Business case for workforce diversity

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1 Business case for workforce diversity

2 Diversity - a business imperative Externa drivers EU directives Diverse cientee Patient expectations Empoyee expectations Areas of change Legisation Demographics Cuture Reationship Interna drivers Equaity schemes Diverse workforce/patients Attitude vaues Empoyee reations Word cass service & empoyer of choice Bottom ine Productivity

3 The NHS context NHS Next Stage Review NHS Constitution Equaity and Diversity Counci Quaity, Innovation, Productivity, Prevention (QIPP) Care Quaity Commission

4 Why is workforce diversity part of core business? There are four main drivers for organisations: 1) Organisationa reputation 2) Recruitment and retention 4) Productivity 5) Risk mitigation

5 Organisationa reputation A good reputation attracts the best taent (from a communities) Vauing diversity signas an incusive environment for potentia staff and service providers As the argest empoyer, the NHS has a corporate responsibiity to engage its whoe community

6 Some statistics.. A Job Centre Pus survey, with 2000 respondents shows: 56% of customers woud be more ikey to use a business that has a diverse workforce 79% think it is important for businesses to have a poicy on diversity in the workpace Both staff and customers think empoyers coud be doing more to attract peope from different backgrounds in particuar, femae, disabed, ethnic minorities and oder workers

7 Some statistics.. 50% think businesses shoud be more proactive in improving workforce diversity 58% of empoyers caim currenty to empoy peope from groups who traditionay find it harder to get jobs, such as one parents, the ong term unempoyed or those from ethnic minorities

8 Recruitment and retention NHS needs to recruit and retain the best workforce A diverse workforce heps meet oca heath needs Backdrop of changing demographics - ageing workforce, generation Y More competitive abour market - pan to meet future workforce needs

9 Recruitment, retention and performance Did you know? IBM increased productivity by 30% by introducing fexibe working Chartered Institute of Pubic Reations, 2006 The Civi Service found a positive ink between workforce diversity, service deivery & knowedge of user popuation Nationa Audit Office, 2004 An Aston University study found a ink between good HR practices in NHS hospitas & ower patient mortaity West. M. A., Guthrie, J. P., Dawson, J. F., Borri, C. S., & Carter, M. R BT saves 3m a year on recruitment by retaining 98% of its women returners Women in the IT Industry, Towards a Business Case for Diversity, berr, 2006

10 Demographics and the workforce Facts: 3.5 miion disabed peope in work (ONS, 2008) 6% of popuation is LGBT (Taent not tokenism, EHRC, TUC, CBI, 2008) By 2020, UK s ethnic minority popuation wi be 11% (Equaities Review 2007) Impact: An increasingy diverse popuation wi be entering the empoyment market Empoyers need to use the fu range of skis, experience and resources of a diverse workforce By 2030, haf UK popuation wi be 50+, one third over 60 (ONS 2006)

11 Productivity Evidence shows diversity is key for high productivity, creativity, innovation and competitive advantage Vauing differences gets the best out of staff Strong correation between high satisfaction eves for staff and patients

12 What the figures show A work-ife baance strategy at London Borough of Camden reduced sickness absence costs by 2.5% Organisations with high gender diversity in top posts outperformed their sector on investment returns (McKinsey) Losing just one member of staff can cost an organisation 18,000 to repace (CIPD)

13 Risk mitigation Getting it wrong can be very expensive - compaints and ega chaenges are damaging to your reputation Empoyment tribunas are time consuming and costy Organisations with an effective approach to diversity are more risk resiient

14 Counting the cost of tribunas The atest figures for tribuna costs (2007) show that 16% of caims reated to sex, race or disabiity; 18% to equa pay It s a costy business for empoyers: race discrimination - average payout was 10,052, maximum payout was 123,898 sex discrimination average payout was 15,059, maximum payout was 138,648 disabiity discrimination average payout was 15,059, maximum was 138,658 age discrimination average payout was 30, 289 and highest payout given was 144, 100 (2010/11)

15 Counting the cost of buying & harassment The atest figures show buying and harassment cost UK firms biion a year (Unite 2008) Absenteeism, high staff turnover and reduced productivity, a contributed to this overa cost This equates to 33.5 miion working days ost a year

16 The business benefits Quaity, innovation, productivity and prevention: Organisationa reputation understanding different peope and audiences, and providing a quaity environment for care and work Recruitment and retention attracting the best taent and innovative practices Productive workforce highy motivated, cost effective, innovative and providing quaity care Risk mitigation prevention is better than cure

17 Business case for workforce diversity