Diversity, equality and inclusion (DEI) has not disappeared from organisational agendas, but it is under pressure. It feels more fragile, more contested, and harder to sustain than it did a few years ago.

In my recent webinar presentation to the IPA Employee Voice Hub, I framed the discussion around three questions:

• What is driving inclusion and fairness in organisations right now?
• How are current labour market challenges strengthening or complicating the case for DEI?
• And what would make DEI feel like core business, rather than an additional demand on resources?

The answers we arrived at in discussion with webinar participants were not straightforward.

What is really driving DEI now?

Our research at the Institute for Employment Studies (IES) shows that employer action on DEI is driven by a combination of environmental and operational factors. These include regulatory compliance expectations, access to niche markets, competition for diverse talent pools, productivity and innovation, maintaining brand reputation and legitimacy as an inclusive employer, and organisational values of equity and fairness.

But when we ask organisations what enables DEI to stay on the agenda, responses resoundingly point toward senior leadership commitment, compliance requirements, and the presence of committed internal champions. Workforce dynamics, particularly recruitment and retention pressures, also play a central role.

Ultimately, DEI persists not just because it is the “right thing to do” but because it is a core business concern. However, this connection is often implicit rather than explicit, and therefore vulnerable when pressures mount.

Why progressing DEI feels harder right now

Organisations today are trying to sustain DEI in a more challenging context. Economic pressures, geopolitical uncertainty and rising costs are driving a focus on short‑term performance, while constrained budgets limit investment. At the same time, talent shortages mean inclusion remains important but harder to prioritise. Meanwhile, wider shifts – such as the growth of AI and automation, changing expectations of work, and eroding employee trust – raise new questions about fairness and equity.

Against this backdrop, DEI can start to feel like an “additional” demand – something that competes for scarce attention and resources – rather than something embedded in how organisations operate.

What helps or gets in the way

If DEI is to be sustained in this challenging environment, we need to move beyond good intentions to core principles and effective processes. Our research highlights a familiar but still important set of enablers and barriers.

On the enabling side, culture and values matter, but they are not enough on their own. Leadership commitment, capable and confident line managers, active staff networks, and strong HR infrastructure (including workforce data) all play critical roles. Learning, development and collaboration support progress.

On the barriers side, the picture is equally clear: lack of resources and capacity, limited data and insight, and crucially, a lack of shared understanding of what DEI really means in practice. Unconscious bias and entrenched norms continue to shape everyday decisions. In some organisations, weak leadership engagement, a lack of role modelling, or a fear of self-disclosure among employees further undermine progress.

Moving from rhetoric to sustainability

In the webinar, I outlined a “back‑to‑basics” blueprint centred on three shifts HR and DEI champions can make.

1. From visibility to value

DEI efforts are often highly visible, but not always clearly connected to business outcomes. To sustain investment, organisations need to rebuild the business case in more concrete terms. This means reframing DEI in relation to issues leaders already care about: access to wider talent pools, retention of scarce skills, management capability, decision‑making quality, and the reduction of legal, operational and reputational risks.

It also requires better use of workforce data and diagnostics to identify where inclusion failures are creating inefficiencies. Rather than relying on abstract benchmarks, organisations need their own evidence of where DEI adds value.

2. Depth beats breadth

Sustainable change comes from understanding where inequality is actually being reproduced within the organisational system, and then focusing effort there. This requires a whole‑system perspective.

At IES, we have developed a Policy–Process–Practice (PPP) diagnostic framework that helps organisations take stock of where they are: policies set intent, processes operationalise fairness, but everyday practices and behaviours ultimately determine lived experience. Policies alone are not sufficient without robust processes and effective everyday practices.

Fewer interventions, implemented thoroughly and consistently, are likely to have more impact than a wide array of disconnected diversity initiatives.

3. Context is everything

There is no silver bullet for DEI that works for everyone. Sustainable approaches must be grounded in local organisational contexts – employee voice and lived experience, the realities of the relevant labour market, and the organisation’s specific strategic objectives.

It also means being alert to evolving practice on language particularly in contested environments. Investing in line manager confidence and capability is another key lever to improve governance, accountability and engagement over sensitive issues.

A final reflection

Ultimately, the question is not whether organisations are “doing DEI”, but whether they are focusing their attention in the places that actually matter. This requires that leaders go back to basics: listen to employees, use good data, and focus on the fundamentals that shape day‑to‑day inclusive practice. In a more constrained and uncertain environment, sustaining DEI will depend less on rhetoric and more on making deliberate, strategic choices.

Dr Meenakshi Krishnan, Principal Research Fellow, IES

June 2026