The end of affirmative action: What does it mean for DEI at work? 

By: Mercer
August 10, 2023

The US Supreme Court (SCOTUS) has ruled that colleges' use of race as a factor in student admissions is unconstitutional under the Fourteenth Amendment’s Equal Protection Clause. The decision does not have a direct legal impact on employers' goals to create a more inclusive, equitable and diverse workforce. However, the decision certainly has practical implications.  

Historically, organizations have relied on colleges and universities to deliver a somewhat diverse “class of talent” each year. In response to the SCOTUS ruling, colleges have overhauled their applications and refashioned essay prompts to build diverse student bodies and avoid declines in Black and Latino enrollments. While only time will tell if these efforts will be successful, organizations that are concerned about the possible impact on hiring don’t have to take a wait-and-see approach. Here are some steps employers can take to maintain and enhance workforce diversity: 

  • Eliminate college degree requirements entirely
    The non-college-educated labor force is far more demographically diverse than their college-educated counterparts – and in a time of rapid skills change and growing automation, a college education simply may be less necessary than it once was. Employers may need to get creative around upskilling/reskilling to ensure they have a pipeline of diverse talent with specialized skills. For example, some organizations have addressed skills gaps with coding bootcamps – concentrated courses that teach essential skills and provide real-world training for jobs in computers and information technology. 
  • Focus on retaining diverse employees
    Many organizations needed to take this step even before the SCOTUS decision. When the attrition of diverse talent is severe, no amount of new hiring will allow an organization to reach their diversity goals. The possibility that college talent pools will become less diverse is a good reason to double down on retention strategies now. Consider more tracking to understand how talent is flowing through the organization and address any dips in representation that could have a ripple effect. Review promotions and succession planning for possible bias and take steps to ensure job candidates move through the pipeline at comparable rates.
  • Expand or change where and how you recruit
    Recruiters will need to be more proactive with their sourcing and outreach techniques, as opposed to posting a job description and hoping the right candidates apply. Existing acquisition strategies/partnerships with various colleges and universities may need to be reviewed.

A broad view of diversity

For many organizations, a strong focus on diversity, equity and inclusion (DEI) is ingrained in business operations and culture. Research conducted by Mercer and others has shown that diverse teams and perspectives can lead to more innovation, better decision-making and greater organizational success. In addition, many workers today expect their employers to actively promote diversity and create an inclusive environment. Those who view a commitment to DEI as a reflection of ethical values and a positive work culture may seek out organizations with a track record of fostering diversity and inclusion. Finally, companies can also face pressure from external stakeholders – both shareholders and consumers – to support diversity.  

Despite the link between diversity and improved organizational performance, DEI programs can face criticism both inside and outside the organization. For employers concerned that the SCOTUS ruling could undermine support for corporate diversity initiatives, increased change management and communication can help to ensure DEI objectives are fully understood. Broadening the scope of diversity programs may also achieve broader acceptance. While diversity programs focus on the ways we differ from each other, their ultimate goal is to benefit all employees – ensuring everyone has the same opportunities and the same sense of belonging. 

Historically, diversity programs considered groups that are disadvantaged based on gender, race/ethnicity and sexual orientation. Today, we’re seeing employers think more expansively about diversity, and considering additional ways employees differ from each other that might be particularly relevant to their organization. In fact, we’ve identified over 30 types of diversity in the workplace today. 

Companies have access to more HR data than ever before, which means they can use their own data, not external benchmarks, to identify challenges, build a customized business case for diversity, and track progress with objective performance indicators and metrics. An expansive definition of diversity, along with metrics that show how the program serves many kinds of diversity, could go far in helping workers view the program as an umbrella big enough for everyone in the organization to fit under. 

 

Contributors to this post: Victoria Archer, William Self, Melissa Swift, Vikki Walton, Tracy Watts