#7 THE WORKPLACE: DEI in 2025 - Stop Pretending, Start Progressing

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You know how sometimes big organisations put out reports that are so formal and sterile they put you to sleep? Well, this isn't one of those. The World Economic Forum's latest Diversity, Equity and Inclusion (DEI) Lighthouse report actually gives us a pretty candid look at what's working and what isn't in the corporate world's efforts to become more inclusive.

After a decade of working with global organisations on DEI initiatives, I've watched the pendulum swing from complete indifference to performative enthusiasm and now, finally, that we're seeing signs of actual progress, the US government is pushing for en masse cancellation of diversity, equity and inclusion programs.

The World Economic Forum's 2025 DEI Lighthouse report reads like a tale of two realities. On one side, we have organisations still stuck in the "post a black square on Instagram and call it activism" phase. On the other, we're seeing companies like Accenture and Bank al Etihad fundamentally reimagining how to build truly inclusive organisations. The gap between these two groups isn't just widening – it's becoming a chasm that will define corporate success in the next decade.

My take thought is: The business case is dead! Long live the business imperative!

First, let's stop debating whether DEI is good for business. The data is in, and it's unequivocal. Companies with effective DEI initiatives are:

• 73% more likely to report higher innovation revenue
• 70% more likely to capture new markets
• 50% more likely to make better decisions

But here's what's interesting: these aren't just correlations anymore. The Lighthouse report shows how companies are actively engineering these outcomes through systematic changes. Take Wipro's comprehensive approach to supporting women at every career stage, which helped boost senior leadership representation from 7.3% to 18.7% in just three years. That's not a statistical blip - it's the result of intentional system redesign.

What doesn't work:

• Mandatory unconscious bias training without systemic changes
• Diversity targets without accountability
• ERGs without resources or influence
• Hiring initiatives without retention strategies

What does work:

• Systemic redesign of core processes
• Leadership accountability tied to compensation
• Resourced, empowered inclusion initiatives
• Comprehensive measurement and adaptation

Three things to STOP doing right now

1. Stop treating DEI as an HR Initiative

Remember when companies treated digital transformation as an IT project? Yeah, that didn't work either. DEI isn't an HR initiative any more than digital transformation was an IT initiative. It's a fundamental business transformation that happens to involve people.

2. Stop with the training-only approach

I often receive this from folks as the statement of a company's DEI strategy; "Oh, we did unconscious bias training last year," they say proudly. Training without systemic change is like putting a Band-Aid on a broken leg, it might make you feel like you're doing something, but you're not addressing the actual problem.

3. Stop measuring what's easy instead of what matters

Yes, I'm looking at you, company that celebrates hitting 30% women in entry-level positions while your executive team remains homogeneous. It's time to measure what matters: pay equity, promotion velocity, retention rates across demographics, and employee experience scores by group.

Three things to START doing tomorrow

1. Embrace systemic solutions

The most successful companies in the Lighthouse report aren't just changing policies – they're redesigning systems. Standard Chartered didn't just extend parental leave; they fundamentally reimagined what family support looks like in a global organisation. That's the level of systemic thinking required.

2. Get serious about measurement

I once heard a DEI leader say, "What gets measured gets managed, but what gets publicly reported gets actually done." The companies making real progress are those willing to measure uncomfortable truths and act on them.

3. Build inclusive design into everything

Stop treating inclusion as an afterthought. Whether you're developing products, creating policies, or designing workspaces, inclusion needs to be part of the initial design process, not a retrofit.

The 4A model for DEI transformation might be something to think of more often

• Audit - Comprehensive assessment of current state
• Architect - Design systemic solutions
• Act - Implement with clear accountability
• Adapt - Measure, learn, and evolve

What to CONTINUE (but make better)

Some things are working – they just need to be amplified and improved:

1. Employee Resource Groups - But give them real power, real budgets, and real influence on business decisions. Accenture's 90 LGBTQI+ networks across 45 countries show what properly resourced ERGs can achieve.
2. Leadership accountability - But tie it to compensation and make it meaningful. When LVMH linked executive pay to DEI outcomes, they saw their percentage of women in key positions grow from 23% to 48%.
3. Inclusive benefits - But think beyond the obvious. Standard Chartered's global parental leave policy isn't just generous – it's redefining what family support looks like across cultures.

Here's what I tell my clients: You can either be part of shaping the future of work, or you can spend the next decade trying to catch up. The organisations featured in the Lighthouse report aren't just doing DEI better, they're fundamentally reimagining what inclusive organisations look like.

So here's a question for you: are you even a people leader if you don't ask yourself these questions?

• Do we know our pay equity gaps across intersectional identities?
• What's our promotion velocity for different demographic groups?
• How does employee experience vary across different populations?
• What percentage of our supplier spend goes to diverse businesses?
• How do our DEI metrics influence executive compensation?

Is it hard? Absolutely. Will it require real investment, genuine commitment, and probably some uncomfortable conversations? You bet. But the alternative is becoming increasingly expensive, in terms of talent, innovation, and market opportunities.

We're at an inflection point. The tools exist. The roadmap is clear. The business case is proven. The only question is whether leaders have the courage to move beyond DEI theater and embrace real transformation.

So, what's it going to be? Another round of superficial inclusion declarations? Or are you ready to do the real work of building an organisation that's fit for the future?

Your move.

Thank you for reading till the end! Till next week, an invite:

As the curator of FAIR 2 - European Workplace Inclusion Conference, happening in Barcelona, May 15th 2025 I invite you to join us, FLIP THE SCRIPT and tap in an extraordinary day of learning and connectivity with talent and business leaders in a special setting at the Joan Miro Museum. With speakers from Spotify, Google, Gartner, the Youth European Forum, EU Commission's Antiracism committee, and much more, we will bring to you the latest guidelines on ethical, sustainable leadership and showcase high-impact programs and initiatives to support just that in the long term, at scale.

Be part of it!