In this article, our Director Lucy Malarkey and Karen Faulkner consider EDI priorities for 2025…
Reflecting on 2024 it’s fair to say that it was a year of unexpected twists – we couldn’t possibly all have predicted what happened during the year.
Yes, we knew some big political changes were imminent, we knew we could look forward to elections in the UK and US. What probably very few of us predicted were the results – a Labour landslide in the UK as well as a massive popular vote for Reform, and in the US the return of Trump!
And whilst we could have predicted (sadly) that war would continue to rage in Ukraine and the Middle East, not many of us imagined the riots here during the summer. Perhaps the global economic situation was also something we could have anticipated, with so much political tension arguably that was inevitable. But the £22m ‘black hole’ that Labour discovered certainly was not what they expected!
As we all know, crystal ball gazing is not an accurate science (well it’s not a science at all!) so, we’ve used our mystical powers to scour the internet to see what others are predicting will be the three top EDI trends for 2025 and put these through the lens of our experience and opinion to suggest what we might expect and what it could mean for us all.
1. Economic Downturn
Most commentators agree that an economic downturn is likely to continue. For EDI, this could mean budget reductions for initiatives, the removal of EDI focused roles and a lack of leadership advocacy for inclusion efforts.
Our Observations: Budget reductions for EDI that could result in less EDI initiatives and the removal of EDI roles are more likely if inclusion is seen as a discretionary investment rather than a core business strategy.
The Microsoft story from July last year was an interesting case in point. Headlines claimed Microsoft had ditched the “woke” policy and “axed” its entire EDI team, but the reality was somewhat different, they had deleted two EDI posts from their events team while maintaining a corporate EDI team and Microsoft reiterated their commitment to diversity and inclusion “Our focus on diversity and inclusion is unwavering and we are…continuing to focus on this work.”
Interestingly, this story and other examples like it (John Deere Tractors and of course most recently the Trump administration’s comments about Federal EDI initiatives) would appear to have galvanized efforts to ‘do the right thing’ among the organisations we work with.
Dedicated EDI teams are a luxury many members of the Inclusion Forum North East don’t have but the challenge for those organisations without a dedicated team is that whilst embedding EDI across functions can encourage shared accountability, it can result in diluted focus and can mean that inclusion risks becoming a ‘side hustle’ rather than a strategic priority. And this is where the role of senior leaders championing the agenda is absolutely critical.
Leadership resistance often stems from a lack of understanding about the tangible value EDI brings to organisational performance. Linking initiatives to cost savings and productivity gains, through comprehensive EDI KPIs, can help build a compelling business case, ensuring inclusion remains a priority even during economic downturns.
2. Geopolitical Challenges
Geopolitical challenges are expected to lead to a reframing of EDI in less politically charged terms. Apparently in response to polarised political climates, organisations are rebranding EDI initiatives using neutral language such as “team cohesion,” “cultural agility,” or “workplace optimisation.”
Our Observations: While this may be the case in America, it’s not something we’re seeing here… yet. However, we have noticed changes in the use of language over the last 12 months, with organisations exploring their interchangeable use of equality and equity (and reconsidering this approach). Also what we are seeing is more organisations using the term ‘belonging’ to badge their EDI initiatives but not as a survival tactic and to avoid charged terminology, but because more of us can understand a phrase like belonging – we can all see how it’s relevant for us all as individuals and as such how we all have a role to play.
The inclusion of wellbeing initiatives in EDI approaches is also on the rise, recognising that inclusion goes beyond representation. Employees are demanding workplaces that prioritise their overall wellbeing, particularly in light of pandemic-induced burnout and economic uncertainty. These measures improve retention, strengthen employee engagement, and enhance productivity, making them integral to a comprehensive inclusion strategy. But there is a potential risk in all of this that the foundational principles of EDI get a bit lost – it will be important for organisations to keep an eye on this and not to lose sight of the foundational aspects of equity, diversity and inclusion.
Something else to keep an eye on in 2025 will be the impact of global geopolitical tensions and data collection. What we saw last year was perhaps an interesting change in people’s feelings about sharing their data. The questions that have traditionally elicited more ‘prefer not to say’ responses are around disability, sexual orientation and marital status. But we’ve seen significantly more prefer not to say responses to questions on religion or belief towards the end of last year (obviously we’re only seeing a small number of organisations) but we do wonder if this is the shape of things to come? Time will tell…
The third top trend was harder to pick. There were a few that we could have chosen; the impact of technology and AI in particular and how it’s imperative to ensure it’s free from bias and doesn’t perpetuate inequality, or remote working and a potential move to get people back into the office and what this will mean in terms of inclusion and belonging, and the legal changes coming into play in the UK. We’ve chosen legislative changes….
3. Legislative Changes
Legal reforms will be a significant focus for EDI leaders in 2025. In the UK, forthcoming legislation such as the Employment Rights Bill and the potential introduction of an Equality (Race and Disability) Bill will drive changes in workplace practices. The Employment Rights Bill is set to introduce measures like a day-one right to request flexible working, while the Equality (Race and Disability) Bill could place a legal duty on employers with over 250 staff to carry out ethnicity and disability pay reporting.
Our Observations: These legislative shifts will require organisations to proactively adapt their policies and practices to stay compliant while fostering an equitable and inclusive environment. EDI leaders will play a critical role in preparing for these changes and guiding their teams to navigate the impacts effectively.
The newly introduced Worker Protection Act (2024) marks a significant shift in obligation from the individual to the employer in challenging inappropriate conduct. Employers must take reasonable steps to prevent sexual harassment, including reviewing policies, improving internal communication, providing training, and introducing online reporting systems. And yet, our experience is that not every employer would appear to be aware of the legislation and have taken action or even put plans in place to address these requirements.
Conclusion
It’s fair to say that 2025 is likely to be as unpredictable as 2024, if not more so. By staying informed and adaptable, we can navigate these challenges and continue to resolve to prioritise EDI in our organisations.
