DEI Survey: Companies Balance Risks with Workforce Value

A new national survey shows that companies are largely maintaining diversity, equity, and inclusion programs and commitments.

Released Feb. 26, Littler’s 2025 Inclusion, Equity, and Diversity: C-Suite Survey Report notes that DEI programs “are facing existential threats” from Trump administration policies.

Littler surveyed about 350 C-suite executives from across the country before and after President Donald Trump’s Jan. 20 inauguration.

In the first two days of his administration, Trump ordered federal agencies to terminate all equity-related grants or contracts and repealed a 1965 executive order that first established affirmative action requirements for government contractors.

The president also directed the federal government to scrutinize private sector DEI practices, with each agency to identify up to nine civil compliance targets for investigation

A federal judge in Maryland issued a preliminary injunction Feb. 21 blocking the administration from enforcing many of the provisions in those executive orders.

Legal, Reputational Risks

Littler’s survey report notes that “companies continue to face pressure from vocal IE&D [inclusion, equity, and diversity] critics.”

“This new paradigm presents business leaders with the formidable challenge of balancing the rapidly shifting political landscape with employee expectations and existing IE&D commitments,” the report says.

“With legal and reputational risks front and center, how are organizations responding?”

The survey report’s authors write that “the view in the C-suite remains split, with relatively few executives changing their 2025 IE&D outlook from the start of the year.”

“For now, many companies seem to be taking a measured approach and awaiting further developments on the Trump administration’s priorities and enforcement plans as they balance the legal risks with the value such programs provide to their workforces,” the report says.

DEI Program Commitments

Littler’s report shows the percentage of companies that decreased DEI commitments rose from 6% in its 2024 survey to 24% this year, with responses indicating that higher-risk program elements “are likely to face future cuts.”

However, a majority of those surveyed said they were either maintaining (46%) or increasing (30%) DEI program commitments and activities.

“We are discussing ways to thread the needle in a manner that maintains commitment to diversity and inclusion for all,” one survey respondent said.

About half (49%) of those surveyed after the inauguration were not considering new or additional program rollbacks, 8% were “seriously considering changes,” and 22% were contemplating reducing or eliminating DEI-related roles.

That survey showed organizations considering future rollbacks were largely focused on minimizing external communications rather than eliminating programs.

Nearly two-thirds (61%) were contemplating removing or reducing DEI-related language from websites, proxy statements, and/or outward-facing communications.

Employee Expectations

Of those companies that maintained or increased DEI programs in 2024, about 75% said employee expectations played a role.

The report said that finding suggested “that IE&D remains an important tool for attracting and retaining talent.”

“CEOs appeared to be particularly attuned to employee preferences, with 40% saying employees influenced their organizations’ IE&D approach ‘to a large extent,’” the report’s authors wrote.

40% of CEOs said employees influenced their approach “to a large extent.”

Sixty-three percent of those surveyed before the inauguration said providing DEI training to all employees training was their top initiative, with 55% offering professional development opportunities to diverse employees.

In the post-inauguration survey, 43% said they were considering cutting back or eliminating training for all employees, with 30% contemplating rollbacks in development programs for diverse employees.

More than half (53%) of organizations surveyed before the inauguration survey had employee resource groups or affinity groups in place.

The post-inauguration responses showed 28% were considering rolling back those types of programs.

‘Very Aware of Threats’

Sixty percent of surveyed executives responded that they were waiting for further details about the administration’s priorities, including enforcement mechanisms, before making program changes.

“We are observing the changes that are unfurling and taking time to analyze before we make any rash decisions with long-term consequences for our employees, our company, and our reputation,” one executive responded.”

“While many companies do not appear to be abandoning their IE&D programs overnight, they are very aware of the threats,” the report says.

The report says that companies are “very aware of the threats.”

“Approximately half (55%) are more worried post-inauguration about the risk of IE&D-related lawsuits, government enforcement actions, and shareholder proposals.

“Fears are even more widespread among federal contractors and public companies that are highly visible targets for regulators.”

The survey showed that 70% of federal contractors and public companies were considering modifications.