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Some 42% of executives are planning “substantive” changes to DE&I in 2025, new report finds

More companies had a DE&I strategy and budget in 2024, and most are still committed to the work.
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There was no shortage of debate over DE&I in 2024. Some companies reaffirmed their commitment to initiatives, while others appeased conservative activists, and DE&I leaders faced an uncertain job market.

The health of DE&I initiatives in 2025 remains uncertain, especially as politicians turn up the rhetoric, but a new study indicates that while companies anticipate change ahead, most are committed to DE&I.

Some 43% of leaders said that anti-DE&I rhetoric impacted their diversity efforts in 2024, and 42% will make “substantive” changes to their initiatives in 2025, according to the State of Culture and Inclusion report from Paradigm, a DE&I consultancy. The organization surveyed 150 business leaders, analyzed data from 220 clients, and compared 143 organizations’ initiatives year over year.

Despite the negative discourse, 73% of companies have made a commitment to DE&I as part of their values, and 60% have a DE&I strategy, a 9% increase from 2023. Furthermore, 66% of organizations have a dedicated DE&I budget, a 12% increase, and 40% have a full-time DE&I leader, a 13% increase. Representation goals appear to be disappearing though. Just 26% of companies have gender representation goals, an 8% decrease.

While the report’s authors expect more attacks on corporate DE&I in 2025, they predict that companies will continue with their initiatives, even as the language surrounding them changes. “We expect to see more use of words like culture, belonging, engagement, and inclusion.”

Quick-to-read HR news & insights

From recruiting and retention to company culture and the latest in HR tech, HR Brew delivers up-to-date industry news and tips to help HR pros stay nimble in today’s fast-changing business environment.