Employee Engagement and Productivity Should UK Employers Be Concerned by Donald Trump’s DEI Rollbacks – And How Will AI Impact SMEs in 2025?

By Kimberly Bradshaw (CEO, Spotlight HR.)

Edition: January 2025.

When a political storm brews across the Atlantic, UK businesses often find themselves asking: “Should we be worried?” Donald Trump’s decision to scrap federal diversity, equity and inclusion (DEI) initiatives, has certainly put US employers in the spotlight. However, does this signal a shift for SMEs in the UK? We shall take a closer look.

This month’s roundup also covers the latest workplace trends shaping the future of UK businesses, from AI’s growing role in decision making to new employment rights for working parents.

So, fasten your seatbelt. We’re going in!

What Trump’s DEI Rollback Means for SMEs – Should UK Employers Be Concerned?

Donald Trump’s decision to scrap federal diversity, equity, and inclusion (DEI) initiatives, in the US government, has put DEI under intense scrutiny — even blaming it for a recent plane and helicopter crash. With federal employees, working on DEI, placed on paid leave and discussions on how private businesses might follow suit, many UK SME leaders are wondering:

Should we rethink our own DEI efforts?

The short answer? Don’t panic, Mr Mannering! UK businesses operate under different legal frameworks and cultural expectations. Your DEI strategy should serve your workforce — not be dictated by US politics. Smart, inclusive workplaces aren’t just ethical; they’re good for business and contribute to a more inclusive and equitable society. The UK follows its own rules and regulations, thankfully, completely independent from the whims of US-elected politicians. Facilitating DEI in workplaces is proven to be beneficial to productivity, increasing innovation and team resilience – and that’s why UK business owners choose to implement it.  

For SME leaders, DEI isn’t about box-ticking — it’s about building engaged, high-performing teams – with team resilience being a proven DEI advantage. While some companies may feel pressured to pull back, UK employment law prioritises inclusivity, fairness and anti-discrimination protections.

Rather than scaling back, now is the time to ensure DEI efforts are practical, meaningful, and aligned with your business success.

By embedding inclusive practices, upskilling managers and championing employee well-being, you can shape stronger workplaces where diversity thrives, your teams perform, and your business grows.

If you need DEI advice to promote your business goals, please drop us a line. Let’s chat.

AI in the SME Workplace – Trusted for Insights, Not Decisions

A recent CIPD Poll has found that while AI is becoming a powerful workplace tool, only 1% of people fully trust it to make big decisions. However, nearly two-thirds (63%) of employees say they would rely on AI for insights, highlighting the growing role of technology in supporting — not replacing — human judgement.

With AI superintelligence forming worrying Arnold Schwarzenegger style – Terminator vibes, inside the minds of many Generation X, it’s worth keeping in focus its real advantages for today’s businesses. AI can enhance productivity when used responsibly, with decision-making still requiring ethical and accountable human leadership.

Simply put, and from an HR perspective, AI could free up the workforce to focus on tasks that need human judgement and creativity. Workers could also use AI insights to make informed business decisions. When workers and AI work together, companies can get more done and create better results.

Research (Indusface research) also shows that AI adoption is booming — 80% of Fortune 500 professionals use it for tasks like data analysis and reporting. Still, trust remains an issue, especially in hiring and pay decisions, where transparency matters.

Another challenge? The AI skills gap. One-third of companies globally see a lack of training as the biggest barrier to adoption. Experts suggest that hands-on AI training can help businesses bridge this gap, ensuring employees feel confident using AI while staying aware of potential risks – risks that can be averted by implementing robust HR risk assessments and AI policy checks.

AI training and implementation are in heightened demand among Spotlight HR clients, with more wanting to understand how it could transform their business for the better. We are regularly reviewing what AI is out there to improve how we work and what might benefit our clients.  If you want to discover the AI training available and how it can elevate your workforce, get in touch. We have humans ready to help! Let’s chat.

New Right to Neonatal Care Leave – What SME Employers Need to Know

From 6 April 2025, a new law will give working parents up to 12 weeks of neonatal care leave, allowing them extra time with their babies if they require hospital care after birth. This will be a day-one right, with statutory pay available for those who meet service and earnings criteria.

At present, parents must rely on standard parental leave or employer discretion, often forcing them back to work while their newborns are still in hospital. The new law aims to remove this uncertainty, giving parents the reassurance of legal protection.

For SME employers, this means reviewing parental leave policies, payroll systems and manager training to ensure compliance. While the move is widely welcomed, some HR experts warn that it may add costs and operational challenges, especially for businesses already managing wage increases and rising employment costs.

Despite this, experts agree that supporting employees during difficult times builds loyalty and retention. SMEs should prepare early, ensuring they’re ready to support affected employees while effectively managing business impact.

Again, we are here for you if you need advice. Let’s chat.

Tribunal in focus – Healthcare Worker Wins Harassment Claim Over Breastfeeding Facilities

An NHS healthcare support worker recently won a harassment claim after her employer failed to provide a secure, private space to express breast milk. Cardiff and Vale University Local Health Board did not install a lock on the designated room, leaving the employee feeling anxious. A £5.50 lock was only added months later.

She was once walked in on by a male colleague and was advised to block the door with a chair. The tribunal ruled that this failure amounted to sex-based discrimination. Experts stress that risk assessments are essential to ensuring appropriate workplace support for breastfeeding employees.

Spotlight HR can help SMEs ensure compliance and create a supportive workplace, reducing legal risks and enhancing employee well-being. To save yourself costly tribunals, employee distress and workplace upheaval, drop us a line. Let’s chat.

Being a Stronger, Smarter Workplace

We hope you have enjoyed this month’s roundup. In summary, strong DEI drives engagement regardless of US politics, AI enhances human decision-making, and staying ahead of employment laws ensures compliance.

By shaping your workplace for long-term success, you’ll always be putting your best foot forward in the evolving world of work – and we are ready to help should you need HR support aligned with your business goals.

At Spotlight HR, we are strategic partners to many businesses across London, East Sussex and the UK.

From individual outsourced projects to assisting your in-house function, our experienced team specialises in HR services for SMEs — book your FREE consultation.