Nimmi Patel
Head of Skills, Talent & Diversity, techUK
Many US firms are scaling back their diversity and inclusion programmes, in response to the new political climate. How will that affect UK arms of business?
Globally, diversity, equity and inclusion (DEI) initiatives have seen both progress and setbacks. While companies have pledged billions to promote equity, the actual spending has lagged recently.1 The global market for DEI was estimated at $7.5 billion in 2020 and is projected to more than double by 2026,2 but economic pressures and political climates have contributed to a growing backlash, putting this important initiative at stake.
DEI to develop better businesses and societies
We, at techUK, understand that companies may fatigue in focusing on DEI, but what we cannot forget is that DEI is not just good for society but is also good for business. The business case makes clear the link between diverse teams, better decisions and enhanced profitability.
Particularly in the tech sector, the need to ensure the sufficient representation of underrepresented groups is more important than ever. Tech needs to reflect the society it seeks to serve and needs DEI to develop better products and services that recognise diverse user needs.
DEI efforts have also become a
critical component of UK bids
for public sector contracts.
DEI in the public sector and across supply chains
DEI efforts have also become a critical component of UK bids for public sector contracts. Suppliers that demonstrate strong commitments to social value and DEI are more likely to succeed in securing contracts. Prioritising DEI in procurement ensures that all suppliers, regardless of their background, have equal opportunities to compete fairly. This approach fosters a more diverse and resilient supplier base and helps bridge the gap between large corporations and smaller businesses.
Shaping a more equitable future
While the UK will feel aftershocks from the decisions made by firms in the US, we must not stop pushing for progress. The narrative making its way across the pond is simply not profitable for companies. techUK’s TechTogether campaign highlights how we should not halt the great work that has been done in pursuit of shaping a more equitable digital future.
[1] Spectra Diversity. 2021. Measurement & Focus are Key for SMBs to Succeed with DEI.
[2] McKinsey & Company. 2023. Diversity, Equity and Inclusion Lighthouses 2023.
