Progress, uncertainty and backlash: The current state of DEI
Like so many social issues in America, DEI progress is slow—and sometimes hard to see at all.
Just over two years ago, the death of George Floyd sparked a national movement toward racial justice. In the business world, that movement was adopted by those calling for diversity, equity and inclusion (DEI) in the workplace.
The concept of promoting diversity was not new to American businesses, but the DEI movement gained prominence as both corporate leaders and rank-and-file employees began to put a higher value on DEI. The movement also happened at a time when younger workers increasingly expressed a desire to work for companies that had a positive impact on the world.
Over the past two years, many companies have devoted time and energy to talking about DEI, but at this point, the reviews about advancements in this area are mixed. Like so many social issues in America, progress is slow—and sometimes hard to see at all. Many times, what you see depends on where you stand.
Related: Despite best of intentions, DEI strategies often fall short
Leaders in the benefits space express a range of opinions about DEI, and there is little consensus on how much progress has been made. While there have been changes in the way benefits are talked about, and some advancements in benefit designs and products, measurable improvement is difficult to define. More concerning is the fact that in some areas, a backlash to the principles of DEI seems to be developing.
A new focus
One benefits leader who is seeing positive change is Ami Shah, vice president of national accounts at Corporate Synergies and a 2022 BenefitsPRO Broker of the Year finalist. The benefits consulting firm has a national footprint, with offices up and down the East Coast, and has dedicated itself to representing inclusivity, Shah says.
“The death of George Floyd was such a watershed event,” she says. “After that, companies began to take the concept of DEI much more seriously than they did in the past.”
When it comes to specific changes to benefits, Shah says companies are now looking beyond the traditional demographics to now consider geographic areas and economic realities. “Access to services, programs and certain benefits may look very different in New York City compared to Montana,” she says. “What are the socio-economic needs? A person making $200,000 in an organization has a very different level of access than someone who is not as highly paid.”
Shah says she has seen a range of evolving benefits that are seeking to address diversity in the workplace. Fertility benefits, financial benefits, and childcare and family support, for example, are all areas where employers and carriers are adjusting programs to be more inclusive. The commitment needs to come both from senior leadership and from grassroots efforts, according to Shah. “When the message and support come from both sides, it remains strong. If one side or the other starts to step away, we’ve seen it doesn’t stick.”
A somewhat different viewpoint is held by Tony Lee, managing partner at Dickerson Insurance Services in Los Angeles, who says that while many companies have a heightened awareness around DEI, he’s not seeing a lot of specific new products that address issues around inclusion and diversity.
“What I’m seeing more of now are intentional efforts inside of organizations to actually address inclusion and diversity,” he says. “As far as products, I don’t see much of that. There is a sensitivity and there is a lot of research and talk going on; I just don’t know if it’s enough to move the needle at this point.”
Doubt about top-down approaches
Diversity is a hallmark of American society, and there is a diversity of views about DEI among insurance professionals. Fernando Martinez, executive employee benefits advisor at Clarus Benefits Group, believes there are limits to a corporate approach to fighting inequity.
“I don’t think racism is going to be changed by companies,” he says. “I think it’s changed by individuals. They need to have confidence and they have to understand that we are living in a great country that allows us the opportunity, but it’s up to you as an individual to take advantage of it.”
Martinez says he has seen the lack of diversity in the benefits industry, where he is often the only person of color in the room. But he doesn’t think corporate action is effective in changing that reality. And coming from a diverse area—he lives and works in Houston, Texas—he has seen how unproductive the discussion around race can become.
“If companies are having this conversation, good on them,” he says. “But I wonder if we’re going to see the same thing years from now. Is it going to be a short-term conversation that doesn’t go anywhere?”
A direct challenge to DEI
In Florida, the DEI movement is facing more than skepticism. Gov. Ron DeSantis signed the Stop WOKE Act on April 22, potentially limiting the ability of businesses to conduct DEI training. The bill is seen as an attempt to address fears of Critical Race Theory—an academic theory that some Republicans have said, without evidence, is being taught in public schools.
Regardless of what is being taught in schools, many in the benefits field see the legislative act as a direct threat to DEI programs in the workplace. A recent story in Fortune Magazine said the law could create “A chilling effect on diversity efforts in the workplace.”
Lee is more blunt: “It’s devastating,” he said. “And frankly I find it racist because it is created and built out of a set of facts that aren’t facts. From a state perspective, it can have all sorts of chilling effects on companies that really want to do the right thing but may not feel that they can because of a state law. It’s just a horrible piece of legislation.”
The law was immediately challenged by a lawsuit claiming that it is unconstitutional. One of the plaintiffs in that case is Tammy Hodo, Ph.D., founder of All Things Diverse, a company that provides diversity training to companies in Florida and elsewhere.
Hodo agrees with some industry insiders who see companies rushing to finish diversity training before the July 1 enactment of the law, but notes that the bill will continue to create a degree of uncertainty around DEI programs. “I think it’s going to have an overarching negative impact on companies inside Florida as well as those with operations inside Florida,” she says. “This will create an environment where people cannot talk or are afraid to talk, because they don’t know what’s going to happen.”
DEI isn’t the only area where politics are intruding on employee benefits, Shah notes. She says her phone has been “ringing off the hook,” following media coverage of the Supreme Court overturning Roe vs. Wade, the landmark abortions rights case. At a time when some companies have been expanding health coverage in areas such as contraception and family planning, a sudden upheaval in settled law could cause headaches for many companies.
The longer view
Despite the challenges, Lee feels that companies such as his are starting down the road to a more equitable future. “At least for us, it’s been very intentional and at the top of our list,” he says of DEI programs. “We’re just getting it off the ground, and there’s a lot of interest and activity around it.”
Shah says her experience suggests that despite everything, companies are still committed to DEI.“I think the focus is still strong,”she says. “Most organizations have continued to be very serious about it.”
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