Judging from recent headlines, it’s easy to believe claims that 2025 will see more companies step back from diversity, equity, and inclusion (DEI) efforts. This narrative has gained traction after Meta and McDonald’s kicked off the year by scaling back their DEI strategies in the U.S., joining what some dangerously describe as a “stampede of corporations” retreating from DEI.
However, businesses—especially in Australia and the UK—should be cautious about accepting this at face value. The reality is far more complex and, for those committed to continuing this vital work, deeply encouraging.
The reality behind the “retreat”
Despite claims to the contrary, the scaling back or shift in focus by some large U.S. companies does not prove that DEI efforts are ineffective. In fact, McDonald’s own announcement showcases and celebrates the quantifiable progress achieved through setting clear targets and goals.
Instead, the decision to adjust strategy away from a target and goals-based approach seems driven by mounting external pressures—including political shifts, and evolving legal risks following the U.S. Supreme Court’s ruling against affirmative action.
What’s really ahead for DEI in 2025?
While some U.S. companies may slow their DEI efforts in 2025, many others are staying the course—or even accelerating. For example, while Walmart scaled back in 2024, Costco has doubled down on its DEI initiatives. This trend isn’t global either; notably, McDonald’s Australia has not mirrored the actions of its American counterpart.
Globally, companies are not just maintaining but actively strengthening their DEI commitments. In the past year, our WORK180 Endorsed Employers have:
- Improved over 4,000 employee benefits—an 85% increase from the previous year.
- Positively impacted more than 260,000 women through workplace improvements.
- Focused on inclusive hiring, pay equity, and fostering anti-discriminatory workplace cultures.
The result? A 7% average increase in women employed, with some companies achieving gender equity targets 12 times faster than industry peers.
This progress is crucial, especially with rising government action to support it. Last year, Australia joined the UK in publishing gender pay gaps for employers with over 100 employees, with even stricter reporting requirements set for 2025.
And the business case for DEI is also stronger than ever, with clients and investors increasingly favor companies that prioritize DEI. For example, Australian equity manager Melior actively supports companies with strong gender equity practices, believing they drive better long-term returns. Similarly, over 55% of UK investors prioritize businesses committed to sustainability and equity.
What’s more, these are the workplaces where women and marginalized groups want to be. A huge 88% of women want to know what their employer is doing to create a diverse, equitable, and inclusive workplace. And in just the past year, the number of women and marginalized individuals using our transparent career platform to find truly inclusive employers has surged from 1 million to 1.5 million.
Final advice for 2025: Driving meaningful DEI progress
The global momentum for diversity, equity, and inclusion remains strong, but 2025 won’t be without challenges. Growing anti-DEI sentiment in the U.S. may shake some leaders’ confidence, providing an excuse to slow progress. This could lead to even greater levels of diversity fatigue—the emotional exhaustion from continuously pushing for change against resistance and slow progress.
But this work has never been easy, and for those most affected, giving up isn’t an option. Real progress comes from pushing forward with DEI efforts—not just when it’s popular, but especially when it’s hard.
To maintain momentum in 2025, organizations should:
- Prioritize high-impact initiatives: Focus on the areas that will make the greatest difference for your organization and employees.
- Embrace progress over perfection: Change takes time. Commit to consistent progress and celebrate milestones to sustain motivation.
- Engage everyone in the journey: DEI initiatives succeed when everyone is involved. Communicate the benefits for all employees and foster inclusive participation at every level.
Recommended resources to support
Here are key tools to help organizations continue building inclusive, equitable workplaces:
Based on our study of 1,000 men, this free guide offers actionable strategies to empower and engage all genders in DEI efforts.
Clear and measurable goals drive real progress. Use this free guide to evaluate and strengthen your DEI strategy in a changing environment.
Stay informed with the latest DEI insights, strategies, and best practices to help leaders sustain and grow impactful initiatives.
I also recommend staying inspired and connected with the changes driving DEI progress by following us on LinkedIn, where we share regular updates on policy changes and achievements by the companies we work with.
Want to know more about our work with organizations? Visit our how we help page or feel free to talk to our team today.
