Why equality, diversity and inclusion still matters and always will
Recent headlines about corporations scaling back EDI initiatives in the US, have sparked debate. Companies are reducing their diversity efforts, often citing economic pressures and ‘DEI fatigue.’ This insight reflects on whether these trends in the US will influence businesses in the UK.
A recent survey of 140 UK employers found that, while 69% believe US trends will impact them, only 6% expect major changes. Encouragingly, 53% continue to support DEI efforts, with 22% advocating for even stronger commitments [1]. This reflects a passion for diversity and inclusion among business leaders.
Meanwhile, the UK Labour government’s “Make Work Better” policy signals a clear direction for UK businesses, pushing for stronger EDI commitments. As Labour champions workplace equality, businesses must adapt to evolving expectations and regulatory frameworks.
The business and human case for inclusion
The need for inclusive workplaces is as critical as ever. Businesses that deprioritise EDI risk not only reputational damage but also miss out on the tangible benefits of diverse and psychologically safe workplaces.
Research consistently highlights these advantages:
- Better decision-making and innovation: companies in the top quartile for ethnic and gender diversity outperform those in the bottom quartile in profitability and innovation [2].
- Higher engagement and productivity: psychological safety is the most crucial factor in high-performing teams [3].
- Stronger talent attraction and retention: millennials who comprise around 75% of the workforce see inclusion as non-negotiable and 23% of respondents have left a organisation for a more inclusive culture [4].
Beyond the business case, a compelling human need exists for continuing to prioritise equality, diversity and inclusion. Underrepresented groups still face barriers to equal opportunity. Persistent pay gaps, low representation at senior levels and workplace discrimination highlight the need for ongoing commitment to EDI efforts.
Embedding an inclusive culture – practical steps for leaders
Successful organisations embed EDI into their culture rather than treating it as a ‘programme’. Central to this is psychological safety, enabling employees to speak up, share ideas and be themselves without fear of judgment. This enhances trust and communication for all employees.
To foster inclusive workplaces and improve equality, business leaders can take the following practical actions:
- Lead by example: Demonstrate inclusive behaviours by actively listening, encouraging diverse perspectives and admitting mistakes.
- Create safe spaces for feedback: Use one-to-one check-ins, anonymous surveys and open discussions to ensure all voices are heard.
- Ensure fairness and transparency: Apply policies consistently, set clear expectations and provide visible career progression pathways. Regularly assess policies for equitable outcomes.
- Encourage learning over blame: Foster a growth-oriented culture and train managers and employees to recognise and address microaggressions.
- Actively include underrepresented voices: Seek input from quieter team members and integrate diverse perspectives into decision-making. Consider implementing mentorship or sponsorship programmes to support the development of underrepresented employees, helping to create equitable opportunities for advancement.
By prioritising inclusivity and equality, leaders can cultivate a workplace culture that empowers all employees, driving innovation and performance.
Keeping inclusion at the core
Diversity and inclusion are foundational to building resilient, high-performing organisations. While conversations around EDI may shift, its importance remains constant. Businesses must aim for genuine, sustainable change rather than mere compliance. If you’re seeking guidance on embedding inclusion into your organisation, our HR consultancy team can help.
Footnotes
- Most business leaders say US retreat on DEI will affect UK policy: survey, Personnel Today
- Diversity wins: How inclusion matter, McKinsey
- Project Aristotle, Google
- Unleashing the power of inclusion, Deloitte
