Change the Race Ratio recently worked in collaboration with The Network of Networks (TNON) and the IF NOT NOW WHEN campaign to convene business leaders for an important discussion on the progress made to increase black representation in business leadership, the actions that work and the work we still need to do.
The session opened with reflection from chair’s of both campaigns.
Sir Trevor Phillips, Chair of Change the Race Ratio reflected that large corporates have made progress on ethnic minority representation particularly in the FTSE350 thanks to the work of Change the Race Ratio and the Parker Review. More action is needed to focus on increasing black representation in senior leadership and more work is needed across private businesses. Trevor led a clarion call for businesses seeking to make progress to join our vanguard group.
The need for businesses to embrace inclusive practice in their people management and commercial strategy is growing. Over the next 30 years the ethnic minority population in the UK will grow, so change is needed for the business talent attraction process, employee engagement and staff development plans to adapt to a changed reality.
Suki Sandhu reflected on the start of the IF NOT NOW WHEN campaign and the support from leading businesses to support the open letter. Fast forward 4.5 years there has been progress with more action to support the development of ethnic minority staff and an increase in businesses reporting ethnicity pay gaps. Suki reflects that momentum at a leadership level is waning, action is moving back to all ethnic minority talents and interventions rather than specific actions for black talent. The external environment is now more challenging but businesses are continuing to do the hard work that’s required.
Lindsey Stewart from Morningstar provided the room with an overview of the trends in ED&I board resolutions. Some highlights included;
- The success of anti Environmental, Social and Governance (ESG) resolutions has not changed and remains low
- The number of ED&I related resolutions is falling, this is likely that a number have already been passed and the work is now underway
- Language of resolutions is starting to change, moving away from ED&I language towards HR
The focus of the discussion was on how businesses can reduce and remove barriers to attracting and retaining senior black talent. Some of the key takeaways included.
- CEO leadership is vital to driving and owning the agenda, they are ultimately responsible for the achieving targets, securing the culture and behavioural change.
- Building the data needed to make decisions is critical. This starts with developing trust in your workforce by creating forums for underrepresented voices to be heard and for managers to develop their race confidence.
- Perfect data is too high a bar, start acting now with what you have – we know there is a gap
- Be specific in your actions and ambitions on black inclusion, don’t just focus on all ethnic minority goals and actions.
- Set targets and accountability - set targets on local demographic data, tie achievement to long term incentive plans and check progress regularly
- Make change sustainable – hardwire inclusive practice into everyday business and practice. ‘Put the ladders up and make sure we take the fences down’
- Upskill Managers to help them to understand and reduce bias in decision making, specifically in performance grading and work allocation. Consider rotating teams regularly to avoid affinity bias which is often developed during long tenures in the same team or reporting to the same manager
- Ensure diversity of thought and perspective is a pre requisite for significant business decisions.
For more information about how to get involved in our Leadership Forum please get in contact with us today.
