A quiet retreat is underway in boardrooms across industries. Companies are scaling back their commitments to Diversity, Equity, and Inclusion (DEI), citing political pressures or inefficacy. But make no mistake—this rollback is not a neutral decision. It is a step backwards with measurable consequences for business performance, workforce engagement, and broader social progress.

The argument against DEI is often framed around claims that such initiatives are ineffective or divisive. However, the data tells a different story. According to a 2025 Harvard Business Review analysis, 91% of workers report experiencing discrimination based on race, gender, disability, age, or body size, while 94% say a sense of belonging is critical to workplace well-being. Yet, public support for DEI initiatives has declined to just 52% of American workers, primarily due to miscommunication and ineffective implementation rather than a lack of necessity.

What happens when DEI is scaled back?

Claudia Goldin's Nobel-winning research provides a sobering picture of what happens when equity initiatives stall. Her analysis of labour market trends shows that the gender pay gap isn't merely a result of individual choices; it is deeply embedded in workplace structures. Here are a few of the examples she explored:

• "Greedy work"—roles that disproportionately reward long hours and 24/7 availability—remains a major driver of gender pay disparities. When companies fail to address structural barriers, women and caregivers are systematically disadvantaged in career progression.

• Goldin's research also reveals that the absence of equitable policies locks certain groups out of leadership pipelines, not because of a lack of ambition or competence but because of outdated workplace norms that assume all high performers can work without flexibility.

• Without intervention, wage stagnation among marginalised groups leads to broader economic inequality, impacting companies and entire societies.

The corporate world has been here before. In the 1980s, as women entered the workforce in greater numbers, progress on gender pay equity slowed because organisations failed to adapt their policies to accommodate this demographic shift. History is threatening to repeat itself. A rollback of DEI today will not merely maintain the status quo—it will reverse decades of incremental progress, making it even harder for future generations to close the gaps.

Why traditional DEI hasn't worked—and how to fix it

The backlash against DEI stems partly from how these initiatives have been implemented. As HBR's "What Comes After DEI" article points out, many organisation’s have defaulted to symbolic rather than substantive efforts—one-off workshops, vague corporate statements, and siloed diversity programs.

Leaders need to recognise that DEI isn't failing because the principles are flawed but because execution has been superficial in certain spaces. Instead of abandoning these efforts, companies should evolve them into something more results-driven, systemic, and durable.

Moving Beyond DEI: The FAIR Framework

Organisations need a new blueprint to move forward. The FAIR framework by Lily Zheng, which stands for Fairness, Access, Inclusion, and Representation offers a practical, outcomes-driven alternative to traditional DEI.

This data-driven, systemic approach is already yielding better outcomes in progressive organisations. Instead of focusing on mandatory diversity training or one-off "awareness" events, leading companies are redesigning hiring, feedback, development training and promotion structures to reduce bias at its root.

Yugrow's Perspective on Road Ahead

As the world becomes increasingly complex and polarised, organisation’s must look past the noise and lead with clarity, conviction, and purpose. At Yugrow, we believe organisations must move beyond surface-level DEI efforts by prioritising fundamental, unifying truths—principles that ensure all individuals are seen, heard, and valued while fostering fairness, access, inclusion, and representation at every level.

We see change not as a disruption but as an opportunity to bridge divides and drive meaningful transformation. The future belongs to organisations that move past performative measures and embrace strategic, data-driven action. Developing underrepresented talent segments is not reverse discrimination—it is a business imperative that fuels innovation, competitiveness, and long-term success.

The Choice Leaders Must Make

Now, abandoning DEI is not just a leadership misstep but a business risk. Companies that continue to foster fair, inclusive workplaces outperform those that retreat. The question for leaders is no longer whether to invest in equity but how to do it better. The FAIR framework offers a way forward that isn't about checking boxes—it's about building a sustainable, high-performance culture for the future.

A reversal of progress today means facing a more fragmented, less competitive workforce tomorrow. The leaders who understand this will shape better businesses and define the next chapter of corporate success.

Written by Yugrow.

Reference: https://hbr.org/2025/01/what-comes-after-dei