As some organizations dial back their Diversity, Equity, and Inclusion (DEI) programs, the potential consequences for workplace dynamics, employee morale, and organizational success are coming into sharp focus.
Driven by financial pressures, shifting strategic priorities, or external influences, these reductions have ignited discussions about their broader implications.
We asked DEI experts, HR, and business leaders:
What are the possible outcomes of scaling back DEI initiatives?
Their responses highlight significant risks, including eroded trust, diminished innovation, talent attrition, and reputational challenges.
Yet, they also point to opportunities for organizations to reimagine DEI efforts with greater focus and sustainability.
In a world where authenticity and inclusivity are increasingly non-negotiable for employees and customers, these leaders underscore the importance of strategic, intentional approaches to preserve DEI progress.
Explore their expert insights below to uncover the risks, opportunities, and actionable strategies for navigating the complex terrain of DEI in today’s evolving workplaces.
Read on!
Ericka Prentice
Founder, mindfulnessmatters
Ericka Prentice
Let me begin by saying real change is never lasting if it’s based on the horror or sensation surrounding one event. The reasoning behind most of these initiatives was flawed at best and designed to alleviate white guilt.
Let’s be honest, backs were up against the wall after George Floyd because it was blatant and played in constant rotation. We’ve never had a problem with the killing of BIPOC people in this country. In fact, we’re a country that makes lynching postcards, burns a pregnant black woman, cuts her baby from her belly and stomps it to death. George Floyd was a routine lynching.
However, the world knew that Black America was not going to let this just go away and it was watching. The pressure was on and companies had to respond one way or the other.
DEI, the way most companies engaged with and implemented it felt performative at best. It did not and was not ever designed to address structural or systemic issues.
We have never been willing to have those conversations in America. We would rather maintain the comfort of particular groups than address the real needs of marginalized groups.
The companies that are stepping away were never committed to real change, only change that was going to keep them from losing money and their consumer base. They were never interested in doing the hard work or having the tough conversations or truly learning what it’s like to be a part of a marginalized group in this country or in their workplaces. They will say they were, but they lie, period.
This is why I do what I do. In my mind, teaching leaders how to incorporate mindfulness tools in their everyday lives is crucial.
When we teach leaders how to communicate mindfully, to understand aggressive language, how to listen and hold mindful meetings, we create leaders that are more inclusive, more compassionate and engage more meaningfully with their teams. In turn, their teams are more productive and experience genuine psychological safety.
We should’ve begun with mindfulness training prior to leaping into DEI initiatives. Mindfulness tools, and I’m talking beyond just breathwork and meditation, change lives, create better leaders and create better teams.
Dr. Laurie Cure
The current legal and regulatory landscape around DEI is certainly testing organizational agility and stamina. At the present time, I think companies are watching the legal volley around the issues and approaching it with caution, despite often believing and wanting to further the underlying intention of supporting greater representation, fairness and cultures of belonging.
In direct response to the question, organizations that have reduced their DEI initiatives have experienced pushback from consumers and employees alike. Sales, employee retention, reputation and supplier relationships have been negatively impacted by many of the companies that have aggressively moved away from DEI practices.
For organizations whose mission, vision and values are tightly aligned to inclusion, representation and fairness, DEI practices are more critical to them and their customer base. Eliminating or changing these practices has more significant implications.
DEI’s purpose is obviously threefold: ensure a workforce represented by individuals with various backgrounds, a focus on fairness with organizational practices, and creation of an environment where everyone feels respected, valued and empowered.
While underrepresented is often interpreted by race, it more often includes gender, individuals with disabilities, veterans and those who have served in our armed forces, as well as their spouses, LGBTQ, lower socioeconomic and/or educational backgrounds or certain age groups.
DEI is expansive and recognizes that human nature is flawed and biased and seeks to put structures in place that minimize those tendencies so everyone has a fair and equal opportunity. It is not designed to punish certain people who are more deserving or qualified than others, but rather, expand opportunities so everyone who is (or could be) qualified has an equal opportunity to be seen.
Tampering down on DEI practices risks stifling current and future talent and undermining a company’s own ability to compete and achieve higher levels of performance both individually and as organizations.
Ultimately, without focus and emphasis, we revert to old patterns of underrepresentation and we know that often leads to lower business performance. We also know from current research that most employees want diversity, equity and inclusion in their workplaces.
While there might be disagreement around specific practices, employees and leaders desire cultures that embrace diversity, fairness and belonging (call it what you will). Turnover, engagement, innovative thinking, and toxic workplace behavior, are all at risk with declining emphasis on these efforts.
I also think it is important that we continue to understand the difference between DEI and affirmative action. While there are some areas of overlap, most companies we work with (many who operate across the globe) are maintaining DEI efforts (although they might be calling them something different) and more closely examining affirmative action strategies, which often.
What is often more interesting to me is looking at those organizations that have elected not to move away from DEI practices.
They are staying within the law by eliminating quotas and race-based preferences, but they are maintaining (and growing) a commitment to language, DEI-specific programs, employee resource groups, inclusive hiring practices and benefits packages, and community engagement, which fosters diversity and inclusion.
Sahara Rose De Vore
Founder & CEO, The Travel Coach Network
Sahara Rose De Vore
Companies claim that company culture and wellbeing are part of their core values yet, scaling back on DEI programs speaks otherwise.
In order to promote a happier and healthier workplace, there needs to be diversity. To build compassion, empathy, acceptance, and understanding amongst coworkers, which in turn, boosts company culture, there needs to be diversity in cultures, abilities, genders, ages, etc.
This is because we are all different as human beings. Through interactions, conversations, and time spent with people who are different from yourself, your understanding and empathy for others builds.
Companies need good company culture to succeed. People need to feel understood, accepted, and trusted to perform well, to exercise their creative juices, and to be motivated.
Without a diverse workplace, employees will struggle to see new perspectives and lack care for team work, ultimately hurting the company itself.
Jamie Graceffa
HR Executive, Kind Cards
Jamie Graceffa
As DEI initiatives come under increasing scrutiny, HR professionals are being called to reimagine how we uphold psychological safety, build employee engagement, and nurture an inclusive culture—without compromising compliance or values. One powerful, unifying solution is kindness.
Kindness is not a soft skill—it’s a strategic one. It offers a human-centered bridge that helps preserve the essence of DEI, especially in climates where traditional approaches are being scaled back. Far from being politically charged, kindness strengthens trust, reduces conflict, and improves team dynamics. It reinforces inclusion and well-being while delivering measurable outcomes like stronger retention, improved performance, and a more meaningful employee experience.
Without DEI initiatives, the foundation of a healthy workplace culture begins to crack. Trust erodes, morale drops, and creativity is stifled. One-note thinking limits innovation, while unchecked bias opens the door to exclusion and toxicity. The consequences aren’t just cultural—they’re business-critical.
Intentional kindness in the workplace isn’t just a feel-good practice—it’s a catalyst for belonging, resilience, and long-term success.
Mark Sanchez
Founder, Tropic Residential
Mark Sanchez
We believe in fostering an inclusive environment where everyone feels welcome and represented—but we also believe the long-term success of any organization depends on a foundation of merit.
Scaling back DEI entirely risks alienating valuable voices, but overcorrecting can dilute the focus on performance and accountability.
The most sustainable approach is one that opens the door for everyone, then lets ability, work ethic, and results guide growth. Inclusion and merit don’t have to compete—they work best when they’re aligned.
Barbara Marzari
Communication & Engagement Strategy Director, Sociabble
Barbara Marzari
In the past few years, DEI programs have built more engaged, creative, and productive workplaces. So naturally, companies risk losing talent and weakening the morale and overall company performance if they pull back on DEI efforts.
From my experience helping entrepreneurs build their reputations, it is clear that inclusivity is a necessity today. If companies ignore DEI, they will surely see a decline in employee satisfaction, especially among underrepresented groups who feel that their voices are no longer being heard or valued. This could become costly both financially and in terms of brand equity.
Moreover, the young generation focuses on inclusivity and wishes their employer to do the same. So, scaling back DEI efforts could damage a company’s reputation in the eyes of potential hires as well. Once a company is seen as backward in DEI, it will struggle to attract top talent. This will become a bigger issue in creative industries where diversity brings innovation and performance.
DEI initiatives definitely demand effort and investment. However, such effort and investment are very small compared to the kind of reputation they build in the longer run. DEI builds a resilient and expanding company culture, and scaling it back would also pull back the progress companies have made.
So, how you decide to navigate through this as an organization is really going to matter.
Corina Tham
Finance & Sales Director, CheapForexVPS
Corina Tham
Reducing DEI efforts might influence the inclusiveness and equity within organizations. From my standpoint, particularly in fields like trading, varied viewpoints are essential for driving innovation and making sound decisions.
Pulling back on equity and inclusion could limit the diversity of ideas and hinder creativity in addressing challenges. Since trading relies heavily on examining different market trends and patterns, diverse teams are better positioned to tackle issues from various perspectives.
Businesses may also risk losing top talent who prioritize inclusive work cultures, which could impact overall outcomes. Furthermore, minimizing DEI initiatives might damage a company’s reputation, a key factor in client-focused industries like trading.
In my view, fostering diversity doesn’t just uplift individuals but also enhances the collective achievements of the team.
Ushmana Rai
Owner, TDEE Calculator
Ushmana Rai
Pulling back from DEI efforts may provide short-term relief or savings, but in the end, it is a retreat, not only in terms of culture but also competition.
Here’s how:
The Drain on Talent is Real: A large number of today’s workforce, especially the younger generations, look for an inclusive and equitable working environment. Any move that goes backward in DEI creates discontent among diverse talent and sends them out with the feeling that belongingness can be negotiated. This will gradually eat away at innovation and retention.
The Reputation is at Stake: Companies now that are letting DEI stand a step down may be branded as mostly performative. Today’s consumers and stakeholders are so values-led that silence and reversals do not go unnoticed.
Missed-Out Business Growth: A lot of studies have associated diverse teams with better decision-making and increased profits. It is not only a moral failure to scale back DEI but also a failed business strategy.
The Alternative? Refocus, Don’t Retreat: Instead of abandoning DEI, organizations should evolve it by integrating it into core strategies, leadership pipelines, and customer experience. That is the only way that true equity grows, quite, deep.
Karen Cosentino
Chief People Officer, Barge Design Solutions
Karen Cosentino
At Barge, our commitment to fostering an inclusive culture remains steadfast, independent of external policy changes.
We believe that diversity of thought, background, and experience drives innovation, strengthens our teams, and enhances the solutions we deliver. Rather than reacting to policy shifts, we remain focused on what has always been important to us—creating a workplace where all employees feel valued and empowered.
Candidates seek out companies that value inclusivity and professional growth. By focusing on the best talent for the role, we have seen steady increases in representation, particularly in areas where the AEC industry has historically had a higher percentage of men.
Employees are drawn to workplaces where they feel valued and have opportunities to connect. Our employee-led groups and professional development programs provide meaningful engagement beyond daily work, creating a stronger sense of community. We also believe that offering access to a variety of assignments generates an environment where innovation can prosper.
A culture of inclusion is built through daily actions, leadership commitment, and opportunities for connection. HR leadership serves as a resource to leadership and an advocate for employees, playing an important role in connecting all employees. Supporting the creation of employee-led groups or community-sponsored events builds connection and, subsequently, community.
Liam Perkins
Digital Marketing Manager, Privr
Liam Perkins
Scaling back DEI efforts isn’t just a step backward, it’s a full-blown trust fall with no one to catch marginalized employees. Let’s be real: DEI isn’t a “phase” you sunset after hitting a quota. When companies treat it like a trend, they signal that inclusion was performative, not foundational.
For brands like Privr, which exist to uplift LGBTQ+ communities, DEI isn’t optional, it’s the DNA. Gutting these initiatives risks alienating both talent and users who crave authenticity. Imagine a dating app that stops prioritizing queer safety features, trust evaporates overnight.
The anticipated outcome is a decline in creativity.
Homogeneous teams recycle ideas, while diverse teams spark innovation. Without intentional DEI, companies lose their edge in understanding nuanced markets, like Gen Z, who demand brands walk the inclusivity talk.
Plus, backsliding invites PR fires: employees and consumers will call out hypocrisy. Long-term, it’s a talent drain, marginalized folks flee environments where they’re an afterthought. DEI isn’t a cost center, it’s the ROI of relevance.
The HR Spotlight team thanks these industry leaders for offering their expertise and experience and sharing these insights.
Do you wish to contribute to the next HR Spotlight article? Or is there an insight or idea you’d like to share with readers across the globe?
Write to us at connect@HRSpotlight.com, and our team will help you share your insights.
Subscribe to our newsletters!
