The Impact of Losing DEI: What Employers and Job Seekers Need to Know

December 18, 2024•11 min read

Introduction: A Critical Crossroads

How might workplaces evolve without Diversity, Equity, and Inclusion (DEI)?

What would the impact be on talent acquisition, diversity hiring, and inclusive workplace practices?

Could the absence of these principles reshape job opportunities, innovation, and employee trust in ways we haven’t fully considered?

As debates around the role of DEI continue to dominate headlines, it’s worth asking: Why was DEI introduced in the first place, and what would its absence mean for job seekers, employers, and the workforce as a whole?

For job seekers, employers, and concerned individuals, understanding DEI’s origins, impact, and potential absence is critical—especially in today’s competitive job market where inclusive hiring practices and diversity jobs are key differentiators.

It’s more than a workplace trend—it has real consequences for opportunity, innovation, and culture. Let’s take a step back to understand what DEI stands for, its history, and how it has shaped modern workplaces.

What Is DEI, and Why Was It Needed?

DEI refers to Diversity, Equity, and Inclusion. Together, these principles aim to:

Diversity: Ensure representation of people from varied backgrounds, identities, and experiences.
Equity: Provide fair access to opportunities by recognizing and addressing systemic barriers.
Inclusion: Create workplaces where individuals feel valued, heard, and empowered to contribute.

A Brief History of DEI: From Challenges to Change

DEI as a concept has roots in the Civil Rights Movement of the 1960s, when activists fought for equal rights in education, employment, and public life.

These efforts laid the groundwork for modern diversity hiring and inclusive workplaces, which aim to ensure equal opportunities and fair treatment across all industries.

Legislative milestones like the Civil Rights Act of 1964 and Title VII banned discrimination based on race, color, religion, sex, or national origin.

These legal changes were critical in addressing overt exclusion and unfair treatment in workplaces.

For example, the introduction of Title VII led to significant increases in workforce diversity, particularly in industries that had previously excluded women and minorities.

Over time, these changes helped pave the way for more equitable hiring practices and greater representation in leadership roles.

But challenges persisted:

Representation Gaps: Women, minorities, and marginalized groups were often excluded from leadership positions.
Unconscious Bias: Hiring and promotion decisions favored individuals from privileged or familiar backgrounds.
Access to Opportunities: Limited education, mentorship, and resources disproportionately impacted underrepresented groups.

Businesses began to respond in the 1980s and 1990s when advocates like Roosevelt Thomas introduced the idea of “managing diversity” as an economic and cultural imperative.

Companies slowly recognized that diversity wasn’t just a moral obligation—it made business sense, too.

Challenges DEI Was Designed to Solve in Workplaces

DEI emerged as a solution to tackle these barriers in the workplace, recognizing the human cost of exclusion and inequality.

It also introduced a framework for addressing systemic barriers through diversity hiring practices, ensuring that workplaces reflect the talent and perspectives of all individuals.

For individuals denied opportunities due to systemic bias, DEI represented a chance for fairness and empowerment.

Socially, it acknowledged the need to create spaces where talent from all backgrounds could thrive, and businesses could harness the full spectrum of human potential.

Creating Fair Hiring Practices: Ensuring equitable access to jobs for all individuals, regardless of background.
Reducing Bias: Implementing training and systems to eliminate unconscious bias in hiring, promotions, and performance evaluations.
Building Inclusive Cultures: Creating environments where diverse employees feel heard, respected, and valued.
Expanding Talent Pipelines: Investing in diverse talent pools through partnerships, outreach programs, and mentorship opportunities.

Transformations Enabled by DEI: Stories of Impact and Progress

DEI has shown its ability to drive transformation, improve diversity hiring outcomes, and deliver measurable results. For both employees and employers, it’s not just about fairness—it’s about achieving real success.

Many leading organizations have experienced measurable ROI and cultural shifts through DEI initiatives:

Microsoft
By embedding DEI into its corporate values, Microsoft increased representation of women in leadership by 29% between 2017 and 2022. Microsoft also credits inclusive practices with driving innovation, contributing to a $16 billion increase in annual revenue from diverse product designs (Microsoft, 2022).
Johnson & Johnson
The company’s comprehensive DEI strategy increased underrepresented group representation across managerial roles. In addition to improving employee satisfaction, Johnson & Johnson reported a 17% improvement in employee productivity and strengthened its position as a top employer for diverse talent (Johnson & Johnson, 2021).
Salesforce
By implementing pay equity reviews and inclusive hiring practices, Salesforce closed wage gaps and improved team diversity. These efforts led to a 20% increase in employee retention and stronger innovation metrics within diverse teams (Salesforce, 2023).

Companies Doubling Down on DEI Initiatives in 2024

Despite ongoing debates, many organizations have doubled down on DEI initiatives, recognizing their critical role in driving growth, innovation, and workplace satisfaction.

In 2024, several leading companies have announced the launch of DEI divisions to strengthen their commitment:

Formula 1: The billion-dollar global racing giant expanded its DEI efforts by launching dedicated programs aimed at increasing representation among underrepresented groups in motorsport roles (Formula 1, 2024).
Intel: Intel established a new DEI council to drive inclusive hiring practices and equity-focused talent programs across its global operations (Intel, 2024).
Adidas: Adidas launched its Inclusive Leadership initiative to ensure greater diversity across management teams and foster employee belonging at every level of the organization (Adidas, 2024).

These examples demonstrate that businesses continue to prioritize diversity and inclusion—not only as ethical imperatives but as essential strategies for long-term success.

The Positive Impacts of DEI on the Workforce

Before looking at what happens without DEI, it’s essential to highlight its tangible benefits across the workforce:

Increased Innovation: Diverse teams drive creativity and problem-solving. Companies with diverse leadership report a 19% increase in innovation revenue (Boston Consulting Group, 2018).
Better Financial Performance: Companies in the top quartile for diversity outperform their peers by 25% in profitability (McKinsey, 2020).
Improved Employee Retention: Inclusive workplaces see a 20% increase in employee retention (Deloitte, 2020).
Greater Talent Attraction: 76% of job seekers consider a diverse workplace critical when choosing where to work (Glassdoor, 2020).
Higher Team Performance: Inclusive teams make decisions 2x faster with 87% better results (Forbes, 2019).

What Happens If DEI Is Removed?

If DEI initiatives are removed, the workplace landscape may shift—and not necessarily for the better. Here’s how:

1. Job Seekers May Lose Trust in Employers

Job seekers rely on DEI as a signal that an organization values fairness. Research from Glassdoor (2020) shows that 76% of job seekers prioritize diversity when evaluating potential employers. Without DEI:

Talented candidates may question whether they’ll be seen or valued.
Younger generations, who prioritize inclusivity, may look elsewhere.

Outcome: Employers risk losing diverse and high-performing talent to competitors who prioritize inclusion.

2. The Playing Field Could Remain Uneven

Systemic barriers—like access to education, mentorship, and resources—remain without DEI. Research from the Harvard Business Review (2021) highlights that diverse candidates face disproportionate challenges in securing opportunities without equitable support systems.

Outcome: The meritocracy model fails as systemic inequities continue to disadvantage underrepresented groups.

3. Innovation and Performance May Decline

Studies show that diverse teams consistently outperform homogenous ones. Without DEI:

Companies may lose creativity and decision-making advantages.

Research from the Boston Consulting Group (2018) confirms that innovation revenue could decline by up to 19% without diversity.

Outcome: Companies risk stagnating innovation, limiting their growth and competitive edge.

4. Workforce Culture May Suffer

DEI fosters belonging and morale, which drives productivity and retention. According to the Deloitte Inclusion Study (2020), inclusion practices improve employee engagement by 25%. Without DEI:

Employees may feel isolated or undervalued.
Turnover rates increase, raising organizational costs.

Outcome: Companies experience poor morale, higher attrition rates, and weakened employer branding.

What’s the Alternative? Understanding MEIL and the "Merit-Based" Approach

In recent discussions, alternatives to DEI have been proposed, including the Merit-Based system and the emerging framework known as MEIL—Merit, Excellence, Intelligence, and Loyalty.

The Merit-Based Approach

The merit-based system emphasizes evaluating individuals solely on talent, skills, and performance, rather than considering demographic characteristics or systemic barriers.

Supporters of this approach argue that it eliminates bias by promoting a colorblind or identity-neutral framework (Harvard Business Review, 2021).

Why Supporters Believe It Works:

Focus on Individual Achievement: Proponents claim that meritocracy ensures promotions, opportunities, and recognition go to individuals based strictly on their ability to perform.
Simplifies Decision-Making: The approach removes perceived complexity in DEI policies, making hiring and promotions straightforward and objective.
Equal Treatment: Advocates argue that treating everyone the same, regardless of background, aligns with principles of fairness and prevents reverse discrimination.

The Rise of MEIL: Merit, Excellence, Intelligence, and Loyalty

MEIL is a newer framework that expands on meritocracy by incorporating the values of excellence, intelligence, and loyalty. Proponents of MEIL believe it creates a high-performing workplace culture by emphasizing:

Merit: Rewarding individuals based solely on their skills, contributions, and performance.
Excellence: Fostering a culture that prioritizes exceptional results and continuous improvement.
Intelligence: Valuing intellectual rigor, critical thinking, and problem-solving capabilities in decision-making.
Loyalty: Recognizing and rewarding dedication and commitment to the organization’s mission and long-term success (Forbes, 2024).

Why Supporters Prefer MEIL:

MEIL is presented as a clear, measurable approach to evaluating performance and potential, free from demographic considerations.
Proponents argue that by fostering loyalty and excellence, MEIL creates a culture of stability, high standards, and productivity.

Critiques of the MEIL and Merit-Based Approaches

While MEIL and merit-based systems focus on individual achievement, critics argue they overlook systemic barriers that impact access to opportunities. Key concerns include:

Unequal Starting Points: Not everyone begins with the same resources, education, or opportunities. Without equity measures, systemic inequities remain.
Subjectivity of Merit and Excellence: Standards for “merit” and “excellence” can be subjective, influenced by existing cultural norms or biases.
Risk of Homogeneity: Without active inclusion efforts, workplaces may become less diverse, limiting innovation and creativity.

In Context: Proponents of MEIL and merit-based systems aim to prioritize performance and loyalty. However, DEI doesn’t eliminate merit—it ensures that everyone has a fair chance to showcase their skills, succeed, and contribute to a high-performing workplace.

DEI, MEIL, and Merit: Creating True Opportunity

DEI, MEIL, and merit-based systems are often presented as opposites. However, the reality is that they can complement one another to build workplaces that are both fair and high-performing.

Equity Sets the Stage for Merit: DEI addresses systemic barriers—like access to education, mentorship, and resources—that limit opportunities. By creating equitable conditions, individuals have a real chance to succeed and compete on merit.
MEIL Promotes Performance and Loyalty: MEIL emphasizes merit alongside excellence, intelligence, and loyalty—values that foster exceptional outcomes, continuous growth, and organizational stability. Combined with DEI, MEIL can ensure achievement is recognized in an inclusive environment where everyone has the opportunity to excel (Deloitte, 2023).
Merit Thrives in Inclusive Workplaces: Inclusive cultures created by DEI enable diverse talents to contribute, innovate, and achieve. This sets the foundation for fair recognition of skill, effort, and performance while benefiting organizational outcomes.

Together, DEI and MEIL ensure that organizations reward talent and performance while addressing systemic inequities. By combining equity with performance-driven values, companies can build a stronger, more inclusive workforce that thrives on fairness, innovation, and success.

Charting the Path Forward

As conversations around DEI and merit-based systems evolve, one truth remains: workplaces that prioritize fairness, innovation, and opportunity perform better.

DEI is not a replacement for merit but a complement to it—ensuring that talent and hard work can shine, regardless of systemic barriers.

The question isn’t whether merit should matter. It’s about ensuring everyone has the opportunity to compete on a level playing field.

Building Inclusive Workplaces Together

For over 25 years, Diversity.com has been committed to helping job seekers connect with employers who value diversity, equity, and inclusion. Our mission remains unchanged: to bridge the gap between opportunity and talent.

Even as debates continue, we stand firm in advocating for workplaces where everyone—regardless of their background—can thrive, innovate, and contribute to success.

Discover opportunities where you’re valued.

Whether you’re an employer looking to build a dynamic team or a job seeker ready to contribute your unique skills, Visit Diversity.com to find connections that drive growth, innovation, and success.