SHRM’s Controversial Decision: The Removal of Equity from DEI and What It Means for HR Teams

The Society for Human Resource Management (SHRM) has recently made a surprising decision that has sparked considerable debate in the HR community. SHRM, a leading organization with over 330,000 members globally, has chosen to remove “Equity” from its DEI framework.

 This change has raised eyebrows and led to strong reactions about the future of diversity, equity, and inclusion (DEI) initiatives in the workplace.

Kristi Pastore, CEO and Founder of Culture Works, chimes in:

What SHRM’s Decision Means

Traditionally, DEI stands for Diversity, Equity, and Inclusion. Equity, in particular, has been a critical component of this framework, emphasizing fair treatment, opportunities, and advancement for all individuals. By removing equity from the DEI acronym, SHRM’s decision has been described as not only surprising but also detrimental to the core values of DEI.

The removal of “Equity” from DEI is seen as a major setback. Equity is a best practice that shapes fair compensation philosophies and drives compensation structures. 

Some may even argue that equity is the most crucial element in achieving real, meaningful change within organizations, at every level in organization. The decision to exclude it undermines the essential goal of creating fair workplaces. This perspective reflects a growing frustration with what some perceive as the dilution of DEI efforts.

Why Equity Matters

We know DEI is a buzzword. We talked about this months ago when we labeled DEI as “Divides Encouraged by Influences.” But, we know the guts of this acronym matter and they ultimately mean so much more than the buzzword acronym that got created. 

Equity involves more than just equality; it requires understanding and addressing the unique needs and barriers faced by different groups to ensure everyone has the same opportunities for success. Removing equity from DEI could result in a focus that is less comprehensive and less impactful. 

For HR practitioners, this shift could mean a departure from addressing systemic inequalities and a reduced emphasis on creating truly inclusive environments.

The Path Forward for HR Teams

Despite SHRM’s controversial decision, HR teams have a critical role to play in advancing strategy within their organizations. Here are some steps HR teams should consider:

1. DEI is a buzzword! HR professionals should continue to champion, implement and evolve best practices including unbiased hiring practices, equitable and fair compensation strategies, and psychologically safe workforces who are value-aligned. Doing these best practices produce diversity,  ensure equity, and foster inclusive cultures. We know that equitable strategies can lead to better organizational outcomes. This involves not only addressing current inequities but also proactively creating environments where all employees can thrive.
2. Focus on Outcomes: HR teams should strive to create tangible outcomes from the DEI initiatives. This means setting clear goals, measuring progress, and making adjustments based on results. By demonstrating the impact of their work in talent acquisition, hiring processes, engagement surveys, and retention efforts, HR practitioners can continue to advocate for the importance of equity and change in the workplace.
3. Lead by Example: HR professionals should exemplify best practices by creating and evolving leading (not lagging) indicators that create intentional KPIs needed for attraction, engagement, and retention results. Identify and implement the human metrics that make sense for your teams, company culture success and/or reaching business goals. KPIs should align with intention and outcomes as it will absolutely impact team behavior and company culture. Depending on the team, company goals and/or business lifecycle, KPIs could trend things like performance and leaderboards, on time deliveries, turnover rates or costs, eNPS trends, time to productivity, recruiting time to alignment, and more!
4. Stay Informed and Adapt: The landscape of HR and People is constantly evolving. HR teams should stay informed about their company’s industry trends, emerging best practices, changes in regulatory or organizational standards, and align goals that evolve KPIs to track leading indicators. Adapting to these changes can help HR professionals maintain effective practices and impactful proactive strategies.

Final Notes

SHRM’s decision to remove equity from DEI has stirred significant controversy and concern. While the rationale behind this decision remains a topic of debate, it is clear that equity remains a vital component of being an HR Practitioner. HR teams must continue to advocate for and implement equitable practices, ensuring that strategic plans and processes lead to real, positive change within their organizations.

As the discussion around DEI evolves (or dies), staying committed to equity will always remain essential for fostering inclusive and fair workplaces.

Need a Little Help with Recruitment?

Taking the time to hire the right people will have a host of benefits in the long run. Finding the best fit may not be as easy as a gut feeling and a round of interviews. Luckily, Culture Works is here to help.At Culture Works, our team is focused on value and role alignment. Our team creates processes for your hiring manager to implement, that make the hiring process efficient and effective. We carefully review and screen each candidate, administer customized assessments, and deliver value and role-aligned people to fit your needs. Read on to learn more about what we do.