DEI efforts are under-funded in company budgets

Is your company planning on making DEI a (more) prioritized matter in 2022?

Denominator have earlier shared data on companies’ efforts on disability. The insights revealed that companies with a higher revenue have stronger efforts on disability than companies with lower revenue. Is the same correlation true between revenue size and DEI budgets?

A Diversity, Equity, and Inclusion Budgets & Resources Study found that the majority of DEI leaders in tech do not believe that they have the funding to execute their vision on DEI. In addition, nearly one-quarter of respondents said they were the only person at their company whose job was to focus on DEI.

Another report, How to Build an Effective DEI Program, by workplace training solutions provider Traliant and World Business Research set out to understand the current challenges facing DEI executives and their expectations for 2022 and beyond.  

The report finds that organizations across industries are making DEI a priority in 2022 and forward, as 79% are planning to allocate more budget and resources. Budget is however just one factor in creating an enduring culture of DEI

When asked “How confident are you that employees feel a sense of belonging, inclusion, and psychological safety?”, 15% are extremely confident, 61% somewhat confident while 24% or nearly a fourth are somewhat unconfident 

The report also found that

  • 89% have a formal DEI strategy and 11% expect to implement one within the next 12 months  
  • DEI goals and/or progress are communicated on a biannual basis (33%) or annual basis (30%)  
  • 58% of DEI leaders experience their CEO and/or executive management team to be involved in decisions to endorse and advance DEI, but only 13% are proactive and visible in demonstrating their support  

At Denominator, we look forward to following the development in 2022 and forward and hope the money will be followed by action for them to improve on companies’ DEI efforts.

The phone survey of DEI executives represented 300 US organizations across industries, ranging in size from 100 to 5,000+ employees. Read the full report by Traliant here.