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Don’t Let Downsizing or the Need for Layoffs Threaten Your DEI Efforts


For decades, diversity, equity and inclusion (DEI) efforts were considered nice-to-have (if they were considered at all). If they were, they tended to fall into the realm of initiatives that would be possible to pursue if the company was operating successfully and there were some surplus resources.


But when tough times emerged, these efforts were often among the first to fall by the wayside as companies sought ways to conserve resources and cut budgets.


DEI Efforts Proving Valuable


Today, businesses are increasingly aware of the critical importance of DEI efforts on business performance as well as recruitment and retention, and such efforts are decreasingly seen as merely discretionary.


Don’t Let Cutbacks Diminish That Value


Unfortunately, even in an era where DEI is increasingly values, it’s still the case that DEI efforts are often put on the back burner during hard times. Widespread layoffs, themselves, can negatively impact a company’s DEI efforts—initially by negatively impacting staff diversity. While a company might be actively recruiting and hiring diverse talent, if that diversity is disproportionately represented in layoffs, it’s two steps forward, one step back.


Cost Savings Can Come at the Expense of Inclusion


“While there’s no one-size-fits-all approach to determining who will be impacted by downsizing, decisions often occur at the top of the organization, driven first and foremost by cost-savings goals,” write Corey Jones, Dana Middleton and Rebecca Weaver in an article for Harvard Business Review.


“By focusing on cost savings at the expense of inclusion, leaders risk undermining the great work they’ve done to build trust and connection with their employees, particularly women and employees of color,” they say. It’s important for organizations to take the time to think through the potential impacts of downsizing or rightsizing efforts. This is important not only to avoid legal risks but to avoid negative impacts on building an inclusive culture.