Businesses aren't properly equipped to implement EDI policies that are based on evidence, resorting in ineffective practices, a new government report has revealed.

A panel of experts in the private and public sector worked to gather research for the report, which found many employers don't know the impact EDI initiatives are having, or whether they represent value for money.

The panel was commissioned by the Business and Trade Secretary and Minister for Women and Equalities, Kemi Badenoch MP, who requested for leaders to review the latest evidence of how employers are making decisions about diversity and inclusion policies and practices.

A leading Harvard academic advised the panel, which found that in a growing number of cases, the report showed EDI interventions are proving to be 'counterproductive or even unlawful'.

Furthermore, it revealed that employers face barriers such as a lack of accessible data on EDI interventions that work and polarised EDI debates.

It also found many employers are not using data to make EDI decisions and are misapplying equalities legislation.

“Discussions around diversity and inclusion at work are often bogged down by performative gestures. This government wants to ensure employers are doing EDI in a way that doesn’t undermine meritocracy and aligns with our equality laws," Kemi Badenoch MP said.

“This report by the Inclusion at Work Panel is a powerful new tool for organisations. It lays out the evidence for good and bad EDI practice and can empower employers to make fairer, more effective EDI decisions that represent proper value for money.

“I sincerely hope that businesses will take time to read this report so that it becomes an important step in helping them achieve more inclusive and productive workplaces.”

The report encourages employers to make better use of evidence and data when making EDI decisions to increase 'fairness and opportunity'.

It argues that companies should seek to avoid EDI initiatives that alienate certain groups, cause division or have little to no impact.

The panel said British businesses need to 'capitalise on the very best of British talent, wherever that talent is to be found'.

Chair of the panel, Pamela Dow said: “It has been a privilege to work with such expert colleagues, united in the goal of fairness and belonging in the workplace. Our aim was to support leaders in all sectors to spend time and money well.

“The insights from our wide discussions show how we can build a useful evidence base, track data, improve confidence and trust, and reduce burdens, for organisations across the UK.”

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