As organisations grapple with meeting their commitments to reduce bias in Early Careers recruitment, Labour's manifesto and US affirmative action rulings could be about to usher in a new era of additional DE&I recruitment challenges.
Diversity, Equity, and Inclusion (DE&I) in Early Careers recruitment continues to be a top priority for organisations, yet it remains their biggest challenge. New research from ECO and The Smarty Train found that despite 86% of Early Careers functions actively working to reduce bias in their recruitment processes, DE&I remained the most common answer in a survey of what Early Careers leaders would rank their biggest challenge in Early Careers recruitment.
According to the report, a key contributing factor to this challenge is access to data: the research found that 48% of Early Careers functions score poorly on their access to real-time data on which to monitor progress towards DE&I ambitions and recruiting standards, a difficulty amplified by laws that make it difficult to access and convert data into actionable change.
Further governmental changes in the UK and US have the potential to magnify these difficulties, creating both obstacles and opportunities for organisations. While these reforms aim to strengthen equity, they also raise challenges for Early Careers and recruitment teams:
The Labour Party’s 2024 manifesto outlines sweeping employment law reforms that, if implemented, could significantly impact Early Careers recruitment. Central to their agenda are policies to enhance equality and workplace transparency, such as:
Mandatory Pay Gap Reporting: Labour plans to extend pay gap reporting beyond gender to include ethnicity and disability for companies with 250+ employees. This move would require businesses to collect and act on data at an unprecedented scale. While this policy aims to address systemic inequities, it adds complexity for Early Careers leaders who already face challenges obtaining real-time DE&I data.
Enforcing the Socio-Economic Duty: Labour seeks to enforce the socio-economic duty of the Equality Act 2010, which would compel organisations to consider how their practices impact candidates from disadvantaged backgrounds. Early Careers teams will be required to integrate socio-economic factors into their diversity strategies, broadening their focus from traditional protected characteristics like race and gender.
In the US, laws such as Title VII of the Civil Rights Act in the US enforce non-discrimination and create boundaries around how organisations can use demographic data, especially if it involves targeted recruitment or may lead to perceived quotas.
Similarly, the Equal Employment Opportunity Commission (EEOC) in the US mandates careful handling of such data, making it difficult to access and convert data into actionable change. If organisations aren't able to measure or track these metrics, it presents a significant roadblock in their ability to identify areas for improvement.
This regulatory environment hinders the ability of Early Careers leaders to use demographic insights for addressing inequities in hiring pipelines, echoing the UK’s struggle with limited real-time data. While it remains to be seen exactly what Trump will do once in office, experts hypothesise that he is expected to reverse some of these Biden-era workplace rules.
Labour’s proposals signal a shift toward more stringent accountability for businesses, pushing DE&I from an aspirational goal to a regulated priority. For Early Careers functions, these changes represent an opportunity to prepare for this increased scrutiny and lead the charge in creating inclusive workplaces—but only if they are equipped with the tools and strategies to navigate the challenges ahead. Here are two ways to get started:
The data that informed the 2025 Early Careers Trends Report was collected from over 25 leading global organisations using TST’s Early Careers Optimiser (ECO) methodology. For more information on how ECO has helped organisations build data-driven, human-centered and DE&I-focused strategies for their Early Careers, talk to our data experts.
DE&I in recruitment, while a pivotal trend, represents only part of the challenges facing Early Careers functions in 2025 and beyond. For a comprehensive understanding of all five trends shaping Early Careers, download the 2025 Early Career Trends Report, which includes additional insights, case studies, and actionable recommendations.