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As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

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Here’s who challenges DEI efforts within companies, and how to get the workforce on board

Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
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Emma Burleigh
By
Emma Burleigh
Emma Burleigh
Reporter, Success
Down Arrow Button Icon
April 4, 2024, 8:16 AM ET
Workers gather and discuss strategy.
Some of the biggest DEI challengers that companies face are sometimes their own workers. Getty Images

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Some of DEI’s most prominent critics lately have been billionaires like Elon Musk and Bill Ackman. But for companies struggling to meet their DEI goals, some of their biggest challengers can be their own workers, according to a new study.

Most companies are making progress on their DEI efforts, according to a survey of professionals from large companies conducted by i4cp, a work and HR research firm, and only 9%, say they aren’t meeting their marks. Reasons for those misses include unclear objectives, poor integration with office culture, and lack of leadership accountability. 

But the company’s own rank and file workers can also be a problem for companies trying to deliver on their DEI goals. About 37% of professionals surveyed say that managers are the top challengers of DEI initiatives. Another 34% said it was frontline workers, and 24% said external critics like media, politicians, and social media posed the biggest obstacles. Senior leadership and customers came in last, at 22% and 19% respectively. 

“The workforce is just mirroring society. Our workforce is somewhat divided on viewpoints, and I think there’s a number of people taking their cues on this issue from leaders on a particular side of political parties,” Kevin Oakes, chief executive officer of i4cp, told Fortune. “The narrative is it’s reverse discrimination, that we’re hiring people just based on a particular profile versus their skills. Anybody in the DEI field knows that that is absolutely not accurate.”

Managers in general are also unprepared to address resistance to diversity and inclusion goals, according to the report. About 41% of those surveyed say mid-level managers are not equipped to tackle criticism against DEI efforts, and 54% say frontline managers are not prepared to address pushback. DEI and HR representatives, alongside senior leaders, are seen as the most equipped to deal with resistance against inclusive initiatives.  

“Managers by and large [are] not comfortable talking about these issues. It’s really easy to say the wrong word or to phrase something incorrectly and then get called out for it,” Oakes says. 

That discomfort and lack of preparation can pose a big problem for workplace harmony—some employees may misunderstand DEI initiatives, while others may feel unprotected by their leaders. 

The report suggests managers identify and address inclusion challenges by making sure workers feel listened to, whether that means one-on-one conversations or third-party feedback portals, as well as clearly communicating the company’s overall DEI objectives and expectations. Oakes emphasizes that the biggest driver in getting workers on board with diversity goals is education.

“Some organizations have done a great job at educating managers on how to have conversations about DEI overall, but the vast majority of organizations have not spent that effort in doing so,” he says. “If organizations really want to continue to make progress, they’ve got to make sure that they’re disseminating that education throughout the company.”

Emma Burleigh
emma.burleigh@fortune.com

Around the Table

A round-up of the most important HR headlines.

Billionaire Steve Cohen says a four-day work week will become normalized as forces like AI continue to optimize daily tasks. Bloomberg

Managers at an assisted living chain say a staffing algorithm fell short and left facilities without enough workers. Washington Post

States are divided on whether to strengthen their child labor laws or weaken them. Washington Post

Watercooler

Everything you need to know from Fortune.

Dream bosses. Wrexham AFC, a Welsh soccer club owned by Hollywood stars Ryan Reynolds and Rob McElhenney, is operating at a $11.3 million loss primarily due to salary surges. —Ryan Hogg

Workforce gloom. The confidence of entry-level workers is way down, dropping about 46% since 2016, as they struggle with slow hiring and layoffs. —Jane Thier

Time saving tech. Indeed introduced a new AI tool to expedite hiring tasks, like drafting emails and sifting through applicants, saving recruiters on average six hours a week. —Irina Ivanova

This is the web version of CHRO Daily, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.

About the Author
Emma Burleigh
By Emma BurleighReporter, Success

Emma Burleigh is a reporter at Fortune, covering success, careers, entrepreneurship, and personal finance. Before joining the Success desk, she co-authored Fortune’s CHRO Daily newsletter, extensively covering the workplace and the future of jobs. Emma has also written for publications including the Observer and The China Project, publishing long-form stories on culture, entertainment, and geopolitics. She has a joint-master’s degree from New York University in Global Journalism and East Asian Studies.

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