Positive discrimination among top D&I issues UK businesses should focus on in 2024

The top four significant issues for businesses to take note of in the new year are positive discrimination, zero tolerance policy, inclusive leadership, and passive and active bystanders. By applying focus and getting them right, businesses could achieve better outcomes for the benefit of individuals, quality of products and services and better financial results.

They are particularly relevant amid rising costs and economic pressures and in the aftermath of a challenging year in 2023 for businesses looking to invest in equality, diversity and inclusion (EDI) initiatives and programmes relating to organisational culture. According to research from the Chartered Institute of Personnel and Development (CIPD), only one in six firms invested in an EDI strategy last year.

With economic uncertainty and the cost-of-living crisis being a prominent feature, businesses have adapted to the changing climate, including by putting budgets under closer scrutiny and placing greater focus on financial performance. Some businesses have decided to remove D&I targets and bonuses, and, in some cases, businesses have stopped focussing on D&I altogether or removed D&I functions from their structure.

However, it is increasingly important for businesses to recognise that D&I can have a positive impact on their bottom-line. McKinsey & Co’s analysis in 2019 found that an organisation with genuinely diverse targets, which are in the top 25 percentile, were 25% more likely to have above-average profitability than those organisations in the bottom quartile.

Research from Barnett Waddingham also shows that employee demands for an EDI strategy were a major concern for their business. Every business wants to be well led, inclusive, attract and retain talent, and have leaders and staff members who do the right thing. Customers expect providers of products and services to have a strong commitment to ESG goals and demonstrate progress against them.

Not positive discrimination, but positive action

Some D&I initiatives are much more straightforward to implement than others, and processes involving recruitment and promotion can put organisations at risk of practicing positive discrimination. Positive discrimination is the practice of automatic favouring of minority group individuals over individuals from a majority group without a fair and proper consideration of merit.

Positive discrimination is an unlawful practice in England and Wales, and can be seen through policies and actions such as having a quota on hiring a specific number of people based on a protected characteristic. Other examples include promoting an underqualified employee based on a protected characteristic, and choosing an individual from a minority group in favour of a more suitable candidate who happens to be a part of a majority group because of a concern about a distinct lack of minority in the organisation.

When looking to actively overcome disadvantages in their workplace, employers should take steps under the lawful route of positive action to work towards maintaining a diverse workforce. Positive action allows employers to implement specific steps with the aim of improving equality and diversity in their organisation. But it can only take place when specific circumstances arise and can be objectively exemplified, such as when individuals are potentially at a disadvantage because of a protected characteristic or these individuals are under-represented in the organisation, or where the individuals have disproportionately low participation.

Actions taken by employers under these circumstances must be proportionate and with the intention to lessen or remove barriers they reasonably believe are faced by people connected to a protected characteristic, such as race, gender, disability and age. Steps employers take must be done with the intention to support individuals from under-represented groups overcoming any disadvantages when competing with other applicants or applying for development and training. 

Initiatives under positive action could include: actively encouraging applications from under-represented groups; providing internship and graduate schemes available to specific demographics; and making a decision during a tiebreaker situation, whereby a policy of implementing positive action initiatives into recruitment processes has already been established.

It is important for employers to ensure that these initiatives are implemented in a way that does not disadvantage any individuals from majority groups. The overarching purpose of positive action is to ensure that individuals who may face barriers due to a protected characteristic have that barrier reduced so that a fair chance at opportunities based on merit is attained.

Zero tolerance policy

A zero-tolerance policy prohibits discrimination, bullying and harassment. Sometimes it is also branded as ‘dignity at work’ or ‘respect at work’. The aim of the policy is to support safe and respectful workplaces and the prevention of harassment.

It is important to ensure that the policy is clear on what is expected from people and provides practical examples to provide context. There should be clear guidance for people to challenge poor behaviour, steps for escalation, and on how leaders should hold themselves and others to account. The policy should also include reference to the disciplinary policy and potential for disciplinary action where individuals do not demonstrate the expected behaviours and engage in misconduct or serious misconduct.

As well as having a policy in place, employers need to provide learning and development that inspires the right behaviours and empowers people to contribute to a great working environment, where respect and psychological safety exists. One of the methods is to have compulsory training for everyone on safe and respectful workplaces and having specific learning for managers.

Learning for managers should empower them to extol role model behaviours, to take action when team members and other people do not, and help them handle situations where complaints of misconduct are made or where they require further escalation in accordance with the business’s disciplinary policy. An example of the desired outcome could be where an individual relates to the learning provided and becomes aware that they are experiencing harassment, they then use the protocols from within the policy to raise the issue for investigation.

Ultimately, the zero-tolerance policy can help the business to develop a culture of respect and dignity in the workplace, when it is clear in behavioural expectations for everyone and the consequences for not upholding their obligation in adhering to it.

Inclusive leadership

Inclusive leadership is a style of leadership that encourages psychological safety, mutual respect, and a high-performance culture to deliver the business’s strategic aims and priorities. Leaders who are inclusive have the ability to listen effectively, demonstrate emotional intelligence, tenacity, resilience, and have the ability to make informed yet difficult decisions.

Leaders set the tone of the business. In turn, leading inclusively can have a positive impact on being an employer of choice for existing and would-be employees, and provider of choice to clients. Not only is inclusive leadership the right thing to do, it is also better for the bottom-line. This is because inclusive leadership influences a culture of better collaboration and motivation, including the potential for greater discretionary effort, which subsequently enables better innovation, leading to growth and better business performance.

Leaders can learn how to become inclusive leaders through structured learning and unstructured learning opportunities. Businesses should consider having an inclusive leadership learning programme, and be sure to have buy-in from their senior stakeholders, with key messaging and communications from them to encourage positive engagement in that learning – particularly where the programme is compulsory to attend.

Whether the programme is compulsory or not, it is equally as important for leaders to understand the ‘why’ for completing learning on inclusive leadership, so the business case for inclusive leadership should be clearly communicated to them. In the communications and in the learning, it is key to make leaders aware that when they make business decisions, those decisions will have an impact and they are accountable for those. One way to do so is to use data points to position the rationale for the programme, showing where inclusive decision making could improve representation, team diversity, and all the benefits that provides.

Structured learning, meanwhile, should use challenging case studies and scenarios for delegates to discuss and there should be a process for peer feedback and reflection. Using real-life scenarios and data points from within the business, in particular, will encourage positive participation and inspire leaders to consider how inclusive their decision making may be. Examples of such data points or scenarios may be unconscious bias in hiring practices and when selecting people for promotion.

Passive and active bystander

The idea of being a passive or active bystander originates from the psychological phenomenon of the bystander effect. The bystander effect is where an individual is less likely to help a victim when other people are present, regardless of the actions of others. It is generally understood that the more people around the victim, the less likely any individual is to help. There are additional factors which can influence an individual’s decision to help.

Global, national, and local D&I issues have impacted behaviour expectations within society and in the workplace. Over recent years, the George Floyd killing, Black Lives Matter, experiences of LGBTQ+, the #MeToo movement and others have determined the really important role of allies and active bystanders in different settings.

The workplace can reflect the bystander effect seen in wider society. An individual may be the victim of discrimination, harassment, or bullying and may be unable to raise a complaint due to their experiences. The more people who are around to witness this behaviour, and a decrease in those who intervene, could create a situation where the bystander effect comes into play. In contrast, bystanders identifying, reporting, and preventing instances of bullying or harassment of others in the workplace can help significantly reduce the number and frequency of these instances. Employees can become active allies and bystanders by making small changes in behaviour, so they can support their colleagues and help create a positive working environment.

An ally is someone who supports groups different to their own and who have lived different lives. There are three steps to start working towards becoming an ally: learn, listen, and act. An ally will use their own experiences and position within the organisation to raise awareness and work to create a more inclusive and equitable organisation. When they witness questionable behaviours or situations, there are two essential steps to convert their status as active allies to active bystanders: acknowledge any feelings of discomfort and evaluate options for taking action.

Businesses can invest in training so that people are aware of their role as a colleague or a manager, and an ally. By proactively implementing behaviours into their routine that mirrors those of an active ally and active bystander, individuals can take small, meaningful steps to contributing to a more positive and inclusive workspace across the organisation as whole, which in turn enables a more positive, respectful and inclusive culture.