How the Economy Impacts DE&I Efforts in Businesses

A recent Korn Ferry survey of professionals points to who has the responsibility to advance Diversity, Equity and Inclusion efforts within an organization and how the economy is impacting those efforts.

Nearly one-third (30%) OF respondents say the weakening economy is slowing down DE&I efforts in their organization. While fewer than half (47.5%) of respondents say their organization has stated DE&I goals, the largest percentage (37.5%) say DE&I advancement is the responsibility of everyone in the organization.

“DE&I efforts should not be considered a ‘one-off’ training or event aimed at changing employee behaviors,” said Alina Polonskaia, global leader of Korn Ferry’s Diversity, Equity and Inclusion practice. “To be truly effective, DE&I needs to be woven into every aspect of an organization, from process and structure to business partnerships and community interactions.”

More than half of respondents (55%) believe that their organizations follow through on stated DE&I goals, but only 23% say middle managers are judged on key performance indicators (KPIs) relating to DE&I efforts.

“If done properly, there is a direct correlation between DE&I advancements and business success,” said Andrés Tapia, Korn Ferry senior partner, Global ESG and Diversity, Equity & Inclusion strategist.

“The first step is to analyze the key issues a company wants to solve - such as growth, innovation or optimizing talent performance - and then define what outcomes are needed to solve those issues.”

The Korn Ferry survey of 204 professionals took place in early 2023. Survey results:

What type of impact is the economic slowdown having on your organization’s DE&I efforts?
It is slowing down efforts 30%
It is increasing efforts 15%
No impact 55%

Who is responsible for advancing DE&I efforts within your organization?
HR 25%
CEO 5%
Middle Managers 17.5%
Chief Diversity Officers 15%
DE&I advancement is the responsibility of everyone in the organization 37.5%

Does your organization have stated DE&I goals?
Yes 47.5%
No 37.5%
I don’t know 15%

Does your organization follow through on steps to achieve stated DE&I goals?
Yes to a great extent 15%
Yes to some extent 40%
No 15%
We don’t have stated DE&I goals 30%

Are middle managers judged on KPIs (key performance indicators) relating to DE&I efforts?
Yes 23%
No 77%