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NewslettersFortune CHRO

HR uproar: How one industry group’s choice to drop ‘E’ from its DEI approach sparked a major backlash

By
Emma Burleigh
Emma Burleigh
and
Azure Gilman
Azure Gilman
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By
Emma Burleigh
Emma Burleigh
and
Azure Gilman
Azure Gilman
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July 19, 2024, 8:24 AM ET
Furious boss shouting at his team on a meeting in the office.
The world's biggest HR company upset a lot of people leaders online.Getty Images
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Last week, the Society of Human Resource Management (SHRM), the world’s largest human resources group, kicked off a firestorm within the HR community when it announced that it would be dropping “Equity” from its approach to “Inclusion, Equity and Diversity.” 

“By emphasizing Inclusion-first, we aim to address the current shortcomings of DE&I programs, which have led to societal backlash and increasing polarization,” the organization wrote in a LinkedIn post on July 9, emphasizing that their “commitment to advancing Equity remains steadfast.” 

The reaction from many HR practitioners was swift and furious. Critics say the move signals that a bastion of the profession, which had become increasingly vocal and intentional about DEI goals over the past few years, is dialing back its approach to those initiatives at a time when prominent voices against DEI have become louder, and backlash against it has taken on new life.  

SHRM’s LinkedIn post has received nearly 1,000 comments, many of which were critical of the organization. “This is incredibly disappointing, reactionary and short sighted,” wrote one social media user who identified themselves as a DEI leader. “[M]aking a concerted effort to remove Equity from the acronym while simultaneously saying the commitment remains steadfast makes no sense.” The announcement also prompted an online petition against the organization, which has gained more than 550 signatures, calling for professionals to divest from the group. The petition has a list of grievances, including what it describes as a shift “away from prioritizing equity, undermining efforts to create inclusive workplaces and failing to address the need for DEI in HR practices.” 

Johnny C. Taylor, the president and CEO of SHRM, tells Fortune the choice to drop the “E” from the organization’s “IE&D” approach has been years in the making. After listening to company leaders, HR professionals, and employees, he says the group found that while feelings around diversity and inclusion were mainly positive, equity was a lightening rod. Taylor argues that undermines conversations around Inclusion and Diversity. 

“If you know that a particular component is polarizing, then none of the work will be done if you persist on pushing that particular component of it,” Taylor tells Fortune. “So our belief is that you can benefit by focusing where we have agreement: inclusion and diversity. And we believe that equity is a component of any inclusive program.” 

Those thoughts were echoed by Alex Alonso, chief data and insights officer for SHRM. “This is about our data that we’re getting from businesses as well as employees,” he tells Fortune. 

But critics say that the move from a leading voice in the HR space sends the wrong signal to companies and business leaders, especially as organizations are quietly walking back their DEI programs, with a few even announcing their decision to do away with DEI altogether. 

“The country is in such a divisive time period, particularly with the election, that the timing seems very odd. It’s unsettling that the leading human resources association would think now is the right time to come out with a statement,” Deb Muller, founder and CEO of HR Acuity, an HR management software company, tells Fortune. “It’s their way of trying to get out of what they’re doing and hide behind it. Equity is separate—it’s not the same as inclusion. They’re very different things. SHRM should know that.” 

Sarah Reynolds, chief marketing officer of HiBob, an HR tech company, tells Fortune that SHRM’s choice to drop equity from the acronym sends the wrong message to organizations and executives.

“HR organizations need to lead the charge in making sure we are celebrating and investing in diversity and inclusion,” Sarah Reynolds, chief marketing officer of HiBob, an HR tech company, tells Fortune. “But making sure that equity is never pushed to the side.” 

It’s unclear if SHRM will lose a significant portion of its members because of their choice to drop the “E.” But the incident is just the latest scuffle in the tug of war over DEI in the cultural zeitgeist. And it certainly won’t be the last.

Emma Burleigh
emma.burleigh@fortune.com

Azure Gilman
azure.gilman@fortune.com

Today’s edition was curated by Emma Burleigh.

Around the Table

A round-up of the most important HR headlines.

Aerospace startups are attempting to lure disenchanted SpaceX employees to work for their companies by advertising inclusive company cultures and special perks. Bloomberg

Penn Entertainment will fire around 100 staffers as the company focuses on growing its branding partnership with Disney’s ESPN. CNBC

After Compass Coffee workers voted on whether to unionize, enough ballots were challenged by the company and organizers that the situation was turned over to the National Labor Relations Board. Washington Post

Watercooler

Everything you need to know from Fortune.

Money milestones. For the first time ever Olympic track and field winners will receive a monetary reward—and can earn upwards of $50,000 for winning gold. —Prarthana Prakash 

Cheerio, WFH. U.K. workers are returning to the office at a higher rate than U.S. workers due to employees having smaller homes, superior public transportation, and more condensed living areas. —Jack Sidders, Bloomberg

Hands off. Fed up with e-bike theft and harassment, food-delivery workers have banded together and created a self-defense community that alerts fellow riders of robberies. —Rommel H. Ojeda, Ambar Reyes, April Xu, Cedar Attanasio, AP

Captain concessions. JetBlue’s CEO says that many pilots are turning to second-in-command roles instead of becoming captains, accepting a lower annual salary of $200,000 for a better work-life balance. —Sasha Rogelberg

This is the web version of Fortune CHRO, 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 Authors
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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By Azure GilmanDeputy Leadership Editor
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Azure Gilman is the former deputy editor for the Leadership desk at Fortune, assigning and editing stories about the workplace and the C-suite.

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