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Why equity, diversity and inclusion (EDI) matters report

The evidence behind recruiting, retaining and progressing women in STEM.

The demand for skilled STEM professionals continues to grow. Yet organisations across the UK are constrained by persistent skills shortages, costing businesses an estimated £1.5 billion each year and slowing the adoption of new technologies, productivity and growth. 

At the same time, opportunity remains unevenly distributed. 

Women make up 47.5% of the UK working population, but only 26.7% of the core STEM workforce1. This imbalance limits individual careers and restricts the potential of the entire STEM sector. 

To close the skills gap and future‑proof the workforce, organisations must actively engage underrepresented groups, particularly women, who remain a largely untapped source of talent, capability and innovation. 

This report sets out the strategic and economic case for equity, diversity and inclusion (EDI) in STEM, focusing on five key themes: 

  • Attracting the best talent
  • What millennials and Gen Z expect from employers
  • Driving innovation
  • Boosting workplace productivity
  • Job satisfaction and employee wellbeing.

EDI is not a tick‑box exercise. It is a strategic and financial imperative, and the evidence is unequivocal. 

How does EDI impact your organisation?

Attracting the best talent 

The UK faces a shortfall of 173,000 STEM workers2, with engineering vacancies accounting for 25% of all job adverts3. Current recruitment approaches are not meeting demand. 

Expanding and diversifying talent pipelines is essential, and success depends on designing recruitment practices that work for everyone. Women continue to face barriers at multiple stages, including biased job descriptions, limited flexibility and a lack of visible role models. 

Culture matters. 

One in four employees seeking promotion in the next one to three years declined or chose not to apply for roles due to negative perceptions of inclusion4. For women in male‑dominated fields, these perceptions are often shaped by lived experience. 

The impact is clear: organisations with a dedicated EDI function are 22% more likely to be viewed as "industry‑leading employers with high‑calibre talent"5. 

What today’s workforce expects 

It is projected that millennials and Gen Z will make up an estimated 74% of the global workforce by 20306. As digital natives, their skills are vital to the future of STEM, and their expectations are reshaping workplace culture:

  • 76% of employees and job seekers say a diverse workforce is important when researching companies and job offers5. 
  • This rises to 83% among Gen Z7, who expect diverse leadership, inclusive hiring practices and pay transparency.

Research describes a growing focus on “money, meaning and wellbeing”6. For Gen Z and millennials, meaningful work is no longer optional, and organisations that fail to demonstrate social impact risk losing talent in an increasingly competitive market. 

To attract and retain the next generation of women in STEM, EDI must be active, visible and embedded, not aspirational. 

Inclusion, wellbeing and retention 

Attracting talent is only half the challenge. Retaining knowledge and expertise is equally critical. 

Where senior leaders demonstrate commitment to EDI, 84% of employees report feeling respected and valued4. Inclusive practices such as flexible working are linked to improved productivity, reduced burnout and stronger wellbeing, particularly for women8. 

Employees who feel able to be their authentic selves are nearly 2.4 times less likely to leave4, protecting knowledge, capability and continuity. 

Inclusion supports stability. Stability drives performance. 

Diversity and innovation 

Innovation thrives on difference. 

Workforces that reflect a range of experiences and perspectives are better equipped to address complex challenges, from bias in artificial intelligence to inclusive product design and emerging technologies. 

Organisations with more diverse leadership teams generate 19% more revenue from innovation9, demonstrating a clear link between representation, creativity and financial performance. 

The benefits extend beyond individual organisations. Economies grow faster and more sustainably when talent is fully engaged10. 

Better workplace productivity 

Inclusive teams are more innovative, make better decisions and are 
better equipped to navigate change and disruption10. 

Research shows inclusive teams are: 

  • 87% more likely to make better business decisions11 
  • twice as fast at reaching outcomes 
  • more efficient with time, resources and collaboration.

Organisations embedding inclusion into leadership and culture are more likely to unlock human performance, leading to higher productivity, better collaboration, and faster decision-making12. 

EDI doesn’t slow progress. It accelerates it. 

Conclusion

The evidence is clear.

Recruiting, retaining and progressing women in STEM is essential to long‑term organisational success. 

Inclusive workplaces: 

  • attract and retain high‑quality talent 
  • improve wellbeing and engagement 
  • drive innovation and productivity 
  • strengthen resilience and reputation.

As expectations evolve, EDI is no longer optional. Organisations that embed it into systems, leadership and culture are better prepared for the future. 

The question is no longer why does EDI matter, it’s how is your organisation acting on the evidence? 

About this research

This report is produced by Women into Science and Engineering (WISE), part of the Institution of Engineering and Technology (IET). 

WISE works with organisations to remove systemic barriers, unlock opportunity for women in STEM and build inclusive workplaces where talent thrives on merit. 

We don’t just advocate for change. We engineer it.

References

1 UK Parliament (February 2026), 'Women and the UK economy'.
Available at: https://commonslibrary.parliament.uk/research-briefings/sn06838/ (Last accessed: 21 May, 2026)

2 UK Parliament (May 2025), 'UK STEM skills pipeline'.
Available at: https://post.parliament.uk/research-briefings/post-pn-0746/ (Last accessed: 21 May, 2026)

3 EngineeringUK (May 2025), 'Engineering and technology are of vital importance to the UK'. Available at: https://www.engineeringuk.com/media/tzmnskho/facts-and-stats-engineeringuk-may-25.pdf (Last accessed: 21 May, 2026)

4 BCG (February 2023), 'Inclusion Isn’t Just Nice. It’s Necessary.'. Available at: https://web-assets.bcg.com/4c/ca/dfd11bc1457a8668048a10606859/bcg-inclusion-isnt-just-nice.-It's-Necessary_Feb-2023.pdf (Last accessed: 21 May, 2026)

5 LinkedIn (2026), 'Why is Diversity and Inclusion important?'. Available at: https://learning.linkedin.com/resources/learning-culture/diversity-workplace-statistics-dei-importance (Last accessed: 22 May, 2026)

6 Deliotte (2025), '2025 Gen Z and Millenial Survey'. Available at: https://www.deloitte.com/content/dam/assets-shared/docs/campaigns/2025/2025-genz-millennial-survey.pdf (Last accessed: 22 May, 2026)

7 Forbes (June 2023), 'Attracting and retaining Gen-Z through Diversity and Inclusion'. Available at: https://www.forbes.com/councils/forbesbusinesscouncil/2023/06/09/attracting-and-retaining-gen-z-through-diversity-and-inclusion/ (Last accessed: 22 May, 2026)

8 McKinsey & Company (February 2023), 'Women in the Workplace 2025'. Available at: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/women-in-the-workplace
 (Last accessed: 22 May, 2026)

9 BCG (January 2018), 'How diverse Leadership teams boost innovation'. Available at: https://www.bcg.com/publications/2018/how-diverse-leadership-teams-boost-innovation (Last accessed: 22 May, 2026)

10 World Economic Forum (June 2025), 'An economic necessity: 6 leaders on why gender parity can’t wait'. Available at: https://www.weforum.org/stories/2025/06/gender-parity-economic-necessity-6-leaders-wef/ (Last accessed: 22 May, 2026)

11 Forbes (September 2017), 'New Research: Diversity + Inclusion = Better Decision Making At Work'. Available at: https://www.forbes.com/sites/eriklarson/2017/09/21/new-research-diversity-inclusion-better-decision-making-at-work/?sh=5f8e2c4e4cbf (Last accessed: 22 May, 2026)

12 Deloitte (March 2026), '2026 Global Human Capital Trends'. Available at: https://www.deloitte.com/us/en/insights/topics/talent/human-capital-trends.html (Last accessed: 22 May, 2026)