Diversity Targets

Diversity targets are specific, often numeric goals expressed by an organization to increase the representation of underrepresented groups. These targets can pertain to race, gender, or any other underrepresented group within the organization. For example, an organization might announce that it aspires to increase its representation of women leaders by 25% over a period of five years.

Diversity targets are separate from diversity quotas, which require a specific number or percentage of positions in hiring or promotions to be filled by an underrepresented group. Unlike quotas, which carry heightened legal risk, we consider diversity targets to be lawful as long as they are aspirational and not mandates to make hiring or promotion decisions based on race, sex, or any other protected characteristic.

Targets can be beneficial to organizations seeking to increase diversity and implement effective DEI policies, because they help organizations:

• Understand where they lack diversity, as an initial assessment is required to identify a target.

• Gauge the impact and success of their diversity initiatives.

• Signal to internal and external stakeholders that the organization values diversity.

Since the Supreme Court's Students for Fair Admissions decision, there has been an increase in lawsuits challenging diversity targets. In these cases, the plaintiffs, who are typically white and/or men, claim that they experienced negative employment actions (such as not getting hired, getting fired, or getting passed over for a promotion) because of organizations’ efforts to achieve diversity targets. Many of these cases are in the early stages of litigation, so it is unclear if or how they will impact the current law on diversity targets. Nonetheless, organizations can take the following steps to mitigate the risk that diversity targets will be mistaken for quotas or mandates:

• Describe the target using aspirational language (such as “aim,” “aspire,” and “strive”) rather than rigid language (such as “will,” “ensure,” or “require”). 

• Ensure that staff are educated on legal practices and instructed not to consider protected characteristics such as race or sex in hiring and promotion decisions.

• Adopt and consistently apply structured and fair hiring and promoting practices that eliminate barriers to entry for historically underrepresented groups.

• Avoid implicitly or explicitly linking compensation, promotions, or benefits to achieving the diversity target.

Diversity goals can be achieved by engaging in a broad range of DEI policies and practices that are legal and designed to address institutional impediments to access and resources. Thus, organizations should continue to explore these options and use diversity targets to help assess whether these initiatives have the desired effect.