The roll back of diversity, equality and inclusion (DEI) in US workplaces is already having an influence beyond American shores.
Global firms such as Goldman Sachs and Accenture have both dialled back their DEI policies in the short weeks since President Trump abolished DEI across Federal Government departments. A number of large employers, Meta, Amazon and McDonald’s, for example, have also reduced their DEI commitments, some moving to retreat before Trump had even returned to the White House.
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The influence can already be seen in the UK too. A survey of 140 UK employers, conducted shortly after Trump’s return in January, found that almost four in ten senior HR, finance and c-suite professionals agree that the UK should roll back some DEI measures.
Legal divide
The UK is, of course, a different environment to the US, with different legal protections. In fact the UK government is on a path to strengthen employee rights as part of its Make Work Pay agenda and the Employment Rights Bill.
So how will this potential conflict between UK and US workplace DEI approaches play out and what will it mean for UK employers, as well as for US employers with a UK footprint?
This was the topic of the latest Benefits Unboxed podcast from Benefits Expert. Co-hosts Claire Churchard, editor of Benefits Expert, Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, industry veteran and reward and benefits consultant, discussed the impact of the US DEI policy volte face, how much sway it could hold in the UK and what might happen in the future.
US firms in the UK
For US companies with a UK footprint, rolling out their US DEI policies for UK staff may not be straightforward.
“If you look at what’s happening, particularly to those poor government employees on the other side of the pond, you suddenly realise, actually employment rights are quite a nice thing to have, and America doesn’t have that many of them,” said Herbert.
“So legally, I think things [in the UK] will stay as is, if not a little bit stronger.”
However, Herbert said it will be interesting to see what happens to those companies who are American-owned in the UK. “I suspect there’s a degree of discomfort, both in the workforce and in the HR units, about where that leaves them.”
Goldsmith said: “The US-owned companies in the UK are in for a very bumpy ride. “Companies like us, who are unencumbered by that will potentially gain because we have done so much to try and create a really inclusive organisation.
“If US-owned companies over here start upsetting the apple cart, we could ultimately benefit from that, where we become, perhaps, an even more attractive employer.”
- For more on the financial and reputational risks of ditching DEI, how businesses can adapt and evolve their DEI strategies as political and social trends change, and the steps HR leaders can take to help other senior leaders and employees better understand why DEI matters, you can listen to the podcast here.
- To catch up on all the Benefits Unboxed podcasts click here.
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