In-work poverty, ethnicity and workplace cultures JRF Poverty & Ethnicity Programme

1. In-work poverty, ethnicity and workplace cultures JRF Poverty & Ethnicity Programme Dr Maria Hudson, Hudson Research Dr Gina Netto, Heriot Watt University on behalf of research team November 1st 2013, Phase One launch event

2. Research aims • Relationship between in-work poverty, ethnicity, and workplace cultures • How are workplace opportunities shaped? • Who are the winners and losers? • Role of ethnicity? • Engage with • employer attitudes/ behaviour, including discrimination • Employees’ attitudes/actions vs employers’ attitudes/actions • Facilitation of constructive change

3. Large employer sample supporting exploration of cultures of progression

4. Low paid worker sample

5. Key points I • Lack of low paid worker progression opportunities ↔ dynamics oflow wage traps • Lack of stepping stones for vertical progression • Rigidity of progression requirements; insistence on formal qualifications • Little scope for horizontal movement • Lack of investment in training for the next step • Lack of advice, mentoring, coaching • Unsupportive line managers • Ineffective performance development reviews

6. Key points II • Workplace opportunities also shaped by ethnicity: • Access to developmental opportunities • Access to networks , flows of information • Extent to which skills and potential are recognised • Unequal treatment – stereotyping, prejudice & favoritism Low wage traps fuelled by Informal practices & Power imbalances

7. Key points III Management mindsets, behaviours and conscious and unconscious bias Negative bias to other employees Positive dispositions to some employees • Lower morale, trust and aspiration • Progression ceilings reinforced • Lack of transparency around progression opportunities • Closer links • Better development opportunities • Progression

8. Way forward – Towards countering In-work poverty • A multi-stakeholder approach • Strategic policy and organisational responses led by Government • Leadership and organisational commitment of employers in public, private and voluntary sector • Involvement of trade unions and community organisations

9. Actions for Government As Policy leader • Close the gap between the anti-poverty agenda and the equality agenda • Over-representation of ethnic minorities in the lowest income decile should have high relevance in any anti-poverty strategy • Need for greater recognition of the limitations of universalist approaches in tackling poverty • Anti-poverty strategies should recognise the relevance of equality of opportunity in employment as a route out of poverty

10. Actions for Government - As Investor in Employability Schemes • Working with partner organisations, government can.. • Pay more attention to the range and nature of Modern Apprenticeship Schemes and the organisations involved • Strengthen requirements for diversity monitoring and review of the apprenticeship schemes, eg. make this a condition for funding • Target disadvantaged geographical areas/groupsto supplement more universalist approaches

11. Actions for Employers I • Employers can take measures to ensure that: • Workforces are ethnically representative at all levels • Monitoring (development/progression/retention) • Access to opportunities • Positive action • Informal groups and dynamics do not undermine equal opportunities • Training/ tool-kits • Management accountability

12. Actions for Employers II • Employers (including public sector bodies) canencourage subcontractors to: • Comply with equal opportunities policies through procurement of services through supply chains • Demonstrate opportunities for progression among its workforce • Ensure compliance with equal opportunities policies through requiring diversity reports of workforce data • Pay a living wage

13. Questions for workshop discussion • How can employers be encouraged to support development and progression for low-paid workers from all ethnicities? • What are the best ways to spread good practice? • Our research has focused on large employers, how far do the findings also relate to SMEs? • What kind of support and encouragement do SMEs need in order to make progression for low paid workers a reality?