The End of DEI

Diversity, equity, and inclusion (DEI) is one of the most polarizing issues in business and society. Advocates claim that DEI enhances fairness, while critics argue it undermines meritocracy. The problems stem from the practice of DEI – reducing it to demographic diversity – rather than its principle. This paper proposes an alternative framework, Potential, Synergy, and Inclusion, that preserves DEI’s objectives while addressing its weaknesses. Potential emphasizes recruiting individuals for their capacity to create future value rather than past achievements. Demographics can be informative about an applicant’s trajectory, but many other aspects of their background are also relevant. Synergy focuses on building teams with complementary skills and perspectives. One such synergy arises from cognitive diversity, for which demographics are only a partial source. Inclusion enables employees to voice ideas, challenge norms, and overcome structural frictions. While DEI is viewed as advancing only minority groups and primarily aligned with one side of the political spectrum, the proposed approach seeks to grow the pie for the benefit of all.