Tazio Trends: Why diversity in recruitment still matters

Diversity, equity and inclusion (DEI) policies have faced a pushback from certain quarters in recent years.

The phrase “go woke, go broke” came to prominence in the US in 2023, which led to some companies being boycotted. And in 2025 the Trump administration cracked down on DEI initiatives in the Federal government.

There has been a smaller ripple effect in the UK. Several companies have altered their approach to DEI, according to legal firm Freeths. Its research found 28% of organisations had scaled back or dropped DEI and sustainability efforts. More recently, the charity Working Chance also found 36% of HR decision makers in the UK say they have faced resistance to DEI initiatives.

However, research also suggests companies that stood firm and continued with DEI, have not been adversely affected in terms of share price or revenues despite the political pressure. Equally, despite the noise, evidence points to the broad positive impact of diversity on organisations.

Long-term benefits of sticking to your DEI guns

In 2023, McKinsey identified a correlation between diversity in leadership teams and financial performance. Correlation doesn’t equal causation, but the link is hard to ignore and shows up continually in their ongoing research into the issue.

They found firms in the top quartile for gender diversity on their executive teams were 39% more likely to outperform on profitability than those in the bottom quartile. The same was true for those in the top quartile for ethnic diversity.

The report also found organisations with diverse leadership tend to have more diverse workforces and better employee wellbeing. In other words, they are more likely to create workplaces that support, enable and motivate employees from all backgrounds.

Building a culture for social mobility

That’s good for attraction, retention and social mobility, which is becoming a greater focus for DEI strategies.

Speaking to the UK Social Mobility Awards recently, Rachel Osikoya, Group Inclusion Director at Lloyds Banking Group highlighted why: “Too much talent remains untapped because access to opportunity is unequal.”

She also emphasised the role leadership plays in driving social mobility within organisations:

“I’ve seen how powerful it can be when leaders share their own stories and advocate for change, helping create an environment where colleagues feel confident engaging, reinforcing that social mobility is a strategic priority for the organisation.”

This isn’t just about being worthy, it’s about identifying potential you may otherwise have missed and giving it the best opportunity to improve your business.

Recruitment that levels the playing field

So how can you reach that potential? There are some key steps you can take to make sure your hiring processes are fair and objective:

• Start with blind data – Hide names, photos, home addresses, schools and dates when you first look at applications, so the first decision is about skills and potential rather than assumptions. To take one famous example, a 2000 study in the American Economic Review found that when people auditioned for an orchestra behind a screen so they were invisible to the assessors, it significantly improved women's chances of being selected. It may have been more than 25 years ago but the theory still holds - talent rises to the top when it is judged on talent alone.
• Underpin assessments and interviews with equality – Consistency is the best protection against unconscious bias, that means asking every candidate the same questions, in the same order, and scoring them against the same criteria. Use work-style assessments that show how someone thinks and solves problems. In interviews score independently before anyone compares notes and judge answers on what was said, not on how you feel about the candidate.
• Let the data show where things go wrong – Track who applies, who's shortlisted, who's interviewed, who gets offers and who accepts, then look at where certain groups drop out. If you’re attracting lots of diverse candidates to apply but few reach interview, the issue is the shortlisting. If they get offers but say no, look at your employer brand or the experience you gave them.

Technology can play a role here says our Head of Sales and Solutions Justin Somerville-Cotton.

“It can't make hiring completely fair on its own, because people still make the decisions. But the right platform can make the fair way the easy way. Tazio brings objective assessments, video interviews and assessment centres into one place, so every candidate gets the same experience and is measured on the same things. Hiring teams can score consistently, see how candidates move through each stage, and spot where the process needs attention.”

Hiring is one part of the process, but it’s an important one, it’s the foot in the door many people struggle to access. If it is paired with a workplace culture that is inclusive, you’re more likely to find and retain brilliant candidates from all backgrounds.

As always, our mission is to empower you to make smarter, faster hiring decisions and create exceptional experiences for your candidates. Stay connected with us on LinkedIn for the latest news and resources.

If you have any thoughts on this edition of Tazio Trends or want to find out more about our platform, it would be great to hear from you.

‍