The recent decisions by tech giants Google and Microsoft to dismantle their DEI (Diversity, Equity, and Inclusion) divisions have sparked widespread debate. While some view this as a step back in the fight for workplace equality, others see it as a necessary reckoning with the ineffectiveness of current DEI practices.

Despite the good intentions behind DEI initiatives, many companies are finding that these programs are not living up to their promise. The problem lies in how DEI has been practiced in recent years, treating the symptoms of inequality rather than addressing the root causes.

The promise of DEI

DEI initiatives were launched with the promise of creating more inclusive and equitable workplaces. The goal was to ensure diverse representation at all levels of the company, foster an inclusive culture, and address systemic inequalities. For example, many tech companies, including Google and Facebook, made headlines with their ambitious diversity goals, aiming to increase the representation of women and minorities in their workforce.

In 2020, Google committed to improving leadership representation of underrepresented groups by 30% by 2025. Similarly, in the finance sector, companies like Goldman Sachs implemented DEI programs focused on mentorship and sponsorship for underrepresented groups, boasting a 25% increase in the hiring of women in 2019 alone.

However, the initial enthusiasm for these initiatives often led to a rush to implement them without a thorough understanding of the underlying issues. DEI training sessions became mandatory, but they were often superficial, focusing on compliance rather than genuine change.

Companies touted their diversity statistics, but these numbers did not necessarily reflect a truly inclusive and equitable work environment. For instance, Facebook faced criticism when, despite its diversity hiring efforts, internal reports revealed persistent racial biases and a lack of career advancement opportunities for minority employees.

The current reality

Despite significant investments in DEI, many organisations have seen limited success. A McKinsey report highlighted that while companies have made progress in diversifying entry-level positions, representation at the senior management level remains largely unchanged. As of 2020, women held only 21% of C-suite positions globally, a marginal increase from previous years. This points to a fundamental flaw in how DEI is being implemented—focusing on quick fixes rather than sustainable, systemic change.

Further, a study by Harvard Business Review found that diversity training had little to no positive effects on the attitudes and behaviors of the workforce. In some cases, it even reinforced biases. This underscores the need for a more integrated and thoughtful approach to DEI, one that goes beyond box-ticking exercises.

Symptoms vs. source

The fundamental flaw in many DEI programs is that they address the symptoms rather than the root causes of inequality. This approach can be likened to putting a band-aid on a deep wound. Superficial measures like mandatory training sessions and diversity metrics do little to change the underlying corporate culture and systemic biases that perpetuate inequality.

A common example is the focus on gender diversity. Companies often run basic analytics, discover gender inequality, and respond by hiring more women. However, this does not address the deeper issues. A more thorough analysis might reveal that women are not applying for jobs in the first place, or that there is a higher turnover rate among female employees.

For instance, a 2019 report by the Society for Human Resource Management (SHRM) found that women in tech are twice as likely to leave their jobs compared to their male counterparts, often due to a lack of advancement opportunities and a non-inclusive workplace culture .

Further examination could uncover that company policies and benefits are not supportive of women, or that the broader cultural and structural context in which the company operates is not conducive to women studying or working in certain industries or roles. This results in a limited female talent pool. For example, in many Middle Eastern countries, cultural norms and educational systems still pose significant barriers to women pursuing careers in STEM fields. In Saudi Arabia, despite recent reforms, only 15% of the STEM workforce is female .

To address real DEI, companies need to invest in in-depth analysis and tackle the root problems. This might involve revising company policies to be more inclusive, offering better support and career development opportunities for women, or engaging in broader societal initiatives to encourage women to enter certain fields.

One successful example is the Australian mining company BHP, which achieved a 20% increase in female representation over five years by implementing comprehensive support programs, flexible work arrangements, and proactive recruitment strategies .

Closing Thoughts

The recent moves by Google and Microsoft should serve as a wake-up call for all businesses. DEI initiatives must go beyond surface-level interventions and tackle the root causes of inequality. This means creating a genuine culture of inclusion, addressing systemic biases, and ensuring that all employees have the support they need to succeed. Only then can the true promise of DEI be realized.

In conclusion, while the dismantling of DEI roles by major companies is concerning, it also presents an opportunity for businesses to re-evaluate and improve their DEI strategies. By focusing on the root causes of inequality and fostering a truly inclusive culture, companies can make meaningful progress toward equity. It’s time for a deeper, more thoughtful approach to DEI—one that addresses the real issues and not just the symptoms.