Gen Z may save DEI in corporate America

Diversity, equity and inclusion programs, the hottest workplace trend a mere three years ago, are now under fire. Once hailed as essential to fostering a more equitable workplace, some now dismiss DEI as performative, arguing these efforts do little to drive real change, and some even say they are discriminatory. 

Companies including agricultural-machinery heavyweight John Deere and elite colleges such as the Massachusetts Institute of Technology are quietly dialing back DEI programs and requirements after taking a supportive stand as recently as 2020. One of the most sought-after jobs on LinkedIn in 2021, diversity officer, has taken a dive.

Yet, even as DEI faces a backlash, a generational change in corporate America might affect the trajectory of this movement. Gen Z, those born from 1997 to 2012, is overtaking baby boomers (1946-1964) as a dominant force in corporate America, according to Glassdoor's 2024 Workplace Trends report. For the younger generation, DEI isn't just an initiative — it's a core value. And Gen Zers are increasingly demanding every company they work for embrace it.

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A wholesale change in values

Gen Z grew up amid social turmoil and an unprecedented pace of technological change. They witnessed movements like #MeToo, Black Lives Matter and global climate strikes, all through the lens of social media. This has shaped their worldview and priorities in ways older generations — millennials, Gen X and baby boomers — don't always fully grasp. 

Gen Z is not seeking traditional workplaces focused solely on salaries and status. They want companies that align with their values. In fact, Deloitte and the Network of Executive Women (NEW) research shows that 77% of Gen Z respondents say it is vital to work for a company whose values match their own. 

And if those values are missing? Gen Z is quick to walk out the door, as I've heard anecdotally from numerous colleagues. For many in this generation, culture trumps compensation. As a result, the war for talent is intensifying for many companies.

This shift is challenging businesses to double down on not only their DEI programs but also their entire approach to management and workplace culture. For Gen Z, it's not enough to have a DEI officer, diverse images in photographs or diversity-focused events. They want DEI to be an organic, integrated part of how the company operates, from top to bottom.

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An evolving approach to work

As Gen Z gains a stronger foothold in the workplace — they will represent the largest cohort in a decade and a half — the way work gets done is evolving. Unlike older generations, who were often content to follow established processes, Gen Z is demanding freedom and flexibility in how they achieve results, and they have little patience for micromanagement or rigid corporate structures. For example, 73% of Gen Z employees want permanent flexible work alternatives, which is a schedule that differs from the 40-hour-a-week, 9-to-5 standard, according to World Economic Forum research. 

Companies must prove their values

The transparency Gen Z demands is putting companies under a microscope. These younger employees aren't just asking about DEI during interviews — they're researching companies long before they apply. They dig into leadership teams, examine public statements and scrutinize whether a company's actions reflect its words. 

If there's a disconnect between what a company says and what it does, they notice. In job interviews, hiring managers can expect to be the ones who get a grilling, I've noticed in discussions with colleagues. You can't pull the wool over this generation's eyes and expect them to go along.

Companies that don't authentically embrace DEI are finding it harder to recruit and retain top talent, especially among Gen Z. Remember that this generation has options. They're not tied to the traditional "work your way up the ladder" mentality that had been commonplace. In this economic cycle of a tight labor market, that's a consequential risk for companies.

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DEI and business success are directly linked

There's a hard business case for why companies need to take DEI seriously. In a labor market where turnover is costly, both financially and operationally, the companies that thrive are those that understand DEI isn't just about doing the right thing — it's about creating a sustainable workforce. Studies, including the last in a nine-year series by consultant McKinsey & Co., have shown that organizations with strong DEI practices report higher employee satisfaction, better productivity and improved financial performance. The numbers don't lie: DEI is good for business. 

As technology and competition accelerate, companies can't afford to ignore this shift. Gen Z is not only reshaping what workers expect in terms of flexibility and work-life balance but also pushing for transparency, fairness and inclusion at every level. 

So, don't count DEI out just yet. While it may be facing pushback, Gen Z is quietly — and forcefully — making sure it becomes a permanent part of the modern workplace. And for companies, the message is clear: Take diversity seriously. There is no threading the needle here. Adapt or pay a price.