Is DEI a spent force, or could it be revived by merit?
‘As governments worldwide face increasing scrutiny over diversity, equity, and inclusion (DEI) policies, how should they react, and could a merit-focused approach offer a more sustainable DEI future?’ ask Andrew and Nada Kakabadse, professors of leadership and governance at Henley Business School
The recent executive order by US president Donald Trump to dismantle DEI policies has prompted several major corporations – including McDonald’s, Walmart, Target, Meta, Amazon, Ford, Lowe’s, and Harley-Davidson – to scale back or eliminate their DEI initiatives.
This rollback is not just a corporate concern; it carries significant implications for public sector organisations globally, including those in the UK. The British government has increasingly been drawn into discussions on the effectiveness of DEI programmes, with debates over their role in civil service recruitment, policy development, and public service delivery.
DEI programmes have long been instrumental in promoting inclusive workplaces and enhancing opportunities for historically marginalised groups.
However, many governments have struggled to implement sustainable changes, often finding that practices do not align with their stated DEI policies. Critics further argue that some DEI initiatives have been ineffective or have inadvertently exacerbated disparities.
In the UK, public sector organisations face a particular challenge: balancing the need for diversity and inclusion with a commitment to efficiency, meritocracy, and public confidence.
Most recently the Financial Conduct Authority and Prudential Regulation Authority have withdrawn plans to enforce stricter DEI regulations for financial firms.
Initially proposed in September 2023, these regulations would have mandated companies to report detailed staff diversity data, including age, ethnicity, gender, religion, and sexual orientation.
The decision to retract these plans reportedly stems from criticisms by politicians and businesses, who contend that the measures would impose excessive reporting burdens and potentially overlap with forthcoming government legislation.
Integrating merit-based frameworks into DEI strategies offers a balanced approach that aligns organisational excellence with equity. Rather than abandoning DEI efforts, merit-based initiatives can enhance these programmes, fostering sustainable and impactful change.
The current DEI landscape
DEI programmes are designed to provide equitable opportunities for marginalised groups, focusing on recruitment, training, and policy reforms to reduce bias and foster inclusivity.
Despite these efforts, results have been mixed. A 2019 study by Harvard Business Review revealed that while 75% of companies conducted unconscious bias training as part of their DEI efforts, only 25% reported measurable improvements in workplace equity or inclusion metrics.
Similarly, a 2022 report by the Society for Human Resource Management found that most DEI programmes failed to close pay gaps or address structural inequities, underscoring the need for deeper systemic change.
Within the UK civil service, a renewed focus on meritocracy could help address concerns that DEI policies are sometimes seen as undermining competence and fairness.
Traditional DEI initiatives often emphasise quotas and compliance over genuine cultural transformation, leading to tokenism, employee resentment, and a lack of long-term commitment to diversity goals.
Gender diversity efforts have faced specific scrutiny. There are instances where less-qualified candidates are selected to meet diversity targets, resulting in frustration among both male and female employees.
Some women have expressed irritation at being perceived as ‘token’ appointments, while others feel excluded for not aligning with prevailing group dynamics. Such scenarios highlight that poorly implemented DEI programmes can alienate high-performing individuals and undermine the very objectives they aim to achieve.
Read more: Report finds Australian Public Service making ‘significant’ progress on gender equality
The case for merit-based DEI
While DEI programmes are often framed as moral imperatives, leaders have struggled to connect representation and training initiatives to tangible business and organisational outcomes, such as productivity, innovation, and employee satisfaction, especially during economic downturns.
Integrating a merit-based framework into DEI does not mean abandoning diversity goals. Instead, it involves redefining merit to include diverse perspectives, experiences, and skills that contribute to organisational success.
Key components of a merit-based DEI approach include:
- Authentic inclusion: Emphasising the value of diverse contributions by recognising the unique skills and perspectives individuals bring, and fostering genuine inclusion rather than superficial representation.
- Bias reduction: Implementing structured, merit-based initiatives that minimise conscious and unconscious biases by focusing on objective evaluation criteria, ensuring fair assessment of candidates and employees regardless of background.
- Enhanced public sector performance: Research consistently shows that diverse teams outperform standardised ones. Aligning DEI programmes with merit enables government organisations to leverage their workforce’s full potential, driving innovation and efficiency.
- Maintaining credibility: Merit-based approaches reassure employees that diversity initiatives do not compromise standards, reducing resistance and fostering broader support for DEI efforts.
Restructuring DEI around merit
Effectively integrating merit into DEI initiatives requires targeted strategies that balance fairness with excellence as follows:
- Redefining merit: Traditional definitions often prioritise standardised qualifications or past achievements, which can exclude individuals from non-traditional backgrounds. A broader appreciation of merit should encompass attributes like adaptability, cultural intelligence, and problem-solving skills, considering contextual factors that impact performance.
- Revamping public sector recruitment: Blind application procedures, skills-based assessments, and diverse hiring panels can help reduce bias, ensuring candidates are evaluated based on their capabilities.
- Inclusive leadership development: Providing mentorship, training, and career development opportunities to underrepresented groups fosters an equitable leadership pipeline without compromising merit.
- Data-driven insights: Regular analysis of workforce data can identify diversity gaps and areas for improvement. Metrics such as employee retention, promotion rates, and engagement surveys offer valuable insights into the effectiveness of DEI initiatives.
- Transparent communication: Clearly articulating how merit is defined, evaluated, and aligned with diversity goals builds trust in DEI programmes. Regular updates and open discussions also help address misconceptions and promote a culture of inclusion.
Merit-determined DEI is already here!
Merit-driven DEI is already shaping the future of workplace diversity, with several leading organisations successfully integrating these strategies to drive meaningful change.
Google, for instance, has redefined its hiring process by implementing structured interviews and skills assessments to minimise bias. Its investment in initiatives like ‘Code Next’ ensures that underrepresented groups in tech are supported, reinforcing the alignment between merit and inclusivity.
Unilever has taken a similar approach with its ‘Future Leaders Programme,’ which prioritises leadership potential over traditional qualifications. By leveraging AI-driven assessments and diverse hiring panels, the company has significantly improved representation within its leadership pipeline.
Accenture, meanwhile, has demonstrated the impact of data-driven DEI initiatives, using transparent reporting and merit-based promotions to achieve measurable progress in workplace equity.
Even in academia, Henley Business School’s Masters Programme for Board Directors exemplifies how merit and diversity can coexist, with over 50% of its high-performing cohorts being women – selected for their capabilities, rather than as a token gesture.
For the UK government and public sector organisations, adopting a merit-driven approach to DEI could help address ongoing debates over fairness, efficiency, and inclusion.
The backlash against ineffective DEI programmes was always inevitable. It is not just a reaction to Trump’s policies but a broader response to the unintended consequences of DEI initiatives that, in some cases, have fostered resentment rather than inclusion. This has only served to undermine genuine efforts to achieve gender diversity.
Restructuring DEI programmes around merit offers a powerful and sustainable path toward inclusivity and excellence.
By redefining what merit truly means, revamping recruitment processes, and addressing systemic barriers, organisations – including the UK government – can create workplaces that not only champion diversity but also empower the most talented individuals, regardless of their background, to thrive.
The companies already leading this shift demonstrate that merit-based DEI is not just an aspirational goal; it is a strategic imperative that drives innovation, engagement, and long-term organisational success. As governments and institutions worldwide rethink their approach, the time to align DEI with merit is now.
Read more (from 2023): US publishes inaugural report on diversity in federal government
About Andrew and Nada Kakabadse
Andrew and Nada Kakabadse are professors of leadership and governance at Henley Business School.
Related Posts
