Diversity, equity and inclusion (DEI) initiatives lost steam in 2023 compared to previous years as companies increasingly shift resources due to tightening economic conditions, according to Paradigm Consulting Group. Paradigm designs and helps firms implement DEI programs.
The total percentage of American organizations with a DEI budget dropped 4 percentage points, from 58 percent in 2022 to 54 percent in 2023, while the number of organizations with a DEI strategy fell 9 points in that same time frame, according to a report from consulting firm Paradigm. DEI initiatives in the workplace gained huge traction following the death of George Floyd, which encouraged companies to divert resources to the practice, but now “external forces,” including tightening economic conditions as well as public and judicial pressure, are pushing back on those efforts.
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