The Changing Landscape of DEI in Business: Implications for UK and EU Hiring

We are at a DEI inflection point. The concept of diverse and inclusive workplaces is important to many organisations but we are seeing a big divergence – not just between countries but even within the same country.

The recent US political changes have sent shockwaves through global DEI practices with executive orders targeting DEI programmes and labelling some as “illegal and immoral discrimination”. But the story in the UK and EU is more complex with organisations taking different paths forward based on their values, stakeholder expectations and strategic priorities.

The diverging approaches to DEI

What we’re seeing is a split in how companies are approaching DEI initiatives. Some are scaling back their formal DEI programmes, citing legal uncertainty or changing priorities. Meta and Amazon are reportedly cutting back on DEI investment, as are some multinationals.

Others are doubling down on their DEI commitment. Companies like Apple and Walmart are keeping their DEI programmes in place, backed by shareholders who see diverse workforces as key to long-term value creation. This was demonstrated when Costco shareholders overwhelmingly rejected a proposal to assess the “risks” associated with the company’s DEI initiatives.

In the UK, we’re also seeing political implications. Prime Minister Keir Starmer has announced plans to reduce regulation to support economic growth, which will impact how companies approach DEI requirements. Even the Financial Conduct Authority (FCA) is moving from mandatory to voluntary DEI policies, so it looks like more flexibility is on the way.

The EU is taking a significant step forward with its revamped European Accessibility Act. That legislation set to come into effect in June 2025 will introduce much stricter criteria and penalties for businesses operating in Europe. Those businesses will have to make sure their products and services are accessible to everyone. That's an estimated 135 million people who could benefit from better design and accessibility online. That number includes people affected by poor accessibility in websites and apps. One of the benefits of this legislative change is likely to be a more diverse talent pool.

Businesses will need to ensure their entire job application process is accessible to all audiences. That means clearer navigation, labelling, buttons and coding right across the board.

The implications for talent acquisition

Our 2025 Annual Big Tech Employment Survey paints a revealing picture of the UK tech sector's diversity. Women make up just 20% of the workforce there and the gap is particularly wide at the top. Only 10% of senior positions are held by women and there are no women at all in the C-Suite.

That disparity is reflected in the ethnic makeup of the workforce too. While a quarter of our respondents are from non-White or non-British backgrounds, just 15% of those people hold senior or C-Suite positions. Where women and ethnic minorities overlap, just 2% of senior positions are held by women from ethnic minority backgrounds-that picture is even bleaker.

I read a report by the Chartered Institute for IT saying the gap between women and men choosing computing degrees is the smallest its ever been, with a 4:1 ratio of men choosing IT degrees over women. If we really want a more balanced workplace, there needs to be work done to attract different genders and backgrounds at a grassroots level.

Those statistics highlight both the persistent challenges and the untapped opportunities in diversity recruitment. As companies navigate the shifting landscape of DEI - and the regulatory and stakeholder expectations that come with it - they're left with some tough questions about how to build truly diverse teams. The conversation has to start with how we attract a variety of people to want to study and join the tech workforce when thinking long term.

The business case for diversity remains strong

Despite the changing landscape, the business case for diversity remains strong:

• Financial Performance: Research still shows a link between team diversity and financial results. Diverse teams bring different perspectives, more innovative solutions and a better understanding of different markets.
• Problem Solving: When people with different backgrounds and skills work together, they bring different viewpoints that enhance creativity and problem solving.
• Talent Attraction and Retention: Our survey says companies that combine competitive pay with a genuine commitment to diversity, continuous learning and inclusion are more successful at attracting and retaining top talent.
• Generational Expectations: Younger professionals, especially Millennials and Gen Z, value workplace diversity when choosing employers. According to Deloitte research 83% of millennials are engaged when they believe their organisation has an inclusive culture.

From box-ticking to meaningful impact

One of the central critiques of DEI initiatives is that they can sometimes devolve into box-ticking exercises. The UN's Principles for Responsible Investment (PRI) has a phrase for this: organisations are "hitting the target but missing the point." That's when they improve their diversity statistics without actually making a meaningful difference to DEI and business performance.

PRI's research shows that when DEI is done right, it's linked to higher profits. In fact, seven out of eight measures of future profitability are positively linked to good DEI. But demographic diversity on its own just isn't enough. What does make a difference is how well you hire and that's where DEI policies come in. Those policies and initiatives help break down barriers and unconscious bias in the hiring process. This ensures the best person for the job is hired.

In my opinion, we should be hiring the best person for the job. But, is this really possible without DEI policies in place? These policies and initiatives, when done well, help hiring processes to be more inclusive, breaking down barriers and unconscious bias and opening up the talent pool, when it was previously limited to a certain applicants.

If you only focus on hiring the best person for the job, without any DEI policy or procedure in place, you could unconsciously favour people similar to yourself with similar opinions. This could stifle growth and put great talent off applying for your jobs, who may not fit your unconscious mould.

If you truly want to hire the best talent, let’s make sure we can have access to it from all avenues. Otherwise, can you be sure you’re hiring the best talent, when you don’t have access to all of it?

At Gravitas, we've seen firsthand how authentic DEI initiatives can drive business results. Our employee-led forums have led to greater retention and satisfaction, while also expanding our talent pool. Our participation in Programme One - a collaborative initiative with seven other agencies, aimed at improving the underrepresentation of Black talent in the recruitment industry demonstrated our commitment to moving beyond rhetoric to create tangible improvements in diversity, as a result hiring a number of consultants through the programme.

Skills-based hiring: A solution for the new landscape

Organisations navigating this changing world are increasingly turning to skills-based hiring as a way forward. By evaluating candidates on their capabilities and potential rather than on who they are, companies can both build diverse teams and mitigate those perceptions of unfairness.

Key strategies include:

• Skills-gap analysis: identifying where your workforce is falling short and where disparities exist between underrepresented groups and the majority.
• Blind hiring processes are another key tactic—by removing identifying information from applications, you can reduce unconscious bias.
• Talent assessments for internal mobility are a third option. These objective assessments help you identify skills gaps in your current employees and measure progress in reskilling initiatives.

Looking ahead: The future of DEI in UK and EU hiring

This will continue to evolve in response to changes in the law, society and politics. Several trends are poised to shape that future. One of them is the emphasis on measurable outcomes. Businesses want to show the real impact of their diversity initiatives, no longer just implementing programmes for their own sake.

Flexible working arrangements are another trend. Our own tech survey found that 96% of tech professionals prefer either remote or hybrid working. That flexibility can remove geographical barriers, help parents, and potentially improve diversity by expanding the talent pool.

Technology is also set to play a bigger role. Most tech professionals (75% of permanent staff and 71% of contractors) in our survey believe AI will make them more efficient, not threaten their jobs. That optimism suggests technology could be used to reduce bias in hiring processes.

Navigating the new normal

As we move forward, UK and EU organisations will need to find their own balance between the legal requirements and their diversity objectives, especially if they are owned by US companies. The most successful will be those that see DEI as not a compliance exercise but a strategic imperative tied to innovation, talent attraction and business performance.

At Gravitas Recruitment Group we will continue to help our clients navigate these complexities. By combining data driven insights with practical inclusive hiring strategies we can help businesses build diverse high performing teams that drive innovation and growth in a competitive world.

The future of DEI may be changing but the fundamental importance to business success remains the same. The question is not should we pursue diversity but how do we do it effectively in a changing world.

Contact us to find out how we can help build meaningful DEI into your hiring strategy to help improve your culture and ultimately longer-term profitability.

About the author: Jonathan Ellerbeck is the Group CEO of Gravitas Recruitment Group, a global specialist recruitment consultancy with expertise in Technology, Digital and Data, headquartered in London with offices across the UK, Europe, and Asia.