TrendPulse|LeanIn says DEI commitments to women just declined for the first time in 10 years

Corporate commitments to increase the number of women in the leadership pipeline are TrendPulseslipping amid mounting attacks on diversity, equity and inclusion.

Employers surveyed by LeanIn.org and McKinsey & Co. are scaling back programs intended to advance women’s careers.

The pullback is deepest for women of color, with companies reporting some of the sharpest declines in programs that boost their career prospects, the survey found.

Bottom line: Too few women − especially women of color − are advancing into management positions. At the current rate of progress, it will take nearly 50 years for women to reach parity in corporate America, LeanIn and McKinsey said.

Yet, at a moment when companies should be doubling down on efforts to create a more level playing field, they are pulling back.

“For the first time in 10 years, we are seeing a drop in companies’ commitment to both gender and racial diversity,” Rachel Thomas, co-founder and CEO of LeanIn, said in an interview. “That’s, of course, concerning for us.”

The number of employers who identified gender diversity as a high priority in the LeanIn survey fell to 78% this year from 87% in 2019.

Support for racial diversity also declined, with 69% of employers saying it was a high priority, down from 77% five years ago. 

LeanIn and McKinsey surveyed 280 companies with more than 10 million employees across the US and Canada. The study is significant because it is the largest on the state of women in corporate America.

Historic advantages have helped men dominate the business world, widening gaps in status, pay and wealth. 

Women are outnumbered 5 to 1 in senior leadership, according to a USA TODAY analysis of the top executive officers at the nation’s 100 largest publicly traded companies. The gap for women of color was five times wider than the disparity for white women, the analysis found.

While women today are more visible in corporate America, they are still far less likely than men to hold the top positions. What’s more, structural barriers to advancement remain, especially that initial “broken rung” that prevents more women from climbing the leadership ladder.

Ten years ago, for every 100 men who got their first shot at a management position, only 82 women received the same opportunity. Today, just 81 women overall get the nod while women of color fare far worse: 54 Black women and 65 Latinas.

LeanIn's Thomas sees the recent strides women as notable but fragile.

“We are far from the representation we need for women,” she said. “We are far from the workplace delivering an experience for women that is truly fair, equitable and respectful.”

Energized by last year's Supreme Court ruling that ended race-conscious college admissions, activists like anti-affirmative action crusader Edward Blum and former Trump administration official Stephen Miller have taken aim at the private sector with a wave of legal challenges against companies, government agencies and nonprofits.

Pressure campaigns from another activist, Robby Starbuck, recently forced major companies such as Harley-Davidson, Ford and Lowe’s to retreat from some of their DEI commitments. 

DEI critics allege that women and people of color are being handed jobs and promotions at the expense of more qualified and deserving candidates. They also argue that any program that excludes white workers is just as illegal as a program that excludes Black workers.

The "anti-woke" backlash has unnerved business leaders.

“It’s hard to imagine that’s not having some impact on organizational commitment and investment. I do think that’s what we are seeing,” Thomas said. “When companies really have a deep focus on driving change, the numbers can really move and we can really see progress. And, at the same time, if they take their foot off the gas, the progress often drops away.”

While DEI critics may be getting louder, many employers say they are staying the course, but they are scrutinizing investments to figure out what works and what doesn’t.

LeanIn founder Sheryl Sandberg said the survey’s results are an urgent reminder that equality is good for business.

“We know that more diverse teams do better. We know that companies that take advantage of the full labor force do better,” said Sandberg, the former COO of Facebook owner Meta. “This is an opportunity for us to make sure that commitment doesn’t wane because that commitment is so important.”