By Kyle Patrick Smith | CEO of HRKyle Services

Let’s be real: DEI—Diversity, Equity, and Inclusion—was supposed to create better workplaces for everyone. It started with energy, big promises, and plenty of budget. But now? Companies are cutting DEI roles, programs are stalling, and people are quietly stepping away.

What happened?

DEI didn’t fail because the mission was wrong—it failed because it was implemented in ways that were short-sighted, exclusionary, and out of touch with the everyday workforce.

 

Let’s unpack where things went off track—and how we can rebuild DEI into something better, stronger, and more effective.

1. Straight White Males Were Excluded and Labeled the Problem

One of the most damaging dynamics in DEI programs was the suggestion that one group—straight white men—was the root cause of the problem. Many were told to step aside, stay quiet, or carry the blame.

That’s not inclusion—it’s alienation. You don’t build stronger teams by pushing people out. Inclusion only works when everyone is part of the conversation.

2. It Created an Oppressor vs. Victim Dynamic

Too often, DEI programs focused on binaries: someone’s always the victim, and someone else is always to blame. This fosters resentment and shuts down real discussion.

Progress doesn’t come from pointing fingers. It comes from shared accountability, mutual respect, and real collaboration.

3. “Diversity” Was Treated as Anything That Wasn’t White or Male

There was a growing trend to define diversity simply as the absence of white men—as if a team of all women or all non-white professionals was automatically proof of progress.

That’s not diversity—that’s reverse exclusion. True diversity is balanced, multidimensional, and rooted in inclusion, not elimination. Real success is when people of different backgrounds, perspectives, and experiences come together—and everyone belongs.

4. Too Many Groups Were Left Out

Veterans. People with disabilities. Older workers. Formerly incarcerated individuals. Workers from rural and economically distressed backgrounds. All of these people face real workplace challenges, and yet were rarely included in DEI efforts.

These are not side conversations—they are central to what equity should mean. You can’t claim to be inclusive while ignoring major segments of the population.

5. It Focused on High-Profile Roles, Ignoring the Real Workforce

One of the clearest signs of where DEI went wrong is in who it chose to elevate.

In most cases, efforts were directed at high-profile roles in tech, law, finance, and executive leadership. That’s where the promotions and press releases went. In many cases, these efforts simply worked to advance women and minorities into top-tier corporate roles—often skipping over the original goal of building diverse, representative teams across all levels of the organization.

The result? Industries and frontline roles that needed inclusion most—like manufacturing, nursing, skilled trades, and counseling—were left out of the conversation entirely.

Take nursing or mental health counseling, for example. Both are critical fields that suffer from a drastic shortage of male professionals. But where was the DEI conversation about that?

If we truly believe that “those providing services should reflect those they serve,” then we should be encouraging more men in caregiving roles, just like we should be opening up more tech and engineering roles to women.

But that kind of two-way thinking never took hold. And that’s a big reason DEI stalled.

6. It Failed to Celebrate Real Progress

Even when companies improved—through smarter hiring, better policies, stronger mentoring—those wins often weren’t acknowledged. It felt like no effort was ever enough.

If you want people to stay committed, you have to celebrate what’s working. You can’t keep moving the goalposts. Progress must be noticed, praised, and built upon—or it fades.

7. It Didn’t Emphasize the Tangible Business Benefits

DEI was often framed as a moral or political issue, not a strategic one. That was a major oversight.

The reality is: DEI, when done well, delivers measurable business value.

• Recruiting becomes more successful because you widen your talent pool and reduce groupthink.
• Retention improves because employees feel they belong and are supported.
• Customer satisfaction increases because your team understands and reflects your customers.
• Innovation grows because diverse teams challenge old assumptions and bring fresh ideas.
• Profitability strengthens because inclusive teams are more adaptive and resilient.

This is not theory—it’s data-backed and observable in organizations that get it right (the data and research sources are further down in this article). The best companies know that inclusion isn’t just the right thing to do—it’s a smart way to work.

And let’s be clear: those of us who’ve been in the HR trenches have been doing the hard, positive work of inclusion for years. Before DEI had a title. Before it was trendy. Because we believed in the value of people—and we still do.

8. When Government Support Wavered, So Did the Commitment

With the winds shifting in politics and public funding, many DEI advocates and companies are quietly pulling back—as if the entire movement depended on external mandates.

It didn’t. And it shouldn’t.

Right now, there are under-resourced organizations doing the real work—job training for returning citizens, employment services for the disabled, veteran reintegration, second-chance hiring, and wellness support for older workers.

These groups aren’t waiting for approval—they’re out there showing up. What they need is help: resources, time, volunteers, partners.

So What Now?

If DEI is going to make a comeback, it needs a complete reset. That means:

• Including everyone, not excluding certain groups.
• Removing the blame, and inviting shared responsibility.
• Recognizing progress, and celebrating success.
• Bringing DEI to all jobs and industries, not just boardrooms and tech firms.
• Focusing on what works, not just what feels good.
• Investing your own time and energy, instead of waiting for someone else.

If you still believe in the core mission—creating better workplaces for all—this is your moment to step up.

At HRKyle Services, we help companies:

• Build practical DEI strategies that actually work
• Expand talent pipelines with overlooked but high-potential groups
• Train inclusive leaders who bring people together
• Support community partnerships that make measurable impact

DEI isn’t dead—it’s ready to evolve. And this time, let’s do it right.

Visit www.hrkyle.com or call 330-541-5533 to find out how we can help your team lead with clarity, build with integrity, and create workplaces that work for everyone.

 

And, by the way…Here’s a list of research studies and findings that support the measurable business value of DEI:

• McKinsey & Company (2020, 2023)
  • Companies in the top quartile for ethnic/cultural diversity on executive teams were 36–39% more likely to outperform their peers on profitability.
  • Gender-diverse companies were 25% more likely to outperform on profitability.
    Source: Diversity Wins: How Inclusion Matters (2020), Diversity Matters Even More (2023)
• Boston Consulting Group (BCG)
  • Companies with more diverse management teams report 19% higher innovation revenue (defined as revenue from products launched in the past three years).
    Source: How Diverse Leadership Teams Boost Innovation (2018)
• Deloitte
  • Organizations with inclusive cultures are 2× as likely to meet or exceed financial targets, 3× as likely to be high-performing, 6× as likely to be innovative and agile, and 8× more likely to achieve better business outcomes.
  • Inclusive workplaces see 4× higher employee retention.
    Source: The Diversity and Inclusion Revolution: Eight Powerful Truths (2018)
• Gallup
  • Gender-diverse business units in retail saw 14% higher average comparable revenue.
  • Companies with engaged and inclusive teams had 21% greater profitability and 17% higher productivity.
    Source: The Business Case for Diversity and Inclusion (2019)
• Glassdoor
  • 76% of job seekers and employees say a diverse workforce is important when evaluating companies and job offers.
    Source: Glassdoor Diversity Hiring Survey (2020)
• Harvard Business Review
  • Teams with cognitive diversity solve problems faster than teams of cognitively similar people.
    Source: Teams Solve Problems Faster When They’re More Cognitively Diverse (2017)
• Josh Bersin Research
  • High-performing companies are 3× more likely to build inclusive teams than low-performing ones.
    Source: Why Diversity and Inclusion Has Become a Business Priority (2019)
• World Economic Forum / Mercer
  • Inclusive companies are 35% more likely to outperform their peers.
    Source: Mercer’s When Women Thrive research, WEF DEI Impact Reports