees want their companies and leaders to invest in DE&I," said Janeen Speer, chief people officer at software company Benevity in Calgary, Alberta. "And there are real consequences that businesses face when they choose not to do so." Business Case For D and I. LIKE. SAVE. PRINT. EMAIL. Reuse Permissions. Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item. You have successfully saved this page as a bookmark. Please confirm that you want to proceed with deleting bookmark. You have successfully removed bookmark. Delete canceled. Please log in as a SHRM member before saving bookmarks. Your session has expired. Please log in as a SHRM member. Cancel. Please purchase a SHRM membership before saving bookmarks. An error has occurred. Hi, I thought you'd like this article I found on the SHRM website: Is Corporate IE&D Dying? Maybe Not. Send. Cancel. Close. 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