To better understand employers’ EDI practice and priorities, we posed some questions in the CIPD’s Labour Market Outlook – Summer 2024 survey*. Has their EDI focus changed? What impact have EDI initiatives had on the workplace? How have they been influenced by external narratives? What does the future hold?
* A representative survey of over 2,000 UK employers.
A strong commitment to EDI
The results paint a clear picture of the importance of EDI for employers across the board. Despite external pressures and shifting narratives, a significant majority of employers have maintained or increased their commitment to EDI. A mere 2% of employers reported a decreased focus on EDI in the last two years. And although 18% of employers said they did not focus on EDI, a robust 34% had intensified their efforts. Overall, this suggests a growing recognition that EDI is not just a trend but a fundamental aspect of a resilient and thriving workplace.
Only 2% of employers have decreased focus on EDI
Change in focus on EDI initiatives in last two years
The majority of those who had decreased their focus on EDI cited reduced staffing and prioritisation as the key reasons. However, this group represents only a small fraction, with the broader trend being that momentum behind EDI continues to build.
Equalities of outcomes includes inclusion, diversity, equity
Over half (53%) of employers say their organisation believes the idea of equality of outcomes (equalities) encompasses concepts and initiatives such as diversity, inclusion, equity, positive action, belonging, wellbeing and so on. Just 6% disagree with this statement.
Over half of employers say equalities include all EDI
Idea of equalities of outcomes being inclusive of EDI
One in two employers agree that EDI is an important factor in how current and potential staff and customers see their organisation. This compares to only 9% who disagree with this statement.
Only 9% disagree that EDI affects perception of organisation
EDI and perceptions of organisations
Impact on the workplace
Among the organisations that have bolstered their EDI efforts, more than half reported an increase in employees feeling empowered to voice their concerns. This openness is crucial for fostering a culture of transparency and trust. Moreover, these organisations have seen a notable rise in requests for flexible working, employee wellbeing, and overall satisfaction. Such metrics are not only indicative of a positive work environment but are also essential for employee retention and productivity.
An interesting insight from the survey is the relatively neutral impact of EDI efforts on employee turnover and absence rates. This suggests that while EDI efforts enhance job satisfaction and engagement, they do not necessarily translate into immediate uplifts in these areas. Nevertheless, reduced reports of discrimination, harassment, and bullying in 21% of those employers who increased EDI efforts is a clear indicator of the positive shift in workplace culture.
Employee voice and wellbeing most improved by increasing focus on EDI
Impact of EDI initiatives on factors of employment
Navigating external narratives
The survey also delved into the influence of external narratives – specifically, the reports of backlash against what some termed ‘wokeness’ (pejorative use). While 9% of employers have critically reviewed their EDI efforts in light of such narratives, a larger portion (22%) have felt compelled to clarify and communicate the importance of EDI within their organisations. This demonstrates that while external pressures exist, they have not significantly derailed the broader EDI agenda. Instead, they have prompted organisations to strengthen their internal communication and commitment to these values.
A strategic imperative
The survey reveals that strategic business imperative for EDI must be inclusive of the moral, ethical and social responsibilities. Moreover, 45% agreed that a focus on EDI is critical in building organisational resilience – a sentiment echoed by the 43% who prioritised EDI as a key component of their business strategy.
The road ahead
Looking to the future, the path forward for EDI is clear. With 36% of employers surveyed saying that their EDI activities mostly focused on representational diversity, wider equalities of outcomes requires tackling structural inequalities through culture change.
The complexity of EDI language and initiatives remains a challenge, as some employers struggle to integrate them with business priorities and engage with staff, making a strong case for simplifying these concepts and principles. Despite this, the majority of employers remain steadfast in their belief that EDI (equalities) is not only effective but also crucial for future success.
Based on the results from this survey and other participatory research with employers and policy-makers, the CIPD will continue to develop practical support on how organisations can deliver on both equalities and business outcomes.
