How to Keep Equity, Diversity, and Inclusion a Priority During Tough Times

As an equity, diversity, and inclusion (EDI) consultant, I’m often asked how organisations can sustain their EDI efforts when times are tough. Economic downturns frequently lead to cost-cutting, and EDI initiatives can be an easy target. But I firmly believe that doubling down on EDI during challenging periods sets organisations up for long-term success. Here, I’ll share my insights on how to keep EDI front and centre, even in the face of financial pressures.

Why Senior Leaders Must Own the EDI Agenda

The first step for senior leaders is to reflect on why EDI matters to their business. Many leaders understand the business case for diversity on a cognitive level—they’ve read the McKinsey reports and Harvard Business Review articles. But this isn’t enough. Leaders must connect emotionally to the purpose behind EDI and see how it ties into their organisation’s unique goals.

Simon Sinek’s principle, Start with Why, resonates here. Employees and stakeholders buy into why you’re pursuing EDI, not just what you’re doing. In times of uncertainty, clarity on your “why” helps sustain commitment.

Avoiding Performative EDI

Authenticity is key. Employees can spot inauthentic efforts a mile off. Posting on social media or hosting one-off events without making real, structural changes undermines trust. Research from Catalyst found that authenticity was a crucial factor in how organisations supported employees during the pandemic and after George Floyd’s murder. Leaders who align their words with meaningful actions build credibility and trust.

Superficial, box-ticking EDI activities may look good in the short term but rarely make a lasting impact. In fact, organisations that see EDI as a compliance exercise are often the first to cut back in difficult times. By contrast, those that embed EDI into their culture tend to strengthen their efforts when challenges arise—and they reap the rewards in the long run.

Making Fair Decisions in Tough Times

When economic pressures lead to restructuring or redundancies, leaders must ensure decisions are fair and equitable. Evidence shows that redundancies often disproportionately affect marginalised groups. To counter this, leaders should:

• Conduct equality impact assessments to identify and address disparities.
• Check for implicit biases in decision-making.
• Use objective criteria when evaluating roles or employees.

Biases are part of being human, but they can lead to poor decisions if unchecked. Organisations must make fairness a priority, even under pressure.

EDI Beyond Recruitment: Focus on Retention

When hiring slows, some organisations mistakenly believe there’s no point focusing on diversity. This couldn’t be further from the truth. Instead, the focus should shift to creating an inclusive culture that retains the diverse talent you already have. Key actions include:

• Addressing unequal outcomes in redundancy processes.
• Building a supportive, inclusive environment to boost morale and reduce turnover.
• Communicating transparently and treating employees with respect during challenging times.

Remember, how you manage difficult decisions today will shape the trust and loyalty of your workforce tomorrow.

EDI is Everyone’s Responsibility

One of the biggest misconceptions about EDI is that it’s solely the responsibility of HR. Every department has a role to play:

• Marketing: Consider diversity in campaigns and messaging.
• Procurement: Promote supplier diversity.
• Facilities: Ensure accessibility in workspaces.

Leaders should empower employees to take grassroots action, such as organising events or initiatives. However, these efforts must align with the organisation’s overall strategy to be impactful.

Data-Driven EDI Strategies

Data is one of the most powerful tools for driving meaningful EDI change. Yet many organisations make decisions without consulting their data. To stay focused on EDI during tough times, gather insights from:

• Employee engagement surveys with a focus on inclusion.
• Focus groups that explore specific challenges and solutions.
• Metrics on representation, retention, and progression.

With solid data, you can prioritise initiatives that address real issues and have the greatest impact.

Treat Employees With Respect

When redundancies or other tough decisions are mishandled, the negative effects ripple throughout the organisation. Remaining employees can feel demoralised, worried they’ll be treated the same way. This “survivor syndrome” can damage trust, engagement, and productivity.

The solution? Treat employees with respect and dignity, even in difficult situations. Clear communication and empathy go a long way in preserving morale.

The Long-Term Value of EDI

Some organisations are already scaling back their EDI efforts, but I’ve seen many of my clients do the opposite. They’re doubling down, recognising that their people and culture are key to navigating uncertainty. These businesses are laying the groundwork for stronger, more inclusive organisations that will thrive when the economy recovers.

EDI isn’t just the right thing to do—it’s a smart business strategy. Organisations that maintain their commitment to fairness, diversity, and inclusion will build resilient cultures and engaged workforces.