The report was published yesterday (9 September) by the Workplace Equity Commission (WEC).
“The commission found that many businesses feel the EDI debate has become too political in recent years,” explained Gill Hunter, the WEC’s co-chair and a managing partner of Square One Law.
She told HR magazine: “The report is clear that policymakers have a responsibility to ‘turn down the temperature’ of debates, so that SMEs are reassured and feel confident to take practical steps to make a difference.”
Simon Jones, director of the consultancy Ariadne Associates, agreed that SMEs are less confident about EDI. Speaking to HR magazine, he said: “Many small businesses are more concerned about getting things wrong, in part because media attention focuses on high-profile discrimination cases.
“It's also the case that 'EDI' is not a term that is commonly used outside of big companies, so the whole concept seems alien to them. The emphasis for SMEs needs to be on selling business benefits and quick wins. For example, diversity initiatives can widen the pool of potential candidates, which, when many businesses are struggling to recruit, is a big advantage.”
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A quarter (25%) of employees believed that not everyone in their workplace has the same access to opportunities, research commissioned by the WEC in March 2024 revealed. Slightly more than a quarter (28%) of respondents reported believing that they had unfairly missed a workplace opportunity in the past two years.
In challenging economic times, “the need for businesses to attract, develop and retain the broadest range of talent is clear,” the WEC’s report stated, summarising findings after a year-long nationwide call for evidence, and a series of roundtable events with businesses across the UK.
However, Hunter says, many SMEs are held back by a lack of information, resources, and the complexity of legislation. Less than half of the UK’s 5.5 million SMEs have introduced specific policies or programmes for under-represented groups in the workplace.
She added: “The commission heard some great examples of workplace equity practices in businesses across the UK. However, for many SMEs, with limited time and resources, it is seen as too difficult a challenge to confront.
“The answer is twofold: better sharing of information, and best practice through peer-to-peer learning, alongside focusing only on initiatives that boost opportunity and return on investment.”
Read more: How HR can navigate political polarisation in the workplace
The report encouraged businesses to “establish and promote the business case for change and invest for the long term". It also recommended reporting diversity statistics, increasing manager training, and seeking peer support from business networks, as well as updating recruitment practices to seek out diverse talent.
More than half (53%) of professionals have considered leaving their profession or organisation because of issues related to EDI, research led by the Young Foundation NGO uncovered on 4 March. The foundation's report, Beyond Buzzwords, included insights from a survey of more than 7,000 UK-based students and professionals.
Data has to be part of the solution when addressing EDI issues at work, according to Shakil Butt, founder and CEO of the consultancy HR Hero for Hire, in response to the foundation's findings in March. “Too often DEI is not data-driven," he told HR magazine. “Having clarity on what the actual problem is will enable a more strategic focus on what then needs to be done differently.”
Hunter emphasised that government support is key in guiding SMEs to promote EDI.
She continued: “Government has a leadership and brokerage role to play, to work with business on the levers that can help move us forward. Businesses want a framework that normalises and simplifies the language of equity policy, and creates a positive atmosphere for conversation and progress. Businesses need to feel confident enough to use inclusive terms without fearing that an honest mistake will lead to a hostile response.”
The WEC was convened last year by the British Chambers of Commerce (BCC), uniting business representatives, BCC leaders and civil society stakeholders. The WEC published its latest report in partnership with the Youth Futures Foundation charity.
