Have businesses lost the diversity battle?

The number of firms struggling with EDI has almost doubled, new data shows

The number of businesses struggling to hire diverse talent has almost doubled since 2022, despite firms putting more effort into inclusive recruitment. That’s according to new data*.

The latest edition of the Resourcing and talent planning report revealed that over half (51%) of  organisations that recruited in the last year reported they have hired a more diverse workforce in comparison to the previous year. Further improvement in the equality, diversity and inclusion (EDI) agenda was evidenced by the fall in the number of employers reporting that their organisation is not actively addressing their inclusive hiring at board level, down from 30% in 2022, to 17%.

While this paints a promising picture for diverse workforces, employers also indicated growing difficulties maintaining this momentum. The number of organisations, that attempted to fill vacancies over the past year, reporting challenges hiring diverse talent increased from 16% in 2022, to 29% this year. This could put future inclusive recruitment practices at risk unless employers are able to take action swiftly.

Inclusive training being utilised – but not enough

Worryingly, the report also revealed that too few employers are implementing initiatives to deliver more inclusive hiring practices. Only half (50%) of respondents report managers or leaders at their organisation have attended inclusive training or coaching in the last year. Far fewer (28%*) state that their organisation attempts to address diversity issues in recruitment processes by ensuring all interviewers are trained on legal obligations and objectives. Promisingly, however, 66% revealed that their organisation has a formal EDI strategy.

Louise Shaw, Managing Director at Omni RMS explains that employers will need to take further steps to ensure the movement already gained in diverse hiring isn’t lost:

“It’s encouraging to see progress at a strategic level, though less so at a tactical. We need to go beyond a stage where organisations are focusing on inclusive hiring to hit recruitment targets and instead see employers recognising that diversity is necessary for retention as much as attraction. However, this requires a significant cultural shift within a business to make it stick.

“Employers are already aware of the fact that diverse hiring is only going to become more challenging. In order to best manage this, they need to consider more than just training. There are a number of steps we’ve seen work for organisations already. Engaging senior sponsors and utilising internal employee networks to showcase diversity and make sure the right voices are heard all aids attraction and retention. Ensuring wide reach for diverse talent attraction and objective assessments of candidate’s performance and potential are another such methods.

“We’ve seen the positive impact that more inclusive hiring can have. In our work with Ofcom, for example, we were able to increase ethnic hires from 24% to 28% and grow female leadership recruitment from 33% to 46%. It may become more challenging to continue the momentum in diverse recruitment, but it will also be far more rewarding for organisations and employees alike.”

*Research from resourcing transformation expert, Omni RMS and the CIPD

Resourcing and talent planning 

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