DEI Investment is Down, Long Term Implications Looming
Recession Fears Prompt Layoffs
We’ve all heard about the recent tech layoffs that were spurred by recession concerns, and with these layoffs impacting a total of 40,000 employees, many are worried about the job market. But these fears do not align with official labor market statistics. Layoffs are actually abnormally low compared to historical standards of around 1% layoffs, meaning it will continue to be an employees’ market. Consequentially, recruitment and retention should still be top of mind for most employers.
Layoffs are Gutting DEI Departments
The layoffs sweeping the technology industry are wiping out diversity and inclusion departments, threatening company pledges to boost underrepresented groups in their ranks and leadership. Listings for DEI jobs were down 19% last year according to Textio. Bloomberg News identified DEI professionals who lost their jobs in recent weeks at Amazon, Meta, Twitter and Redfin and the Twitter DEI team is down to 2 from 30 people. Many said they expect their responsibilities will go to former colleagues who remain or to employee resource groups, which often don’t get compensated for that work.
Workplaces are Returning to Pre-Pandemic Standards
Many workplaces are opting to cut the exact employee benefits that would help moms who were disproportionately driven out of the workforce during the pandemic. The share of employers that offer extended paid maternity leave dropped to 35 percent this year, down from 53 percent in 2020, according to new data from the Society for Human Resource Management. By reneging on things like flexible work and childcare, workplace are making it harder for parents to stay in the workforce.
What Implications Could be on the Horizon?
Research shows that workers are more likely to leave a company if they fail to demonstrate an investment in DEI. Nearly one in five female leaders have left a job that failed to prioritize inclusion according to an October report from McKinsey and LeanIn.org. And as Bloomberg points out, a 2019 survey of 2,000 workers, found that 39% didn’t pursue or accept a job if they perceived low DEI investment. If the labor market continues to be tight as predicted, cost-cutting in DEI departments could slow diversity hiring efforts, and even further retention issues. In early results of our 2023 Family Friendly Benefits Survey, we found that retaining their current workforce is the #1 top priority for employers, with improving gender equity and female representation in leadership a high priority as well. Therefore, in order to accomplish retention goals, organizations must continue to demonstrate their commitment to DEI investment.
For more information:
Despite Layoffs, It’s Still a Workers’ Labor Market (hbr.org)
Massive Tech Layoffs Are Undercutting DEI Progress Made With Recent Hires - Essence