How the U.S. Supreme Court's Ruling on Affirmative Action Could Impact Shared Services

The Supreme Court's ruling on affirmative action this June has cast a shadow over diversity, equity, and inclusion (DEI) initiatives for shared services. The ruling, which struck down a Harvard admissions policy that considered race as one factor in admissions decisions, could make it more difficult for companies to implement and defend DEI initiatives.

The ruling is likely to have a significant impact on shared services organizations, which often handle hiring and other human resources functions. According to SSON Research & Analytics data, 57% of shared services support HR, and 60% of shared services organizations have instituted a DEI strategy specific to their shared services operations. These figures show the decision by the Supreme Court could become very relevant to the shared services and GBS space.

The full impact of the ruling on DEI initiatives and shared services is not yet known. However, it is clear that the ruling will significantly impact these areas. 

How the Ruling Could Impact DEI Initiatives

The Supreme Court's ruling on affirmative action could have a number of implications for DEI initiatives. First, the ruling could make it more difficult for companies to use race as a factor in hiring decisions. This could make it more challenging for companies to achieve their DEI goals, as they will have fewer tools to use to recruit and retain a racially diverse workforce.

Second, the ruling could lead to a backlash against DEI initiatives. Some people may see the ruling as a sign that DEI is no longer necessary and that companies should focus on other factors, such as merit when making hiring decisions. This could make it more difficult for companies to implement and defend DEI initiatives.

Finally, the ruling could lead to a shift in the focus of DEI initiatives. Companies may focus more on initiatives that do not rely on race, such as unconscious bias training or mentorship programs. This could make it more difficult to achieve some DEI goals, such as increasing the representation of underrepresented groups in leadership positions.

Despite these looming challenges, Alvin Tillery, a political science professor at Northwestern University, told NPR, "The current structure of the workforces in corporate America suggests that there are tons of gaps between the races," Tillery said, adding, "Diversity, equity and inclusion work can be reframed as trying to figure out what's behind the processes creating these gaps and then filling the void by creating structures and processes to make sure that you're not discriminating under Title VII (of the Civil Rights Act)." 

Meaning that despite this Supreme Court ruling, Tillery feels there will be a continued need in the American workplace for DEI initiatives.

How the Ruling Could Impact Shared Services 

The Supreme Court's ruling on affirmative action could also have a number of implications for shared services organizations. First, shared services organizations may need to review their policies and procedures to ensure that they are in compliance with the ruling. This could include reviewing policies on hiring, promotion, and compensation.

Shared services organizations may need to be on the forefront of providing training to employees on the ruling and its implications. This training should help employees understand the ruling and how it may affect their work.

Organizations may also need to develop new tools and processes to help them comply with the ruling. For example, they may need to develop a new way to score resumes that does not rely on race. However, these changes will be determined based on whether the affirmative action ruling will encompass more than college admissions.

Conclusion

The Supreme Court's ruling on affirmative action could have a significant impact on DEI initiatives and shared services. Companies and organizations should take the ruling as an opportunity to review their policies and procedures. They should also provide training to employees on the ruling and its implications.

In addition, shared services should consider how the ruling could impact their own DEI goals and objectives. They may need to shift their focus or develop new tools and processes to comply with the ruling.

The full impact of the ruling is not yet known. However, it is clear that the ruling will have a significant impact on DEI initiatives and shared services.