DEI Tech Critics Elon Musk and Others Move Toward “MEI” Approach  

By: Sam Watanuki | Last updated: Aug 08, 2024

Alexandr Wang, cofounder and CEO of Scale AI, introduced a new hiring principle called ‘MEI,’ which stands for merit, excellence, and intelligence. This approach focuses on selecting the best candidates based on merit alone.

Wang’s perspective has gained attention from notable business figures, including Elon Musk and Coinbase CEO Brian Armstrong.

What is DEI?

Diversity, equity, and inclusion (DEI) initiatives aim to ensure equal opportunities and representation for all candidates, regardless of their race, gender, or background. These programs strive to create inclusive workplaces where everyone feels valued and respected.

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DEI advocates believe that a diverse workforce enhances creativity, innovation, and overall business performance.

What is MEI?

‘MEI,’ short for merit, excellence, and intelligence, is a hiring principle coined by Alexandr Wang of Scale AI. MEI emphasizes hiring based solely on an individual’s merit and capabilities, without considering demographic factors.

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Wang argues that this approach ensures that only the most qualified candidates are selected, promoting excellence and intelligence within the company.

Support from Industry Leaders

Wang’s stance on MEI has received praise from several business leaders who have previously criticized DEI programs. Elon Musk, Sequoia partner Shaun Maguire, and Coinbase CEO Brian Armstrong are among those who support Wang’s approach.

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They believe that focusing on merit alone is the best way to achieve a high-performing workforce.

A Growing Conversation

Wang joins the cast of Silicon Valley insiders who have spoken out against DEI in recent months who feel that social movements like Black Lives Matter have created a backslide in corporate profitability.

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The tech industry has dismantled recruitment programs that consider applicants who are often overlooked in the hiring process.

“DEI Must DIE”

“DEI must DIE. The point was to end discrimination, not replace it with different discrimination,” Musk recently tweeted before responding to himself saying, “‘Diversity, Equity and Inclusion’ are propaganda words for racism, sexism, and other -isms.

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He continues: “This is just as morally wrong as any other racism and sexism. Changing the target class doesn’t make it right!”

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Treating Everyone the Same

But Wang emphasizes that MEI does not mean ignoring people who come from diverse or underrepresented communities. “We treat everyone as an individual. We do not unfairly stereotype, tokenize, or otherwise treat anyone as a member of a demographic group rather than as an individual.”

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“No group has a monopoly on excellence. A hiring process based on merit will naturally yield a variety of backgrounds, perspectives, and ideas,” he adds.

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The Meritocracy Debate

The concept of meritocracy is deeply ingrained in the American dream, where anyone can succeed through hard work and talent.

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Critics of DEI initiatives argue that these programs undermine meritocracy by prioritizing diversity over qualifications. However, experts in the DEI space contend that true meritocracy cannot be achieved without addressing historical inequalities and biases.

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Not Picking Winners and Losers

Wang underscored in his message, also uploaded to Musk’s X, formerly known as X, that the hiring process under MEI will not conflict with diversity.

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“We will not pick winners and losers based on someone being the ‘right’ or ‘wrong’ race, gender, and so on. It should be needless to say, and yet it needs saying: doing so would be racist and sexist, not to mention illegal.”

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Adia Wingfield's Perspective

Adia Wingfield, a professor of sociology at Washington University in St. Louis, emphasizes that the notion of a past meritocracy is flawed. Historically, underrepresented groups were often excluded from job opportunities.

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DEI initiatives aim to rectify these inequalities by ensuring that everyone has equal access to job opportunities, fostering a truly meritocratic future.

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Merit and Diversity Aren’t at Odds

DEI experts agree that hiring the best candidate for the job is crucial. Natalie Johnson from DEI consulting firm Paradigm notes that many aspects of Wang’s MEI approach align with DEI goals.

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For example, broad recruitment efforts and objective selection criteria are essential for both MEI and DEI. Wang himself acknowledges that meritocracy and diversity are not inherently conflicting.

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The Challenge of Objectivity

Wang’s belief in completely objective hiring is challenged by experts who point out that biases are inevitable. Lisa Simon from Revelio Labs argues that without DEI policies, hiring practices would revert to favoring candidates who resemble the hiring managers.

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Eliminating DEI initiatives could undermine efforts to create diverse and inclusive workplaces.

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The Pitfalls of Ignoring DEI

Research has shown that promoting meritocracy alone can lead to unintended biases. A study published in Administrative Science Quarterly found that organizations emphasizing meritocracy showed bias towards men over equally performing women in performance evaluations.

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This bias is particularly concerning in fields like AI, where diversity is already lacking.

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The AI Industry and Diversity

Women made up just 30% of global AI roles in 2023. The AI industry, known for its lack of diversity, holds significant influence over the future of technology.

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Ignoring diversity in AI development could perpetuate biases in AI tools, further marginalizing underrepresented communities. Therefore, diversity in AI is crucial for creating fair and equitable technologies.

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Alexandr Wang's Blog Post

In his blog post, Wang stated, “We hire only the best person for the job, we seek out and demand excellence, and we unapologetically prefer people who are very smart.”

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While his approach has gained support, it also highlights the ongoing debate about the role of DEI in achieving true meritocracy in the workplace.

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Balancing Merit and Diversity

The debate between MEI and DEI underscores the need to balance merit and diversity in hiring practices. While merit-based hiring is essential, it must be coupled with efforts to address historical inequalities and biases.

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By doing so, companies can create inclusive workplaces that promote both excellence and diversity.

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A “Misguided” Idea

“The post is misguided because people who support the meritocracy argument are ignoring the structural reasons some groups are more likely to outperform others,” Mutale Nkonde, a founder working in AI policy, told TechCrunch.

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”We all want the best people for the job, and there is data to prove that diverse teams are more effective.”

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Ignoring Natural Biases

While MEI can benefit companies that are looking for the smartest people who can push a company forward, Fortune notes that Wang could be under the impression that hiring managers are free from biases when selecting the best person for the job.

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Bias is a natural part of the human condition, reinforced by experiences, and isn’t inherently negative.

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Can’t Get Rid of Policies

“People that think that we’re over the hill when it comes to diversity and inclusion, both from a racial as well as gender perspective, are delusional,” Lisa Simon, chief economist at people analytics platform Revelio Labs, told Fortune.

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“We’re not in a moment where you can get rid of all these policies and hope they will continue. As soon as you remove these things, people go back to hiring people that look like them.”

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A “Dangerous Oversimplification” 

HR professional at the AI startup Hugging Face, Emily Witko, also warns that MEI could be a “dangerous oversimplification” for hiring managers.

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“A meritocratic system is built on criteria that reflect the status quo, and therefore, it will perpetuate existing inequalities by continuously favoring those who already have advantages,” Witko told TechCrunch.

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Hard to Be Fair

Natalie Sue Johnson, co-founder of the DEI consulting firm Paradigm, said that meritocracy shouldn’t be a focus for companies as it leads to an increase in hiring bias.

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“It frees people up from thinking that they have to try hard to be fair in their decision-making,” Johnson said. “They think that meritocracy is inherent, not something that needs to be achieved.”

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The DEI's Purpose

Hiring managers are supposed to use DEI efforts to look at the talent pool without bias and foster a positive, diverse working environment where everyone can thrive and push the company’s goals forward.

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Mostly white cis-persons often target DEI for racial reasons. Founders and investors are decreasing DEI support in business and tech by claiming they aren’t promoted to higher positions because they are white, rather than acknowledging they might not be the best person for the job.

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Recruit Levels Are Dropping in Tech

In 2023, the U.S. data industry saw new women recruit levels drop by two-thirds, from 36% in 2022 to just 12%, according to a report from HR staffing firm Harnham.

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Meanwhile, the percentage of Black, Indigenous, and professionals of color in VP or above data roles stood at just 38% in 2022.

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Ignoring the Data

Silicon Valley prides itself on being data-driven, but it cannot seem to look at the data and research that shows how a belief system like MEI can lead to biased outcomes. Research has shown that diverse teams perform better.

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While Wang highlights that MEI can still lead to diverse groups that perform better, this thought process could lead to some Tech Giants finding an excuse to not hire underrepresented groups.

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