The recent decline in Diversity, Equity, and Inclusion (DEI) job postings, as reported by Lightcast, reveals a deeper issue plaguing many corporate back-office functions. While the 43% drop in DEI jobs since August 2022 is attributed to political backlash, it also reflects a pervasive “value-add” problem faced by support departments. The function and related positions rose on the back of public pressures, but never really established a positive corporate role, with thinly justified business rationale of “diversity leads to better profit” which stemmed from a now discredited McKinsey study.
The short tenure of DEI professionals, with only 36% of directors or managers remaining in their roles from 2020 to 2024, a trend which mirrors similar cycles in non-revenue generating roles, where initiatives gain momentum during economic upswings but are quickly jettisoned when budgets tighten. This pendulum effect underscores the fundamental disconnect between back office functions and core business objectives. Other functions should take note as well. While compliance, innovative tech, and HR functions are unlikely to be chopped in the same way, they often become siloed, focusing on internal metrics and policy creation that focus on appearing productive while failing to align with overarching corporate goals of growth, efficiency, and profitability.
To avoid being axed amid shifting economic winds and evolving corporate priorities, functional leaders must reframe their value proposition. Instead of operating in isolation or seeing other functions as the enemy, these departments should actively seek to understand and address internal business needs and contribute to key top-line drivers.
For instance, DEI initiatives could have integrated with boosting top talent acquisition strategies, endeavoring to create new metrics to uncover hidden talent pools or striving to move from engagement to employee activation across the business.
Ultimately, the longevity of back-office functions depends on their ability to integrate seamlessly with core business operations. By doing so, they can transform their departments from cost centers vulnerable to cuts into essential contributors to the company's competitive advantage, ensuring their relevance and value regardless of external pressures or economic fluctuations. The very birth of the DEI function was driven by a political climate rather than a strategic rationale, an inauspicious start for corporate longevity. New fads will emerge and new titles will be created, but without avoiding the back-office blunders of silo-ed activity and looking busy, they will rise and fall the same.
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