Shape talent CEO and Founder, Sharon Peake says that the time is not right to give up on ED&I.
The ground under equity, diversity and inclusion (EDI), is changing – fast. Pressures have been building like tectonic plate movements beneath the surface for some time. We’re now seeing fault lines: political backlash and regulatory divergence. There is also a cultural polarisation. For those of us whose careers have been dedicated to creating more fair workplaces, suddenly the landscape feels less secure and more fragile.
You’ll understand what I’m saying if you work in EDI, HR or Culture. Each week, equity, diversity and inclusion are under threat.
Honestly? Sometimes I want to rush in full force and rage against the backlash. We have ample proof that we need more women in power and equity.
This moment calls for more than passion. Perspective is needed.
EDI doesn’t need to be re-set – it just needs a refresh.
EDI is not over, despite what some may think. It’s far from “over.” is changing – for the better. Over the years, equity and inclusion has been called many things (EEO Diversity, D&I DIB …),) but the fundamental idea of fairness has never changed. This isn’t just a fad. It’s a basic human need.
Recent changes in political attitudes, particularly in the US, have seen a rise in hostility. Since the start of the year we have seen executive orders targeting federal contractors, and even private companies that are engaged in DEI work. This has created a fear-based inertia. Leaders are unsure of how to react without putting the reputation or legal standing of their organisation at risk.
In the meantime, Europe is going in the opposite directions. In Europe, directives from the EU on Women on Boards and Pay Transparency as well as Corporate Sustainability Reporting make inclusive practices a necessity. The Worker Protection Act in the UK has strengthened workplace protections, including sexual harassment prevention obligations.
These competing regulatory frameworks are a nightmare for multinationals. They have radically different compliance requirements depending on where you operate. Many are stuck between their values and viability. They’re trying to figure out a way to participate without being penalised. One of our clients, a US federal contractor, is deciding what to do about their global women’s programme. Do they invite US-based participants to the program and risk their federal contracts being jeopardized or do they exclude this group? There are many difficult choices to be made.
What is the real backlash? The crisis of perception
Public sentiment is the real problem, not legal risks. We are seeing a change in the perception of “the job being done”, particularly when it comes to gender equity. The data, however, tells a very different story.
World Economic Forum estimates that it will take 134 years for the global gender divide to be closed. A study by Ipsos and Kings College London in 31 countries revealed that almost half of the respondents believed we had already gone too far. The mismatch between reality and beliefs is what’s fueling the backlash.
It’s a common phrase I hear: “I want the best person for the job.” I could not agree more. Equity is all about eliminating the systemic barriers which prevent the best candidate from even entering the room.
Now, more than ever before, we need to be specific in our description of this work and the way we deliver it.
Opportunities are increasing, but risks are also rising
Three key risks need to be managed by companies who are unsure of how to proceed:
- Culture Risk In polarised settings, inclusion efforts are politicised. Incivility is on the rise, psychological safety is declining, and employee well-being concerns are increasing, especially among minoritised communities. Disengagement costs money and top talent won’t work or stay in an organisation where they feel unsafe and unwelcome.
- Compliance Risk – The contradicting regulatory requirements between Europe and the US – particularly for contractors of the federal government – can mean that a company may be legally required to track, monitor, and progress EDI in one jurisdiction while being prohibited to do the same in another. Even if DEI roles, practices and laws disappear, antidiscrimination legislation will remain. Even if DEI roles and practices disappear, anti-discrimination laws will remain.
- Brand Risk This moment is an indicator of corporate values. Gen Z is particularly interested. Your reputation and future talent pipeline could be damaged if your actions do not align with your stated purposes.
What’s the good news? You can turn these risks into strategic advantages. Here’s how:
1. Support your people
Listening is the first step. Employees, especially those from marginalised groups, are experiencing fear and fatigue. Create safe dialogue spaces, through listening groups, ERGs or facilitated discussion. Support your executive team with language and tools that will help them have these constructive conversations, and your EDI teams who are under pressure.
2. Debias your core people processes
Whether you call it EDI or not, you still need fair systems. This means auditing the recruitment, development, performance and promotion processes to check for structural bias. It is not effective to require only 1 women on a shortlist for hiring. According to research, the odds of a candidate being selected are minimal unless there are at least 2 members from an underrepresented community.
Data-driven decision making reduces legal risks and enhances the quality of decisions.
3. Evolve inclusion – don’t erase it
Some organisations are undergoing restructuring. We’ve seen EDI functions merged with talent, employee engagement, and other people-related functions. The titles are changing. “Equity” has been quietly dropped. If this is just a rebranding without any real embedding then we are back at square one.
Integration is the key. EDI should not be ignored. It should be integrated into your talent strategy and leadership model as well as your business goals.
4. Re-define programs for relevance and resilience
Positive Action* (e.g. In many countries, women’s leadership and development targets are not only legal but encouraged. Programmes must have fairness as their foundation.
One of our clients chose to open their women’s program to both genders while still addressing barriers specific to gender. Some clients have implemented selection criteria in order to align participants with the program’s goals. These are ethical, smart adaptations and not a rollback.
5. Lead the Narrative
It is not time to be quiet. Each EDI decision – whether it’s expansion or retreat – sends a signal to your employees, customers and future hires. Either you are saying “we value equity, and will evolve it slowly,” or “we are scared, and we’re walking away.”
Some companies, such as Canon Germany, BT Apple and Bayer, have been very clear about their stance. They are staying the course. Some miss a great opportunity to improve their brand and culture.
You have a choice.
What is the next step?
This is a momentous occasion. Not only for EDI but also for the way we lead.
I want to make a call to all leaders, especially those who are in HR, Talent and Inclusion:
- Listen to what you hear.
- Be smart and adaptable.
- Fairness should be a strategic part of everything you do.
- Above all, you must not lose your nerve.
The pendulum will again swing. How we respond today will determine who we are in years to come.
Make sure you’re on the right end of history.
* Positive action is a way to support underrepresented groups through mentorship, targeted outreach and other opportunities. Positive discrimination is illegal in many countries. It involves choosing someone solely based on their identity, rather than their merit.
