Why Companies Still Care About Diversity—But Fail at Making It Work

Many workers believe their companies still support diversity, equity, and inclusion (DEI) efforts, even if they don’t use the phrase anymore. A recent study by two well-known research groups surveyed 2, 000 employees and leaders from large and mid-sized U. S. companies. Eight in ten said their organizations still follow DEI principles in some way, even if they’ve dropped the term entirely. The way companies talk about these efforts has changed, but the basic idea remains: employers know they need a mix of backgrounds and perspectives to succeed. Yet, the numbers tell a different story. Last year, Black workers faced higher unemployment rates than the rest of the workforce. Black women saw one of the biggest drops in employment in over two decades. Some blame the slowdown in formal DEI programs, but the real issue might be something else. Many companies are rolling back flexible work policies—remote options, flexible hours, and family support benefits—that actually helped more women and people of color advance in their careers. These policies were crucial for workers who juggle caregiving responsibilities or lack financial safety nets. Without them, the workplace quickly returns to its old, exclusive ways.Research from two professors shows just how powerful these flexible policies really are. When companies offered universal benefits like paid leave or childcare, the share of managers from underrepresented groups grew significantly. For example, flextime policies boosted the percentage of Black women in management by nearly five percent. The same policies helped Hispanic men, Asian women, and others climb the corporate ladder. The professors argued that these groups face the biggest challenges balancing work and personal life, so policies that help them directly make the biggest difference. Some leaders claim companies avoid dropping DEI entirely out of fear of returning to the past—an era when offices were run by white men in suits, and most women were stuck in support roles. But plenty of companies still act like the ideal worker is someone without family obligations, someone who can work late nights and weekends without struggle. Big companies may talk about work-life balance in job postings, but their actions often say something else. Last year, fewer employers offered paid family leave compared to the year before. Some well-known firms have cut back on benefits like vacation days and fertility support. The problem isn’t that companies have completely abandoned DEI’s goals. It’s that they’re removing the tools that actually make those goals possible. Flexibility and support aren’t just perks—they’re lifelines for many workers. If companies truly want diverse teams, they can’t expect employees to fit into an old-fashioned mold. The real test isn’t just saying DEI matters. It’s proving it by keeping the systems that make it possible.