The Business of Diversity
Thursday, November 09, 2006
by
Paul Brown
Diversity is the current buzzword in employment circles but what does it really mean and is it just the reserve of politicians and HR people?
On 1 October 2006, new laws on Age Discrimination came into force with the introduction of the Employment Equality (Age) Regulations 2006. Age is the latest in an ever-increasing range of protections from discrimination. Sex, race, disability, religion and sexual orientation are just some of the protections that are afforded to employees against discrimination.
Many employers will feel that this is just another example of interference in the running of their business and yet more red tape to comply with. But is there a business case for it?
Age Discrimination will be the biggest single change in employment terms since the introduction of laws on Sex Discrimination. The simple fact is that these laws require a change in perception and approach not just in compliance and paperwork. Age Discrimination legislation is the final set of rules to be introduced following the European Employment Directive 2000 which lead to the introduction on a European wide basis of protection from discrimination relating to race, religion, sexual orientation and age.
The European Union website on Diversity and Discrimination reminds us that “at the time of its (the European Community) creation one of its most pressing missions was to reconcile a continent divided by nationalistic and ethnic conflicts”. The extent to which this may have been achieved may be debated elsewhere but in employment terms the European Union has managed to effect change and continues to do so.
How will this work for employers? As with other protection afforded to employees, many employers only see the negative side of the legislation. It is inevitable that there will be problems and there will as ever, be those who seek to abuse the Regulations to raise claims. For the majority of employees and employers, this should be a positive step.
How will this work in relation to Age?
Young or old, discrimination against employees in recruitment, promotion and terms of employment will be outlawed. Forcing people to retire before 65 will no longer be possible. There are new and somewhat complicated rules about notifying employees who are approaching 65 of their impending retirement and their right to request to continue to work beyond that date. This does not mean that the employee is automatically entitled to work beyond that date.
One unusual feature about Age Discrimination is that discrimination may be possible if it is “objectively justified”. What amounts to objective justification is very much a matter of the facts and circumstances at the time but, it may be possible for employers in certain situations to demonstrate that discrimination is necessary and therefore not unlawful.
What is the business case for diversity? According to the DTI website, women now make up nearly half the workforce in the UK which is double the number of 25 years ago. A recent Government report estimates that:
- the working age population will increase by a million in the next 10 years;
- that minority ethnic communities will account for more than half that increase;
- in less than 10 years time there will be 2 million more jobs in the economy.
Competition for labour will become more intense. Those who prefer to avoid recruiting people of a certain sex, race or ethnic origin, disability or age will find themselves at a disadvantage.
The 2001 census showed that by 2014 there will be more people over the age of 65 than under 16 in the UK. There are clearly advantages to widening the group of people from whom you would search for employees. Not only would this potentially avoid having a shortage of staff which will obviously have an impact on your business, but may also allow you to appeal to a broader customer base as the changes in the pool of employees are reflected in your client profile. Statistical evidence has demonstrated that it can not only lead to improved recruitment and retention of staff but also improved staff morale and performance.
Diversity is not simply the reserve of politicians or HR professionals. It is about ignoring the differences in people and embracing the challenges as to how your business may benefit from having a variety of people of different sex, race, ethnic origins, abilities, religions, sexuality and now, age. Age Discrimination will be the biggest significant change in employment terms for decades. Use diversity to your advantage. Changing your attitude and approach and embracing the possibility of a diverse workforce with people of all types and ages will benefit your business in the long run.