EDI isn’t going anywhere
Last year, the noise around equality, diversity and inclusion (EDI) within UK workplaces grew louder, and more polarised.
Donald Trump during his presidency has decried diversity programmes, calling them discriminatory and claiming that they drive down performance (without evidence). This caused some large US employers such as Amazon, McDonald’s and Meta to roll back their EDI programmes, bowing down to the presidents’ rhetoric.
As a result, some UK employers have followed suit. Freeths reported that 28% of UK businesses have scaled back or completely dropped EDI and sustainability programmes. Shockingly (or perhaps not), it also found that 83% of businesses still prioritise profit over ‘doing the right thing’.
Yet this flies in the face of what 2026 is likely to bring. There is of course the Employment Rights Act, which reached Royal Ascent last year. This introduces tighter employment regulations and more protection for employees, starting this year. Whilst the implementation of this new act is staggered over the next few years, it brings into focus what an employee can expect from their employer in terms of equality and wider EDI.
83% of businesses still prioritise profit over ‘doing the right thing’
AI is already shifting the risk
AI is also increasingly having an impact. Employees can turn to their preferred AI model, asking it questions about how they feel they have been treated by their employer and what legal recourse they may have.
We at Moorepay are seeing an increase in lengthy grievances from the workers of our customers who are no doubt using AI, citing certain statutory and legal rights that may have been breached by the perceived actions of their employers, making future litigation at an Employment Tribunal more likely. And in this area, we are seeing ET1 claim forms being lodged with the telltale sign of AI.
This new landscape for employers would be much trickier to navigate if they were not able to show, if faced with a discrimination claim, what policies, procedures and practices they had in place to reduce discrimination and harassment and improve diversity. A meaningful, embedded EDI strategy will be one of the best tools a company can rely on to defend such a claim.
Retention will make or break some employers
We then need to consider the continuing problem of recruiting new employees, with 70% of employers still having difficulty filling vacancies. Retaining talent within a business therefore becomes a strategic imperative to stay competitive.
Research from Catalyst found that 43% of employees say they will quit if their employer doesn’t continue to support DEI, with rates even higher among Gen Z and millennial employees. This highlights how the younger working generation prioritises an inclusive culture and the protection that a strong EDI strategy can provide.
43% of employees say they will quit if their employer doesn’t continue to support DEI
Going back to basics
But this can’t just be a box ticking exercise. 2026 will see EDI evolving, part of which involves going back to basics. To make it meaningful, it must be linked to business strategy and objectives. What does a business want to achieve, and how will EDI help get them there?
A business will need genuine buy in from the leadership team, which then must filter down to the people managing teams and those who are having day to day interactions with the workforce.
Equip these managers with the tools so they feel comfortable managing diverse teams, able to deal with conflict, and with the knowledge to recruit inclusively. Then hold them accountable for promoting a diverse culture and stamping out any behaviour that would threaten that.
The bottom line
In short, EDI isn’t disappearing, it’s changing. Those employers who can adapt their EDI agenda rather than dismantle it will be far better placed to meet both the legal landscape and the expectations of a modern workforce.
