HR’s duty to shape an inclusive and authentic workplace

Diversity, equity, and inclusion (DEI) have been front of mind for a lot of businesses, and not for the right reasons.

We’ve seen a change in narrative from some large global companies, with them publicly withdrawing their DEI initiatives.

I recently had the pleasure of speaking at the CIPD Festival of Work with my amazing colleagues (Steph, Deni and Naomi).

This crucial topic took centre stage during our discussion, in which we discussed the current situation, the importance of DEI and actionable steps businesses can take.

The cost of backtracking

When businesses treat DEI as a temporary add-on, the consequences can be severe.

During the session, we pointed to the recent example of the mass-market American retail chain, Target, which faced immense backlash after scaling back its DEI initiatives.

Target had been building its brand around inclusivity, so when it declared that DEI was no longer necessary, the backlash was swift and severe.

In fact, it was reported that its revenue plummeted and shares dropped by 30%.

What can we learn from this scenario?

Well, it serves as a powerful warning to businesses.

Moving away from core values that you’ve spent years establishing doesn’t just damage employee trust; it can also have a profound impact on your bottom line.

If you’ve built a brand on being inclusive and then treat those values as optional, it can come across as a cynical marketing ploy with catastrophic consequences.

Deni Williams, Lead HR Programme Advisor, told us: “I was reading the Edelman Trust Barometer report for 2025, and it said that the highest level of trust in businesses from employees was back in 2021.

“Looking at the post-pandemic way of working, businesses were very much leaning into social causes and leading with empathy, creating an unprecedented amount of trust between the employer and their employees.

“Now, there is a risk of disconnect if we don’t continue with that method that has been working over the past few years, particularly with Gen Z who have a greater need for empathy-based leadership.

“The main caution I would offer to businesses is to avoid practices that don’t align with your business values.”

Podcast: People management needs to change

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Listen and ACT!

Diversity, equity and inclusion aren’t just about making token gestures.

It’s about doing what’s right and what’s good for business.

A recent study analysed employee survey results from hundreds of the UK’s Best Workplaces (including IRIS!) and found that building a supportive and inclusive culture (the “EI” in “DEI”) positively correlated with employee engagement, increased productivity and strong financial performance.

Naomi Cosgrove, who oversees wellbeing, inclusion and benefits at IRIS, told the audience: “We know that people really want to use their voice within their business and they want to drive a positive change.

“However, if staff keep giving you ideas and you don’t do anything, it creates a feedback black hole and they’ll eventually stop doing it, creating distrust in the business.

“We’ve also got to think about the two-way conversation from an inclusion perspective, as underrepresented groups are often the people who get ignored.

“You must consult with them and make sure that your policies align with what they need; otherwise, they won’t trust you.”

HR must champion inclusion

The rollback of DEI initiatives has a lot of employees concerned about whether companies will continue their commitments that they’ve grown to expect.

Our Chief People Officer, Steph Kelly, emphasised that: “Building trust has always been a core part of HR’s job.”

As HR professionals, we must play a pivotal role in ensuring inclusivity isn’t treated as a trend but rather as a guiding principle for the entire business.

Naomi shared: “In the UK, debates around gender definitions naturally spill into the workplace.

“You see lots of companies at the moment wavering and not sure what changes to make.

“At IRIS, we’re looking at our policies and we ensure there are facilities within our offices that our trans colleagues can use. We believe sticking to our values is critical, no matter the external pressures.”

Steps for HR to foster inclusion

Inclusive practices must be embedded into your day-to-day activities.

Consider the following steps if you’re not sure where to start:

1. Act on feedback: ensure employee feedback translates into real action, and be transparent about how these ideas will be implemented to help reinforce trust.
2. Set goals: measurement is a valuable tool to ensure initiatives and plans remain on track. Set goals and regularly follow up to ensure efforts remain consistent. At IRIS, for instance, we survey our staff each month, gauging staff sentiment to determine how we’re doing against key markers like employee engagement, inclusivity and accessibility, to name a few.
3. Lead with your values: proactively support employees, especially from underrepresented groups, by championing inclusive policies and addressing emerging needs.
4. Communicate, communicate, communicate: regularly communicate with staff, using diverse communication methods to share progress, goals and changes in policies.

The ethical anchor

The lessons from the CIPD Festival of Work are clear: focusing on trust, actions and values is how HR professionals can lead businesses towards long-term success.

If you’re looking for more help with supporting staff, you’re in luck.

We also created a handy blog which covers our second CIPD session, detailing how businesses can improve their wellness and benefits programmes.

More content: Strategies for improving your wellness and benefits programmes

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