Employers ignore DEI at their peril

Today’s employers need to listen to Gen Z, warns Rebecca Wettemann. Unlike some earlier generations, the CEO and principal analyst of HR consultancy Valoir says that Gen Z is not afraid to call out leaders in the workplace that, as she puts it, “don't walk the walk.”

“While they're more likely to choose a place to work based on DEI and culture, Gen Z are also more likely to be outspoken when employers don't have clear policies and practices around DEI,” she says.

In fact, DEI is such a priority for younger workers that they will remove themselves from the recruitment process if they cannot see a sincere dedication to DEI. Recruiters who conduct sentiment checks during the application process and beyond have encountered young candidates who share feedback openly on what they experienced during the hiring process and how an organization projects themselves from the start, says AMS’ Pitchford.

“This will be a major factor for them to continue or ultimately accept an offer with an organization that meets their DEI values and ethos,” she says.

According to Lauren Cunningham, Early Careers & Campus Client Director at AMS, she and her team constantly discuss how to bolster DEI especially in the recruiting process, beginning with when candidates first apply for a position. Calling this “part of their job,” she says employers will also need to move beyond race, gender and sexuality when considering candidates for open positions. Young workers and recent university graduates want to see the promotion and development of people with, say, neuro diversity or other forms of mental health challenges and abilities. 

One major push for Cunningham and her AMS team is using DEI to drive social mobility, especially in the UK&I region.

A growing number of young Brits entering the workforce from the UK state secondary school system, for example, often find themselves at the beginning of their careers with poor grades, a lack of skills, and little dedication to work because of a lack of opportunities. According to the UK Education Policy Institute’s Annual Report 2024, by the end of secondary school (high school in the States), disadvantaged pupils were 19.2 months behind their peers. This gap has widened since 2019 (by 1.1 months), reaching its highest level since 2012.

However, compared to the US, there is a firmer focus on social mobility for many UK and Irish employers with a shift from only looking for candidates from ‘Russell Group’ universities. The Russell Group, which includes prestigious institutions like Oxford, Cambridge, and the London School of Economics, has traditionally been the main source of top talent. However, there is now a growing recognition that exceptional candidates can also be found in a broader range of educational institutions, where talent may be overlooked despite its potential.

In response, the UK government has created guidelines for structured apprenticeship-based hiring that’s funded by the government. All UK organizations are given a levy that they must spend on apprentice programs or return the funds back to the government, explains Cunningham. “Everyone has apprenticeship programs that range from age 14 up until they get an apprenticeship with a degree, which is awesome,” she says.

Interestingly, there are fewer programs that take place across the pond, presumably since social mobility is a smaller challenge in the States compared to the UK “I just don't hear our clients in the US talking about that at all,” says Cunningham.  

 Judy Ellis, SVP of Diversity, Equity, Inclusion and Belonging Advisory at AMS, adds, "In the US, there’s a prevailing belief that economic mobility is inherent, stemming from our lack of a history of formal social classes. The concept of the ‘American Dream’ reinforces the idea that upward mobility is attainable for everyone. However, emerging trends show that this ideal is not always a reality. Research from Pew shows that first-generation college graduates lag behind their peers, despite having the same educational credentials. This disparity suggests that the barriers to mobility are still significant, even though there’s a widespread sentiment that everyone has an equal opportunity to succeed. As a result, social mobility is beginning to emerge as an important part of DEI talent strategy in the US, as organizations begin to recognize the need to address these barriers and create equitable opportunities for all talent."