Employers need more support to develop effective EDI strategies

Employers need help to develop equality, diversity and inclusion policies that have the desired effect and offer value for money, an independent report produced for the Government Equalities Office has said.

The independent Inclusion at Work Panel, which was appointed by business and trade secretary Kemi Badenoch to examine the state of EDI business practices in the UK, finds that many organisations are implementing initiatives without an evidence base. This can mean that they are sometimes counterproductive or unlawful.

The panel, which met with a range of people representing large and small businesses and organisations in the public and third sectors, found scarce evidence of measurable impact from EDI initiatives.

All participants agreed that more, and better, data and evidence would improve EDI strategies, and if this was government-curated or endorsed, employers would have more confidence in citing it.

The final report from the panel says that employers are currently expected to understand disadvantage and equality in great depth, "the capability for which simply does not exist in most organisations".

The report says: "We believe that, while employers have a duty to fully grasp and apply the law, leaders and managers should not be expected to possess a sophisticated knowledge of the demographic, historical, and socio-economic debates relating to the relative advantage and disadvantages between groups. Nor, crucially, should they outsource or delegate this to those with potentially conflicting incentives.

"Leaders in all sectors can and should be empowered to better understand their workforce data, and how specific practice can help productivity, retention, fairness and belonging."

The report recommends that the government endorses a new framework that sets out the criteria employers might apply to their EDI policies and practices, to ensure they are effective and offer value for money.

The proposed framework has five criteria:

1. Gather evidence systematically and comprehensively
2. Put evidence into practice
3. Review interventions and processes regularly
4. Widen diversity of thought and experience through recruitment and retention
5. Restore the importance of clear performance standards, high-quality vocational training and excellent management as the most effective means to improve EDI.

It also suggests the creation of a digital tool to allow leaders and managers to assess the efficacy and value for money of a range of EDI practices and "nudge" providers of commercial EDI services to develop interventions that have an impact.

It says that definitive claims of "what works" can be misleading or inconclusive.

"Results in one context cannot necessarily be replicated in another as workplaces are complex social environments with countless variables," the report claims.

"Evidence is essential for measuring progress and impact, and evidence exists for many interventions. Easy access to authoritative data and insights, to better understand value for money and effectiveness, would give employers more confidence in their strategic choices."

It also recommends that the Equality and Human Rights Commission clarifies the legal status for employers in relation to EDI practice, with a particular focus on the implications of recent court rulings for HR policies and staff networks.

For example, it cites the Furlong v Chief Constable of Cheshire Police case as an example of an employer incorrectly applying the positive action provisions of the Equality Act. In that case, the police force was found to have discriminated against a white candidate.

The panel also looked at whether an 'Inclusion Confident Scheme' would work in practice but decided that introducing another accreditation or compliance scheme was unnecessary, and pointed to the broad definition of "inclusion" as a barrier to the development of a "precise and useful" scheme.

Business secretary and minister for women and equalities, Kemi Badenoch, said: "Discussions around diversity and inclusion at work are often bogged down by performative gestures. This government wants to ensure employers are doing EDI in a way that doesn't undermine meritocracy and aligns with our equality laws.

"This report by the Inclusion at Work Panel is a powerful new tool for organisations. It lays out the evidence for good and bad EDI practice and can empower employers to make fairer, more effective EDI decisions that represent proper value for money.

"I sincerely hope that businesses will take time to read this report so that it becomes an important step in helping them achieve more inclusive and productive workplaces."

Chair of the panel Pamela Dow, COO of Civic Future, said: "It has been a privilege to work with such expert colleagues, united in the goal of fairness and belonging in the workplace. Our aim was to support leaders in all sectors to spend time and money well.

"The insights from our wide discussions show how we can build a useful evidence base, track data, improve confidence and trust, and reduce burdens, for organisations across the UK.