Are we facing the end of the DEI gold-rush, the start of DEI fatigue, or some other new label people can argue about at the cost of ignoring business risks?

Whatever we call it, organisations that rollback on their DEI commitments, as is happening in the US with the likes of Meta and Amazon, will struggle to deliver cultures that sustainably drive a competitive edge. 

A recent HRZone linkedin poll indicates that while 58% of respondents don’t believe the US President’s pushback on DEI initiatives will affect diversity efforts in the UK, nearly a third anticipate that UK organisations may follow the rollback trend. Only 14% expect UK leaders to double down on DEI efforts.

As we look ahead, the UK’s changing demographics, growing talent attraction and never-ending retention challenges, alongside increasing scrutiny on corporate integrity, all point to one reality: companies that deprioritise culture will pay a heavy price. Whether through talent loss, declining brand trust, or missed market opportunities, these organisations will suffer.

Engaging in DEI

For 18 years, Green Park has believed that Engagement (our E in DEI) is not an optional extra – it is the foundation of corporate culture, growth, and long-term success. The key to sustainable change isn’t a narrative of performative statements or short-term interventions; it’s embedding forward thinking into your leadership DNA, decision-making, and the employee experiences people talk about.

Put simply, when organisations engage with their already diverse workforce, they unlock the potential for innovation, engagement, and business resilience. And when they don’t? The costs are significant.

Embrace diversity or struggle to hire the next generation of talent

The UK workforce is changing. According to the latest census data, ethnic minority communities now represent over 18% of the UK population and an even higher proportion of young professionals entering the labour market.

Women continue to make up nearly half of the UK workforce, and the number of workers with disabilities has risen sharply. By 2030, the majority of new workforce entrants will be from diverse backgrounds.

For businesses, this means that talent pipelines are already more diverse than previous generations. It also means that organisations that fail to create inclusive workplaces will struggle to attract and retain the next generation of employees.

A 2023 report from the CIPD found that 70% of job seekers actively consider a company’s DEI record before applying. Additionally, nearly 40% of employees from underrepresented groups say they would leave a job if they felt their employer was not genuinely committed to inclusion.

This isn’t just about fairness– it’s about access to talent. Companies that deprioritise DEI will find themselves unable to compete for the best and brightest, while those that embed inclusion into their leadership strategies will secure a long-term advantage.

When DEI efforts get canned, it signals to employees that leadership isn’t committed to their success.

‘Everyone deserves a decent boss’

The UK is facing a severe talent and retention crisis. Skills shortages across multiple industries – from finance to healthcare to technology – mean that keeping good employees has never been more important. However, employees don’t just leave for better salaries. They leave because of workplace culture and bosses.

Green Park’s long-held belief is that ‘Everyone Deserves a Decent Boss’ and all bosses want to be seen as decent.

The quality of the leadership team is the single biggest driver of retention. A truly inclusive organisation doesn’t just focus on representation; it focuses on creating a workplace where every employee, regardless of background, has access to career progression, meaningful engagement, and fair treatment.

When DEI efforts get canned, it signals to employees that leadership isn’t committed to their success. And in a competitive talent market, that’s a risk companies simply can’t afford.

Empty DEI promises are not forgotten

Equally, when organisations publicly commit to DEI and then quietly withdraw, the reputational damage is lasting. There is a serious fallout from empty promises.

Following the resurgence of the Black Lives Matter movement in 2020, many businesses pledged to prioritise racial equity, invest in diverse hiring, and build inclusive cultures.

Now, as some of those same companies gleefully dismantle their DEI teams or cut budgets, employees, customers, and investors are taking notice, and they cannot blame the President of the USA for everything.

Ultimately, DEI is not just about avoiding risk – it’s about unlocking potential.

The reality is that DEI fatigue is not an excuse for inaction, its an opportunity for leaders to lead.

DEI investment makes sound business sense

Companies that successfully embed DEI into their culture are more innovative, more profitable, and more resilient. Indeed McKinsey’s landmark Diversity Wins report found that companies in the top quartile for ethnic diversity in leadership were 36% more likely to outperform their competitors in profitability. Similarly, organisations with strong gender diversity saw a 25% performance advantage.

Why? Because diverse teams drive better decision-making, more creative problem-solving, and greater market insight. In today’s economy, organisations that fail to harness the full talent of their workforce will struggle to compete.

Organisations that prioritise inclusive leadership don’t just meet DEI targets – they build cultures where people thrive, perform, and stay.

DEI fatigue is not an excuse to pull back

The reality is that DEI fatigue is not an excuse for inaction, its an opportunity for leaders to lead. Organisations that see culture change as “too difficult” or “too expensive” are missing the bigger picture. In a rapidly evolving talent market, the real cost of pulling back on DEI isn’t the budget – it’s the loss of engagement, innovation, and trust.

Good leadership is the defining characteristic of high-performing businesses. The companies that will lead in the next decade are those that invest in culture, listen to their workforce, and understand that DEI isn’t just a moral obligation – it’s a business tool designed for competitive advantage.

Now is the time for leaders to move beyond DEI fatigue and commit to real, sustainable change. Because in the end, diversity and inclusion isn’t just good business – it’s the future of business and their personal brands.

Race Equality Week (3rd-9th February), is a UK-wide annual movement co-founded by Green Park, uniting hundreds of thousands of organisations and individuals to address workplace barriers to race equality.