National Grid Embedding a culture of diversity and inclusion

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1 National Grid Embedding a culture of diversity and inclusion Company information National Grid is an international electricity and gas company based in the UK and Northeastern US. It plays a vital role in connecting millions of people safely, reliably and efficiently to the energy they use. In 2014, National Grid had a total of 23,909 employees. Diversity and inclusion themes Developing leadership Diversity as business imperative Measuring and monitoring Flexible working Sharing good practice Using role models Find out more g Controlling demand. Learning to work on pylons at our Eakring training facility. 96

2 Diversity and inclusion toolkit Employees from a diverse range of backgrounds. Inspiring our youth to be interested in STEM. We want to encourage women to consider a career in STEM. Introduction Toolkit Case studies Appendices 97

3 Background, aims and objectives National Grid started to focus on D&I about 10 years ago, following a merger of two companies with two different organisational cultures. At this time, the workforce was also starting to see a significant upturn in the numbers of women returning to employment, and there was an increase in legislation aimed at protecting the interests of minority groups in the workplace, for example, Employment Equality (Sexual Orientation) Regulations and the Race Relations Act (please note these have since been replaced by the Equality Act 2010). National Grid realised it was facing a shortfall in its recruitment of engineers, particularly attracting highly talented engineers and a diverse pool of candidates. In 2009, National Grid commissioned a report, Engineering Our Future, to investigate perceptions in relation to the engineering profession and the challenges it faces. Following this report, a threephase approach was developed (see diagram opposite): National Grid s current approach to D&I is to integrate it into everything it does across the whole employee life cycle resourcing, career development, accelerated development and promotion. The organisation s D&I vision is to develop and operate our business in a way that results in a more inclusive and diverse culture. This supports the attraction and retention of the best people, improves effectiveness, delivers superior performance and enhances the success of the company. National Grid three-phase approach 1 Inspire Inspiring our youth to be interested in STEM 3 Develop 2 Attract National Grid three-phase approach Growing and developing talent Ensuring potential employees see National Grid as a great place to work. 98

4 Diversity and inclusion toolkit Flexible working uptake 99% 99% of flexible working requests were granted in the last 12 months in National Grid Source: DWP Age Positive Toolkit age-positive Specific initiatives Leadership National Grid has developed a Line of Sight Framework, which joins up the vision, strategic objectives and values of the company with individuals personal objectives. The strategic objectives drive what they do as a business, and the values drive how they perform. This means that the management population is measured on their performance in terms of both what they do and how they do it. An example of one of the strategic objectives is Inclusive and engaged workforce where everyone can develop. An example of one of the values is Respect others and value their diversity. This is relaunched on an annual basis so that all employees are aware of the importance of D&I and what is expected of them in relation to this. The CEO is very open and explicit about what he expects, and the organisation is constantly evolving its approach to embedding D&I in the culture. Using data The organisation monitors data on gender and ethnicity at all levels and also looks at disability and sexual orientation on a voluntary basis. This enables them to see where there is positive movement in the figures on an ongoing basis, as well as any trends or areas of concern. All areas of the business have a quarterly scorecard, which looks at their performance in terms of a number of factors, including how many applicants they have had, how many candidates have been appointed, how many have been promoted and so on. They analyse the data to identify trends and provide insights into how the different parts of the business can do things differently. National Grid believes that this approach helps to engage leaders and encourage them to role model inclusive behaviours. The data is used together with the results of the employee survey as drivers for objectives. Flexible working In line with current legislation, National Grid has developed a policy of being open to requests for flexible working from any employee and does not require specific reasons to be given. The default position to requests for flexible working is yes unless there is a good business reason why not. In terms of the business case for this approach, the organisation says: Why not? National Grid recognises the pressures on people s lives and want to help employees to manage this. It is also believed that flexible working makes the organisation an attractive employer, which brings benefits in terms of recruitment and retention. The organisation also wants to increase the number of jobs advertised as considering flexible working. In terms of communication of the policy, they believe it is part of the DNA of the organisation now. There is also an employee network, the Work and Life Matters network, which focuses on flexible working and continues to promote this approach. The network also helps people who want to work flexibly to make a case for it. Impact In terms of measuring impact, National Grid has chosen not to set hard targets as it is believed that there is a risk that targets can drive inappropriate behaviours. Instead, it focuses on talking about direction of travel, and making sure processes and the way things are done are driving figures in the right direction. It has also been important for the organisation to recognise that different parts of the business are in different stages in their D&I journey. Therefore, they do not want to be too prescriptive but rather enable the businesses to follow an approach that works for them. In terms of flexible working, the uptake is increasing. Out of 250 requests, 248 were granted in the last 12 months. Feedback from employees is that the policy is hugely appreciated, and they have case studies of people achieving a good work-life balance through their flexible working arrangements. National Grid also has a very high rate of return following maternity leave (97%). It is believed that this is partly due to the flexible working arrangements available. Introduction Toolkit Case studies Appendices 99

5 Challenges Sometimes, flexible working arrangements are too informal. Line managers need to be clear about expectations and realistic about what can be achieved by employees working part-time. There are certain parts of the business where flexible working cannot be implemented due to the nature of the work. There is sometimes resistance from managers. However, HR work with these managers to try to break down any concerns and identify solutions. Hints and tips Be open to the idea of difference. The pace of change is accelerating, and there is, therefore, a need to think creatively about how things can be done differently. Look more openly/broadly at the requirements for roles. Consider whether certain criteria are limiting the diversity of your pool of applicants. Have networks in place to support employees. Networks can help raise the business s awareness of what it s like to be an employee in that area, and they provide a sense of community and opportunities for individuals who might not otherwise shine. Look at whether there are opportunities to take positive action. If you have a very dominant culture and an underrepresented group, think about what other steps you might have to take. How can you help other individuals to stand a better chance? Look at your processes, for example, the way you go about recruitment, and conversations about performance and career development. Are they as open and honest as they should be? Is there anything that automatically puts a group at a disadvantage? gsee Appendix 3 for more guidance on specific initiatives linked to this case study: Data Role of leadership Flexible working gfor useful resources and organisations to support your work, see Appendix 4. i To find out more about the case study, contact diversity@raeng.org.uk 100