Diversity in the Workplace - maximising the opportunity
Wed, Mar 1st, 2006
It is 20 years since the CRE first introduced their Code of Practice for the Elimination of Racial Discrimination and the Promotion of Equality of Opportunity in Employment. Despite some progress much needs to be done, argued Ian Barr, Commissioner for the Commission for Racial Equality, at the Recruitment Society event held on March 1st at the Guardian. In order to provide further impetus, a revised Code of Practice was therefore required, and this is to become law on 1st April 2006.
What is the role of the CRE? It has two main roles. Firstly, it has the power to develop legal requirements as stipulated through Codes of Practice and other devices. Secondly it is also a regulatory body, with powers of enforcement. It cannot, however, provide one to one advice to companies.
Why is a new Code of Practice required?
There have been a number of recent studies looking at labour market performance, with the most comprehensive being the Cabinet Office Strategy Unit who recognised that there were many variables impacting performance in the labour market. Their analysis in their report - ‘Ethnic Minorities and the Labour Market' - took into account these variables and stripped them out to compare like with like when looking at the differences in labour market performance. Their conclusion is very stark:
"The most important conclusion that emerges from these studies is that, even after like for like analysis, all ethnic minority groups are disadvantaged relative to Whites in comparable circumstances"
The authors of the report described this ‘residual difference' on a like for like basis as the ‘ethnic penalty'. Others may choose different language to describe the difference. Whatever choice of words are adopted - the fact is that we still have outcomes in employment which mean that our fellow citizens as a result of the colour of their skin are being disadvantaged in seeking employment and in progression within employment
There is a consistent picture of employment rates and patterns which vary little over time, indicating poor progress overall.
There are variations both regional and on the basis of different ethnic groups but, on average, minority ethnic groups are twice as likely to be unemployed and minority ethnic women have even lower participation rates. In 2004, around seven in ten Bangladeshi and Pakistani women of working age were neither working nor seeking work.
Currently, ethnic minorities make up nearly 10% of the UK population but by 2010 they will account for half the population growth
The gap in employment rates has been consistent over the past 20 years: in 2002, the ethnic minority employment rate for Great Britain was 59% compared with an overall employment rate of over 75%
However, people from ethnic minority backgrounds tend to be better qualified. It is estimated that 40% of people from ethnic minority backgrounds have or are studying for a degree, compared to the national average of 23%
However ethnic minorities still only make up 2.4% of all directors in the FTSE 100.
As far as agencies are concerned, just how far have we moved on?
The Commission conducted several Formal Investigations in the 1980s and 1990s which resulted in a number of key findings. The key findings helped to demonstrate the effect of discriminatory practices on ethnic minority job seekers. These findings included:
- Unwillingness of agency staff to give evidence about discriminatory practices for fear of jeopardising their career in the industry - That many employers used agencies as their only effective channel of recruitment. Agencies that were prepared to accept discriminatory instructions were providing a shield for employers, enabling them to discriminate without having to turn away applicants themselves. Working in a competitive environment and on commission, agencies might be tempted to comply with such discriminatory practices. - Poor record keeping and a lack of monitoring made it difficult to see whether discrimination was taking place. - Some agencies would not send ethnic minority candidates to certain clients/certain jobs because it was assumed that the employers would not want them. - Some agency staff received little or no race relations training or guidance. They had a perceived assumption about the sort of people that were required for certain jobs and ethnic minorities did not always "fit in" to what that they saw as a suitable applicant. - Agencies failed to challenge employers if they believed their applicants had been rejected on grounds of their race. Similarly, they did not challenge employers when clients told agencies they were suffering from discrimination during their employment. - Employers were said to be "less fussy" about the ethnic origin of temporary staff but would not hire them for permanent positions. - The point of client discrimination might be at the time of registering a vacancy with the agency, after receiving applications or after interviewing applicants.
The Code's role in helping to eliminate racism in the workplace is two fold. First it, as you will see, aims to give employers, recruitment agencies and Trade Unions practical advice on implementing race equality - and thus enable them to comply with the RRA. Second, the Code, while not legislation in itself, has a statutory status; this means that any of its provisions can be referred to in an employment tribunal
The feedback provided by an advisory group set up to steer the development of the code was as follows. It should
- Provide practical guidance - Include lots of case studies - Provide examples of good practice - Be comprehensive - Fit into 10 pages long!
The summary leaflet was produced which is 8 pages long! A subject as complex as achieving racial equality in employment cannot be dealt with in 10 pages alone.
Is a diverse workforce a benefit? Ian suggested that it is an inevitability if organisations are going to compete as there is a declining traditional workforce of white males and emerging diversity in the entry points to the labour market. (1 in 2 new entrants to the labour market will be from a ethnic minority background overall in the UK and 1 in 3 Muslims in London)
What is expected of employers?
There should be a demonstrable commitment to equal opportunities. In practical terms this means in the first instance developing a policy on diversity and equality
The policy should be promoted to the workforce with a full explanation of what is involved, it should involve a commitment to training, and it should include monitoring the impact of the implementation of the policy as well as monitoring recruitment, selection and training
The code includes a section on targets, not because this is a requirement, but as something that employers could consider, and that good employers really should consider, and to demonstrate how targets might be set and met without falling foul of setting quotas or of moving from positive action to positive discrimination
There should be encouragement of good practice in the supply chain, meaning that organisations should encourage their suppliers to adopt good equality practices.
The REC has recently updated their diversity guidance which stresses the importance of its members adhering to fair practice rules as set out in its Diversity Charter, Code of Practice and Members' Code of Good Recruitment Practice
And on 30th November 2005 the REC and Job Centre Plus launched the first ever pan-industry Diversity Pledge. It covers both the public and private recruitment industry and sets out aspirational standards for recruitment agencies and job centres to achieve in the delivery of recruitment services to clients
Their aim over the next year is to get as many recruitment consultancies signed up to the Pledge as possible. They intend to audit their agencies against this pledge in 2007/8
What should recruitment agencies do?
In short, they should read section 5 and incorporate the recommendations within this section into your own policies and good practice guidance and ensure that all staff involved in the recruitment process are aware of its content
Ask yourself the question ‘is what we are being asked to do by our client, or by the line manager, or even as a result of our historic processes a genuine requirement for the job' and will it lead potentially to a discriminatory outcome? And you cannot rely on the defence that ‘it is outside your control'
For example, for whatever reason, ethnic minorities are under-represented at Oxbridge but if you are asked to send only candidates with an Oxbridge degree, unless it can be justified that such a requirement is necessary for the job, you are likely to be discriminating indirectly against ethnic minorities and, therefore, in breach of the RRA - and it would not be relevant to say that the problem is the educational system
So I really commend Section 5 to you and suggest that you might want to ensure that its recommendations are incorporated into your own policies and good practice guidance and that all staff involved in the recruitment process are aware of its content
Is there a danger that the legislation could become quota driven?
The intention is not to introduce quotas but to ensure that people from ethnic minority groups are treated equally.
The CRE spends £4.5 million per year with Race Equality Councils
