Key takeaways:
- Clear and consistent communication is essential: Employees need transparency to maintain trust. Without it, they may assume DEI is being deprioritized, leading to disengagement and uncertainty.
- Redefining DEI efforts can preserve impact: Companies are shifting DEI initiatives under broader engagement, culture, and leadership development programs to sustain inclusion while meeting new compliance demands.
- Employee sentiment tracking is critical: Organizations are increasing pulse surveys, open forums, and leadership training to stay ahead of employee concerns and foster a sense of belonging.
Diversity, equity, and inclusion (DEI) programs are facing mounting pressure as organizations respond to shifting political, legal, and economic realities.
For DEI and employee experience (EX) leaders, the challenge is clear: How can companies comply with new regulations without compromising employee trust and workplace culture?
In a recent confidential discussion among DEI Board and Employee Experience Board members, business leaders shared how they are navigating DEI cutbacks, mitigating negative impacts on employees, and preserving a commitment to inclusion.
We’ll explore how senior leaders at the world’s largest companies are protecting employee experiences while adjusting DEI strategies.
The Current Landscape: How Companies Are Responding
While some organizations are scaling back DEI initiatives due to recent executive orders and external pressures, others are striving to maintain their commitments. In an informal poll with enterprise DEI and EX leaders, our members revealed how their companies are taking various approaches.
For companies required to comply with federal mandates, DEI-related changes often include revising employee resource groups (ERGs), modifying language in corporate communications, and restructuring programs under broader employee engagement initiatives.
A DEI Board member described how their company removed all references to DEI from external platforms and rebranded internal inclusion efforts to maintain compliance while keeping key elements of their programs intact.
However, even companies that have not formally reduced DEI investments are facing employee skepticism and concern.
Some reported that DEI roles that were consolidated into broader HR functions and leaders leaving without replacements have caused employees to perceive these shifts as a sign the company is deprioritizing inclusion efforts.
Employee Sentiment: What’s at Stake?
Regardless of whether an organization is making visible DEI cuts or maintaining the status quo, employees are feeling the ripple effects.
DEI Board and Employee Experience Board members reported increased employee concerns, particularly regarding:
- Psychological safety: Employees worry about how changes will impact their sense of belonging.
- ERG disbandment: Removing structured DEI and EX initiatives can create a sense of loss, especially for historically marginalized groups.
- Transparency concerns: Employees are seeking clear, honest communication about where the company stands on DEI.
One member shared steps they took to regain employee trust after an initial message about their DEI redesign was perceived as the company distancing themselves from DEI.
Since then, they have taken steps to correct these issues, including revising their inclusion strategy, consulting an external partner, and communicating more openly with their Employee Resource Groups to ensure that all messaging is clear and leads with empathy.
Strategies for Mitigating Negative Impact
1. Transparent and Proactive Communication
Our members stressed the importance of framing changes carefully. When making adjustments, they recommended that companies should:
- Acknowledge external pressures while reinforcing commitment to inclusive values.
- Provide specific examples of how DEI efforts will continue, even if the structure shifts.
- Equip managers with talking points to address employee concerns effectively.
While many of our members are leaning on town halls and ERGs to reinforce current DEI stances, they’re also working to make sure business leaders have talking points to help respond to employee questions and ensure a unified message across the organization.
2. Repositioning DEI Efforts Without Losing Impact
Rather than eliminating DEI programs, many organizations are transitioning them under broader engagement initiatives.
A DEI Board member whose company had to revise formal ERGs shared their approach.
“We are standing up a new employee engagement program that will have a lot of the same tenets,” that member said. “A lot of the pillars that we expressed throughout our ERGs, such as networking and mentoring and professional development, are just under a different lens.”
Other members said their organizations are:
- Integrating DEI into leadership development and talent initiatives.
- Expanding EX programs to include inclusion-focused content.
- Shifting focus from identity-based programs to broader well-being and culture initiatives.
3. Strengthening Employee Listening and Feedback Mechanisms
With increased uncertainty, many companies are ramping up employee sentiment tracking. In response to recent DEI shifts, several organizations are implementing:
- Quarterly pulse surveys specifically focused on inclusion and psychological safety.
- Town halls and open forums where employees can voice concerns and ask leadership direct questions.
- Increased communication with ERGs to collect employee feedback.
An Employee Experience Board member noted how their team owns the associate listening survey initiatives and is taking proactive steps to gauge sentiment around DEI efforts.
That member shared their organization has introduced quarterly DEI pulse surveys this year to explore specific questions beyond those in their annual DEI index, building on their previous DEI pulse efforts with a focused approach in response to current circumstances.
4. Alternative Approaches to ERGs
For companies required to revise certain ERGs, leaders are finding creative solutions to maintain community-building efforts. Some organizations are:
- Encouraging grassroots employee networks without formal ERG structures.
- Shifting ERG efforts to professional development and mentorship programs.
- Rebranding ERGs under more neutral terminology, such as “culture and community groups.”
Why Community Matters Now More Than Ever
As organizations scale back DEI investments and employees face growing uncertainty, having the support of your peers leading DEI and employee experience has never been more essential.
Now is the time for EX leaders to come together, share insights, and develop strategies to sustain workplace inclusion in the face of external pressures. You don’t have to tackle these challenges alone.
The Employee Experience Board provides a trusted space where you can gain real-time insights from peers, discuss solutions in a confidential setting, and benchmark approaches with your peers at the world’s largest organizations.
Our communities offer direct access to the latest strategies, ensuring you remain prepared for ongoing shifts.
If you’re looking for real-world insights, actionable strategies, and a collaborative space to navigate these changes, now is the time to apply. Learn more about how our community can help you navigate the current employee experience landscape in your organization.
