How Leaders Can Ease Employee Fears and Support Inclusivity Amidst DEI Uncertainty

Increasing scrutiny over diversity, equity and inclusion (DEI) practices in the United States is cause for concern. Employers are unsure whether to reinforce, hide or abandon their efforts because there are too many unknowns. However, their choice impacts not only the company but also the workers belonging to minority and historically disadvantaged groups.

It is up to leaders to ease employees’ fears by demonstrating their support for inclusivity. Although no one-size-fits-all solution exists, they can use several proven strategies to navigate these uncertain times. 

Anti-DEI Investigations Cause Alarm

In the wake of a January executive order ending “illegal DEI” across the federal government, President Trump issued a follow-up memo ordering all executive departments to combat DEI in the private sector. It stated each agency must identify up to nine “egregious and discriminatory” practitioners eligible for civil compliance investigations. 

If officially listed, an organization could face financial, reputational and legal consequences. However, the specific ramifications are unclear. Regardless, many companies have been working for months to ensure their practices are legal.

Although criminal prosecution is unlikely, the U.S. Department of Justice has suggested it is possible. At the very least, investigations could result in damages and penalties. Deputy Attorney General Todd Blanche said “inherently divisive policies like DEI” must be identified and eliminated among federal fund recipients. He believes they are a violation of civil rights. 

The language surrounding DEI has shifted dramatically in recent years. What was once a forward-thinking business approach has become a topic of contention. While employers are concerned they may be forced to pivot, employees are worried about their career prospects.

Employees Fear What Comes Next

Employees are uncertain how far the federal government will go, making them fearful for the future. A recent report revealed 74% of business leaders feel troubled over its investigations. Ensuring compliance with rapidly evolving regulations can be an enormous undertaking.

Also, those who have felt safe enough to open up about their conditions, disabilities or minority status are in a tough spot. They may be labeled “DEI hires” and let go. Even if their managers are looking out for them, their professional legitimacy is being called into question. They may face stigma or harassment. 

As a result, many firms are quieting their DEI efforts. Almost all employers with such policies plan to stop sharing the details publicly, and 77% will no longer disclose their representation goals internally. However, their budgets will remain relatively untouched. Only 19% will decrease funding. Over half will not make any changes, while 23% actually anticipate increasing funding.

Many have already embedded these practices into business-critical processes like hiring and marketing. Granted, pivoting may be relatively straightforward. However, supporting team members in these uncertain times is essential for fostering a safe, productive workplace. 

Leaders Can Ease These Concerns

Managers are not powerless, despite how they may feel. They can ease their employees’ minds in the face of the rising DEI anxiety. No one-size-fits-all approach exists. However, they can tweak strategies other companies have had success with to streamline the process. 

Lead by Example 

When one person’s presence is positive and impactful, the people around them feel valued and supported. Be a positive presence by offering to listen to employees and offer your own thoughts to alleviate their fears. Because workers who feel heard are almost five times more likely to feel empowered to perform at their best, your employees will be better able to navigate stress and burnout just by feeling valued in this way. Managers should lead by example, putting on a brave face to ease others’ anxieties. 

Establish an Affinity Group

An affinity group is an informal, employee-led resource group. Its members share a common interest, purpose or identity. Management should develop one to give workers a safe space. They can focus on networking, professional development or workplace accommodations. 

Creating an environment of mutual support and understanding keeps individuals from feeling isolated by their identities or ethnicities. Also, it encourages them to bring their authentic selves to work. The result is a workplace that is safer and more comfortable for everyone. 

Vocally Support DEI

Vocal support is critical for an initiative’s success. It sets the tone, fostering positivity and confidence. A 2022 PWC survey of 6,000 individuals across 26 industries found that just 11% of business leaders believe they are not communicating about DEI frequently enough. Workers were almost twice as likely to think so. 

This figure has likely risen as companies have quietly pulled their policies from external communications. Even if they do not plan on abandoning DEI efforts, they should not give in to scare tactics. Higher-ups can show their support simply by announcing it. 

Supporting DEI Despite Uncertainty

Employees are the foundation of any organization, so their comfort and safety should take priority. Although the possibility of a federal investigation can be concerning, higher-ups have nothing to fear if their practices are legal.