If there’s one issue keeping many senior and people professionals awake at night, it’s how best to navigate the growing storm of debate surrounding diversity, equity and inclusion (DEI) programmes.
The US backlash, spearheaded by the Trump administration’s hostility towards DEI, has sent shockwaves across the corporate landscape and American society at large.
Major players including Amazon, Meta, and McDonald’s among them begun scaling back their diversity efforts, responding to political and legal pressures.
This has not gone unnoticed in the UK. Boardrooms with US affiliations have inevitably grappled with tough questions: Should we follow suit? Should we tread carefully? Should we quietly sunset our own programmes before we face similar scrutiny?
And yet, UK plc appears to be holding firm. A recent Culture Amp survey of 1,000 companies found that three-quarters of UK employers are maintaining their diversity programmes; a quarter are increasing their investment in DEI.
Read more: Organisations' biggest DEI mistakes – and how to fix them
The rationale is clear. The evidence supporting DEI’s business benefits is irrefutable. McKinsey’s 2022 research underscores a simple truth: organisations that are diverse, equitable, and inclusive are not only more resilient, but also more innovative, more attractive to top talent, and better positioned to serve an increasingly diverse customer base.
However, this is not a moment for complacency. While abandoning DEI is short-sighted, simply doubling down on the same fragmented initiatives is equally flawed. The real task ahead is to reassess, realign, and redesign DEI to ensure it truly delivers on its promises. Retreat is not the answer – but neither is blind persistence.
Rethinking DEI for lasting impact
For too long, organisations have treated wellbeing, engagement, and inclusion (WEI) as separate initiatives, each vying for attention, resources, and strategic backing. This fragmented approach has diluted their impact, confused employees, and created a perception of reactive, disconnected decision-making. It’s time to bring these strands together, not just as an efficiency measure, but because they fundamentally amplify each other.
Wellbeing is more than physical and mental health – it is about fostering a workplace where employees feel safe, supported, and valued. Engagement is the emotional and intellectual investment employees make in their work. It is an outcome that thrives in inclusive, purpose-driven environments. Inclusion is the foundation that ensures every voice is heard, every contribution is valued, and every employee has an equal opportunity to succeed.
A holistic, values-based approach – one that embeds fairness, justice, inclusion, sustainability, and high performance into the organisation’s DNA – creates a virtuous cycle. When WEI is aligned and integrated, organisations build workforces that are healthier, more engaged, and more aligned with business goals.
Read more: DEI backlash: Don't throw the baby out with the bathwater
HR’s defining role: Turning backlash into progress
At this pivotal moment, HR – or people and culture, to give it HR its modern moniker – must not merely defend DEI initiatives but redefine and elevate them. The current backlash does not signal a need for retreat; rather, it presents a unique opportunity to move beyond box-ticking exercises and performative gestures and towards a truly transformative model of workplace fairness, justice, and inclusion.
To achieve this, people and culture teams should first break down the silos that have fragmented efforts in WEI. Instead, they must be woven into a cohesive, sustainable framework that aligns seamlessly with the organisation’s core business objectives.
A fundamental shift is also required in how policies and processes are structured. Outdated people policies, rigid management frameworks, and traditional leadership models have too often acted as barriers rather than enablers of progress. Now is the time to re-examine and rewrite these structures, ensuring they foster equity, trust, and psychological safety, rather than reinforce outdated hierarchies and exclusionary practices.
Additionally, people and culture leaders must champion dialogue over dogma, moving away from compliance-driven DEI efforts that often feel imposed rather than embraced. I have heard people describe DEI initiatives being ‘weaponised’ by the old guard HR. Instead, the focus for people and culture teams must be on restorative, trust-based, and evidence-led strategies that create genuine cultural shifts rather than superficial compliance. True inclusion is built through conversation, collaboration, and shared commitment, not through prescriptive mandates that alienate rather than unite.
Most critically, WEI must be embedded at the heart of the people and culture strategy. These elements cannot be viewed as optional extras or risk mitigation tools; they must be recognised as core drivers of business success. A workplace where employees feel valued, supported, and empowered is not just an ethical imperative, it is a competitive advantage that fuels innovation, productivity, and long-term organisational growth.
People and culture: A trusted WEI partner
People and culture leaders must now step up as strategic advisors to help their boards navigate the intersection of social justice, corporate responsibility, and commercial success. This is HR’s moment to take ownership of the conversation, to guide leaders beyond reactive, short-term responses, and to embed long-term, transformational thinking into the way organisations treat their people.
The issues are complex. But at their core, the solution is simple: Respect, civility, authenticity, transparency, dialogue and trust. These are not just the fundamentals of a high-performing workplace, they are the cornerstones of a fair, just and sustainable organisation.
The choice is clear: step back or step up. HR must choose to lead.
David Liddle is president of the People and Culture Association, and CEO of The TCM Group
