HR Review October 2010
There has been a lot of media chatter about the Equality Act 2010 – much of which is blatant scaremongering.
The fact is that the new Act greatly simplifies matters. It repeals nine older equality Acts, together with other subordinate legislation and replaces them with a common structure. That sort of simplification is something we can all welcome!
The Act views discrimination in terms of "protected characteristics" rather than equality strands. It recognises that some people may have more than one characteristic. The focus is on 'people' rather than some academic subject heading. Common definitions are given - and yes - it does introduce more categories of discrimination, but they are not exactly new. They have been around for some time.
The problem with legislation is that it addresses what is perceived to be wrong at a given date. As legislation is put into practice, other ideas start to change as well, and soon the Act is outdated by everyday practice. To stay relevant it has to stay fresh – and that’s what this legislation has done. Just like diversity and equality it reflects an iterative process.
So what does business need to do?
Well, nothing has really changed. The people of the United Kingdom are as diverse as they were before the Act and will continue to be so. The business case for sound equality at work practice remains the same as well. The focus is not, "How do I comply with this legislation?" but rather, "How do I get the best from the people who are affected by my business – whether they are customers, staff, suppliers or neighbours?" That said businesses are uncertain about what they should do. So the problem is not the Act itself, it’s about uncertainty.
First, ask yourself some fundamental questions. Are you sure that your business does not discriminate? How will you reduce the risk of discrimination in the future? How do you know that any actions you take to eliminate discrimination are effective and represent value for money?
The answers to these questions can vary dramatically depending on your business and, in truth, how honest you are being with yourself.
Discrimination affects all aspects of the business. Yes, the biggest impact of discrimination is likely to show in HR, but it also has a significant effect in the way you communicate, both internally and externally, how you design and offer your goods and services and how you use the built environment. Unwitting discrimination or poor practice in these areas results in lost customers, suppliers and market share.
Especially in the current market, competitive advantage comes from having the best people, regardless of any personal characteristics. To attract and hire the very best people in a diverse community you need to cast the recruitment net as wide and deep as possible. Having recruited them, you need to build their skills and knowledge, to keep them loyal and get that extra edge. Businesses with a customer-facing workforce that reflects the demographic and ethnic mix of customers have a clear advantage in terms of customer service, customer satisfaction and customer loyalty. To maximise the benefits of such a great staff, you also need to be sure that your goods, services and facilities are known about and accessible to everyone in your market.
Of course you could simply hire in a consultant - the usual quick fix. Nothing wrong with that – but it only gives you limited assurance depending on the skills and knowledge of the consultant. It’s also the case that discrimination can happen at any time, in any part of the business. In very general terms, people discriminate, and since those same people design and deliver the products, services and systems you use, a consultant’s assurance can be only “time limited”.
The best people to change how your business operates are the people who understand how to identify and eliminate discrimination. These are the same people who can identify the new business potential of all those changes, and who can also carry the skills and knowledge into the future. The best thing is that you’ve already employed them! They are your own workforce.
To maximise the benefits from such a workforce, senior management needs to understand that creating equality at work and investing in the skills and knowledge of the workforce is essential for the future success of the business. 'Doing the right thing', needs to be couched in terms of business issues if it is to (literally) pay dividends.
Once buy-in has been achieved, the next decision concerns how to implement this cultural and operational change, how to actually bring about equality at work. There is a wide range of guidance and several schemes to choose from issued by a variety of organisations including (ACAS), the Trades Union Congress (TUC) and the United Kingdom Council for Access and Equality (UKCAE).
If you decide to use a Scheme provider, here are the top tips to ensure you get one that is worth the effort you will put in.
An effective equality framework will be delivered both face-to-face and online, allowing everyone involved with the organisation to work though it no matter what their location. It will be suitable for all organisations, regardless of size or sector.
In our opinion, demonising the Act is unhelpful and irrelevant: concentrating on building a non-discriminatory business, valuing your workforce and growing your customer base and loyalty is far more productive, sensible and business-like.