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DEI Rollbacks Hurt Workers, Companies: HRC Study
5 Feb
Summary
- Workplace hostility increased significantly in companies cutting DEI.
- Productivity drops sharply for workers at companies ending DEI.
- Fortune 500 DEI policy participation plummeted from 2025 to 2026.
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.
