What does the US corporate diversity, equity and inclusion rollback mean for the UK FM industry?

A lot has been said about the impact of a new president in the USA on EDI, it's a worrying time for many. We've shared our thoughts with IFM on the impact on the UK FM industry:

As Donald Trump becomes the 47th president of the United States, and many corporates within the US are cosying up to him by cancelling their diversity, equity and inclusion programmes, there is a growing sense of unease and anxiety about the future of DEI within the UK.  So, what does that mean for the UK facilities management sector?

In recent weeks, the Trump administration's well-documented opposition to DEI initiatives has spurred a dramatic shift in US corporate policy. High-profile companies such as Meta, Amazon and Walmart among others, have already announced the scrapping of several DEI programmes. (Notably, Apple, under the leadership of a gay CEO, has chosen not to align with the growing ‘anti-woke’ trend and continues to uphold its commitment to diversity.)

How much truth there is in the theory that ‘where the US goes, the UK follows’ remains to be seen for DEI. Our governments have always had ‘a special relationship’, but with this clear difference in values will the relationship now be strained? And will this really impact the UK in the same way?

What are the key challenges?

We should not underestimate the implications of this US shift. We are already seeing UK critics emboldened, increasing their questioning of the value of DEI efforts. Equally troubling, this shift is already heightening anxiety among many minority groups, including the LGBT+ community, who, in numerous cases, were just beginning to feel their unique identities were being valued.

We are also seeing many business leaders and HR professionals express concern that the sudden US pullback from DEI initiatives could disrupt ongoing programmes or prompt a re-evaluation of DEI commitments. UK-based subsidiaries of American companies may be obliged to follow corporate directives from headquarters, leading to reduced funding for internal diversity networks or cuts to budgets for training programmes. Where internal DEI champions once enjoyed steadfast leadership support, they may now face the challenge of persuading cost-conscious boards that these efforts are both a moral imperative and a sound business need.

Differences between the US and the UK

We do need to understand that there are some key differences in the UK: we are in a different place politically and legally than the US. We have world-leading equality legislation with the Equality Act 2010. This legislation, as well as protecting people from discrimination based on the protected characteristics, allows for positive action. Positive action allows additional help to be provided for groups of people who share a ‘protected characteristic’ (for example, race, sex or sexual orientation) to level the playing field. This allows proportionate action that aims to reduce disadvantage, meet different needs and increase participation. Under the Public Sector Equality Duty, public sector authorities/organisations have a legal duty to make sure that when they carry out public functions they think about how they can improve society and promote equality in every aspect of their day-to-day business. We have seen this filter down the supply chain within facilities management contracts.

We also have a Labour government now that is looking to strengthen our equality rights. This may include ethnicity and disability pay gap reporting, improving family-friendly legislation and ensuring large companies have menopause action plans. With a huge Labour majority, four years left to lead and an apolitical supreme court, equality legislation is unlikely to be questioned in the same manner as it is in the US.

Impact on the FM industry

Progressive organisations in the UK have made notable strides in developing inclusivity in recent years. Initiatives such as inclusive career development, diverse recruitment campaigns, education and inclusive leadership programmes have been widely adopted, although many readers will have noticed that the FM sector has lagged behind in this regard.

In our industry, we know that a shift in priorities at leadership level can significantly impact middle management and frontline staff. We’re seeing budgets previously allocated to DEI specialists and robust DEI strategies being redirected towards short-term cost-saving measures. This not only diminishes the diversity of the talent pipeline but may also increase conflicts due to insufficient understanding of how to navigate a diverse workforce.

Also, scaling back on DEI efforts could adversely impact business performance in the long run. Research consistently shows that diverse teams excel in innovation, problem-solving and resilience. Organisations that retreat from DEI risk losing this crucial competitive edge. Furthermore, investors are increasingly prioritising environmental, social and governance criteria, which often include diversity metrics. Falling short of these benchmarks can harm a company's reputation and, ultimately, its financial performance.

Emotional impact on employees from underrepresented groups

While financial priorities often drive an FM company’s decisions, the psychological and emotional impact on employees should not be overlooked. Individuals from under-represented groups may feel alienated or betrayed by an employer they once trusted as a safe and inclusive environment. The threat of redundancies or budget cuts disproportionately affecting DEI programmes can have a negative impact on mental health, leading to increased stress, anxiety and feelings of isolation. Employees who have championed diversity efforts — often through unpaid ‘emotional labour’ to educate colleagues and foster allyship — may feel that their contributions have been invalidated by political shifts occurring far beyond their control.

Employee engagement, a crucial performance metric for all FM companies, can suffer when marginalised employees become disillusioned. This disengagement can lead to decreased productivity and morale across the company. The resulting downward spiral — where reduced advocacy for inclusive practices further weakens DEI initiatives — risks creating a cycle of diminishing diversity efforts and growing dissatisfaction.

How can we ensure UK FM companies progress?

British business leaders have an opportunity and a responsibility to assert their independence and uphold their values. Some prominent CEOs have already reiterated their dedication to DEI, emphasising its importance to their brand identity and as a key driver of talent acquisition. These leaders highlight that inclusive practices foster innovation and enhance problem-solving capabilities, helping their organisations stand out in a competitive market. It is notable that we have not seen this within the FM industry.

Unions and employee groups are likely to play a critical role in sustaining the focus on inclusion. Leveraging collective bargaining power, they can advocate for transparent promotion processes, equitable pay structures and adequate support for employee affinity networks, including time and funding. Additionally, grassroots initiatives, social media campaigns and advocacy from think-tanks can help maintain public pressure, ensuring that companies remain accountable and committed to their DEI goals.

FM clients, both public sector and private sector, can ensure their supply chains are prioritising DEI on their contracts. Too often we are seeing FM providers make lots of promises on DEI at tender stage, and these promises disappear once they’re on site. Contract management sometimes overlooks DEI and social value elements, often because the client does not have the relevant DEI skills. To address this, clients can upskill their FM teams or bring in external expertise to support.

Looking ahead: ensuring DEI sustains beyond political cycles

Sadly, DEI initiatives have often mirrored shifts in political climates, rising and falling with changing administrations. The true challenge is embedding inclusivity so firmly into an organisation’s fabric that no political shift can entirely dismantle it. This means institutionalising practices such as inclusive hiring, standardised pay transparency and consistent support for affinity networks, ensuring these become permanent fixtures of corporate culture.

In the UK, a strong ethical and legislative framework provides a foundation for maintaining these standards. However, the driving force is leadership: executives who genuinely recognise the moral and business value of inclusion can champion DEI efforts regardless of external pressures. Equally important is creating a generation of middle managers who internalise and perpetuate this commitment, ensuring that the ethos of inclusion remains strong even if top-level directives waver. Ultimately, lasting DEI progress depends on sustained, collective effort rather than short-lived corporate trends.

What steps should FM companies be taking now?

LGBT+ in FM suggest FM companies undertake the following steps to support their employees in these turbulent times:

1. Clearly explain to your employees why you are committing to your DEI initiatives

• Acknowledge employees concerns: host forums to address DEI rollbacks elsewhere and invite employee questions

• Clarify and update: share your organisation’s DEI stance and plans regularly to reduce uncertainty

2. Reaffirm commitment to inclusion

• Leadership statements: publicly emphasise DEI as a core value that will not be affected by external politics

• Celebrate success: highlight internal achievements in diversity and equity to sustain morale

• Protect DEI resources: ensure budgets and teams remain intact to demonstrate commitment

3. Support employee wellbeing

• Promote employee assistance programmes: make employees aware of counselling and mental health resources

• Create safe spaces: offer open discussions for unde-represented groups to share their experiences

• Train managers: equip leaders to provide compassionate support and identify distress

4. Empower affinity networks

• Fund and support: maintain or increase resources for affinity networks to run initiatives

• Include affinity networks in decision-making: if they don’t already, invite affinity network chairs to participate in strategic discussions

5. Integrate DEI into all aspects of your business

• Develop a DEI strategic plan: ensure it is bespoke to the unique needs of your business

• Audit processes: review hiring, pay, promotion practices and other people processes to ensure equity

• Incorporate DEI in goals: link inclusive leadership to performance reviews and rewards

6. Ask about your employees’ experiences

• Provide anonymous channels: use surveys or forums for candid employee input

• Respond quickly: address flagged issues directly and share leadership actions – you said, we did

• Monitor engagement: use tools to track employee thoughts and act on trends

7. Highlight ethical standards

• Reference equality laws: reinforce that UK regulations like the Equality Act support DEI

• Showcase charters: reaffirm commitments to industry standards and certifications.

  
  

By taking these proactive and empathetic steps, FM companies can reduce employee anxiety, preserve trust and demonstrate a steadfast commitment to DEI despite external challenges.

Conclusion

The rollback in DEI by US companies has cast uncertainty over the future of similar initiatives in the UK. While the practical implications are concerning, the symbolic effects, particularly the potential message this sends about the prioritisation of diversity, are equally significant. It is crucial for FM leaders to proactively address these challenges, reaffirm their commitment to DEI and recognise the moral and commercial importance of inclusive workplaces.

Sharon Slinger is founder and committee member at LGBT+ in Facilities Management and founder and director at Constructing Rainbows.

LGBT+ in FM network is a proud partner of the Unlock the Future conference taking place on 2 April. For more information and to book your place, visit the event website.