As President Donald Trump’s executive orders reshape the national conversation on diversity, equity, and inclusion (DEI), companies face a stark reality: evolve their DEI strategies or risk falling behind.

Traditional DEI initiatives have focused on representation and fairness, but they often fall short of addressing the structural barriers that inhibit true progress. This disconnect represents a missed opportunity to create a symbiotic relationship in which companies achieve profitability while fostering meaningful opportunities for individuals.

Enter a new approach: SHRM’s Belonging Enhanced by Access through Merit (BEAM) framework. This framework addresses the shortcomings of traditional DEI strategies. It shifts the narrative from optics to outcomes, emphasizing merit and capability over credentials and identity. BEAM redefines inclusion as a performance-driven strategy—one that improves business outcomes, fosters innovation, and enhances workplace culture.

The Problem with the Status Quo

For years, DEI initiatives have been presented as a moral and societal imperative. Despite being well intentioned, many initiatives fail to deliver tangible results. Underscoring this trend, 69% of U.S. workers said the results of corporate diversity programs were mixed at best, according to research by SHRM.

Consider these common challenges:

• Diversity initiatives tend to emphasize representation in hiring from underrepresented groups—but often overlook the critical aspects of long-term retention, career progression, and employee development, leading to high turnover rates and disillusionment.
• Equity aspires to create fairness in processes and outcomes but struggles to confront and dismantle deeply entrenched structural barriers, such as biased hiring practices, unequal access to opportunities, and inequities in pay.
• Inclusion is critical to a productive workplace, but if an organization’s initiatives focus only on creating connections between workers with common characteristics, they can lead to segmentation in the workplace rather than holistic inclusion.

As a result, many DEI efforts have become disconnected from broader organizational goals, leaving them vulnerable to criticism on multiple fronts. Shareholders are increasingly demanding demonstrable performance tied to DEI investments, and courts are challenging affirmative hiring practices. Meanwhile, political polarization is at an all-time high for the last 50 years, according to Pew Research Center, and 44% of U.S. workers said they incivility will worsen in 2025, according to SHRM.

This growing tension calls for a fundamental reframing of DEI. The traditional approach has become increasingly disconnected from measurable business outcomes. Rather than being viewed as separate from the core business strategy, DEI initiatives must be repositioned as a critical driver of operational excellence and innovation.

A New Framework

SHRM’s BEAM (Belonging Enhanced by Access Through Merit) serves as the operational foundation for achieving the goals of inclusion and diversity. It offers a five-question framework that companies can use to assess their programs in these areas. By addressing systemic barriers and reorienting talent management practices, BEAM enables companies to align inclusion with measurable outcomes, making inclusion an integral part of business success.

BEAM represents a strategic evolution—a forward-thinking approach to talent management that unlocks potential through capability, not privilege. At its core, BEAM prioritizes access and measurable outcomes over optics and quotas. 

The Four Core Principles of BEAM

1) Merit as the Primary Lens

• Talent identification relies on measurable skills and abilities tied to performance without any proxy reflecting illegal preferential treatment.
• Skills-based assessment to ensure decision-making is focused on real potential, removing unconscious biases from hiring and promotions.

2) Access over Identity

• Expand recruitment pipelines to overlooked, nontraditional talent pools, including vocational programs, apprenticeships, and upskilling platforms.
• Partner with community organizations to reach untapped talent possessing the requisite skills and abilities needed to achieve success.

3) Continuous Calibration

• Leverage performance data to drive talent management practices and optimize human potential through development.
• Create feedback loops to identify and dismantle systemic biases that creep into hiring, retention, developmental, or promotion processes.

4) Operationalizing Inclusion

• Treat inclusion not as a standalone program but as an embedded operational strategy linked to talent sourcing based upon a skills-first philosophy.
• Invest in artificial-intelligence-powered tools that identify talent dynamically, aligning capability with business outcomes while ensuring unbiased recommendations.

The Case for BEAM in Business Optimization  

Inclusion is more than just a moral principle—it’s a critical business imperative.

“We're going to lead with inclusion, because we need a world where inclusion is front and center. And that means inclusion for all, not some people. Everyone has a right to feel that they belong in the workplace and that they are included,” SHRM President and Chief Executive Officer Johnny C. Taylor, Jr., SHRM-SCP, stated in July 2024.

This vision aligns with findings from McKinsey’s & Company’s Diversity Matters Even More report, which underscores that fostering inclusive environments—in which every employee feels valued and empowered—drives stronger business outcomes and organizational success. Here are some key findings from the report:

• 36% to 48% higher profitability: Companies in the top quartile for gender and ethnic diversity significantly outperform their less-inclusive peers.
• 53% higher customer satisfaction: Inclusive teams, especially in consumer-facing industries, build stronger customer connections.
• Up to 40% improvement in engagement scores: Companies that prioritize inclusion foster stronger employee loyalty.
• 25% lower turnover and 21% higher productivity: Inclusive workplaces engage employees who feel seen and valued.

Lessons from Industry Leaders

BEAM is not theoretical—some forward-thinking companies are already implementing these practices and seeing significant results.

1) Siemens AG (Manufacturing)

Siemens Electrification and Automation (EA) faced prolonged vacancies, with critical roles taking over 200 days to fill. To address this, Siemens implemented a skills-based hiring approach, eliminating its reliance on traditional resumes and focusing on measurable potential. As a result, Siemens EA reduced its time-to-hire to just 41 days from 200 days and saw a 542% increase in applications, drawing talent from diverse and nontraditional backgrounds. Additionally, gender balance at the final interview stage reached 50% male and 50% female, a significant achievement in the engineering sector. This approach not only addressed labor shortages but also enhanced workforce diversity and innovation through fresh perspectives.

2) Sinai Chicago (Health care)

Sinai Chicago, Illinois’ largest private safety-net health system, demonstrated how embedding inclusion into organizational practices can lead to transformative outcomes. Recognizing the unique challenges faced by underserved populations, Sinai Chicago implemented targeted community programs and workforce initiatives that prioritize inclusion. The health system’s efforts include recruiting from the local community, offering development opportunities to underrepresented groups, and focusing on culturally competent care. By addressing social determinants of health and fostering an inclusive culture, Sinai Chicago set a precedent for how health care organizations can achieve operational excellence while serving vulnerable populations.

3. Microsoft (Technology)

Microsoft faced challenges in creating a workplace that fully embraced inclusion and diversity. To address issues such as the underrepresentation of women in technical roles and uneven allyship behaviors across teams, the company implemented comprehensive initiatives including targeted hiring strategies, mandatory unconscious bias training, and the introduction of employee-led inclusion programs. Microsoft also prioritized transparency through annual inclusion and diversity reports, tracking metrics such as gender representation and employees’ perceptions of inclusivity. As a result, the representation of women in technical roles increased to 27.2% in 2024, and 83.5% of employees reported observing allyship behaviors in their teams. These outcomes highlight the effectiveness of Microsoft’s data-driven, intentional approach to building a more inclusive workplace.

BEAM as a Path to Inclusive Growth  

The shift from traditional DEI to SHRM’s BEAM framework is a pivotal moment for CEOs, CHROs, policymakers, and workers alike that urges them to take meaningful action. When organizations align with the BEAM principles, they create an ecosystem in which businesses thrive and individuals are valued. This decentralized approach to inclusion achieves what centralized compliance efforts could not:

• Stronger organizations driven by merit.
• Greater societal impact through opportunity creation.
• Reduced polarization by eliminating identity-based divides in talent processes.

Actionable Steps for Workplace Leaders: 

When reviewing current or potential inclusion-related practices and programs, organizational leaders should answer five questions: 

1. Anti-Exclusion: Are the program’s opportunities open to all without regard to an individual’s sex, race, or any other protected status?
2. Access for All: Does the program generate opportunities to participate based on an individual’s requisite merit, including their existing skills and proficiencies? 
3. Merit-Driven: Does the program select individuals to participate based on relevant qualifications while accommodating protected medical conditions and religious practices?  
4. Unbiased and Available Information: Is the availability of the program effectively communicated to all individuals so that participation is truly open to all?  
5. Skills-First Optimization: Does the program provide opportunities to develop relevant skills, qualifications, and experience for all individuals eligible to participate?

The Future of Inclusive Efficiency  

The shift toward SHRM’s BEAM framework is a transformative step in redefining workplace success by emphasizing merit, removing systemic barriers, and linking inclusion to measurable business outcomes. BEAM offers a practical path for organizations to unlock untapped potential, reduce polarization, and achieve sustainable growth.

In an increasingly competitive and polarized landscape, companies that embrace the BEAM principles will not only thrive but also set the standard for operational excellence and societal impact. This is more than a strategy—it’s a call to action to reimagine the workplace as a space where talent knows no boundaries and inclusion drives innovation. The stakes are high, but the rewards—stronger organizations, empowered individuals, and a more equitable future—are even greater.