Apprenticeships and Employers Sandra Kerr, OBE National Director Race for Opportunity Business in the Community

Is the campaign committed to improving employment opportunities for ethnic minorities across the UK Is the only race diversity campaign that has access to and influence over the leaders of the UK’s best known organisations Is committed to the bringing about meaningful change through furthering understanding of the business case for investing in race diversity This is achieved through Leadership senior leaders on board, benchmarking, awards, workshops and publications About Race for Opportunity

RfO helps employers unlock potential by aligning their workforce, thinking and ways of working with customers and society at large. UK is already diverse and will continue to become increasingly so The UK population is diverse: 1 in 7 of the current population is from a BAME background % The emerging workforce is even more diverse: 1 in 6 UK-domiciled students at university is from a BAME background 1 in 5 pupils in secondary school is from a BAME background and 1 in 4 children in primary schools is from a BAME background Employers have found it difficult to establish a diverse workforce that reflects local territories or indeed society at large: 5.7% of FTSE 100 directors are from ethnic minorities (UK norm 12%) 59.4% of ethnic minority people are employed (UK average 70.6%) 44.4% is the unemployment rate for black youths (UK average 21.2%)

FTSE 100 Board Representation shows little movement 8 BAME Board Positions held in 2012 (7 men and one woman) The UK Workforce is diverse in part, but management remain underrepresented 1 in 15 of the BAME workforce is in management (vs. a norm of 1 in 8) University representation from BAME groups is low in high profile campuses 1 in 6 UK domiciled students from BAME background are in University 1 in 8 study at a Russell Group University 1 in 10 at Oxford and Cambridge Universities. Employment prospects have deteriorated markedly in some BAME groups 44.4% is the unemployment rate for black youths (UK average 21.2%) Progress has been made, but challenge and opportunity for business remain Organisations that maximise their full talent capability are better placed to deliver increased competitive advantage with marginal incremental cost.

Why diversity makes compelling sense for business? An inclusive and diverse workforce: Improves decision making and creativity by avoiding group think Builds better value propositions, having access to more market knowledge Increases access to a growing market by understanding entry points Creates a positive and inclusive brand image for customers, employees and prospective employees Contributes to social cohesion and stability, building more effective ties and loyalty with markets and communities A study commissioned by Weber Shandwick estimated the spending power of the UK’s ethnic communities at £300 billion*. Source: Multi-Cultural insight study 2007 commissioned by Weber Shandwick’s specialist multicultural marketing division Multi-Cultural Communications. £300m estimated for 2010.

And not forgetting that businesses with global language skills benefit from market globalisation In 2005, the Guardian reported that more than 300 languages were spoken by the people of London, and the city. The ten most popular languages worldwide with the number of language speakers: In state-funded primary schools 16.8% of pupils’ first language (compulsory school age and above) was known or believed to be other than English in Why diversity makes compelling sense for business?

Race for Opportunity – Objectives To accelerate representation within the workforce including Board and senior executive levels. To track progress across all BAME segments and drive focus on areas most in need of support. To tackle youth unemployment and ensure balanced inclusion of BAME young people.

1 in 16 (on boards) 1 in 8 (in the workforce) 1 in 4 (in primary school) Increase inclusive and diverse senior leaders Accelerate progression and balance representation Reduce BAME youth unemployment RfO Vision: Squaring the pyramid

Best practice is clearly defined Good diversity practice Leadership and behaviours. Policy and Practice. Benchmarking and measurement. Awareness and training. Engagement. Organisational culture. Evaluating impact. The fundamentals of good practice must permeate policy and practice with employees, customers, communities and suppliers. Senior leaders actively sponsoring diversity and embedding action into business unit plans. Monitoring workforce and customer outputs by diverse segmentation with appropriate targets and action plans. Ongoing awareness and training on inclusion, unconscious bias and cultural awareness. Active review of employee engagement scores by diverse segmenting. Creating culture where everyone can thrive and utilise their talents. Brought to life through inclusion The journey from diversity management to an inclusive business

Aspiration and Frustration based on an in-depth study of the opinions of almost 1,500 people from all major ethnic backgrounds in the UK (including white Britons) about all aspects of their attitudes towards their goals, their views of different industries and on their experience in the workplace. Source: RfO Aspiration and Frustration: June 2010 RfO Aspiration and Frustration Attractive but not transparent sectors

Politics Banking/Finance Legal/Law Media Professional services and legal firms, media and public sector need to do more. Apprenticeships need innovative and creative action and inspirational role models to get away from the image of ‘hard hat and hammers.’ Source: RfO Aspiration and Frustration: June 2010 RfO Aspiration and Frustration Industries: Attractive but not transparent

Industries seen as most discriminative

Recruitment trends Benchmarking 2012 The following actions are more closely correlated with greater intake of Black, Asian and Minority Ethnic (BAME) candidates: Running ‘pre-application’ events or similar for diverse groups to further prospective candidates’ understanding of the application and recruitment process (75% of the top two quartiles do this, only 56% and 50% of the bottom two quartiles do this). Employers with a policy for interview panels to have ethnic minority representation when possible (50% of the top quartile do this, only 22% of the bottom quartile do this). Source: BITC 2012 Benchmarking Trends Analysis Report - Diversity

Recruitment trends Benchmarking 2012 The following actions are more closely correlated with greater intake of Black, Asian and Minority Ethnic (BAME) candidates: Employers that are able to track the progress of all job applicants throughout the recruitment process by ethnicity and use this data to help them identify any potential barriers to recruitment and changes that need to be made (100% of top quartile do this, only 56% of bottom quartile do). Employers that have clear and current objectives for recruitment of BAME talent (this is less likely in the bottom quartile than in every other quartile). Source: BITC 2012 Benchmarking Trends Analysis Report - Diversity

Recruitment trends Benchmarking 2012 The following actions are more closely correlated with greater intake of Black, Asian and Minority Ethnic (BAME) candidates: Employers that have a set of key performance indicators that they use to check and demonstrate their success in attracting and recruiting BAME candidates of both sexes (63% of the top quartile, only 33% of the bottom quartile do this). Employers that mandate unconscious bias training to those with interviewing and recruitment responsibilities (50% of organisations with higher recruitment rates do this, only 5% of organisations with lower recruitment rates do this). Source: BITC 2012 Benchmarking Trends Analysis Report - Diversity

Progression trends Benchmarking 2012 The following actions were found to correlate with faster progression rates: Organisations that actively monitor and measure their talent pipeline and are aware of the progression rates of BAME employees (67% of top quartile do this, only 44% of bottom quartile). Organisations that use selection criteria that is transparent and can be viewed by all employees (89% of the top quartile do this, which is higher than the average of 57% across the other quartiles). Source: BITC 2012 Benchmarking Trends Analysis Report - Diversity

RfO Key Underpinning Support Mentoring within the organisations talent pipeline to better understand and support diverse employees and the opportunities and challenges that arise as a result. Active sponsorship is also recommended to open up opportunities to support the building of skills portfolios and experience. Inclusive cultures are needed to enable everyone to flourish as part of how an organisation operates. Employee engagement surveys segmented by ethnicity is a key way to pulse check your organisation.

Thank you