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Diversity, equity and inclusion initiatives have increased in popularity in the past few years, inspired in part by the Black Lives Matter movement. But more recently, political backlash and corporate restraint, especially in the United States, have prompted a reassessment. Some companies have already reduced their budgets or diverse teams.
As a result, British consultants who specialize in advising on DEI policy are also feeling some pressure. But many of them are talking about a more nuanced landscape, with demand changing rather than disappearing, and customers demanding more sophisticated engagement with the topic.
“We're seeing a reframing,” says Verity Credi, vice president of product at leadership consulting firm DDI. She explains that protected diversity initiatives — such as a section or budget dedicated to DEI — are becoming less popular. Instead, for DDI clients at least, “it has become intentionally woven into their daily leadership responsibilities.”
For example, employees are trained on how to coach or delegate “through an inclusion lens,” to cover how to ensure employees from diverse groups are included.
Last year, DDI warned that many companies were “on the brink of a dangerous reversal in DEI progress.” In a survey published in 2023, it was estimated that the number of companies without diversity programs had risen from 15 to 20 percent since 2020. The number of leaders who supported their companies' efforts in this area also fell by 18 percent in that period. .
Lucy Brown, senior DEI consultant at UK HR consultancy Mercer, says she has heard increasing talk of “DEI fatigue”. However, she points out that in Mercer's recent talent survey, diversity and inclusion ranked third among global organizations' priorities. “This is at an all-time high,” Brown says, noting that increased regulatory focus and increased competition for talent are what is driving interest.
But a gap may emerge between “more mature companies…” . . “Push the envelope” with comprehensive policies, and those who care only about meeting legal requirements, Brown says.
“As consultants, we need to work harder to reshape perceptions, and show that [DEI] It must be [part of] She argues that it is business as usual and not a sign of it.
In the United States, consultant and Columbia University professor Peter Coleman says the political backlash has led some organizations to reduce investment in internal diversity initiatives. While such cuts sometimes lead to increased demand for advice from outside sources, he says: “I haven't seen a pivot to consulting.”
Coleman notes that the initiatives companies are scaling back are usually attempts at quick fixes, such as unconscious bias training. He adds that these things “are not necessarily bad, but they are not enough to move the needle.” On the other hand, the work done by consultants is often more demanding – requiring deeper analysis and strategizing from the organization.
Lily Cheng, a US-based independent DEI consultant and author who uses the pronoun they, says demand for her consulting services has never fluctuated.
One possible reason for this is that Zing's work treats diversity, equity, and inclusion as a long-term effort that requires organization-wide investment and change—Zing's commissions last for two years or more, and include detailed evaluations. “Companies that are smart enough to know they need something like this are not the ones that are going to shut down their DEI practices because of a tweet someone makes,” Cheng points out.
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As for the fluctuating interest in DEI more broadly, Cheng notes that it reflects a “common” pattern in an industry that is “characterized by very extreme ebbs and flows with fluctuating awareness of sexism, racism and transphobia.” This is “largely unhelpful in creating fairer institutions” and results in companies dealing with the issue “only in a shallow and superficial way”.
Karen Tuaronette, global head of DEI at professional services firm EY, agrees. “Consultants and the companies they work with should treat DEI as a multi-year business strategy. . . . Investing in a business requires a real, long-term commitment,” she says. But she is also relatively optimistic. While some companies have scaled back their DEI efforts , survey data conducted by legal consulting firm Littler shows that 57 percent of employers have expanded their initiatives over the past year.
Moreover, the need for consulting in this area remains as deep as ever, says Tuaronette. Given the complex political and economic pressures that tend to disproportionately impact marginalized groups, she says, “It is smart business for leaders to continually build and evolve their AI strategies so they are prepared to continually foster a more inclusive environment.”
It also means it's too early to panic about the death of diversity and inclusion, says Zheng, who believes there will always be good employers willing to make the investment: “There are sometimes bad companies that practitioners don't feel good about, and they don't do it.” It doesn't seem very sincere, they are transactional. Let them leave, there is always room for this work.
