From dealing with a CEO who is dismissive of diversity, equity and inclusion initiatives to managing misinformation about the role of targets – three HR practitioners share their takes on common DEI scenarios. 

The world of DEI is often filled with complex dilemmas – from deciding when targets and quotas are appropriate, to explaining the difference between equality and equity to those who view initiatives as unfair, and navigating competing needs across diverse employee groups.

Ahead of AHRI’s DEI Week webinar series – exclusive to AHRI members – HRM invited three panel members to explore some of the most common and challenging DEI scenarios unfolding in today’s workplaces, and to share how they would approach them.

Here’s what they had to say.

Scenario #1: Dealing with a sceptical leadership team

Imagine you are the only DEI champion in the C-suite. The CEO has publicly dismissed DEI as a distraction from “core business,” and the board rarely raises the topic in discussions. While the organisation’s workforce is becoming more diverse, this reality is not reflected in leadership, and the absence of executive sponsorship leaves DEI initiatives underfunded and sidelined. 

Colleagues in the executive team are indifferent at best, and some privately express scepticism about whether inclusion efforts yield measurable returns.

At the same time, employees are increasingly vocal about the need for equitable policies and visible leadership commitment. External stakeholders – including customers and prospective hires – are also beginning to view diversity as a proxy for organisational values and long-term sustainability. The risk is that failure to act will damage both reputation and talent attraction, particularly among younger generations for whom DEI is non-negotiable.

In this context, progress depends on carefully positioning DEI as a lever for business growth, talent retention and innovation. How would you approach this?

Response by Jason Teoh FCPHR, Senior Partner D&I Strategy & Governance, NSW Department of Planning, Housing and Infrastructure

When facing executive indifference, I don’t lead with DEI; I lead with business consequences they can’t ignore.

In this scenario, I’d start by speaking their language: risk, performance and competitive advantage. Instead of discussing inclusion values, I would present data on what indifference costs them. High turnover isn’t a ‘people problem’, it’s haemorrhaging recruitment costs and losing institutional knowledge. 

Low engagement isn’t about feelings, it’s about people not flagging problems that become crises, not innovating under pressure, not going the extra mile when competitors are gaining ground.

To both the board and my leadership peers, I’d reframe DEI as business intelligence. When leaders dismiss inclusion as a distraction from “core business,” I’d show them how exclusion is the real distraction – creating blind spots that competitors exploit, stifling the diverse perspectives that drive innovation and building cultures where people disengage precisely when organisations need their best thinking.

I’d use consequence mapping, for example: 

• “When people don’t feel they belong, they don’t speak up about problems.
• When teams lack psychological safety, they don’t take smart risks.
• When we don’t tap diverse talent, we miss market insights our competitors are capturing.”

Most importantly, I would connect their success to inclusive practices. I’d highlight organisations in our sector where inclusion drove measurable business outcomes, such as faster problem-solving, better client relationships, stronger innovation pipelines, superior financial performance. The breakthrough would come when they realised that what they see as “soft” issues are actually hard business fundamentals.

Inclusion isn’t about being nice. It’s about being smart. It’s about building organisations where the best ideas surface, where problems get solved early, where talent wants to stay and contribute their discretionary effort.

Once they understand that inclusive leadership creates competitive advantage rather than distraction, they stop seeing DEI as separate from core business and start seeing it as essential to core business success.

“DEI is for everyone – fostering fairness, flexibility and a shared sense that we’re all in this together.” – Fiona Krautil CPHR, Diversity and Inclusion Lead, Uniting and member of AHRI’s DEI Advisory Panel

Scenario #2: When to use diversity targets

A large listed organisation has set ambitious gender and cultural diversity targets as part of its ESG commitments. The announcement was initially praised, with investors and employees alike viewing it as a bold step towards equity and inclusion. Early progress was visible at entry and mid-level roles, but momentum has since plateaued.

Now, investors are pressing for faster results, citing diversity as a marker of long-term value creation. Stakeholders want evidence that targets are more than symbolic. Yet leaders worry that narrowing the focus to numbers alone risks fuelling tokenism, diminishing authenticity and undermining the credibility of appointments. 

There is also concern that falling short of benchmarks could lead to reputational damage and disengagement.

Against this backdrop, HR is caught between external pressure for measurable outcomes and the internal need to build genuine pipelines of diverse talent. How would you approach this?

Response by Fiona Davies CPHR, Senior Diversity, Equity & Inclusion Partner, People & Culture, Australia Post

My view has always been that what gets measured gets done, but targets alone aren’t enough. Despite years of effort, the number of women in senior leadership roles has hardly shifted. And as Australia becomes increasingly culturally diverse, the need for meaningful diversity targets has never been greater. 

To give our team enough time to respond to investors’ calls for faster action and stakeholders’ concerns about perceptions of tokenism, I would frame this up as not just a social imperative, but as a business risk. As such, deep consideration needs to go into developing a strategy that will drive meaningful action; there are no quick fixes.

The case for diversity and inclusion is well established McKinsey’s 2023 research revealed that organisations with diverse leadership teams are 39 per cent more likely to outperform in profitability, be more innovative, and better at decision-making. 

To our concerned stakeholders, I would highlight that doing nothing has commercial consequences. But the message to send to the investors would be that targets alone aren’t enough – an ecosystem is needed. 

HR can play a pivotal role in enabling this shift by asking the right questions, such as: 

• Purpose: Are diversity targets clearly linked to the organisation’s strategy? Has the CEO and senior leadership communicated the “why” to internal and external stakeholders? 

• Accountability: Who owns the targets? Are there consequences if targets are missed? Is progress visible and transparent across the organisation? 
• Measurement: Is data guiding action, and are targets based on evidence rather than aspiration? Is the starting point clear? Are all stages of the employee lifecycle – hiring, promotion, retention – considered to pinpoint where effort is needed? Is there diversity in candidate shortlists and interview panels?
• Action plan: Is there a clear roadmap to achieve the targets? Is the approach tailored to business areas, or is it one-size-fits-all? 

Tackling systemic and cultural change is complex. HR can lead by listening to employee concerns, busting myths and removing blockers. Keep checking in, adjust targets as needed, and stay focused. Be bold – but do the work. Because when inclusion is done right, everyone wins. 

Note: This perspective focuses on diversity targets at leadership levels rather than general representation. 

“Inclusion isn’t about being nice. It’s about being smart. It’s about building organisations where the best ideas surface, where problems get solved early, where talent wants to stay and contribute their discretionary effort.” – Jason Teoh FCPHR, Senior Partner D&I Strategy & Governance, NSW Department of Planning, Housing and Infrastructure

Scenario #3: Employees claim DEI initiatives are unfair on them

Frustration emerges among parts of the workforce who feel left behind by the organisation’s DEI initiatives.

Some employees argue that programs such as leadership pathways for under-represented groups or flexible arrangements for carers have unintentionally created “two classes” of workers – those who benefit from targeted initiatives and those who do not. 

As a result, resentment builds, particularly when employees perceive that opportunities or resources are being redistributed unfairly.

This tension is undermining engagement and eroding the very sense of inclusion DEI strategies aim to foster. How would you address the perception that equity programs work against certain groups, and reframe these initiatives as mechanisms that level the playing field – ensuring fair access to opportunity, not special treatment?

Response by Fiona Krautil CPHR, Diversity and Inclusion Lead, Uniting and member of AHRI’s DEI Advisory Panel

When frustration arises around DEI initiatives, leaders must acknowledge and respond to employee concerns rather than dismiss them. In DEI, perception is reality and meeting people where they are on their DEI maturity journey, with empathy and without judgment, is essential. 

Creating psychologically safe spaces for dialogue and respectful disagreement builds trust and reinforces that DEI is about fairness, not exclusion.

Employee feedback also provides insight into an organisation’s DEI maturity. Perceptions of “special treatment” often surface when organisations focus on compliance and representation targets rather than building inclusion capability, cultural intelligence and awareness of unconscious bias. 

Helping employees and leaders recognise that our brains favour those similar to us – and may undervalue others – frames equity initiatives as tools to correct hidden imbalances, not preferential treatment.

Focusing on equity to create a level playing field is key. Targeted programs such as leadership pathways for under-represented groups or flexible arrangements for carers remove systemic barriers that have historically limited equal access to opportunity. We’re not lowering standards, we’re fixing systems so everyone can contribute fairly.

HR, senior leaders and line managers all play a pivotal role. Leaders, in particular, must communicate (and collectively model) the organisation’s values of respect, inclusion and belonging. 

Pairing storytelling that engages hearts with data that engages minds helps employees understand the “why” and “how” of DEI. Importantly, centring lived experience in storytelling ensures that diverse voices shape the narrative, making DEI tangible, relatable and credible. In today’s increasingly divided times, leaders must provide an authentic “deep why” narrative that connects personal values to organisational goals, fostering shared purpose and commitment.

Equipping leaders with the skills, confidence and accountability to navigate DEI conversations and mitigate bias ensures initiatives translate into lasting change. Ultimately, DEI is for everyone – fostering fairness, flexibility and a shared sense that we’re all in this together.

Hear from leading diversity, equity and inclusion experts and gain the tools to champion workplace inclusion at AHRI’s DEI Week webinar series, running from 14-16 October. This event is exclusive to AHRI members.