How can organisations realise the promise of diversity?

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“If you work hard you will succeed. If you really want to achieve your dreams, it’s in your hands.”

annaWe are all familiar with variations on these thoughts, and the idea that individualism and hard work will win out in the end is a truism that many people take on faith. Organisations often construct their recruitment processes with the idea that society is meritocratic – believing that those high-potential hires have succeeded due to their work ethic and skills alone.

Despite this, research has shown that it is often those from affluent backgrounds who land the best jobs. Even when people from disadvantaged backgrounds manage to break into a professional career, they face an earnings penalty compared to colleagues who come from better-off backgrounds.[i] Despite having the same education attainment, role and experience as their more privileged colleagues, those from poorer backgrounds are paid an average of £2,242 (seven per cent) less.[ii] Women and ethnic minorities face a ‘double’ disadvantage in earnings. Those from poorer backgrounds in some cases also exclude themselves from promotion for fear of not ‘fitting in’ and were less likely to ask for pay rises. This is a challenge that organisations are increasingly waking up to. Competition for talent and the need for diversity of thought mean that organisations will lose out commercially if they do not have a cross-section of employees that reflect wider society.

So how can companies improve their diversity and foster inclusiveness around social mobility? Here are three insights from our research:

  • Look for unintended biases in the recruitment process – Could your recruitment approach be filtering out applicants from less advantaged backgrounds? Some organisations, such as EY, are experimenting with relaxing their hiring criteria, or implementing ‘blind’ CVs in recruitment, so that details on university or education are hidden.[iii] Advances in predicative talent analytics may also enable organisations to identify promising talent from a larger pool than they might traditionally consider, basing hiring on data rather than intuition.[iv]
  • Sense-check the gap between the rhetoric and reality – Organisations may think they have the practices and processes in place to increase their social diversity, but if people at all levels of the organisation are unware of them, or don’t use them, there will be no shift in culture or behaviour.
  • Identify a priority area and experiment – Companies often think that moving the needle on diversity means making large-scale changes across several areas. Our research and work on our own I&D Framework has shown that a tailored and focused approach is often more effective. Start by identifying what your organisation does well, and where it is weaker. Selecting key areas allows companies to monitor and measure new interventions to understand the real impact and the changes that take place.

Keeping these insights in mind will help ensure your organisation builds a diverse, inclusive culture.

Interested in creating an I&D strategy that is ready to enable action within your organisation and truly shift the needle on I&D read our complimentary Insights Report on Inclusion and Diversity here: http://bit.ly/IandD-MovingTheNeedle

Or for more information about our I&D research, contact me at anna@hotspotsmovement.com or on 02077591852

[i] Rivera, L. (2015). Pedigree: How Elite Students Get Elite Jobs. Princeton University Press

[ii] Friedman, S., Laurison, D., and Macmillan, L. (2017). Social Mobility, The Class Pay Gap and Intergenerational Worklessness: New Insights From The Labour Force Survey.

[iii] EY drives social mobility by removing academic entry criteria http://www.ey.com/uk/en/newsroom/news-releases/17-02-02-ey-drives-social-mobility-by-removing-academic-entry-criteria

[iv] (2017) FoW Report on Shifting Identities

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