- March 20, 2023
Was the energy we saw companies put toward DEI in 2020 the start of a movement? Or was it a passing moment? It’s likely too soon to tell, and the fight for social justice may never be “done,” but Built In’s 2023 report on the State of DEI in Tech certainly provides a snapshot of where we are now.
In the report, which surveyed more than 1,000 tech employers and employees, 51 percent of workers say they’ve witnessed discrimination at work because of someone’s race, gender, sexual orientation, religion, disability or other demographic trait.
Among the surveyed tech companies, 30 percent state DEI is not vital to their company’s success. Of survey participants who note resistance to DEI, 40 percent say it stems from not wanting to pull resources, time or energy from other parts of the business.
For DEI leader Kellie Wagner, Co-Founder and CEO of Collective, a modern DEI lab, those findings ring true. She sees more companies divesting from DEI as market forces pull leaders’ focus elsewhere.
Wagner notes that, in 2020, many leaders invested in DEI because there was a sense of urgency, not to mention social and moral pressure. If companies acted solely from a sense of obligation or desire to appease the public, it bodes poorly for DEI success.
“This work is long term, and it’s hard,” she says. “And you need a north star vision that’s clear on what it’s going to do for your business and for your culture. When the work is hard, and you don’t see the results as quickly as you want, it’s very easy to divest. You don’t even know yourself why you’re doing the work beyond: ‘I felt pressure in a given moment.’”
“This work is long term, and it’s hard. And you need a north star vision that’s clear on what it’s going to do for your business.”
-Kellie Wagner, Collective
Our survey shows that many employees believe their companies lack the focus required: 51 percent of professionals feel the effort their employers are putting toward DEI is poor.
Meanwhile, Wagner is seeing fellow practitioners leave the DEI space. “It feels like screaming at a brick wall,” she says. “We’re telling you all the things you need to do but you’re not willing to invest in a way that will make change.”
Still, she understands why it’s difficult.
“Where I do empathize with companies and leaders is that they’re operating in an environment that isn’t conducive to DEI being successful,” says Wagner, who underscores the immense pressure companies are under to be profitable for their investors and shareholders, who want maximum returns. “We know diversity drives business results, but DEI is not the type of thing you can do overnight.”
For all that, Wagner remains cautiously optimistic. “I don’t think that you can do DEI work for any extended period of time and not be an optimist. It would just be too much of a burden.”
“I don’t think that you can do DEI work for any extended period of time and not be an optimist. It would just be too much of a burden.”
-Kellie Wagner, Collective
The massive exodus of women from the workforce since 2020 was spurred by many factors. Some women left involuntarily, some changed companies and others started their own companies. Those entrepreneurs may be inspired to build new systems that do in fact allow DEI to flourish.
Almost half of startups in 2021 were formed by women, versus 28 percent in 2019, according to a study by HR cloud software company Gusto. Three times more Black entrepreneurs also started businesses. This share has tripled from 3% in 2019 to 9% in 2021.
“That is part of what is going to change the workplace: people starting companies and saying, ‘I’m going to do business differently,’” says Wagner. “The more that we can champion those companies, the more we’ll see inclusive workplaces that take care of people and also attain success as a business.”
“That is part of what is going to change the workplace: people starting companies and saying, ‘I’m going to do business differently.’”
-Kellie Wagner, Collective
Companies that achieve that two-fold success — inclusive cultures and business growth — will stand out as distinct from the competition for both candidates and consumers. That could well set a higher bar, leading existing organizations to refocus on DEI.
In speaking about her cautious optimism, Wagner alludes to the speech, “Remaining Awake Through a Great Revolution,” which Dr. Martin Luther King Jr. delivered in 1968. In it, he said: “We shall overcome because the arc of the moral universe is long but it bends toward justice.”
Wagner puts faith in younger workers who are just now entering the workforce. For the next generation, DEI is a must.
“In order for companies to get the workers they need, they’re going to have to make these shifts,” says Wagner. “The question is: Is it going to be a painful transition or will leaders enthusiastically come along for the ride?”
That question may also be too soon to answer. But if any group is capable of keeping the arc bending in the right direction, it would be, as it so often is, the next generation.
