Diversity and Your Business

1. Diversity and Your Business

2. A Few Facts & Figures….. • People are living longer • We are an increasingly ethnically diverse society • The number of people in employment has increased • The careers people choose are changing • Family patterns are changing • Membership of Christian churches in the UK has fallen since the 1970s while membership of other religions has risen

3. Legislation & High Profile Reports • The Disability Discrimination Act (1996) • The Race Relations Act 1976, as amended by the Race Relations (Amendment) Act 2000 • The Freedom of Information Act (2000) • The Sex Discrimination (Gender Reassignment) Regulations 1999 clarify GB law • The McPherson Report

4. Further Legislation • Race and Gender due to come into force inlater this year. • Regulations on Sexual Orientation and Religion scheduled for December 2003 • Legislation into Age Discrimination scheduled for December 2006.

5. Understanding Diversity

6. Dictionary Definitions Diversity When many different types of things or people are included in something: Equal Opportunities The principle of treating all people the same, and not being influenced by a person's sex, race, religion, etc:

7. What is managing diversity? • Managing diversity is based on the concept that people should be valued as individuals for reasons related to business interests, as well as for moral and social reasons. It recognises that people from different backgrounds can bring fresh ideas and perceptions which can make the way work is done more efficient and products and services better. • Managing diversity successfully will help organisations to nurture creativity and innovation and thereby tap hidden capacity for growth and improved competitiveness. The Chartered Institute of Personnel & Development

8. The Difference Between Equal Opportunities & Managing Diversity Equal Opportunities - the old approach Managing Diversity - the new approach Externally Driven - Rests on moral and legal arguments - Perceives EO as a cost Internally Driven - Rests on business case - Perceives MD as an investment Operational - Concerned with process - Rational organisational model - Externally imposed on managers Strategic - Concerned with outcomes - Internalised by managers & employees - Appreciation of organisational culture Difference perceived - problematical - Deficit model - Ethocentric, heterosexist - Assimilation advocated - Discrimination focused - Harassment seen as individual issue Difference perceived - asset/richness - Model of plenty - Celebrates difference - Mainstream adaptation advocated - Development focus - Harassment seen as organisational climate issue Group focused - Group initiatives - Family friendly policies Individual focused - Universal initiatives - individual development - Employee friendly policies Supported by a narrow positivist knowledge base Supported by a wider pluralistic knowledge base Wilson, W & Iles, P (1999) “Managing Diversity - an employment and service delivery challenge”

9. Benefits for your Business…..

10. Recruiting from a wider pool & Reducing Costs • Skill Shortages. • Widening the labour pool • Access to a wider pool of ideas, knowledge and skills • The average cost of replacing an employee is £5,000 to £10,000 per annum • Reducing the waste of talent • Reduced cost of implementation • Increased labour flexibility

11. Did you know…. • Overall, people from certain Ethnic Minority groups have higher educational levels than those of whites. 5% of white men have a degree or an equivalent qualification whilst 7% of African-Asian and Indian origin and 12% of Chinese origin have a degree. There is a greater tendency of Ethnic Minority students to study subjects that lead to professional qualifications e.g., business, computing, law and engineering. Ethnic Minorities 2002 (Hobsons Career Guide) • Diversity means "Diversity of ideas and experience". Ethnic Minority students often bring experience of two communities, majority and minority. On a general level this will encourage new perspectives, styles and approaches to problem solving, different viewpoints, skills and varied knowledge. Specifically, however, this also will assist employers to target consumers from specific ethnic groups by reflecting their appreciation of cultural issues in their marketing for example. A Survey of AGCAS and AGR Members, published by the AGCAS/AGR Working Group on Racial Equality, 2000

12. Improved Perception and Reputation • Enhanced reputation as a forward thinking organisation in the minds of suppliers, employees, customers and the wider community. • Gain repeat customers • Gain referred customers • Retain customer loyalty • Anticipating changing needs of customers, employees

13. Did you know…. • The Government believes a reasonable average cost for adapting premises to employ a disabled person is £200 per head. In some cases, the Government will pay part of the costs through its “Access to Work” programme. However, almost two thirds of companies employing disabled people say they incurred no extra costs as a result of having to make necessary reasonable adjustments. • 22% of unemployed disabled people have qualifications of A Level/H grade or above. • Many companies employing people with disabilities report a positive benefit to the group dynamics with existing employees being better motivated.

14. Asylum Seekers…. • Research in Leicester in 2001……. • 85% of asylum seems held qualifications from school certificates to higher and professional qualifications • 85% spoke more than one language, in fact a high proportion spoke at least 3 languages • 80% had been employed in a variety of jobs including the professions, skilled manual trades, business and service industries • This included teachers, doctors, accountants and business managers.

15. Customer base • Reflect the demographics of your customer base. • Develop services which meet the needs of diverse groups • Developing new services for existing, but often marginalised groups • Improve understanding of the needs of diverse customers

16. Did you know…. • Ethnic Minority communities are significant consumers with an estimated disposable income of £10 billion a year. It is quite natural that they will gravitate towards providers of services that reflect their own background and demonstrate an understanding of their needs. AGCAS Survey on Working With Ethnic Minority Clients • Older people are responsible for 40% of consumer spending - and rising. • 50-64 year olds are biggest spenders in absolute terms on fuel and power, alcoholic drinks, motoring, leisure goods and leisure services. Third Age Employment Network

17. A Few Examples

18. Centrica • A new Deal disabled People project at their British Gas Trading & Services customer services centres in the North West of England which led to jobs for 50 disabled people • Results • Engaged, motivated and high performance staff • Reduced staff turnover • A more diverse workforce reflecting its customer base • Developed managers skilled in recruiting and managing a diverse workforce • An enhanced corporate reputation

19. Barclays Bank • Carried out group wide analysis and compared the organisation age profile with UK working population demographics, followed up with further research to obtain more focussed information • Considerable investment has been made in the way they manage recruitment advertising in order to ensure that they reflect a more diverse community. • Their induction process was also highlighted • Employee turnover is being monitored • Raise awareness of Barclays need to continue to work towards reflecting its customer base - there is evidence that customers prefer to do business with staff who have a wide range of life experiences.

20. Getting it right! • Understand concept and legal obligations • Leadership and commitment • Identify performance outcomes • Review policies • Produce an Action Plan • Allocate responsibilities • Regular monitoring reports • Evaluate outcomes

21. In Conclusion • Perceptions of Diversity is continually changing • Embracing Diversity in a world where getting the right staff and maintaining customer share is increasingly difficult has to be the key to developing your organisation. • This can only mean one thing - EXTRA PROFIT FOR YOUR BUSINESS