Employee Resource Groups, Allyship And Partnerships

Be careful what you believe from the latest anti-DEI headlines. Diversity, equity and inclusion (DEI) is not going away. It’s forecasted to grow at a compounded annual growth rate of 12% according to PR Newswire, primarily through Employee Resource Groups (ERGs) and partnerships.

Yes, there has been pushback from conservative lobbyist groups like the National Center for Public Policy Research. Meta, Walmart, Lowe’s, Tractor Supply, Ford, Toyota, Harley-Davidson, Indian Motorcycle, Polaris, Stanley Black & Decker, DeWalt Tools, Craftsman, Caterpillar, Boeing, Coors and Jack Daniel’s have notably pivoted their DEI strategies in recent months partially due to outside pressure.

However, there are two sides to every story. The story that is not being told is the one of positive support for DEI. At least 10 boards have pushed back on the lobbyists, urging shareholders to vote against DEI bans. Costco, Apple, Boeing, Cigna, Coca-Cola, Citigroup, John Deere, Progressive, MGM, and PepsiCo have vocalized their support in recent months publicly for DEI. Cisco and JP Morgan Chase’s CEOs have made public statements defending their corporate DEI programs.

While there are a number of justifiable concerns for organizations to pivot their DEI strategies, abandoning them completely is a mistake.

What’s Really Going On?

Corporate DEI work is still legal and is growing, not dying. According to Working IDEAL: “An Executive Order cannot prohibit private employers from engaging in lawful strategies to advance equal opportunity for all under Title VII of the Civil Rights Act of 1964.” Corporate DEI work is legal, however, rarely employed tactics like hiring and promotion quotas, and mandatory training may be open to legal challenges.

DEI pushback is not new. DEI work hit a peak in 2020-2021, then retracted in 2022-2023, to level out in 2024. Those that were not serious about DEI already stopped doing the work a long time ago. Those serious are quietly embedding it into their organizations because it is the right thing to do and keeps them out of harmful lawsuits and activists way.

DEI is about education and debiasing systems, not hiring quotas and mandatory DEI training. A 2022 Resume Builder found that 52% of US hiring managers believe their company practices “reverse discrimination” in hiring, with one in six managers told to stop hiring white men. This was never the intention of DEI. Diversifying hiring pools, using objective criteria and equipping managers with inclusive hiring tools are best practices. Steer clear of hiring and promotion quotas, and mandatory DEI training, as they are the most likely tactics to be legally challenged.

Exclusion is more costly than DEI. Accenture found that globally, there is $3.7 trillion on the table annually by not having inclusive work cultures. The cost of exclusion shows up in employee attrition, discrimination and pay equity lawsuits, lower revenues and profitability.

Some well-intentioned organizations may be pivoting their language from DEI in defense. According to David Glasgow, a lawyer and executive director at the Meltzer Center for Diversity, Inclusion, and Belonging at New York University School of Law said, “It doesn’t really matter what you call it (DEI)…if you’re in substance engaging in practices that are legally risky, then it will be just as risky as it was before.” Glasgow notes that while anti-DEI activists are searching company websites for DEI, there has to be substantial discriminatory activity for them to have a serious legal case.

Given that DEI is expected to grow by 12% annually through 2030, how will it survive and thrive given this pushback?

1. Employee Resource Groups
2. Allyship programs
3. Partnerships

Employee Resource Groups

Employee Resource Groups (ERGs) are safe havens for people from historically marginalized groups to empathize with each other’s stories, have space for candid conversations about adversity, and to bring in allies to learn more about how they can be supportive. Ninety percent of organizations have ERGs, and they are not expected to dissolve. Even those that have adjusted their DEI strategies have kept their ERGs intact (e.g. Walmart). The subtle shift has been to engaging allies so that they’re not excluding the dominant group.

Engaging allies (those that have power and can help address issues of exclusion) is a best practice as it often helps with the necessary resourcing and helping to address systemic issues. Including allies needs to be intentional. Successful ERGs set boundaries for allies to understand their role, educate allies on how best to contribute, and most importantly, how to take real action.

Allyship Programs

Beyond ERGs, allyship programming is critical to the long-term success of DEI. People in the dominant group, especially senior leadership teams tend to be majority white men, and often do not understand if they are wanted in DEI efforts. Sometimes, they don’t understand DEI because of the lack of lived experience, and struggle to take action, and can disengage because they may feel like the enemy. Despite practitioner’s best efforts, DEI does have the opportunity to further engage these dominant group members.

Allyship programs can help bridge the gap for those with limited lived experiences with issues of diversity. Successful allyship programs focus on education, community, and most importantly, action. Education is critical for people to understand the full context before engaging in action. Having a community of other allies around them helps them not feel alone or too vulnerable when they’re trying to adjust and do things more inclusively.

Partnerships

Partnerships with community organizations, experts and thought leaders in DEI is also a best practice. For example, the Human Rights Campaign, despite the negative news headlines about organizations withdrawing from their index, grew by 28% in 2024 and is expected to increase more in 2025. Participating in indices like the Human Rights Campaign is not illegal. Organizations can continue to share their data and benchmark against their peers to create healthy competition for inclusion.

Organizations also need to partner in their local communities on issues that matter to them that are aligned with their values. If inclusion is embedded in the company’s culture and values, it makes sense to focus on community issues of exclusion. That could be providing volunteer opportunities in the community, helping address healthcare or education challenges for historically marginalized groups, or donating money to organizations aligned with their mission and values.

The future of DEI is more optimistic that you might be led to believe. It’s clear that Employee Resource Groups, allyship programs and partnerships will continue to thrive. Business leaders need to focus less on the noise around the work, and just do the work. Their bottom line will benefit.

This is an unprecedented moment for corporate leaders to take a stand against these bullying tactics and state their inclusive intentions. This will be your competitive advantage. People remember and reward those that speak truth to power, especially when it feels hard.

Want to be an even more inclusive ally? Stay in the know with allyship and inclusion tips each week in our community.