In this episode of The Workplace podcast, CalChamber General Counsel of Labor and Employment Bianca Saad and Associate General Counsel of Labor and Employment Matthew Roberts are joined by Jonathan Mayes, CEO of Jonathan Mayes Consulting, to discuss some of the changes happening in the diversity, equity and inclusion (DEI) space following recent executive action from the White House.
The early days of the second Trump administration were filled with a host of executive actions, including two (executive orders 14151 and 14173) that took aim at Biden-era DEI initiatives within the federal government and the private sector. Legal challenges to these orders have been at least partly successful, Mayes notes, highlighting a preliminary injunction in late February against certain provisions of these executive actions relating to federal contractors and the private sector.
Even so, companies are responding to the federal government’s new position in a couple of ways, with many taking a wait-and-see approach, while some are quietly shifting their focus away from DEI initiatives and others are holding fast to their commitments despite the promise of increased scrutiny.
Value Remains in DEI Initiatives
Regardless of the tone being set at the federal level, there is still value in building and maintaining DEI programs, Mayes says, pointing to boosted performance outcomes and the invaluable perspectives that a diverse workforce creates.
“People may not know what they don’t know. And one of the ways to learn is to get different voices in the room; and one of the ways to have different voices in the room is to have a diversity of thought and background and experience in the room.” Mayes says.
On average, he notes that companies with a focus on inclusion and diversity at the leadership level tend to outperform companies that are not making these goals a priority.
“What [surveys] found is that [in] companies that do the best in terms of diversity for women, people of color in leadership, there is a 39 percent likelihood that they will outperform companies at the other end of the spectrum,” Mayes says.
Adapting DEI Initiatives to a Changing Environment
Despite reports of widespread reversals away from DEI initiatives on the part of the private sector, Mayes says he is seeing companies opting to continue their programs while putting less emphasis on numerical benchmarks, particularly in California. He recommends that companies follow several steps to ensure their programs stay on solid legal footing, including coordination with legal counsel, internal and external programmatic audits, and evaluating internal and public-facing communications, among others.
Mayes also points to recent guidance issued by 16 state attorneys general regarding the creation and maintenance of legally compliant programs.
While some 60 percent of companies are taking a wait-and-see approach with their programs, Mayes says, others are taking a more stark and decisive approach, opting for complete reversals.
Limiting or Unwinding DEI Initiatives
For those set on doing away with their DEI programs, Mayes urges a measured approach that includes transparency and open lines of communication — especially among employee resource groups established through the program. Similarly, trying to identify new roles for staff that were dedicated to program oversight will help to ensure your company doesn’t lose valuable talent and perspectives, he says.
Much like his advice for companies looking to continue their programs, Mayes says any rollback of DEI initiatives should be multifaceted and deliberate. He advises companies to consider carefully the potential ramifications of such a decision, seek guidance from legal counsel and clearly communicate their decision to employees and stakeholders, among other steps.
When it comes to seeking expert guidance on an approach plan, Mayes cautions that not everyone who calls themselves an expert actually is one. Like many other fields — doctors, lawyers, accountants, etc. — DEI experts span the professional gamut, so choosing a partner carefully is imperative, he explains.
“The idea is, if you want to move forward in this, just be mindful that there are people out there who can be helpful to you in ways that are constructive, to help you build upon an inclusive culture in your organization,” he says.
