WHY DEIB WAS NEVER BUILT TO SURVIVE A BUDGET CUT

DEIB doesn't get cut because leadership stops caring. It gets cut because it was never load-bearing.

Recent statistics circulating in HR circles often lack context. Lattice's 2026 State of People Strategy Report shows only 16% of companies now consider Diversity, Equity, Inclusion, and Belonging (DEIB) a top global priority, down from 30% in 2023.

What the drop reveals

At first glance, it may seem companies are abandoning these initiatives. However, the issue is transparency. Budget constraints do not eliminate priorities; they reveal which are truly embedded and which are merely funded. Lattice's research shows the real difference lies not in what organizations say about DEIB, but in what they defend when budgets tighten. This is not a failure of talent leaders to advocate for DEIB, but an indication these priorities were never integrated into essential business functions. This challenge is common where hiring processes fall short.

Why it was never load-bearing

In recent years, most DEIB efforts operated as standalone initiatives with separate ownership, budgets, and goals. Meanwhile, core hiring processes often remained unchanged, lacking defined criteria, structured procedures, or rigorous sourcing. As a result, DEIB outcomes were not integrated into hiring but existed as an additional layer competing for resources without driving fundamental change.

Lattice's 2025 report identified a solution before these cuts: integrate DEIB into core HR functions rather than treat it as a separate program. Few organizations implemented this change, making it easy to eliminate DEIB initiatives. Without integration, these efforts remained peripheral and nonessential. It's the same mistake happening in hiring overall, more volume without more judgment applied to review it.

What a strong foundation looks like

Here's what a strong foundation in hiring practices really means, and it's important to be clear because the term is often vague. When the interview framework is set before meeting a candidate, that's a good start. When criteria for finding the right people are set with a specific goal, not just what's easy, that's another key part. When the hiring process is designed to produce a diverse range of candidates, not just tracking numbers but through a rigorous, well-thought-out process, you have something solid. Then, creating a fair and inclusive workplace isn't a separate program that can be cut; it's integral to how the company operates. Removing it would require overhauling the hiring process, a much tougher sell to the board than cutting a budget item.

The numbers support this claim. A 2026 study by Lattice found that the top-performing HR teams were five times more likely to have made diversity, equity, inclusion, and belonging a priority during that period. This isn't just a coincidence. The teams that built strong hiring practices into their systems were also the ones with the discipline to keep diversity and inclusion a priority, even when other priorities were being cut back.

A pause, not a stop

It's clear that having a solid foundation in place helps teams stay focused on what's important, even in tough times. I had a conversation with a coworker who has a different perspective on this issue, and surprisingly, we both reached the same conclusion: this is just a temporary break, not a permanent stop. It's going to come back, and the big question is, what are leaders in charge of talent going to do with the time they have before it returns?

They need to use this window of opportunity to their advantage and make the most of it before things pick up again. The pause gives them a chance to regroup, reassess, and prepare for what's next. Companies that use this break to rebuild and make their hiring process more inclusive, instead of restarting the same old program when they have more money, will be ahead in the long run. They won't face the same conversations about diversity and budget issues in a few years. On the other hand, companies that wait for things to improve and then return to old ways will end up defending a program that isn't working when budgets tighten again. These companies will be stuck in a cycle of starting and stopping diversity programs, never making real progress.

By rebuilding their hiring infrastructure to be more inclusive, companies can create a more sustainable and effective approach to diversity and inclusion, one that isn't so dependent on the budget. This way, they can make real progress rather than just talk about the same issues year after year. If your DEIB strategy couldn't survive contact with a budget cut, that's not actually a DEIB problem. It's a hiring process problem, and it's going to show up again somewhere else the next time something gets squeezed.

If you are responsible for talent acquisition and development, consider identifying your priorities before your budget is restored. It is advisable to plan ahead and schedule a meeting with Do Better Consulting to discuss your strategy.

Frequently asked questions

Why do DEIB programs get cut first when budgets tighten?

Because most DEIB work runs as a standalone initiative instead of being built into the hiring process itself, so it can be removed without touching how the company actually hires.

What makes DEIB durable instead of disposable?

DEIB holds up when diverse outcomes are a byproduct of a rigorous, structured hiring process, not a separate goal tracked alongside a process that never changed.

Is DEIB coming back?

The data says yes, and the highest-performing HR teams never fully deprioritized it in the first place.