DE&I on the Rise: UK Business Leaders Anticipate Growing Importance of Diversity, Equity, and Inclusion in the Coming Years

Diversity, Equity, and Inclusion (DE&I) is projected to become increasingly significant for employees, clients, and boards in the next 2-3 years, according to new research from communications agency Teamspirit.

When business leaders across the UK were asked about their approach to DE&I, a majority indicated that it would gain importance for current employees (72%) and prospective hires (71%). Some anticipated no changes (21% and 23%, respectively), while only 6% and 5% believed it would become less significant.

The trend is similar for existing clients and customers, with 70% of leaders expecting DE&I to grow in importance, compared to 7% who believe it will decline; 22% think it will remain stable. Regarding prospective clients, 67% of respondents indicated that DE&I would become more relevant in the procurement process, likely influenced by the increasing focus on ESG considerations in RFPs.

When considering the broader board perspective, 65% of business leaders believe DE&I will be prioritized higher on the agenda in the next 2-3 years, including 58% of C-suite executives.

This research is part of Teamspirit’s new report, Marketing Inclusion, which highlights the communications challenges and opportunities associated with DE&I. You can read the full report here: Marketing Inclusion.

Sandy Downs, Head of DE&I at Teamspirit, stated: “DE&I surged to the forefront of the corporate agenda in 2020, following the murder of George Floyd and the resurgence of Black Lives Matter. However, the past few years have been challenging. Issues like COVID-19 and its effects on mental health and the global economy, the climate crisis, and Brexit have all contended for attention at the C-suite level, causing many to deprioritize DE&I. We’ve witnessed this shift reflected in the turnover of DE&I roles and a decline in corporate communications during events like Pride and Black History Month.

“But change is on the horizon. Business leaders recognize a grassroots demand from employees and potential recruits for improved DE&I practices. There is also top-down pressure from regulators and the new Labour Government. The FCA is advocating for greater DE&I in financial services, revisions to the Corporate Governance Code will begin to put pressure on boards starting January 2025, and ethnicity pay gap reporting is likely to become mandatory for large firms.

“DE&I is here to stay. Organizations need to implement the right policies and processes, but they also need to effectively communicate their progress. Failing to do so risks alienating employees and harming their brand. Those who excel in their communications will be able to execute innovative and genuine campaigns that resonate with modern audiences. The potential is immense—now is the time to act.”