“Culture Eats Strategy for Breakfast”- EDI is More Than a Nice-to-Have
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- EqualiTeach
“Culture Eats Strategy for Breakfast” Peter Drucker
In the wake of Donald Trump’s Executive Order to dismantle equality, diversity and inclusion (EDI) programmes within the Federal Government, and his threat to take legal action on private sector companies involved in EDI efforts, some major corporations are scaling back on their commitment to EDI. Together with critics arguing that EDI programmes and strategies are in fact discriminatory themselves, politically motivated or even immoral, we reach a critical point. Employers must consider; can their business really thrive in today’s market without embracing inclusion?
If you have stakeholders who are wondering if EDI is something that should be dropped, that it’s not something to engage with in today’s climate; this blog will urge them to think again.
EDI is not a dusty old book to be placed on a forgotten shelf marked ‘Trendy fads of the past’ slipped in next to ‘The Hustle Culture’, ping pong tables and vending machines. Nor is it a buzzword to be thrown around in meetings alongside ‘synergy’ and ‘disruption’ to give an organisation the air of innovation. It should be the centrepiece of your library, dog-eared and highlighted; a detailed living guide to be woven into the fabric of your company, shaping its culture, structure and performance. It is not just the right thing to do, it is the smart thing to do; an empowering and open culture is a certain route to organisational success!
The Myth of Positive Discrimination
Key to understanding the power of pursuing EDI is first knowing that it is not about positive discrimination (where certain groups are favoured over others). In fact, it is illegal in the UK to employ someone based on the fact they have a protected characteristic which is underrepresented (Equality Act, 2010).
Instead, EDI is about creating equal opportunities for everyone and ensuring that all are afforded equal value. It is about breaking down barriers that may prevent some groups from succeeding. It is about levelling the playing field, and it is about making sure everyone can thrive.
Bullying, Discrimination and Harassment – The Cost of Inaction
It is no surprise that an inclusive environment reduces workplace harassment and discrimination. Recent data on employment tribunal claims shows that sexual orientation discrimination cases had the highest average compensation award, with claimants receiving around £32,000 on average (Ministry of Justice, 2022). However, the largest individual payout during the same period was for a race discrimination case, where the claimant was awarded £228,117 (Ministry of Justice, 2022). These figures highlight the significant financial impact to employers of successful discrimination claims in the workplace. For organisations with poor EDI practices, these costs can quickly add up! Establishing clear anti-harassment policies and inclusive practices can help reduce the risk of legal claims, creating a safer workplace for employees.
There is also now a wealth of robust evidence and research linking experiences of discrimination and harassment to increased risk of ill mental and physical health. A study focusing on National Health Service staff in London, for example, found that experiences of discrimination and harassment were associated with poorer health and well-being, as well as reduced job performance and increased sickness (BJPsych Open, 2020).
When EDI is prioritised and properly integrated, it works to eliminate unconscious bias, create open dialogue and build a respectful and supportive work environment.
Employee Retention: The True Cost of Turnover
Employee turnover is a silent drain on an organisation’s resources – impacting everything from morale to reputation. Experts have found that the average cost of turnover for an employee earning £25,000 or more is £30,614 (Oxford Economics, Unum, 2014).
Research also shows that some companies with inclusive cultures enjoy 22% lower turnover rates (Deloitte, 2018). Why? When employees feel respected, valued and included, they are more likely to stay – surprising right! A solid EDI strategy fosters loyalty, helping to lower recruitment and training costs. Retention is one of the greatest benefits of investing in EDI – making your organisation stronger and more resilient.
Belonging: The Key to Employee Engagement
EDI is not just about ticking diversity boxes; it is about creating a sense of belonging. Employees who feel that they truly belong are more engaged, more motivated, and more likely to stay long-term. A recent large scale global found that a sense of belonging emerged as the strongest driver of employee engagement (Qualtrics, 2024).
EDI Drives Innovation: Better Products, Better Services…Better Business
Beyond fostering a positive culture, EDI is a driving force for innovation. Diverse teams bring different perspectives, backgrounds and problem-solving skills. This leads to more creative solutions. In fact there is data that shows diversity of thinking can enhance innovation by about 20% and reduce risk by 30% (Bourke, 2016).
Innovation is not just about creating new ideas internally either—it’s about improving your products and services for a wider audience. By embracing diversity, businesses can design more inclusive products and experiences, better meeting the needs of an increasingly diverse customer base. EDI is not just an internal culture shift; it has real-world impact on how your business performs and evolves!
Increased Revenue: The Financial Case
You might want to inform your stakeholders that EDI pays off financially too. Companies in the top quartile for racial and ethnic diversity are 39% more likely to outperform their industry peers. Gender diverse leadership teams are also 39% more likely to achieve better financial performance. (McKinsey, 2023).
A Legal Requirement
Let us also make one thing clear; EDI is not optional! In the UK, businesses are legally required to ensure that no employee is discriminated against based on their race, gender, sexual orientation, disability and other protected characteristics under the Equality Act 2010.
Employers must prevent discrimination and harassment in all aspects of employment. Additionally, employers are required to make reasonable adjustments for employees with disabilities and take proactive steps to ensure fairness. Investing in EDI ensures compliance with these legal obligations.
Your Move
EDI does not just happen – it’s built, nurtured, and lived. It requires authentic leadership, ongoing learning, and courageous conversations. As illustrated, the cost of ignoring EDI isn’t just financial; it’s reputational, cultural, and most importantly we would argue – deeply human.
Why not join other well-known UK organisations that are investing heavily in EDI; Lloyds Banking Group, Unilever, Vodaphone, PwCUK, NHS (single largest employer in the UK), and Sainsbury’s, to name but a few. You can walk boldly forwards, or you can risk moving backwards. There isn’t really a decision to be made.
EqualiTeach provides training and consultancy services for businesses, local authorities, schools and education settings throughout the UK. If you would like support with promoting equality, diversity and inclusion in your organisation, please contact us.
References
Ministry of Justice (2022) Tribunal Statistics Quarterly: July to September 2022
Oxford Economic, Unum (2014) The Cost of Brain Drain
Bourke (2016) Which Two Heads Are Better Than One?
McKinsey (2023) Diversity Matters Even More
Qualtrics (2024) The 5 Trends Transforming Employee Experience
- Categories: Culture & Heritage, Equality, Inclusion, Workplace
