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Our recent Pay and Reward Conference 2025 featured insights that resonated in a fast-evolving HR landscape, directly facing political headwinds, particularly when it comes to diversity, equity and inclusion.

Here we share reflections on “Staying the Course: DEI with Impact, Not Just Intention” shared by Grace Mosuro, Inclusion and Culture Strategist, Founder of Aquaintz Consulting, and host of The Organisational Inclusionist podcast.

The State of DEI: From momentum to crossroads

Diversity, Equity and Inclusion (DEI) has always been a moral and strategic imperative — a promise to create workplaces where everyone belongs and thrives. Yet, as Grace Mosuro shared in her compelling talk at our conference, “we’re entering an era where inclusion is being questioned, diluted and even dismissed.”

The Weaponisation of ‘DEI’

Just three years ago, the phrase “DEI must die” entered the mainstream U.S. political narrative. Since then, the term “woke” has been weaponised globally to frame DEI as divisive or even discriminatory – a distortion that has deeply affected how organisations operate. The ripple effects are clear.

Across the world, DEI budgets have been reduced, teams quietly restructured or dissolved, and accountability for inclusion absorbed into vague notions of “culture” or “engagement.” The CIPD reported that one in four HR leaders have deprioritised inclusion initiatives. It is a sobering picture of reversal and retreat.

Yet as Grace reminded delegates, “If equity isn’t intentional, it becomes optional. And once it’s optional, it’s lost.”

Global Context: How different regions are responding

Grace highlighted that the DEI landscape now looks dramatically different across countries:

  • United States: Legislative bans and legal challenges have restricted DEI programs at universities and within corporate America. Following the Supreme Court’s affirmative action ruling, companies have been spooked into silence. Grace noted the chilling effect of these measures; the fear of doing the wrong thing has replaced the courage to do the right one.
  • France: The country’s colour-blind legal stance hinders progress, as organisations are resistant to collecting race-based data. However, if you cannot name inequity, you cannot fix it.
  • United Kingdom: Here, DEI is being “absorbed into business as usual” – often rebranded under broader terms like engagement or culture. This risks diluting the progress and ongoing work in this area. Without dedicated budgets or accountability mechanisms, equity loses its edge.

This quiet retreat has left many inclusion professionals isolated, underpowered and overburdened. Grace warned that organisations are asking DEI leaders to influence without authority, saying “You cannot change what you are not empowered to measure, fund or lead.”

When inclusion becomes invisible

One of the most striking moments in Grace’s talk came when she described the “quiet dissolving” of DEI roles. She shared the story of a respected Black female DEI director in a major UK organisation whose role was quietly merged into an internal communications function during a restructure, without announcement or replacement. The message was clear: visibility in inclusion can become a liability when the corporate climate turns cautious.

In academia, too, she pointed to examples of retaliation. One university DEI lead was placed on leave after formally raising bias concerns in recruitment. Grace made it clear that these are not isolated incidents: “They reflect a system that wants the optics of inclusion but not the discomfort of accountability.”

This “quiet retreat” – where DEI is rebranded, repositioned or simply phased out – represents one of the biggest risks to sustained progress. “We cannot achieve belonging until we achieve equity,” Grace emphasised, arguing that softening the language doesn’t soften the inequities.

Anchoring DEI: Data, values and legacy

Despite the challenges, Grace’s message was one of disciplined hope. She outlined three critical anchors for organisations committed to staying the course:

Anchor in Data

“Make equity measurable,” Grace urged. Organisations must build robust systems to track disparities and progress across pay, promotion, retention and representation. Without metrics, DEI becomes storytelling, not strategy.

Anchor in Values

DEI must align with organisational purpose and leadership behaviour. Grace noted that if your values say you care about people, but your outcomes do not reflect that, there is a misalignment. Consistent communication and leadership accountability are key.

Anchor in Legacy

True equity work is generational. “We’re not doing this for the next quarterly report,” Grace said. “We’re doing it so the next generation doesn’t inherit the same inequities.” The goal is a legacy of fairness embedded into how organisations operate, not just how they communicate.

Where reward meets inclusion

Honing in on the role pay and reward can play, Grace’s link between reward systems and inclusion struck a powerful chord. Equity without accountability is performative, but when embedded within pay and performance systems, it becomes transformative.

She challenged organisations to integrate DEI into reward structures through:

1

KPI Alignment

Tie performance metrics directly to inclusion outcomes.

2

Manager Accountability

Hold leaders responsible for inclusive hiring, retention and team engagement.

3

Bonus Structures

Reward those who demonstrate inclusive leadership behaviours, mentor diverse talent or close equity gaps.

4

Transparency

Audit pay, promotion and reward systems to ensure fairness at every level. Companies such as Salesforce, Lloyds Banking Group and several local authorities are proving that inclusion can be embedded in tangible ways. Salesforce has conducted repeated pay audits, reducing its bonus gap by 10 per cent, while Lloyds links progress on diversity to executive compensation.

Balancing business and belonging

A theme that resonated throughout the Pay and Reward Conference was the question: Has HR gone too far in trying to meet employee needs? As businesses face cost pressures and political scrutiny, there’s a growing perception that DEI and employee wellbeing have tipped the scales away from commercial priorities.

Organisations do not have to choose between business and belonging. Inclusion drives performance. Equity is not a distraction from profit – it forms the foundation for sustainable growth. Research consistently backs this up. Inclusive organisations see higher innovation rates, lower turnover and stronger financial performance that comes from having teams where different cultural values and heritage are seen, understood and heard.

In other words, DEI is not a moral luxury; it is a strategic advantage.

The Future of DEI: Sacred, heavy work

The overall message from Grace’s session was both sobering and inspiring. DEI work is under pressure globally, but it remains essential. “This is sacred, heavy work,” Grace concluded. “It’s exhausting. But it’s worth it.” Organisations must resist the temptation to treat DEI as a passing phase or optional extra. When inclusion becomes invisible, inequity becomes inevitable.

As Grace reminded attendees: “DEI isn’t just a policy or programme. It’s a promise. Let’s not be the generation that made it optional.” The path forward is clear: Anchor in data. Lead with values. Build a legacy that outlasts headlines. And, perhaps most importantly, reward inclusion, not just intention. Because when equity is embedded into how we lead, measure and reward, everyone benefits.

Get in touch

We would love to hear from you and how your organisation is approaching DEI. Talk to us today to share your experience and discuss how Paydata can support your DEI priorities.


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