From flexible work and mental health support to evolving labor laws, today’s workplace is undergoing a full transformation. And few things have ignited more conversation or confusion than DEI: Diversity, Equity, & Inclusion.

Just a few years ago, DEI was a top priority for companies eager to show their commitment to fairness and belonging. Now, it’s caught in the crossfire of cultural debate and legal scrutiny. DEI seems to be everywhere — and yet, somehow, nowhere at all.

Welcome to The Changing Workplace, a new series that unpacks the shifts shaping where and how we work. In this first blog, we dig into what’s happening with DEI — what it really means, what’s changed, and how employers can move forward.

What is DEI?

Let’s start with the basics. DEI isn’t new. It’s rooted in the civil rights movements of the 1960s, specifically, Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race, sex, and other protected categories.

At its core, DEI is about treating everyone fairly and removing barriers to opportunities. Yet, somewhere along the way, the term DEI has caused us to forget what it’s about. 

So, here’s a quick refresher.

Diversity means welcoming people of different backgrounds, identities, and experiences.

Equity ensures fair access to opportunities and resources, allowing everyone to have an equal chance to succeed.

Inclusion is about creating a culture where everyone feels they belong and their voices matter.

Effective DEI practices support employees across race, gender, age, disability, sexual orientation, and socioeconomic lines. Studies show that businesses with strong DEI programs tend to be more profitable, innovative, and productive when people from diverse backgrounds and perspectives come together.

So why is something that seems so positive facing so much backlash?

Critics argue that DEI sometimes emphasizes identity over merit or fails to deliver measurable outcomes. Others point to clumsy rollouts that alienate employees or stir resentment. Meanwhile, political polarization and inconsistent terminology add to the confusion. The result? A growing disconnect between intention and impact.

The Changing Workplace

In 2020, DEI soared to the top of the corporate agenda. Today, the conversation has shifted. Legal and political activities are growing. For example, the U.S. Supreme Court recently made it easier for “reverse discrimination” lawsuits to proceed, such as a case in Ohio involving a white, heterosexual woman who claimed she was denied a promotion due to her identity. The ruling effectively lowered the burden of proof, opening the door to more legal challenges.

With DEI initiatives under a brighter spotlight, there’s a growing concern among employers who are working hard and trying to do the right thing.

I hear from many business owners who are worried that their DEI efforts may lead to a loss of business, and non-profit leaders who are concerned that their policies may alienate donors, supporters, or funding sources.

The recent DEI rollbacks have employers asking tough questions:

If we’ve been focused on inclusion all along, why are the rules suddenly changing?

What’s allowed — and what’s not?

Is DEI now illegal?

The simple answer is that DEI is not illegal. But it is under a microscope.

DEI Shifts 

Employers of all sizes and across all industries are feeling the heat and navigating common challenges, such as:

🔺Perceived Unfairness: Balancing support for underrepresented groups without excluding others.
🔺Legal Uncertainty: Navigating state restrictions and evolving court rulings.
🔺Political Polarization: Preventing DEI from becoming a flashpoint at work.
🔺Mismatched Expectations: Aligning well-intentioned efforts with realities.

Understandably, many companies have adopted a “wait and see” approach — pausing, scaling back, or even eliminating DEI programs altogether, which could put their business at risk.

These changes are also affecting how employees show up — and how they plan for the future.

In a recent Women in the Workplace study, women expressed concern that the dismantling of DEI programs will hinder progress in key areas: pay equity, bias protections, leadership opportunities, and salary transparency. Some even said it’s influencing their sense of job security and willingness to pursue new roles.

June is also Pride Month, a time when companies have historically shown public support for LGBTQ+ employees and communities. But this year, one study shows that 39% of businesses surveyed plan to scale back their Pride campaigns. Internally, that can send a confusing message, affecting morale and trust.

What Can Employers Do Now?

The good news is that despite the controversy, DEI isn’t going away. It’s just evolving.

Experts agree that the future lies in how we talk about inclusion – and why we pursue it. It’s time to move from check-the-box programming to a culture-building mindset that aligns with your company’s core values and goals.

Here are a few ways to move forward:

✔️Open the Conversation. Create safe spaces for employees to share and ask questions without fear or judgment.

✔️Know the Law. DEI doesn’t replace equal opportunity employment laws — it works alongside them. Review your DEI programs and initiatives with legal counsel for current compliance with new laws and regulations. Also, keep up with new EEOC guidance and workshops that outline how established civil rights rules apply to employment policies, programs, and practices.

"In this moment of change, employers have a chance to lead with intention. That starts by creating a workplace where every individual feels seen, heard, and supported."

- Jada Magiera, SHRM–SCP, Director of HR, Propel HR

✔️Develop an Inclusion Policy. Make your approach your own. Because every business is different, decide on your own course of action. Update parental leave policies, rethink accommodations, and define what fairness looks like in your workplace.

✔️Track What Matters. Align DEI goals with business strategy. Measure outcomes and be transparent about progress.

✔️Train Your Leaders. Inclusive leadership is a skill — one that can be taught, practiced, and refined.

🎯And Most Importantly: Reframe the Message. Instead of talking about “DEI programs,” talk about building a workplace where everyone is respected, empowered, and valued. That’s always been good business — and it always will be.

Building a Workplace Where Everyone Thrives

DEI may be at a crossroads, but inclusion should never be optional.

In this moment of change, employers have a chance to lead with intention. That starts by creating a workplace where every individual feels seen, heard, and supported. One where collaboration flourishes, morale rises, and your team is positioned for long-term success. That’s exciting when you think about it.

If you're unsure where to start or how to move forward, you're not alone — and you don’t have to navigate it alone. Our team helps businesses like yours navigate the changing landscape with clarity and confidence.

🔶The Changing Workplace Series: Stay tuned for Part 2 of our business series, where we’ll tackle other important topics impacting your workplace, such as evolving mental health policies, hybrid work dilemmas, and new labor laws. For the latest updates, follow us on Facebook, LinkedIn and X

ABOUT THE AUTHOR

Jada Magiera, SHRM–SCP, is the Director of HR for Propel HR and a trusted advisor to businesses navigating the evolving workplace. With more than 15 years of experience in HR strategy, compliance, and employee engagement, she’s passionate about helping businesses build an inclusive workplace where people love to work.

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About Propel HR. Propel HR is an IRS-certified PEO that has been a leading provider of human resources and payroll solutions for 25 years. Propel partners with small to mid-sized businesses to manage payroll, employee benefits, compliance and risks, and other HR functions in a way that maximizes efficiency and reduces costs. For more information, visit propelhr.com