Ending Diversity, Equity, and Inclusion Activities Ignores Benefits

Dr. Martin Luther King’s pivotal role in advancing civil rights was honored by many across the United States on Monday, January 20th. Coincidentally, the same day marked the introduction of a variety of Executive Orders that stand in contrast to this legacy. Of particular relevance to organizational psychology is an executive order titled, “Ending Radical and Wasteful Government DEI Programs and Preferencing.”

This order includes a requirement that federal agencies end “all DEI, DEIA, and 'environmental justice' offices and positions.” In addition, agency leaders are required to provide a list and costs of any activity, contractor, or grantee related to these topics.

The rationale provided in the order for these actions is that diversity, equity, and inclusion (DEI) initiatives in the federal government “demonstrated immense public waste.” Certainly, there is a financial cost to many organizational programs; for example, it costs money to design, implement, and evaluate effective hiring processes, onboarding programs, and performance management systems. Yet, in addition to weighing a variety of moral and ethical perspectives, thoughtful organizational leaders consider the utility of such programs. Utility analyses necessarily include not only required expenditures but also potential earnings. Leaders often conclude that the cost of creating a strong hiring process, for example, is outweighed by the benefits of recruiting, selecting, and retaining the most talented workers.

Outcomes Considered by Organizational Psychologists

Likewise, when federal agencies work to fulfill this order, both costs and benefits could be considered. Organizational psychology points to several key, interrelated outcomes that affect the bottom line and thus should be weighed in personnel-related cost-benefit analyses such as job attitudes, turnover, health, innovation, and performance.

Indeed, how people feel about their jobs can influence their behaviors at work. People who are more satisfied at work tend to be more engaged and committed to their jobs, putting in extra effort above and beyond what might be written in their job descriptions. These attitudes and behaviors can translate into increased productivity, less turnover, and more efficient organizations.

Outcomes of Diversity, Equity, and Inclusion Initiatives

Moreover, there is evidence linking some DEI initiatives to precisely these outcomes. For example, an analysis of 109 separate samples suggests that feelings of inclusion are related to job satisfaction, engagement, withdrawal, and performance. As another example, an analysis of 260 separate samples suggests that even often-maligned diversity training programs can have positive implications for employee attitudes, particularly when integrated within a strategic set of diversity programs.

Conclusion

It is reasonable from an economic standpoint to weigh the costs of personnel practices. Such consideration, however, should also include an analysis of their benefits. Although the economic perspective is independent of the historical or moral perspectives that Dr. King’s legacy emphasizes, the conclusion may be similar. Evidence from organizational psychology suggests that, in the case of DEI initiatives, the benefits can include important attitudes and behaviors that ultimately serve organizational interests.