DEI Rollbacks Hurt Workers, Companies: HRC Study

A recent Human Rights Campaign Foundation study reveals that companies abandoning diversity, equity, and inclusion (DEI) policies are fostering hostile environments for employees. This shift, influenced by external pressures in 2025, has led to increased scrutiny of DEI practices.

Researchers found that 39.1 percent of surveyed U.S. workers indicated their employers had rolled back DEI. At these companies, 54.2 percent of workers experienced stigma or bias, compared to 24.9 percent in organizations maintaining DEI. This hostility correlates with reduced productivity and higher turnover risk, particularly for LGBTQ+ individuals.

The study highlights that companies embracing inclusion often see better financial outcomes, with high-scoring firms in the Corporate Equality Index (CEI) demonstrating significantly higher net income. However, participation in the CEI saw a dramatic decline, with a 65 percent drop among Fortune 500 companies from 2025 to 2026, indicating a hesitance to engage with DEI metrics amid current climates.

Despite the challenges, many participating employers maintain inclusive policies and benefits, with 98 percent explicitly including sexual orientation and gender identity in nondiscrimination policies. The HRC emphasizes that clear communication and commitment to inclusion build trust, retain talent, and benefit the bottom line.