Diversity, equity and inclusion (DE&I) are critical drivers of innovation, productivity and economic growth, according to a new report by EY.

Drawing on extensive research, industry collaborations and data analysis, DE&I interventions that deliver highlights how strategic DE&I interventions can create measurable impact and instil a culture of belonging for all employees.

It makes a series of recommendations to ensure organisations’ interventions have the biggest impact in improving workplace equity and inclusion across the broadest range of characteristics, including gender, ethnicity, disability, LGBTQ+ identities and socio-economic backgrounds.

Interventions with the biggest impact

The recommendations include measurement and taking a data-driven approach to DE&I, including robust data collection and analysis and target setting; targeted recruitment strategies that attract diverse candidates; providing flexibility on when and how roles are performed to encourage retention; and structured development programmes to mentor and/or sponsor individuals to close gaps in access to career progression opportunities.

The report has been produced in partnership with 11 leading diversity campaigns and DE&I specialists, including the Parker Review, FTSE Women Leaders, Change the Race Ratio, Progress Together, Business Disability Forum, 30% Club, Women in Banking and Finance, and The Bridge Group, among others.

The report is published in the light of US President Trump’s anti diversity stance and a backlash that has seen companies in the US row back on DE&I commitments. A survey of 1,000 US firms by Resume.org found that 5% of companies have eliminated their diversity, equity and inclusion programmes, while another 8% have significantly reduced their DE&I budgets.

Creating an inclusive culture

EY’s report also highlights the importance of fostering a culture of inclusivity at all levels of business and ensuring that managers and leaders have the necessary understanding and support to implement inclusive policies, address poor behaviours and promote inclusive practices within their teams.

It encourages business leaders to understand the lived experience of their teams and to provide training for managers and business leaders on inclusive behaviours, focusing on practical knowledge to build confidence when discussing sensitive topics.

Anna Anthony, EY UK and Ireland Regional Managing Partner, says: “Diversity, equity and inclusion are not just ethical values – they are critical drivers of innovation, productivity and economic growth. By fostering inclusive workplace cultures that value differences and amplify the voices of underrepresented groups, we can all help to create a UK business environment where creativity flourishes, individuals thrive and everyone benefits.

“The strategies highlighted in the report will provide a useful source of insight to many UK companies, including our own organisation. We are committed to learning from these best practice examples as we continue to foster a workplace culture where all our people feel safe and empowered to succeed.”

Do more – and do better

Sir Trevor Phillips, Chair of Change the Race Ratio, adds: “The fact that there are questions being asked about the value of diversity and inclusion programmes is a sign not that we should do less, but that we should do more – and do better. 

“Both workforces and customers are more diverse, and more aware of their differences than ever. That means studying what has been done, dropping approaches that failed to deliver and doubling down on programmes that boost corporate success. That’s why this work from EY is central to any leader who wants to be judged by their results.”

Vincent Keaveny, Chair of Progress Together, comments: “In today’s volatile business environment, where competing priorities make attracting and retaining diverse talent challenging, it is more important than ever for organisations to focus on proven strategies. 

“By leveraging evidence-based approaches and fostering collaboration, businesses can help build workplaces that reflect the communities they serve while driving long-term success.”

Yelena Travis-Powell BEM, ICAEW’s Head of Global Equality, Equity and Belonging, says: “We are delighted to see the latest evidence-based report by EY. The political backlash against DE&I in the US has devalued progressive narratives. This report reminds us of the critical importance of DE&I in business.

“Within the UK and elsewhere, DE&I continues to play an essential role in boosting productivity, innovation and profitability. Against an unpredictable macroeconomic backdrop, it is more relevant than ever for organisations to fully embrace DE&I initiatives.

“The report contains practical examples, with focus on delivery of impactful actions and evidence-driven interventions, helping organisations to lay the foundations for long-term organisational success and reaffirming DE&I as a cornerstone of economic growth.”