Over the last few years, Diversity, Equity, and Inclusion (DEI) has had a prominent presence in business as companies strive to become more inclusive. However, a new trend, Merit, Excellence, and Intelligence (MEI), is thought by many to be the answer to DEI.
Understanding DEI
DEI is a framework that focuses on fostering environments where everyone, regardless of their background, has the opportunity to be included in the workforce and thrive. Each component plays a critical role in promoting fairness and representation across different settings.
Diversity refers to the presence of differences within a group. It includes factors such as gender, age, sexual orientation, socioeconomic status, physical abilities, and various other characteristics, going beyond race and ethnicity.
Having a diverse group means bringing together various perspectives and experiences, which can enhance creativity, problem-solving, and decision-making.
Equity focuses on fairness and justice. It recognizes that people don’t all start from the same place due to systemic barriers and disadvantages. Equity means ensuring that everyone has access to the resources, opportunities, and support they need to succeed, based on their individual circumstances. It is different from equality, which implies treating everyone the same, regardless of their needs.
Inclusion involves establishing environments where individuals feel a sense of belonging and are appreciated for their unique identities. It involves actively engaging and involving all individuals in ways that make them feel respected and heard.
DEI’s growing popularity can also be traced to companies that strive for a better ESG (Environmental, Social, Governance) agenda, which highlights the interconnectedness of social responsibility and inclusivity in business strategies. DEI plays a crucial role in the social aspect of ESG. An organization that values DEI is demonstrating its commitment to treating people fairly, fostering inclusive workplaces, and promoting diversity across all levels. This is crucial as DEI plays a significant role in how companies are evaluated within the ESG framework, which is integral to investment decisions.
Understanding MEI
Discussions around MEI were sparked in the summer of 2024, after Alexandr Wang, CEO of Scale AI, uploaded a post on x saying, “Today we’ve formalized an important hiring policy at Scale. We hire for MEI: merit, excellence, and intelligence.” Elon Musk, who owns multiple influential businesses, including SpaceX, Tesla Cars, and X, responded to Wang’s post, endorsing his idea.
In essence, MEI represents a framework that emphasizes hiring and evaluating individuals based solely on their qualifications, skills, and abilities, rather than demographic characteristics. The supporters of MEI argue that focusing exclusively on these traits rather than demographic characteristics such as race, gender, or background ensures that the most capable and talented individuals are selected for roles, leading to greater fairness, and long-term success.
The core idea behind MEI is that organizations should prioritize individual merit, defined by qualifications and achievements, to foster an environment where innovation thrives and where everyone is judged solely based on their capabilities.
Advocates believe that this approach promotes fairness by offering a level playing field for all candidates, regardless of background, and encourages personal responsibility and growth. MEI is presented as a system that fosters long-term organizational success by building teams that are highly skilled, intelligent, and focused on excellence, promoting innovation and growth.
MEI and the issue of unconscious bias
However, there is significant skepticism following the idea that DEI will be achieved either way. Studies indicate that unconscious biases in hiring often benefit candidates with names that are perceived as more ‘white’ in their ethnicity.
A study by economists from the University of Chicago and UC Berkeley, in collaboration with the National Bureau of Economic Research, revealed significant hiring discrimination in large U.S. companies. The audit involved sending over 80,000 fake job applications with randomized details but distinctively white or African American-sounding names to 100 companies. Initial findings showed that applicants with white-sounding names received 9% more callbacks than those with black-sounding names, with some companies displaying a gap as high as 19%. The full study is yet to be released.
Additionally, another recent study by Kline, Rose, and Walters examined how race and gender affect callback rates for job applications across 97 U.S. employers, similarly finding that applicants with white names, both male and female, received the most callbacks.
DEI vs. MEI: Why Not Both?
DEI does not oppose MEI; instead, they complement each other by expanding the hiring spectrum to include a more diverse range of candidates, ensuring a comprehensive evaluation process. Enforcing DEI policies assists organizations in addressing biases and conducting impartial assessments of candidates with diverse backgrounds. Companies aim to hire employees who can perform their jobs effectively, and it’s not in anyone’s interest to select candidates based solely on their race or gender if they lack the necessary qualifications for the role.
MEI promotes the best practice of meritocracy, asserting that positions should be awarded to the most qualified candidates regardless of their background. While this principle is sound, research indicates that unconscious biases can still affect hiring decisions, sometimes based solely on a candidate’s name. It is vital to acknowledge that an individual’s race, gender, or sexual identity should neither be the sole reason for hiring them nor for rejecting their application.
Where we stand
By integrating DEI principles with MEI practices, organizations can create a more equitable hiring environment that values both merit and diversity, ensuring the best candidates are chosen while fostering an inclusive workplace that embraces talent from diverse backgrounds.
