We’re all familiar with the headlines by now, and perhaps your company was in one of them. Between 2022 and April of this year, tech companies have laid off more than a quarter of a million people, citing over-hiring during the early days of the pandemic and fears of economic downturn. In addition to disproportionate impacts to women and other marginalized groups, DEI initiatives have also been on the chopping block.
These trends betray the bold DEI promises made by tech companies following global social movements for racial justice in the summer of 2020. This begs the question: Were these initiatives merely for optics, or were these initiatives part of a long-term strategy of building better teams and fostering innovation?
Tech has seen tough times before
This isn't the first time the tech sector has weathered tough economic times. During the Great Recession, tech companies laid off over 130,000 employees between 2008 and 2009 — fewer than have so far lost their jobs in 2023 alone. During this time, big tech companies also made heavy investments in research and development. Companies understood that doubling down on those investments towards innovation would pay off — and they did.
R&D and DEI are both essential for innovation
You don’t just slap the word “innovative” under the values section of your website and think that it transforms your company. To be innovative requires putting in the work to foster that kind of environment within your organization. That work involves identifying and putting resources behind a strategic long-term vision that enables great teams to deliver innovative solutions.
Just as R&D is considered an essential part of innovation, so too are DEI initiatives. These initiatives are the key to forming great teams by attracting and retaining a large and diverse talent pool. They improve your products and services by reducing groupthink — increasing the overall solution space through creative thinking. Most importantly, they increase customer trust and loyalty. By divesting in these initiatives for improved profitability in the short term, you stand to lose out in the long term.
Put your money where your diversity statement is
Here at PDXWIT, we advocate for tech companies to put their money where their diversity statements are. With DEI departments and initiatives impacted by mass layoffs, this message is as urgent as ever. It’s bad for teams, and ultimately it’s bad for business. As the demand for technology — especially for technology that is both responsible and ethical — continues to grow, one thing remains clear: DEI is not a side project. It should be a core business function within your organization.
