From DEI Fatigue to Employee Experience: What’s Replacing the Old Model?

Although the headlines in 2025 focused on the Trump administration’s move to roll back EDI commitments, in reality, Trump merely amplified sentiments that had already been brewing beneath the surface. Since 2023, skepticism, cynicism and backlash have been steadily growing. Gartner reported 33% of EDI leaders left their roles in 18 months back in 2023, as their frustrations grew.

Many CEOs had begun questioning the value of these investments, especially when the return on investment appears minimal. Why? Feedback includes:

• Overemphasis on representation metrics and/or targets vs. lived experience. When companies talk loudly about ESG/DEI but employees or stakeholders don’t see or feel the impact, it fuels distrust.
• According to the 2024 Edelman Trust Barometer, 61% of people globally believe business leaders are purposely misleading people
• US-centric EDI narratives are not tailored to Europe and so do not resonate for employees in Europe.
• EDI is seen as “HR-driven compliance,” not integrated into culture and leaders are not accountable for results (McKinsey Europe).
• ERGs volunteers are tired, frustrated and not recognised formally - a rather condescending pat on the back (with little active sponsorship).
• Survey fatigue as engagement surveys are rolled out repeatedly “tell us more” “tell us again”... and yet little changes, so “why bother?” is the sentiment for many employees.
• Lack of authenticity - PR stunts with patterns of huge jumps in posts on social media around key dates and then silence until an award of some kind - yet the reality is very different - Black History Month: "We stand with our Black colleagues!" yet how many Black executives are there, or International Women's Day: "We champion women in leadership!" and the actual women in C-suite: 0 (Source Tim C Denning)

The Impact Today

Across many organisations, the terms diversity and inclusion are increasingly being censored - removed from annual reports, communications and strategy documents. Companies are rebranding or repositioning their work to avoid these words altogether.

Employee Resource Groups (ERGs), once created to foster dialogue, understanding, and belonging are now being criticised for promoting silos, losing sight of their original purpose as spaces for heightening awareness of biases, enabling connection and innovation.

Growing hypersensitivity around language is reshaping job descriptions and training programs. Leaders working with clients locally are being forced to adapt, stripping out terms like diversity and inclusion to avoid backlash. Many colleagues in EDI roles - professionals who have worked tirelessly to influence culture and mindset - are being silenced or even losing their positions.

The “Gift” of 2025

So, given the above, how do we stay motivated as a community and change champions, intent on humanising workplace cultures?

The gift in these changes is that we have had to press pause and reset. At Thriving Talent, it has given us a moment to sense check our investment of time and energy, helping us be more laser-focused on the intention behind EDI for us:

1. Belonging – ensuring that diverse perspectives based on lived experiences are heard
2. Contribution – enabling employees, regardless of background, to fully contribute and have their voices heard
3. Equity – removing systemic barriers and creating fair, accessible policies

Essentially, moving beyond treating everyone the same (equality) to providing what each person needs to succeed, which changes, of course, as we all navigate moments that matter in our lives. If we adhere to the essence of this intention, then workplaces can be designed to reflect the realities of employees’ lives. The labels and what they trigger become irrelevant. The action behind the words counts.

The conversation at the C-suite table needs to question how easy it is, for all employees, across up to five generations, to navigate meaningful moments in their lives, and thrive professionally and personally, for business and people sustainability?

Nurturing these workplace cultures is a strategic transformation, not a quick fix. Too often, the CHRO is left carrying the weight of culture, well-being and equity. But without CFOs, CSOs and CIOs at the table, they’re set up to fail.

So what is the shift?

Workplace challenges have not disappeared and continue to be urgent, costly and human:

• Equity gaps that punish non-linear careers.
• 5 generations with radically different needs.
• A quarter of the workforce caring for loved ones across borders.
• Attrition and disengagement draining millions.
• Rising costs plus new compliance obligations like CSRD S1.

EDI strategies were focused on responding to these challenges. Now, it is being rebranded as Employee Experience Management (EXM), Global Well Being (GWB), as a People and Sustainability strategy, backed with the costs associated with visible and invisible attrition.

Employee Experience Management (EXM)

EXM is a strategic method to shape and improve all parts of the employee journey from recruitment and onboarding to day-to-day work experiences and long-term career development. The business case is clear:

• Only 13% of European employees are engaged at work (Gallup)

• 70% of CHROs in Europe list EX personalization as a top priority (Deloitte HCT)

• Flexibility and meaning/purpose rank above pay in Europe (Microsoft Work Trend Index 2024)

Global Well Being (GWB)

GWB focuses on holistic programs addressing mental health, work-life integration, burnout prevention, caregiving pressures, and flexible/nonlinear careers. The cost of inaction is significant:

• WHO & EU-OSHA: workplace stress costs EU economies ~€240bn annually
• PwC Switzerland: mental health is now the #1 productivity risk cited by employers
• McKinsey Health Institute: employees with strong mental well-being are 25% more productive and 3x more loyal

People and Sustainability Strategies

The regulatory and competitive landscape is shifting. The EU Corporate Sustainability Reporting Directive (CSRD) requires workforce disclosures beyond headcount – well-being, diversity, and employee voice are now mandatory reporting areas. Meanwhile, the World Economic Forum 2024 identifies "social sustainability" as the next competitive advantage.

This means a strategic shift in how organisations approach both people and sustainability. People strategy is moving from siloed DEI toward an integrated EX and well-being lens. At the same time, sustainability strategy is evolving as the "S" in ESG now has teeth, driven by both regulatory and investor pressure.

The Real Work Ahead

However we dress it, our workplaces no longer reflect the reality of our lives, and this is where we need to focus - addressing the root cause, where too many professionals feel like they are in the rush hour of life, feeling overwhelmed, guilty and like a failure.

Today, up to five generations are working side by side - each navigating their own moments that matter. These moments are deeply human: caring for ourselves, raising children, supporting sick partners, tending to ageing parents across borders, looking after pets, and contributing to communities. They require time, flexibility, and compassion - and while they are often temporary, their intensity is profound.

What people need in these moments is not more bureaucracy, but flexible policies, accessible resources/benefits, training and leadership behaviours, that truly understands the human experience of work.

The future of work will not be defined by technology alone, but by our ability to build organisations that allow us to integrate all the facets of Caring, with a Career.

So now, the question that is getting louder is, what is the corporate responsibility on personal matters?