Pronouns and rainbow lanyards are not the way to foster inclusion

IN 2021, a manager at Lloyds bank took an internal Equality, Diversity and Inclusion (EDI) course, during which he asked how he should handle a situation where someone from an ethnic minority background uses a word that would be considered offensive if it was said by a white person.

Lloyds branded him a racist for quoting the “n-word” as part of his question, and he was dismissed for gross misconduct. He then took his former employer to a tribunal, won his claim for unfair dismissal, and was awarded £800,000 in compensation.

This is not an isolated incident. For several years now I have read reports of employers misapplying equality law under the guise of EDI initiatives.

This Government believes that EDI policies should unite rather than alienate employees, and crucially uphold fairness and meritocracy.

That’s why last year the Government set up an independent Inclusion at Work Panel to address this issue in an evidence-led way. The panel has now published its final report. Much of it makes for concerning reading. Studies found that the UK employs almost twice as many EDI workers per head than any other country – costing the taxpayer at least £500million a year.

Despite this, the report shows that, while millions are being spent on these initiatives, many popular EDI practices have little to no tangible impact in increasing diversity or reducing prejudice.

In fact, many practices have not only been proven to be ineffective, they have also been counterproductive. Recent years have seen a notable uptick in cases taken to employment tribunals using the Equality Act in comparison to the years 2013-17.

What’s also concerning is how few employers are using evidence when making decisions. According to the Chartered Institute of Personnel and Development, only one in four business leaders say they consult data before coming up with new EDI initiatives. The panel found that organisations are crying out for better evidence on how they can practise diversity and inclusion. Performative gestures such as compulsory pronouns and rainbow lanyards are often a sign that organisations are struggling to demonstrate how they are being inclusive.

These clumsy diversity policies aren’t a substitute for rigorous, evidence-based measures that ensure everyone participates and thrives in the workplace.

As both Business Secretary and minister for women and equalities, I welcome the findings of this independent report. Over the next few weeks and months, the Government will consider how we can best take forward its recommendations.