‘Neither Dead nor Dying’: Studies Explore the Current State of DEI

Organizations across the United States are eliminating, modifying or scaling back programs designed to promote equitable and diverse workplaces amid worries over legal or compliance risk. But new data indicates removing these programs can, in itself, pose a significant risk.

Contributing to the collective backpedaling is the 2023 U.S. Supreme Court ruling against affirmative action and executive orders by President Donald Trump that describe these types of workplace emphases (whether formally or informally under the moniker of “diversity, equity and inclusion,” or DEI) as “illegal,” said Sue Holloway, a content director at WorldatWork.

In the same vein, the U.S. Department of Justice recently announced employers could lose federal and grant funding if their programs, including those designed to promote workplace equity and diversity, are found to violate anti-discrimination laws.

“DEI acronyms and strategies have since faced heightened scrutiny and, in some cases, misinterpretation when DEI is misunderstood as hiring quotas or exclusionary practices,” Holloway said. “In response, organizations are adjusting and reconciling their DEI policies with their goals. They may elect to avoid the DEI language while continuing to focus on equitable and fair workplaces that are diverse, which leads to better business outcomes.”

Access bonus Workspan Daily Plus+ articles on this subject:

• How to Reduce Risk, Maintain Value of Diversity and Equity Programs
• From Program to Core Strategy: Workplace Equity Evolves to Endure

Research Shows Diminished Morale, Diverse Hiring, Promotions

In a July survey of leaders from nearly 1,000 U.S. employers, career tools website Resume.org found:

• One-fifth of respondents’ employers eliminated DEI programs after the 2024 election.
• One in 10 reduced investments in their programs.
• More than half (57%) of those that had eliminated DEI programs subsequently hired fewer people in one or more underrepresented groups.
• One-third of those cutting programs subsequently promoted fewer underrepresented workers.
• One-half of organizations that cut DEI said morale is down.
• One-fifth saw increased reports of discrimination and bias.

“DEI is a strategic lever that improves innovation, retention and leadership pipelines,” said Kara Dennison, the head of career advising at Resume.org. “Companies that remain committed are positioning themselves to attract top talent and thrive in a global, values-driven marketplace, while those that retreat risk compromising their future resilience.”

Talent, Legal, Financial, Reputational Risk of Backtracking

“Risks of Retreat: The Enduring Inclusion Imperative,” a study conducted in January and February 2025 by Catalyst, a nonprofit organization focused on women’s advancement, and the New York University School of Law’s Meltzer Center for Diversity, Inclusion and Belonging, revealed several hazards emerge when organizations remove or reduce these programs:

• Talent risk. Seventy-six percent of employees are more likely to stay long term at organizations that support DEI. Almost half (43%) will quit if their employer stops supporting DEI. And, around half of millennials and Generation X workers — and 61% of Gen Z workers — “would never apply” for a job at an organization that doesn’t support DEI.
• Legal risk. Eighty-three percent of executives and 88% of legal leaders said maintaining or expanding DEI is crucial for mitigating legal risk.
• Financial risk. Eighty-five percent of executives and 89% of legal leaders said future investment in DEI programs will generate customer loyalty.
• Reputational risk. Employees (43%) are less likely than executives (63%) to see DEI as embedded into work practices at their organization. And, employees are more likely (24%) than leaders (12%) to believe DEI will become less incorporated in the future — signaling a perception gap and shaky trust.

“There’s such a focus on the legal risk of having DEI, but the crux of our report is the very real risk of removing DEI,” said Christina Joseph, a Meltzer Center research scholar and co-author of the “Risks of Retreat” report.

‘Adjustment Is a Spectrum’

Joseph, who also is the project director of the Meltzer Center’s Advancing DEI Initiative, said current corporate decisions to pull back on programs, either publicly or tangibly, should not necessarily be linked to critiques of some programs as performative or divisive.

“Moving away from the public sphere right now is not a response to that critique; it’s a response to fear of retribution, whether from the government or a legal risk,” she said. “That’s why employees are skeptical about organizations’ approach, because it’s not necessarily going to lend itself to being less performative in and of itself.”

Not all organizations are eliminating their programs outright — rather, some are “scaling them back in more subtle but equally damaging ways,” Dennison said. Almost two-fifths of organizations Resume.org surveyed had cut benefits tied to their DEI programs, including mentorship programs, employee resource groups (ERGs) and flexible policies that supported underrepresented workers.

“These reductions may not always make headlines, but their ripple effects are significant, including damaging morale, limiting advancement opportunities and weakening culture,” Dennison said. “They send a clear signal to employees that inclusion is no longer a priority, which can erode trust and create long-term damage to the organization’s reputation and performance.”

The Meltzer Center and Catalyst report found 78% of organizations are “rebranding” DEI with new terms — “workplace culture,” “belonging” or “fairness.” Organizations are removing statements of support from their websites and, in some cases, transitioning to promoting equitable and diversity workplaces in what Joseph describes as a more “low-key, stealthy” way.

“Adjustment is a spectrum,” she pointed out. “We can say ‘adjustment’ until eventually it becomes complete gutting.”

The Future of Equity-Focused Programs

Regardless of changes organizations may make — publicly or privately — efforts to promote equitable and diversity workplaces by those who prioritize it will continue, Joseph said.

“DEI comes from a long-standing tradition of fighting to uproot oppressive practices in the workplace or elsewhere,” she said. “There will always be people who push back and say, ‘The way you’re doing this is impacting this group of people disproportionately. It’s not based on their competency or effort; it’s based on their identity. And, we need to change it.’”

Case in point: 99% of employees and corporate leaders surveyed by Catalyst and the Meltzer Center agreed that all workers should feel respected at work and receive fair treatment — regardless of their background or identity, said Alixandra Pollack, the vice president of insights and solutions at Catalyst and one of the “Risks of Retreat” co-authors.

“DEI is neither dead nor dying, but it also will never be the same,” Pollack said. “It remains to be seen what will emerge on the other side of this moment of transformation. But a few things are clear: We did not fall asleep in the jungle and wake up in the desert. These changes have been brewing for years, and while this is one downswing of the pendulum among many swings before it, this moment, too, will pass.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Equitable and Diverse Workplaces
• Employee Experience
• Total Rewards