Is DE&I in decline? Why scaling back could hurt Irish businesses

Diversity, equity, and inclusion (DE&I) has long been a strategic priority for organisations, yet an increasing number of large businesses in Ireland are weakening their DE&I policies. Since November 2024 – the time of the US presidential election – 40% of organisations operating in Ireland have eliminated or plan to eliminate their DE&I targets, according to research by Censuswide and Expleo.

For Irish firms with US operations, the impact has been even more substantial, with nearly half (49%) removing references to DE&I, likely due to concerns over overseas backlash. While global political shifts are influencing business decisions, not all organisations are following suit. And for those that are deprioritising DE&I, many are already facing the consequences.

The risk of neglecting DE&I

Beyond the obvious moral implications of scaling back DE&I commitments, organisations should also be considering the strong likelihood of employee backlash. Close to half (47%) of leaders believe their employees are concerned about DE&I becoming less important, according to the research by Censuswide and Expleo. And it’s already proving to be catastrophic for employee morale and retention, with 40% of large enterprises in Ireland having already had workers quit as a result of DE&I policy changes. Organisations that fail to maintain their DE&I commitments risk losing top talent, weakening their employer brand, and creating uncertainty among their workforces.

Signs of strength in Ireland’s DE&I commitment

While some statistics are extremely concerning for diversity, equity and inclusion in the workforce, it’s evident that these setbacks are not being implemented across the board. Another recent study, the 2025 EY CEO Outlook survey, presents a more optimistic picture, finding that over four-in-five (83%) Irish CEOs are maintaining their DE&I commitments. Meanwhile, regulatory changes like The EU Pay Transparency Directive, which businesses in Ireland are mandated to follow by June 2026, are expected to drive pay equity improvements and reinforce the importance of DE&I in business operations.

The business case for an inclusive culture

Organisations prioritising DE&I will see direct benefits in employee wellbeing, retention, and overall business performance. According to our 2025 Ireland Salary and Recruiting Trends Guide, most (87%) employers believe their organisation’s ability to demonstrate a diverse and inclusive culture helps attract talent. What’s more, almost a third (32%) of employees say a diverse and inclusive culture is very important to them when considering a new role, and a further 48% deem it to be quite important. With employers anticipating their top external challenge to be recruiting the right talent (62%) and their top internal challenge to be talent retention (64%), it seems organisations cannot afford to have a weak DE&I agenda hindering their efforts.

Reimagining DE&I for lasting change

Rather than stepping away from DE&I, organisations should revamp their strategies to ensure long-term impact, especially given today’s complex political and economic climate. Despite good intentions, some programs fail to create lasting change. A recent Harvard Business Review podcast, If DEI Programs Aren’t Effective, What Is?, highlights common challenges to these initiatives such as a lack of measurable outcomes, conflicts with meritocracy when employees perceive DE&I efforts as unfair, and the risk of backlash when poorly implemented initiatives create division rather than unity. To future-proof DE&I, organisations must go beyond symbolic gestures and focus on meaningful changes that drive equity.

How businesses can strengthen their initiatives

Organisations must reset their approach to inclusion rather than retreat from it. Evolving strategies are essential to maintaining credibility and effectiveness in today’s shifting landscape. Rather than tokenistic displays of support, organisations need to back this up with action to be able to truly make an impact against a backdrop of discouraging global news. DE&I should not be treated as a standalone function but should instead be integrated into business operations with measurable impact.

Key focus areas include hiring and promotions, equitable opportunities for progression, pay equity backed by data-driven insights, and ensuring objective performance evaluations. Leadership development also plays a critical role in promoting accountability and respect across an organisation.

Key takeaways: DE&I isn’t an option, it’s business critical

DE&I isn’t just an ethical obligation – it’s a strategic necessity. A truly inclusive workplace enhances employee engagement, strengthens talent retention, and boosts employer brand reputation. As the DE&I landscape shifts, businesses must step forward with purpose rather than stepping back. Let’s work together to build a more inclusive, resilient and high-performing workforce.

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