Diversity and inclusion in the workplace: more than just demographics

 

The experts are in agreement: having a diverse workforce can drive innovation, improve performance and attract top talent.  As such, diversity and inclusion (D&I) is a ‘hot topic’, with many top organisations identifying it as a key element of their corporate strategy.

But what does effective D&I look like in practice?  In this blog, we will look at how to implement effective D&I initiatives in the workplace.

 

Progress still needed

While organisational diversity has improved in recent years, there is still a long way to go.

Action has been most visible in regards to gender.  However, although female employment rates have increased, male and female experiences of progression within the workplace are still vastly different.  For example, in 2018, FTSE 100 CEOs were still more likely to be called Dave or Steve than to be female.

Progress has been less tangible in regards to race and ethnicity.  A recent study by the Chartered Management Institute (CMI) found that while 75% of FTSE 100 companies set progression targets for gender, only 21% did the same for BAME. Indeed, only 6% of top management jobs are held by Black, Asian and minority ethnic (BAME) leaders, whereas BAME groups make up 12% of the working population.

There is a similar lack of representation among disabled and LGBT employees.  This only increases when considering intersectionality – that is, employees who identify with more than one protected status.

 

Diversity and inclusion are separate concepts

Many organisational diversity initiatives have proved unsuccessful.  Where have they gone wrong?

Firstly, being a truly inclusive organisation is about more than just hiring a diverse workforce.  Diversity alone does not guarantee that every employee will have the same experience within the organisation.

A first step towards implementing an effective D&I strategy is to understand that diversity and inclusion are related, but distinct, concepts.

As the recent CIPD report on ‘Building inclusive workplaces’ explains:

  • Diversity refers to the demographic differences of a group. It usually references protected characteristics in UK law: age, disability, gender, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation.
  • Inclusion, on the other hand, is often defined as the extent to which everyone at work, regardless of their background, identity or circumstance, feels valued, accepted and supported to succeed at work.

Thus, effective organisational D&I is more than just demographics.  Put simplyDiversity is the mix. Inclusion is making the mix work’.

 

Copy and paste mistakes

Another key mistake that many organisations make is ‘copying and pasting’ initiatives from another organisation into their own situation.

Just because a D&I initiative has been successful elsewhere does not mean that it will be effective in a different organisational context.  It is essential that D&I initiatives are tailored to suit individual organisational contexts.  Much will depend on the unique structural and individual barriers to inclusion that are faced in an organisation.

 

Addressing the barriers

Thus, it is crucial that organisations identify and tackle these specific barriers to inclusion.

Structural barriers may include a lack of flexible working opportunities, or a lack of BAME representation on recruitment selection panels or within senior management and HR.

Individual barriers may include prejudice and bias (both conscious and unconscious).  For example, the TUC Racism at Work survey found that 65% of BAME workers have suffered harassment at work within the last five years, while 49% had been treated unfairly.  Similarly, an NIESR study found that 23% of LGBT employees had experienced a negative or mixed reaction from others in the workplace due to being LGBT or being thought to be LGBT.

 

Tackling prejudice and bias

Addressing employees’ unconscious bias is one way to help tackle this.  Unconscious bias training involves teaching people about the psychological processes behind prejudice and techniques that can be used to reduce it. Research has found that unconscious bias training can be effective in increasing people’s awareness and knowledge of diversity issues.

However, evidence of its impact on attitudes and behaviours is less conclusive, so it is not a panacea.

 

Making the mix work

So what else can organisations do to help foster inclusion?

Research has found that there are several key aspects that contribute to individual feelings of inclusion.  In particular, individuals must feel valued for their uniqueness, and they must feel able to  be their authentic selves at work, regardless of any differences between them and other team members. This, in turn, leads to a sense of belonging, without the need to conform to ‘group norms’.

Individual feelings of inclusion are influenced both by the behaviours of others at work, as well as informal and formal organisational practices.

Some good practice examples of organisational inclusion include:

  • Fair policies and practices
  • Ensuring the availability of specific practices, such as flexible working, that can support inclusion
  • Involving employees in decision making processes and networks
  • Actively taking feedback on board
  • Ensuring that leaders are role models for inclusion
  • Genuinely valuing individual difference, not just hiring for representation

Other practices that may help promote inclusive working environments include mentorship, sponsorship and the creation of inclusive employee networks.

 

Learning from good practice

The good news is that an increasing number of organisations are working towards becoming truly diverse and inclusive.  Awards and certifications such as Business in the Community’s Race Equality Award, EDGE certification for gender equality, and Stonewall’s Workplace Equality Index for LGBT inclusion, all highlight the positive work that is being done.

For example, Pinsent Masons – currently the number 1 employer in the Workplace Equality Index – have worked to remove barriers to employment for trans individuals, provided support for LGBT women to overcome the ‘double glazed glass ceiling’ and facilitated the creation of an LGBT and allies employee network.

 

Inclusion leads to better, fairer workplaces 

Successful D&I cannot be measured by demographics – it is not enough to just have the right numbers on paper.  Every employee must feel valued as an individual and have equal access to opportunities.  In order to achieve this, organisations must look at their own contexts and develop initiatives that tackle the individual and structural barriers to inclusion that have been identified.  Listening to feedback from employees, and genuinely valuing and acting upon their input, is essential.

Becoming more inclusive is not only a moral obligation, it also has profound business implications – a recent study found that the potential benefit to the UK economy from full representation of BAME individuals across the labour market through improved participation and progression is estimated to be £24 billion per annum.  Thus, inclusive organisations are not only better and fairer places to work, but can also achieve better performance and innovation.


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Female entrepreneurship – making it happen!

By Donna Gardiner

On Sunday 8th March, people around the globe will come together to celebrate the economic, social and political achievements of women as part of International Women’s Day. The day also presents an opportunity to call for greater gender equality.

One of the great success stories for women’s equality has been the increase in women’s employment rates over the past forty years. Indeed, women’s employment levels are now higher than at any other time since records began.

However, despite this great progress, rates of female entrepreneurship have not matched this pace. A recent report by the Ambassador for Women in Enterprise, Lorely Burt MP, notes that only one in five businesses in the UK are majority-owned by women, and that women are significantly less likely than men to start their own business.

The report looked at the ways in which the government could help to address the barriers faced by female entrepreneurs and increase the opportunities available to them. It makes a number of recommendations, in particular:

  • Making available support, including networking and finance, more accessible to women;
  • Being more inclusive in communications with potential female entrepreneurs;
  • Tackling unconscious basis in the presentation of services to women;
  • Making greater, and better, use of the Great Business website, particularly the section targeted at women.

As well as promoting greater equality and choice for women, the report argues that improving support for female entrepreneurs could have significant economic benefits. For example, it cites research by the Women’s Business Council, which estimates that, if women were setting up new businesses at the same rate as men, there would be one million more female entrepreneurs. Indeed, raising the level of women’s employment to the same as men’s could lift GDP by as much as 10% by 2030.

Signs of progress

There are some promising signs of progress. Since 2008, the proportion of Small Medium Enterprises (SMEs) run mainly by women has increased from 14% to 19%.

Recently there has also been an increased focus on broadening young women’s aspirations and understanding of career options while they are still in education, partially as a result of recommendations put forward by the Women’s Business Council in 2013.

In 2014, a follow-up report assessed the progress that had been made against these recommendations. Successful initiatives included a pilot project to help female students develop entrepreneurial skills, and use of the Speakers for Schools scheme to enable successful female entrepreneurs to discuss their experiences with pupils and act as positive role models. We also wrote last year about the importance for girls of having female role models within science and technology, when considering career choices.

The government has also stepped up its support for existing and new female entrepreneurs, recently announcing a £1million challenge fund to help women grow their business online, the introduction of Start Up Loans, the Enterprise Allowance and local growth hubs, and the provision of £1.6 million to support women entrepreneurs in rural areas.

Mentoring can help

Karren Brady, a top female entrepreneur, known for her role on the BBC’s The Apprentice, and as vice-chair of West Ham Football Club, is passionate about female entrepreneurs and SMEs. She suggests that “fear and a lack of confidence can stand in the way of women” and recommends that budding entrepreneurs should find a mentor to help guide them.

She is not the only one to recognise the benefits of mentors for women entrepreneurs.  The government recently announced additional funding for a series of ‘Meet a mentor’ events which are aimed solely at women.

The issue of female entrepreneurship has even found its way into popular women’s magazines such as Elle and Red, both of which have recently been promoting female entrepreneurship, through dedicated sections and discussions on business start ups and highlighting advice and guidance from strong female role models.

There are clearly many facets to tackling the low rates of female entrepreneurship. As well as ensuring that potential women entrepreneurs can access practical support and services, there is a need to tackle the underlying notion held by many that business is a ‘male activity’.

By doing so, women who want to run their own business will be better placed to obtain both the resources and the confidence required to “make it happen”.


Further reading

Whether you are interested in entrepreneurship or equalities, the Idox Information Service can help.

The Burt report: inclusive support for women in enterprise Department for Business, Innovation and Skills, 2015

Maximising women’s contribution to future economic growth: one year on Women’s Business Council, 2014

Realising the potential (under-representation of women in Scottish entrepreneurship), IN Holyrood, No 314 17 Mar 2014, pp73-74 (A49229)

Women and the economy: government action plan Government Equalities Office, 2013

Entrepreneurs: what can we learn from them? Inspiring female entrepreneurs Chartered Institute of Personnel and Development, 2013

Women in business: female entrepreneurship – creating growth and dispelling the myths Federation of Small Businesses, 2011