By Erica Lee, Senior Consultant, TalentNeuron
The current state of diversity, equity, and inclusion (DEI) initiatives across the workforce is inarguably complex. With major brands like Target, Walmart, and Meta cutting back on DEI initiatives, while others like Costco and Apple double down, it’s unclear whether DEI is truly under siege in the long term. Despite the headlines, however, data shows that DEI is actually becoming more embedded in strategic workforce planning efforts; with at least 85% of Fortune 500 companies maintaining DEI goals, organizations aren’t retreating — they’re evolving their approach.
As businesses develop their long-term talent and retention strategies, those who think of DEI as a component of broader strategic workforce planning initiatives — rather than a quota to fill or a virtue signal — will succeed in building sustainable, well-rounded talent pipelines.
What the data says
According to job postings data from TalentNeuron, Chief Diversity Officer roles dropped 48% in 2024. However, DEI Program Manager positions surged 78%, with overall DEI roles growing nine percent year-over-year. Despite many large, publicly traded companies announcing reductions or eliminations of DEI-related roles, this data indicates that DEI is still gaining importance and demand at market level. Roles and responsibilities might look slightly different, as evidenced by the shift away from C-level DEI roles, but TalentNeuron data suggests that there is no market-wide decline in DEI efforts.
While it is still early, there is also little evidence to suggest that DEI initiatives are being absorbed into general human resources roles. Job postings in HR declined by 3% between August 2022 and August 2024, indicating no real change in HR operations as the shift in approach has unfolded.
DEI as a long-term strategy
Labor market data paints an optimistic picture for the future of workforce inclusion. Outside of explicit roles and programs, however, organizations seeking to win the talent war and future-proof their business operations must prioritize the inclusion of initiatives focused on growth of diverse talent within their overall workforce strategy. At its core, diversity, equity, and inclusion is a concept that, when applied to talent acquisition and retention, allows organizations to simply build a well-rounded workforce. Rather than a focus on filling quotas, DEI should be essential to all operational and talent strategy decisions, requiring a closer look at best practices for incorporating this approach.
Programming shifts
Alongside shifts in DEI roles, there is a trend of organizations rebranding these positions to reflect a broader focus beyond diversity alone. Titles are shifting from “Diversity Leader” or “Chief Diversity Officer” to more general roles such as “Chief People Officer,” “Inclusion Leader,” or “Change Leader.” This reflects a strategic pivot towards inclusivity, culture, and change management rather than a sole focus on diversity metrics.
The role of skills-based hiring
Shifting toward a skills-first approach to talent acquisition, in tandem with a shift away from traditional DEI metrics, allows organizations to more closely align their workforces with their business objectives and provides an organic means of diversifying talent pools. Traditional hiring practices often exclude candidates who lack specific educational requirements or linear career paths but are otherwise qualified. Focusing on the skills a candidate brings to the table, in contrast, allows organizations to draw from a more diverse applicant pool, including candidates with non-linear career paths, alternative educational backgrounds, or those from historically underrepresented groups.
Mapping the skills already present internally is also vital when identifying what skills are most needed to show what’s already available or can be developed more cost-effectively from within. In the case of DEI, internal skill mapping and development can identify fitting employees who might otherwise be overlooked for roles that need to be filled. This approach also supports the development of a diverse workforce across experience levels, ensuring that candidates hired for their skills are not limited to one department or team.
Maintaining employee satisfaction
As part of strategic workforce planning initiatives, organizations must take into consideration the impact of integrating DEI principles into such initiatives on their employee value proposition (EVP), the benefits and opportunities more broadly that employers can offer to attract and retain talent. American workers generally have positive perceptions of DEI initiatives, meaning employers should think carefully about the impacts of complete reversals of current practices around DEI. A commitment to maintaining a diverse workforce indicates a broader investment in employee well-being and a strong company culture; shifts away from DEI initiatives, then, may indicate the opposite to employees looking for signs of their organization’s continued cultural growth and improvement. In some cases, DEI rollbacks could lead to the loss of valuable talent due to a weak EVP, impacting business continuity in turn.
As with any significant organizational shift, employers should take a close look at employee sentiment as it relates to the prevalence, or lack thereof, of DEI principles in workforce planning practices.
Looking ahead
When considering the role of DEI in strategic workforce planning initiatives, the implications for 2025 and beyond are clear: the organizations that thrive will be those that incorporate inclusive principles as a central component of all staffing-related decision-making. In a world of hybrid roles, transformed work, and scarce talent, organizations must prioritize employee retention and strategic, skills-first talent acquisition to build a well-rounded workforce. DEI doesn’t have to be a box to check — rather, it should be woven into all talent initiatives to build a well-rounded workforce valued by employers and employees alike.
Erica is a Senior Consultant at TalentNeuron, working closely with clients to provide perspectives and insights through talent intelligence and labor market data. Supporting practitioners, executives and project teams in a multitude of spaces within HR, Talent, Workforce Planning, People Operations and business transformation, Erica helps inform decisions, test assumptions and drive results.
