DEI in 2024: What’s on the Radar?

When we talk about DEI, one question keeps resurfacing: what’s changing? As millions of Americans prepare to head to the polls next month, and the UK adjusts to a new government, the stakes for diversity, equity, and inclusion are intensifying. Political outcomes could reshape the DEI landscape, influencing how businesses and organisations approach inclusion efforts moving forward.

In this politically charged climate, many companies are adopting a more cautious approach, shifting their focus from mere awareness to driving real, measurable impact. The emphasis is increasingly on practical outcomes, economic empowerment, and data-driven strategies. As our CEO highlighted last week, the insights gained from the recent party conferences underscore the societal and political factors that will shape DEI initiatives in the years to come.

So, will organisations step up and turn their DEI aspirations into action, or will they remain stuck in the realm of “good intentions”?

In this piece, we’ll explore four key trends shaping DEI in 2024 that should definitely be on your radar.

1. Inclusive Economics

DEI can be seen as ticking boxes, making sure you have a diverse group of faces represented in the workplace. But in 2024, we’re seeing a shift towards something bigger, something more integrated into society – Inclusive Economics.

John Hope Bryant, founder and CEO of Operation Hope, coined the term to put forward the idea that DEI should be about more than just social justice—it should be about economic empowerment. The idea is simple: if businesses genuinely embed diversity into their economic systems, the benefits won’t just be social—they’ll be financial, too.

We’re seeing more companies realise that diverse teams aren’t just “nice to have,” they’re essential for innovation. When people from different backgrounds, experiences, and perspectives come together, they bring fresh ideas, leading to more creative problem-solving. It’s not just a theory. As Culture Amp points out, companies that value diversity have a 6.8% higher stock price.

But it doesn’t stop there. Inclusive Economics goes beyond fairness by focusing on economic participation and empowerment. This approach aligns with Labour’s push to bring more people back into the workforce, particularly through flexible working policies and the proposed four-day workweek. As businesses recognise that diversity drives growth, they are viewing it as a core economic strategy rather than a compliance exercise. 

This also connects to the challenge of the ageing population and increasing pension pressures. Labour’s return-to-work policies provide older workers with the flexibility they need to re-enter the workforce, which helps bolster economic resilience. By tapping into the experience of older employees and combining it with the fresh perspectives of younger, diverse teams, companies become more adaptable to market changes and the key to staying competitive in a rapidly evolving economy.

Ultimately, businesses are waking up to the idea that diversity isn’t just good ethics—it’s smart business, making it a strategic imperative, not just an HR initiative.

2. Taking E Out of DEI

The ongoing conversation about equity in DEI has taken centre stage in 2024. For years, equity has been the linchpin of diversity, equity, and inclusion initiatives, ensuring that marginalised groups have the support they need to truly thrive. It’s all about levelling the playing field, right? But in today’s politically charged climate, this vital concept is facing some serious scrutiny.

Take the recent uproar in the U.S., where the Society for Human Resource Management (SHRM) made waves by ditching “equity” from its diversity and inclusion programmes. CEO Johnny C. Taylor Jr. claimed that the term's varied interpretations could lead to workplace discord. But is that really a good enough reason? HR professionals have pushed back hard, arguing that excluding equity undermines the core goal of fairness in DEI efforts.

As the world’s largest HR association with over 300,000 members, SHRM has a significant impact on workplace policies. Its decisions shape how organisations approach DEI, making this particular choice a big deal. In a climate fraught with political tension, side-lining equity could give the impression that businesses are not genuinely committed to inclusion, ultimately risking employee engagement and retention.

But let’s be honest: should DEI focus more on fairness than equity? Some argue that diversity and inclusion should simply ensure everyone has the same opportunities, not necessarily give specific groups extra support. This thinking has led to organisations rebranding or refocusing their DEI initiatives while downplaying the need for equity.

Here’s the kicker: equity is the cornerstone of diversity, but it needs to be applied thoughtfully. It only works when it addresses systemic issues—like racism—that create barriers to equal opportunities. DEI without a focus on these challenges can feel like an empty promise for those relying on these initiatives to confront entrenched inequalities. Discussing equity in abstract terms isn’t enough; it must lead to tangible changes that dismantle the root causes of inequality in marginalised communities.

This debate isn’t merely academic; it reflects the real struggles organisations face in navigating this tricky landscape—trying to address inequality while avoiding the perception of bias and overcorrection. The stakes are high, especially in a politically charged environment. As we move forward, we can expect the conversation around equity to intensify, urging organisations to go beyond bold headlines and demonstrate tangible action.

3. Retreating from DEI Commitments

If you’ve been keeping an eye on the news, you’ll know that several major US-based brands are walking back on their DEI commitments. Just a few years ago, after the 2020 protests following George Floyd’s murder, corporate America made big promises. Companies like Ford, Harley-Davidson, and Target were some of the loudest voices, vowing to prioritise DEI  in their workplaces. But in 2024, many of these same companies are taking a step back.

Why the retreat? Politics. With a U.S. presidential election on the horizon and cultural debates intensifying, DEI has become a hot-button issue, particularly among conservative groups. After years of being a leader in DEI, Ford announced it would no longer participate in external culture surveys like the Human Rights Campaign’s Corporate Equality Index, which rates companies based on how inclusive they are toward LGBTQ+ employees. The company which once scored a perfect 100 on that index, is now focusing more on general HR initiatives that cater to everyone.

Other brands, like Target, faced backlash over their public support for LGBTQ+ initiatives during Pride Month, leading them to reduce their visibility on these issues. In some Southern states, Pride displays were moved to less prominent parts of stores, reflecting how public-facing DEI efforts are becoming riskier for brands navigating polarised political environments.

This isn’t just a US trend. In the UK, we see similar movements. At the end of last year,  ASOS, a major online retailer, dropped diversity targets from its executive bonus criteria, shifting its focus toward profitability following financial losses. While ASOS continues to maintain long-term diversity goals, such as 50% female and 15% ethnic minority representation in leadership by 2030, its decision to drop DEI-linked bonuses reflects the broader trend of deprioritising DEI in tough financial times​.

The trend is clear: DEI has become almost untouchable, and not in a good way. Brands that once embraced DEI now find themselves in the crossfire of political and economic debates, leading them to scale back their initiatives to avoid becoming the next target of activist campaigns. But the risk is double-edged. Retreating from DEI can alienate employees and customers who value inclusion and diversity, creating new challenges for these brands in the long term. As we learned earlier this year in our crisis simulation with Polpeo, preparation is key. Brands that fail to prepare and properly engage in meaningful DEI initiatives are setting themselves up for potential backlash –and who wants that?

4. Data-Driven DEI

In 2024, the focus is shifting from representation to results. While having a diverse workforce is still essential, companies are increasingly being asked to prove the impact of their DEI initiatives. It’s no longer enough to just say, “We’re diverse.” The question is, what difference is that diversity making?

This is where data-driven DEI comes into play. Companies are now looking at metrics that go beyond headcount, focusing on how DEI efforts affect employee engagement, retention, and overall performance. The idea is that diversity doesn’t matter if it’s not accompanied by inclusion—meaning that employees from different backgrounds feel valued, heard, and respected in their work environments.

Culture AMP’s ‘Workplace DEI Report’ for this year highlights that companies that embed DEI into their everyday operations—rather than treating it as a separate initiative—are seeing more meaningful results.

Key statistics from the report include:

• 84% engagement among employees who believe their company values diversity, compared to just 20% for those who don't.

• Employees who feel their organisation doesn’t value diversity are 3.3 times more likely to leave within a year.

  
  

These findings emphasise the importance of integrating DEI principles into existing business practices to foster a more inclusive environment, drive engagement, and improve overall business performance.

Moreover, companies are recognising that data transparency is key. Sharing metrics about pay equity, promotions, and employee satisfaction helps build trust, both within the organisation and with the public. It signals that the company is serious about making progress, not just paying lip service to DEI.

Expect to see more organisations focusing on real-time impact measurement, using data to refine their DEI strategies and make more informed decisions about where to invest their resources. It’s about moving from “Are we diverse?” to “How are we leveraging diversity to make our organisation stronger?”

Looking forward 

DEI is far from dead, but it’s evolving in response to new pressures. The rise of Inclusive Economics, the debate over equity’s place in DEI, the retreat from public commitments, and the increasing focus on data-driven impact are reshaping how organisations think about DEI. For businesses, the challenge will be finding ways to keep DEI efforts meaningful, sustainable, and aligned with broader business goals, while navigating an increasingly complex and polarised landscape.

One thing’s for sure: DEI isn’t going anywhere—it’s just taking on new forms.