The £557 Million Question: Are UK Public Sector DEI Initiatives Delivering Results?

DEI is going through something of a crisis. First the Report on the Inclusion at Work Panel’s recommendations were released (Dow, 2024) . Which was rather critical of the approach to DEI and recommending a more evidence based approach as opposed to the current less-evidence based approaches to DEI.

Then the ‘Minister for Common Sense’, Esther McVey is taking a hacksaw to DEI spend in the public sector (Moss, 2024). This is both likely a response to the report as well as using DEI as a political football in an election year.

As previously written about in “Hitting the Target but Missing the Point on Diversity”, revisiting and understanding your why (for the Simon Sinek fans) for any DEI intervention is key.  

1. Are you tackling equity or equality?

2. How does your investments in D impact and inform your investments in I?

3. Are you doing this for societal or business performance reasons?

4. Are you targeting a particular demographic (and therefore excluding others) or taking a universal design approach (and potentially limiting your impact in anyone group)?

If you’re not clear on any of the above, then you are just waiting for your Minister of Common Sense (likely an FD) to start questioning the spending and looking for evidence of effect. Sadly much of the very popular solutions such as EDI training show no effect of changing behaviours(Atewologun et al., 2018).

So what does the report say-

1.     Size of DEI spending:

·       According to an estimate based on Freedom of Information Requests to 6,000 public authorities, approximately 10,000 public DEI jobs exist in the UK, costing £557 million a year to the taxpayer.

·       In November 2023, it was reported that an estimated £13 million is spent annually on DEI roles in the NHS.

·       US companies spend roughly $8 billion a year on DEI training.

·       McKinsey's analysis found that companies pledged around $340 billion to "driving racial equity," with around $141 billion committed between May 2021 and October 2022.

2.     Effectiveness of current interventions:

·       The evidence on the impact of DEI initiatives is mixed and often inconclusive.

·       Despite strong evidence suggesting particular interventions, such as diversity training, are not effective and sometimes counterproductive, many employers continue to use them.

·       Studies have shown that diversity training typically fails to achieve meaningful or durable improvements in organisational culture, workplace morale, collaboration across lines of difference, or the hiring, retention, and promotion of diverse candidates.

3.     The need for a more evidence-based approach:

·       The report recommends that the government fund and work with a research partner to develop a digital tool similar to the Education Endowment Foundation's "Teaching and Learning Toolkit." This will allow leaders and managers in every sector to assess the rigour, efficacy, and value for money of various DEI practices.

·       The report emphasises the importance of gathering evidence systematically and comprehensively, putting evidence into practice, and regularly reviewing interventions and processes to ensure their effectiveness.

·       It also highlights the need for clear performance standards, high-quality vocational training, and excellent management as the most effective means to improve equality of opportunity, inclusion, and belonging.

4. Focussing on rewiring the organisations systems, process and tools not its people

Interestingly, the report also highlights that effective strategies for promoting DEI often involve changing systems and invitations to act rather than attempting to change people directly. For example, a study found that removing penalties for incorrect answers in multiple-choice tests reduced the gender gap in test performance, as women were more likely to skip questions when penalties were in place. This case represents an organisation changing a policy rooted in evidence, addressing a disparity without undermining meritocracy or opportunity for other groups.

Summary

As organisations navigate the challenges surrounding DEI initiatives, it is crucial to revisit their purpose, align their investments with their goals, and adopt a more evidence-based approach to ensure the effectiveness and value of their efforts.

Atewologun, D., Cornish, T., & Tresh, F. (2018). Unconscious bias training : An assessment of the evidence for effectiveness.

Dow, P. (2024). Report on the Inclusion at Work Panel’s recommendations for improving diversity and inclusion (D&I) practice in the workplace - GOV.UK. https://www.gov.uk/government/publications/inclusion-at-work-panel-report-on-improving-workplace-diversity-and-inclusion/report-on-the-inclusion-at-work-panels-recommendations-for-improving-diversity-and-inclusion-di-practice-in-the-workplace

Moss, R. (2024). Civil service EDI jobs, spending and networks to be culled - Personnel Today. Personnel Today. https://www.personneltoday.com/hr/civil-service-edi-jobs-spending-and-networks-to-be-culled/