Thought Leadership

A half-year on from those US executive orders, Michael Diviney and Tess Tattersall explore their current implications for this side of the Atlantic, and the benefits of holding firm on DEI values and programmes. Trump and DEI Diversity, equity and inclusion (‘DEI’) was at the top of Donald Trump’s agenda for the start of his second term in office. In January, President Trump’s executive orders included: EO 14151: “Ending Radical and Wasteful Government DEI Programs and Preferencing”, intended to dismantle all federal government DEI programmes as “discriminatory”; and EO 14173: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” “to combat illegal private-sector DEI preferences, mandates, policies, programs, and activities”, impacting federal contractors. These executive orders mean that corporate America faces new challenges and risks, particularly around federal government contracts. An immediate effect is that many US companies and firms have reviewed, rolled back on and even cancelled their DEI programmes, or at least on how and if they are reported. According to the Financial Times: “Of the top 400 companies in the S&P 500 index, 90% of those that have filed an annual report since Trump’s election have cut at least some references to DEI, with many ditching the term entirely.” 1 Trump’s move did not come out of the blue but is symptomatic of a pre-existing range of concerns about DEI, for example that it prioritises race or gender over merit, leading to preferential treatment for some employees over others. Elon Musk’s X post on 15 December 2023 is indicative of such reaction: “DEI must DIE. The point was to end discrimination, not replace it with different discrimination.” The history of DEI in the US is long and complicated, and organisations have been struggling with the popularity and efficacy of their DEI programmes. Some companies were already moving away from DEI, and this has been exacerbated by the term ‘DEI’ becoming politicised. The criticism and scepticism that have been building for several years in the US have not just been among conservatives. In her 2022 book DEI Deconstructed, Lily Zheng, a liberal, progressive DEI consultant, outlines the problems faced and caused by DEI programmes in the US, for example that many are performative and do not work, i.e. do not substantially improve equality. Some of the language used is seen as exclusionary, and some initiatives as favouring some groups of people over others. Against such a background of DEI fatigue, Zheng and other DEI experts argue that a rethink and reset is required. Ripple effects for Ireland, the UK, Europe? Some companies in Ireland and the UK, particularly multinationals or subsidiaries of US corporations, may be challenged to follow suit and realign policies or harmonise approaches across global operations. For Irish and UK companies with operations in the US, DEI programmes are a source of new legal and business risks. Nevertheless, the context of DEI on this side of the Atlantic is shaped by different cultures, histories and, significantly, legal frameworks. The US and Europe are different. This is a complex issue, and companies here considering moving away from DEI commitments also need to consider the more immediate legal and business risks of such reversals. The issue is complex, yes, but at the same time it is possible to take a position, which we can summarise as follows: DEI makes legal sense, business sense, and is the right thing to do. The legal case for DEI The contexts for DEI differ between the US and Europe, and ‘affirmative action’ is an issue with which to illustrate the wider divergences. It can also shed some light on why there has been such a strong reaction to DEI in the US, and particularly to why affirmative action is seen by some as discriminatory. (Though not directly related to workplace equality, the US Supreme Court decision in 2023 effectively ending affirmative action in college admissions is symptomatic of the DEI ‘pushback’.) DEI in the US is rooted in the Civil Rights movement of the 1950s and 60s, which led to the requirement for government agencies and contractors to “take affirmative action to ensure that applicants are employed and that employees are treated during employment without regard to their race, creed, color, or national origin”. This is a position that has gone further than would generally be permitted in Ireland, the UK or Europe, where case law provides that affirmative action is permitted but only as an exception to the general rule prohibiting discrimination. In Ireland, the more restricted concept of ‘positive action’ allows measures to be taken to rectify inequality as long as one group is not automatically preferred to others. So, the US and Europe are different, and, in certain respects, the legal risks for Irish and UK companies of dropping DEI programmes appear to be the opposite of those in the US. This distinction is crucial, as it underscores why a direct adoption of the anti-DEI position of the US federal government may not align with EU and UK legal frameworks, and companies here seeking to move away from DEI may be at risk. In Ireland and the UK, DEI programmes can serve as key supports for helping employers comply with equality legislation and manage related risks. Having DEI policies, practices and training in place shows that all reasonable steps have been taken to prevent discrimination and comply with the law. In April, the Employment Lawyers Association in the UK warned that companies leave themselves open to “adverse findings of discrimination” if they unpick policies designed to enable DEI. As well as compliance with existing and robust equality laws, DEI initiatives will also help employers prepare for and align with new employment legislation on the horizon from both the EU and the UK government, for example regarding pay equity and transparency, gender balances on boards, etc. The economic case for DEI DEI programmes have become an economic necessity for the stewardship and management of contemporary and future workforces. In Ireland, for example, the latest national census of 2022 reports that there were 631,785 non-Irish citizens living in the country, representing 12% of the total population. This has brought huge demographic changes such as a seismic shift in the diversity of Ireland’s workforce, underlining the need for inclusive policies, practices and leadership. The trajectory of these profound demographic changes will continue upwards, and (partly) out of economic necessity. Developed economies like Ireland and the UK need more inward migration to maintain growth levels and the future funding of the retirements of today’s workers. In its 2025 global employment outlook, the OECD warned about the effects of falling birth rates in the developed world. As more workers retire, the size of the working age population will decrease, causing labour shortages and dampening productivity growth. Without immigration, Europe faces large declines in its population, 2 which implies that DEI should be an economic priority for businesses. As an emerging core business discipline, DEI is strategically vital for the recruitment, retention and leadership of new diverse workforces, as well as meeting the needs of the diverse customer bases that reflect these demographic changes. The business case for DEI Beyond the necessity to mitigate risk and comply with the law, there are sound, widely researched benefits for businesses that engage with DEI and build trust with diverse and inclusive teams. These include attracting talent, employee engagement and retention, greater innovation and performance, and, ultimately, strategic and competitive advantage. Productivity and performance Employees who feel accepted and valued in their workplace are more productive. Diversity, equity and inclusion increases collaboration and creates stronger teams. It is a key driver of workplace satisfaction and performance. DEI is recognised as a condition for better-performing boards, bringing a broader range of perspectives, experiences and skills, helping to avoid the failings of groupthink. Consulting firm McKinsey & Co, who have been tracking the effects of DEI for over 10 years, reported in 2023 a 39% increased likelihood of financial outperformance for those companies surveyed in the top quartiles of both gender and ethnic representation on executive teams versus the bottom quartiles. 3 Investors and portfolio managers increasingly review these metrics when making investment decisions. 4 Creativity and innovation “I think the most diverse group will produce the best product.” Tim Cook, Apple CEO With a multicultural, multigenerational workforce, diversity of background, experience and worldview can enhance the insights, creativity and innovation of teams, leading to better business results with products and services that better fit more diverse markets. Teams comprised of people with different perspectives informed by factors such as gender, age, ethnicity, etc., as well as their individual life and work experiences, have been shown to have enhanced problem-solving abilities, resulting in better decisions. Reputation A good reputation is a huge asset for a business; but once lost, it is hard to regain. A diverse, equitable and inclusive workplace reflects an organisation’s ethos and values. Today’s stakeholders (investors, customers, employees) are more socially conscious and expect organisations to match their values. They want to invest in, buy from and work for businesses that do the right thing. DEI raises an organisation’s reputation with all its stakeholders. Client and customer relationships Diverse teams, reflecting the change from homogenous to multicultural societies, can understand a broader range of customers and clients, which leads to deeper relationships and loyalty. A 2024 survey by marketing data and analytics firm Kantar of more than 23,000 people in 18 countries found 75% of consumers said that a brand’s diversity and inclusion reputation influences their buying decisions. 5 Conversely, a lack of diversity in an organisation risks it misunderstanding (or ignoring) its changing customer base, both in domestic and global markets.   Employee engagement and retention Employee wellbeing and DEI are related. We are happier if we feel respected by and connected to the people around us. An inclusive and equitable culture creates a sense of belonging and purpose, which fosters trust, engagement and loyalty. Such engagement helps to mitigate against staff turnover, saving on the time and money effects of constant recruitment, induction and upskilling. Recruiting talented people With today’s multigenerational, highly informed and selective talent pool, the DEI credentials of a business are core to its ability to attract and keep good people. Businesses need to wear their (genuine) DEI values on their sleeves to compete in a full-employment market for the top talent. A 2024 survey by ACCA of 10,000 accountants in 157 countries found that 73% believe a strong diversity and inclusion culture is a key factor in their deciding to work at an organisation. 6 Conversely, given that employers struggle to find people with the right skills, broadening the talent pool with DEI practices and strategies also makes excellent business sense.   Business transformation and resilience In a business context of constant flux, research has shown that inclusive organisations with diverse teams are better at dealing with and navigating change as they tend to be more adaptable, 7 resilient and open to communication, outperforming their peers. DEI is the right thing to do Ultimately, the human rights bases of DEI practices and strategies need to be recognised. At their core are the ethical principles of equality, making it a level playing field for all, and equity, ensuring that access to the playing field is fair by addressing any systemic barriers. While it may be understandable that some companies have reversed, or at least become silent about, their espoused DEI values, given the legal and commercial risks caused, inter alia, by US executive orders, it is also questionable how core these values were in the first place. It is those organisations that have DEI baked into their values and purpose, that hold fast and at the same time address and rethink DEI’s teething problems, who will benefit strategically in the longer term. Such commitment to diverse, equitable and inclusive workplaces will also benefit society, resonating with an evolved, 21st-century view of the corporation as purpose-driven and stakeholder-focused. Resetting and reframing ‘DEI’ In May this year, EY published a survey of 1,200 CEOs from large companies around the world, including 40 in Ireland. Over 80% of these Irish leaders said they are holding firm on their DEI commitments, continuing with existing policies or expanding them, compared with 75% of respondents internationally. According to Deirdre Malone, head of employment law at EY Ireland, most companies still see their DEI policies as “a source of resilience and competitive advantage”. We believe that companies should not be deterred by the DEI ‘pullback’ narrative but instead keep in sight the ultimate prize of DEI by adhering to their DEI commitments to realise the strategic and commercial benefits, such as customer and talent/staff growth and retention, as well as complying with the law, and respecting human rights. At the same time, however, DEI is overdue a ‘reset’, for which the current climate provides an opportunity. DEI in the workplace should not be ideological or activist but be balanced with business and organisational goals. On this side of the Atlantic we could learn from the US experience, and a new wave of pragmatic, problem-solving DEI experts determined to get this important work right. Instructively, the sub-title of Lily Zheng’s book, DEI Deconstructed, mentioned above, is “Your No-Nonsense Guide to Doing the Work and Doing It Right”. Key questions about some features of DEI are being asked, such as the use of quotas, as well as the reaction of some groups who feel DEI is preferential or even discriminatory. Also evident from the US experience is that some companies have stopped using the term politicised ‘DEI’, while remaining committed to equality and being inclusive. There has also been a trend to mention ‘merit’ more in people recruitment, development and promotion. In the end ‘DEI’ is only a label for important work that should continue. Joelle Emerson, CEO of Paradigm, a US diversity consultancy, quoted in the Financial Times, has phrased it as follows: “It looks like most companies are standing by their goals of creating fair, inclusive workplaces, while at the same time distancing themselves from a politicized acronym. The acronym is far less important than the work.” 8 Michael Diviney is Executive Head of Thought Leadership at Chartered Accountants Ireland. Tess Tattersall is a Content Editor and Project Manager at Chartered Accountants Ireland. “US companies drop DEI from annual reports as Trump targets corporate values”, Financial Times, 16 March 2025. ↩ “Visualised: Europe’s population crisis”. The Guardian, 18 February 2025. ↩ McKinsey & Company, Diversity Matters Even More: The Case for Holistic Impact (November 2023). ↩ International Labour Organisation, Transforming Enterprises through Diversity and Inclusion (2022). ↩ Kantar, “Three quarters of consumers say inclusion and diversity influence their purchase decisions” (July 2024). ↩ ACCA, Global Talent Survey findings (2024). ↩ C. Dixon, “The significance of a diverse workforce for advancing organizational change and development” (LinkedIn, July 2024). ↩ “The DEI backlash: Employers ‘reframing not retreating’, Financial Times, 3 February 2025. ↩

Burnout is no longer just an HR issue—it’s a leadership imperative. Here Niamh Manning, Marketing Executive for the Thrive Wellbeing Hub, explores how proactive, empathetic management can break the burnout cycle and build resilient, high-performing teams. Burnout has become one of the most pressing issues in the modern workplace, particularly for professional service industries where long hours, high-performance expectations, deadlines and client demands are quite typical. A work culture that prides itself on values of resilience, dedication and hard work can make burnout difficult to spot. While many organisations have HR policies and programs to combat burnout, it is managers who are often the cultural lynchpins and can be an impactful line of defence to break the cycle. It’s their ability to recognise and respond that can determine whether a team thrives or fractures. Managing burnout isn’t just a people issue – it’s a business-critical issue. A burned-out team are more prone to errors, more disengaged, and have low morale, resulting in an increased staff turnover and decreased client satisfaction. The manager toolkit: prevention through proactive leadership Understanding burnout Burnout doesn’t always look dramatic, and many suffer in silence, afraid to speak up fearing it could impact their career growth or be seen as a weakness. It often hides behind professionalism and a strong work ethic, but there are tell-tale signs. Burnout is a state of emotional, physical, and mental exhaustion caused by prolonged or excessive stress, often linked to work but also present in other areas of life. Burnout generally manifests itself in three key dimensions: emotional exhaustion, cynicism and lack of personal accomplishment. This can present in many ways such as reduced attention to detail, irritability or frustration, withdrawing from team collaboration, decline in responsiveness or reliability, or even overworking. As managers get a sense of employees from their daily interactions, they are uniquely positioned to detect behaviour changes and early signs of burnout and make meaningful interventions and changes, but only if they are equipped and empowered to do so. Modelling healthy work habits Leaders set the tone for what is acceptable and expected in the workplace, particularly for younger employees. Modelling healthy boundaries and habits such as logging off at the end of the normal working day, taking breaks and switching off when on annual leave allows employees the space to do the same. However, it is also important to be realistic that some busy periods with high workload volumes are often unavoidable; equally, it is important to know that burnout rarely arises from a busy period – it stems from sustained, unmanaged stress with little or no room for recovery. Psychological safety An integral aspect of high-performing teams and the foundation for creating a culture of wellbeing and productivity, psychological safety in a group involves individuals feeling safe to speak up and share their views and ideas without the fear of negative consequences. Managers can foster this sense of safety by intentionally creating an environment where team members feel safe raising concerns. This can be done in easy and practical ways such as encouraging open dialogue, creating space for feedback, actively listening and modelling vulnerability and empathy. Regular ones-on-one meeting is the perfect way to talk about project updates but also to check in on workloads, stress levels and the employee as a person. Reduce ambiguity, encourage growth Ambiguity and stagnation breeds anxiety. Those with undefined expectations and/or little autonomy in their roles are more susceptible to the effects of burnout. Managers must ensure that employees understand their responsibilities and how they contribute to the wider goals – clear expectations reduce cognitive load and allow employees to focus and prioritise their energies. Managers should encourage autonomy and growth by involving team members in decision-making, providing opportunities for skill development and encouraging ownership of project and duties. When people feel like they’re growing and contributing to something meaningful, they can become more resilient. Recognition and appreciation Reinforcing a sense of value and accomplishment in individuals and teams can help prevent burnout. Managers should regularly acknowledge team members’ efforts and accomplishments. Feeling seen and appreciated can go a long way in encouraging and providing meaning and purpose to team members. Managing burnout when it happens Despite best efforts, however, burnout does occur. When it does, the focus should shift to recovery and retention by allowing employees affected to step back without pressure and temporarily lighten their workload to allow for recovery. Burnout is a leadership issue Managers should not be expected to be therapists, but they are expected to lead and they can be influential agents of change. Despite this pivotal role, many managers are usually not trained to recognise or address burnout. Employers have a responsibility to invest in leadership development that includes emotional intelligence, mental health literacy, and coaching skills. Managers are the conduits of an organisation’s culture. When they are empowered to lead with empathy, clarity, and care, they can transform the workplace from a source of stress into a source of strength. A manager who prevents burnout is not only protecting their team’s health but also preserving the organisation’s long-term resilience and success. If you are experiencing burnout or looking to support someone with burnout, Thrive is the Institute’s dedicated wellbeing hub that can provide advice and support. For additional advice and manager resources, check out CAW’s Wellbeing Toolkit for managers in the accountancy profession.

Our brains shortcut for safety, not fairness, but this doesn’t mean bias should determine our decision-making. Andrea Demody explains how leaders can promote fairness and inclusion at all levels Most of us like to think we're fair-minded. Most leaders I work with genuinely believe they hire and promote based on merit. Their favourite articulation is often: "I always hire the best person for the job." But here's the thing: our brains weren't built for fairness. They were built for speed and safety. What does this mean for building a fair organisation? Imagine you're standing at a busy road crossing, the cars are whizzing by, and you're waiting for the lights to change so you can cross safely. Someone beside you starts to step out before the light changes. You instinctively reach out and stop them, without thinking this through consciously. This is your brain doing what it's designed to do—i.e. responding quickly to potential risk. It's scanning for cues, drawing on past experiences and acting fast to keep you safe. That same shortcutting also happens in the workplace. When reviewing CVs, deciding who to promote or assessing someone's performance, our brains are still looking for the familiar,  comfortable and safe option. And this is where bias can creep in. Bias is human We all have biases, conscious and unconscious. This isn’t a flaw in our character; it's just how our brains work. Understanding this is just step one, however. Step two involves designing ways to make fairer decisions despite this bias. Here are just a few examples of how bias can show up at work: Affinity bias: We tend to favour people who remind us of ourselves, such as those from the same school, background or previous employer. Halo and horns effect: A first impression can colour everything that comes after, meaning no automatic second or third chances. Confirmation bias: We notice what supports our beliefs and filter out what doesn't, making it difficult to consider contradictory perspectives. Recency bias: We give too much weight to what happened most recently, making it almost impossible to accurately judge a year's worth of performance. Groupthink: We self-censor to keep the peace, staying silent when we disagree with the majority opinion, especially if this is supported by the boss. Blind spot bias: We spot bias in others, but not in ourselves. These biases don't just affect hiring, promotion and other people processes, they can also impact strategy, innovation and team dynamics. Moving past our biases To move beyond the biases we carry, we need to establish a structure around our decisions. This might involve using rubrics for hiring or incorporating calibration into performance reviews. It could mean inviting challenge at team meetings or encouraging others to ask what evidence we are using to make decisions. The point is: you don't have to rely on willpower to be fair. You can design for it. Leaders can start small by getting curious about the voices they listen to, the perspectives they seek out and the assumptions they hold.  You may not be able to eliminate bias entirely, but you can interrupt it—and this is where progress begins. Beyond being the right thing to do, this makes smart business sense. An understanding that everyone will be included, regardless of how they might differ from the boss, is the secret sauce that makes diverse teams work together. One decision. One meeting. One moment where you put structure around the shortcut is how you state. Because designing for fairness isn't just good practice—it's good business. Andrea Dermody is Founder of Dermody Inclusion and Diversity