Upwardly Global Employer Working Group May 2024 Meeting Recap
In May, Upwardly Global convened its Employer Working Group, made up of over 100 corporations, to discuss the growing backlash against corporate DEI initiatives. Guest speakers from FSG, a global nonprofit consulting firm aimed at social change, and Paul Hastings, LLP, a global law firm, provided practical advice for employers on how to navigate the current climate.
Background
After George Floyd’s murder in 2020, DEI and corporate social responsibility (CSR) programs grew significantly. This growth continued until the Supreme Court’s 2023 ruling on affirmative action, which, although specifically about higher education, has impacted the private sector. Companies are now bracing for a potential backlash on DEI hiring initiatives and navigating uncharted waters on the potential legal repercussions. Tech giants such as Google are sunsetting apprenticeship programs, while other companies are slowly removing DEI references from their websites. Despite this, 80% of companies remain committed to DEI.
How companies can approach recruitment and hiring in the current climate: the legal perspective
Paul Hastings is a premier global law firm providing intellectual capital and execution globally to the world’s leading investment banks, asset managers, and corporations. Sarah Besnoff, an Employment and Human Rights Attorney at Paul Hastings, joined the meeting to share practical advice for employers on recruiting and hiring practices in the current climate.
Top tips include:
- For companies committed to DEI and building a diverse workforce while mitigating litigation risks, consider shifting focus to attracting a more diverse applicant pool rather than setting specific hiring quotas. Concentrate on goals that enhance the diversity of job applicants.
- In a traditional diversity-targeted internship model, a requirement of selection is membership in a protected group. This type of internship presents with higher risk following the Supreme Court’s affirmative action ruling. To mitigate these risks, consider the following strategies:
- Offer internships to all applicants who self-identify as members of underrepresented groups in your profession, without strictly defining or verifying their self-identification.
- Remove membership in a protected group as a selection criterion. Instead, require applicants to submit an essay demonstrating their commitment to DEI.
- To increase your talent pool with less legal risk, consider forming partnerships with institutions and organizations. For example:
- Partner with Historically Black Colleges and Universities (HBCUs) or women’s colleges to create a talent pipeline.
- Participate in industry affinity groups such as Out and Equal, the National Asian Pacific American Bar Association, and the National Society of Black Engineers. This increases awareness of your opportunities and encourages more diverse applicants.
- A diverse slates approach involves explicitly ensuring that a certain percentage of applicants being considered for positions come from diverse backgrounds (i.e., any list of applicants for consideration must include applicants from underrepresented groups). In the current landscape of increased legal risk, it’s crucial that the diversity goals for your candidate slate reflect the diversity of your applicant pool. Key considerations for a strong diverse slate program:
- Ensure that interview panels are also diverse.
- Avoid tokenism by genuinely committing to diversity rather than just meeting quotas.
- In many cases, DEI program leadership is kept separate from HR management and recruiting. Consider a cross-functional team of DEI and HR/recruiting to work together on matching programs like diverse slates with voluntary affirmative action plans.
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- Remember that it is always legal to hire the best candidate. Make sure your records show this by keeping the resumes of each candidate and descriptions of why you hired them. Train recruiters to reframe and consider diversity of experience, leadership, resilience, and commitment to diversity.
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How companies can navigate the current DEI and ESG backlash with purpose
In March 2024, FSG, a global nonprofit consulting firm that partners with foundations and corporations to create equitable systems change, advised companies that despite the challenges of today’s polarized political climate, this moment can be an opportunity to future-proof DEI and CSR efforts by:
- Reclaiming your company’s purpose narrative: Remain aligned with your vision and values rather than reacting to outside narratives such as the political polarization of the terms DEI and ESG (environmental, social and governance).
- Leveraging data: Tying data to company goals shows how progress benefits everyone, impacts communities, is good for business, and allows for a deeper understanding of the barriers affecting certain groups.
- Harnessing collaboration through partnerships:
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- Internally, this may look like: Creating committees with a diverse array of employees to weigh in on the company’s programs and initiatives that are aimed at alleviating injustices, or finding ways to include more employees’ voices.
- Externally, this may look like: Connecting with peers and organizations who are dedicated to addressing inequities and social injustices, which creates space for support in the face of potential backlash.
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Upwardly Global’s DEI Employer Working Group
Made up of over 100 corporations, Upwardly Global’s DEI Employer Working Group aims to engage corporate America to better understand the roadblocks in hiring international talent and to co-create solutions. Upwardly Global’s unique position working with many employers over the last 20 years gives special insight to trends, pain points, and best practices. This invite-only working group is a platform to engage with peers, share best practices and challenges, and co-create solutions to better integrate immigrant and refugee talent into our workforce.
Email us to learn more.