The last few weeks in the US have thrown diversity, equity and inclusion (DEI) back in the headlines and led many people to question “what’s next?”.
So, what’s been happening and why does it matter to the UK tech sector?
Since the murder of George Floyd in 2020 there has been a significant shift in the momentum behind DEI initiatives in the workplace.
Following his murder, many global governments and companies set out to promote fairer workplaces and address systemic racism and exclusion, but more recently several of these measures have come under fire. Critics in the US have begun to argue that programmes like “affirmative action” have gone too far and that many DEI programmes are discriminatory and no longer solely based on merit.
This all came to a head with President Trump’s executive order to ban DEI programmes across the US government and his attack on gender ideology. In trying to understand where these measures have come from, there are a variety of opinions from Everett Kelley (President of the American Federation of Government Employees) calling Trump’s attacks on DEI “just a smoke screen for firing civil servants” to Musk’s assertion that DEI initiatives are a form of reverse discrimination.
Regardless of the motive, it is clear that the fallout from the last few weeks has caused confusion and uncertainty for many organisations and employees across the globe.
So, how have companies responded to President Trump’s DEI cuts?
Despite the changes, many companies have continued to share their commitment for DEI. Amongst the early movers have been Costco who shared that their shareholders had rejected a proposal to evaluate potential risks associated with DEI initiatives, Apple whose board urged shareholders to reject a proposal challenging its DEI efforts, Microsoft who reaffirmed their company’s commitment to DEI and JP Morgan Chase whose CEO highlighted how beneficial DEI had been for business in an interview with CNBC. However, several other leading S&P 500 companies including Amazon, Meta and McDonalds have pulled back on their DEI initiatives, leaving many of their regional employees wondering what this will mean and how companies in the UK will respond.
The UK Labour government has expressed concern over President Trump’s rollback of DEI initiatives and has emphasised the continuing importance of DEI policies in the UK to ensure fair treatment and opportunities for all.
There is also a fundamentally different legal framework so UK employers remain obligated to local regulatory compliance measures such as reporting of the gender pay gap for organisations with over 250 employees and a clear recommendation that employees should still be trained on DEI. Further, “affirmative action” (which is a US term and provides preferential treatment) is not aligned or used in the UK and should not be confused with the UK practice of “positive action” (which provides support without preferential treatment).
More broadly, it’s important for employers to remember that their people remain their greatest asset. A 2022 report on the UK Tech sector (by Tech Nation) revealed that 26% of the workforce are women and only 4% identify as Black, African, Caribbean or Black British. Against a context of skills shortages and evidence-based business cases demonstrating the value of diversity to both revenue and people, DEI remains something businesses ignore to their detriment. DEI may end up with a rebrand, but ultimately organisations rising to the challenge will be the future winners with improved employee engagement, retention, enhanced innovation and creativity and a broader talent pool.
Leaders can see the workplace demographics are shifting. A 2023 Glassdoor survey found that 76% of UK employees consider diversity an important factor when evaluating job offers. For younger workers, particularly Gen Z, DEI is seen as a non-negotiable aspect of company culture meaning organisations that deprioritise these values risk alienating top talent.
DEI will evolve, but it’s important that candidates are considered on merit, especially with legislation in the UK. We often hear leaders say, ‘I want the best candidate for the job’, but they need to consider what ‘best’ means? Rather than wanting more of the same, hiring managers could look for candidates who think differently from the rest of their team, have different life experiences, alternatives to formal qualifications or different industry backgrounds. These differences drive innovation, new ways to ideate and refreshed strategies that help to deliver against a wider customer base.
The backlash against DEI in the US serves as a point of consideration but also an opportunity for the UK tech sector to reaffirm its commitment to DEI and continue a journey of creating organisations where employees are engaged and thrive in an inclusive environment.
By emphasising the commercial and human benefits of a diverse workforce, UK companies can not only attract top talent but also drive innovation and long-term success.
Rather than viewing DEI as a divisive agenda it should be seen as a unifying force that reflects the values of a modern, inclusive UK workplace.
