The DEI Pendulum in Biotech | Ep. 634

Have We Gone Too Far?

Hello Avatar! Welcome back for another week of biotech analysis. Today is Sunday, which means this is our Building Biotech newsletter that is focused on discussing biopharma strategy topics. Today we will explore a topic that, frankly, isn’t usually at the center of our attention, but has become too significant to ignore. Diversity, equity, and inclusion (DEI) have been front and center in biopharma for years, with companies investing time, money, and messaging into reshaping their workforces. And while we’ve always believed in hiring based on merit, integrity, and character - not checkboxes - the broader industry is now showing signs of fatigue with DEI as a guiding framework. A new report from BioSpace highlights a shifting sentiment, enthusiasm for DEI is declining, confidence in leadership is eroding, and some groups now feel excluded by the very systems meant to include them. So today, we’re unpacking the data and asking the hard question - has biopharma overcorrected?

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Introduction

To be honest, this topic is really not of interest to us. In fact, while some have made it their focus to view life through this lens we do not and never have. For us, it has been and always will be, can the individual do the job and do they have character and integrity. Everything else is noise. Like most we do wish to see a balanced workplace and do our part to help on that front - typically in the form of mentoring, career advice, and when hiring bringing the topic to attention.

It is no secret that over the last few years, biopharma companies have invested heavily in diversity, equity, and inclusion (DEI) initiatives. The goal? A more inclusive workforce, better patient representation, and increased innovation. Indeed, a June 2024 report from the Biotechnology Innovation Organization (BIO) found that 85% of biotech companies rate DEI as “Important,” “Very Important,” or “Critical,” reflecting a strong industry commitment to these goals.

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But has the industry overcorrected?

New data from BioSpace suggests a growing skepticism about DEI’s impact, with declining support for diversity initiatives, concerns over fairness in promotions, and shifting views on workplace belonging. While these policies aimed to reduce bias, they may have unintentionally created new forms of discrimination, particularly against older employees and white men. This skepticism isn’t unique to biopharma; a November 2024 Pew Research Center survey found that only 52% of U.S. workers now see focusing on DEI as mainly good, down from 56% in 2023, indicating broader fatigue.

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Today we will run through the recent report from BioSpace, which gathered insights on DEI from biopharma professionals across various demographics, including gender, race, age, and leadership level. It explores whether companies are now signaling a shift back toward merit-based hiring and promotion.

The Declining Importance of Diversity in Employment Decisions

The data clearly shows a major shift is happening.

In 2022, 85% of respondents said diversity was an important factor when considering new employment. By 2024, that number dropped to 68%.