Paul Evans, CEO of Leadership Through Sport & Business, explains why organisations that retain a focus on diversity and inclusion through difficult times will continue to reap the rewards
Youth unemployment is set to surge due to the COVID-19 pandemic, hitting the most vulnerable hardest. 260,000 more young people have claimed unemployment benefits since March 2020, and youth unemployment could exceed two million, according to warnings from the Institute of Employment Studies.
Young people will have to navigate an uncertain future during the expected recession, with entry-level opportunities drying up as companies struggle for survival. There has been a 32% reduction in apprenticeship and school leaver opportunities since April as organisations cut costs. The outlook for young people is bleak.
The pressure will not be felt equally. COVID-19 has laid bare the social inequalities that exist in our society. Young people from BAME backgrounds are twice as likely to be not in employment, education or training (NEET) than their peers. Those eligible for Free School Meals are 50% more likely to be NEET and half the long-term NEET population has had experience of the care system. Skills gaps and systemic barriers stand in the way of millions of young people fulfilling their potential.
As the pandemic continues, we have been forced to ask and answer questions of how we treat the most vulnerable, our attitudes to race, diversity and inclusion. We need to demonstrate how will we ensure that every person, from whatever background gets an equal opportunity to flourish.
Those organisations that had strategies for diversity and inclusion already as part of their DNA were able to continue their positive practices.
The role of businesses
'Well-balanced boards are about ideas and avoiding groupthink,' as Lord Davies, former chief executive of Standard Chartered, ex-trade minister and LTSB patron once said.
When businesses were hit by COVID-19, many of them were forced into having to have a laser like focus on the essential areas that would stop their business closing, staying solvent, retaining customers, radically adjusting business models to cope in a virtual world. This was all against a backdrop of potential job losses and organisational change.
For many, this meant that areas such as, 'wellbeing' and 'diversity and inclusion' had to take a back seat. When you are in survival mode, a lot of areas that require time, investment and significant thinking, are de-prioritised to concentrate on merely staying alive.
What was evident, however, was that those organisations that had strategies for diversity and inclusion already as part of their DNA were able to continue their positive practices.
COVID-19 highlighted a disparity between businesses. For some that were just getting going it was now hard to invest in the necessary engagement, planning and finance implications to do it justice. For those businesses where diversity and inclusion was business as usual, things carried on in a positive way. This would prove beneficial in what was to come.
In the midst of lockdown came the killing of George Floyd. This triggered a reaction across the world not witnessed for generations. The recognition that COVID-19 had affected the most vulnerable groups most, coupled with the Black Lives Matter movement shining a spot light on racial oppression, injustice and the inequalities suffered by BAME groups, forced business to tackle their inclusivity and diversity practices, immediately and publicly.
At Leadership Through Sport & Business we were about to launch our ground-breaking partnership with NatWest - truly socially mobile programme to help tackle a lack of diversity in the digital and technology sector. It would provide career making opportunities to young people from disadvantaged backgrounds all championed by NatWest CEO, Alison Rose.
Then COVID-19 hit and we assumed this would stop this programme in its tracks. The pandemic and its impact on all businesses, threatened our partnership that would see 60+ young people, recruited, prepared and supported into a range of apprenticeships.
We were wrong. We began our new partnership, as planned, and this October we will see 61 young people, from disadvantaged backgrounds, placed into meaningful apprenticeship placements across the country, full-time and fairly paid.
I mention this, as an example of an organisation which saw the business and moral case for continuing diversity and inclusion practices, changing their workplace to better reflect the communities they serve. Even in these difficult times, the combination of COVID-19 and the Black Lives Matter campaign made it impossible to ignore vulnerable groups and ignore the case for diversity and inclusion strategies.
Workforces that better represent the communities they serve are more profitable. But that doesn't mean that it's easy to find new types of talent.
The business case for diversity is well known. A Boston Consulting Group study found that companies with more diverse management teams have 19% higher revenues due to innovation.1 According to the Hays Asia Diversity and Inclusion report, improved company culture, leadership and greater innovation were the top three benefits of diversity identified by respondents.2
We can agree that the business case for diversity has been made. Workforces that better represent the communities they serve are more profitable. But that doesn't mean that it's easy to find new types of talent, especially from marginalised groups that aren't found through traditional recruitment streams.
Why apprenticeships work
When we work with businesses to help them become more diverse, inclusive and adjust their culture and recruitment practices - we advocate for apprenticeships.
Apprenticeships give a young person an opportunity to 'earn and learn'. For many young people the idea of going to university fills them with a fear of debt and concerns over the cost. For those young people from difficult backgrounds and under-served communities, debt and struggle could have played a significant, negative role in their lives.
Apprenticeships are attractive for young people and can be life changing. The potential to earn a wage while they train at work and gain a recognised qualification is hugely motivating and with the right support, they can go on to rise through the ranks of their chosen career, debt free and with a sense of purpose and fulfilment.
The benefits to a business of taking on an apprentice and running an apprenticeship scheme are plenty. Apprenticeships can help you tackle skill shortages in your business, make the most of the Apprenticeship Levy, you can up-skill staff saving on the cost of recruiting new hires and you can train young people for the specific skills and knowledge needed for your roles.
UK Training and Development found that:
- 96% of employers say that an apprentice benefits their business
- 72% of businesses report improved productivity as a result
- two-thirds of employers say that having apprentices improves products or services, brings new ideas, raises morale among staff and encourages staff to stay
- the average person completing an apprenticeship increases productivity by £214 a week.
A report by the Social Mobility Commission in June 2020, Apprenticeships and social mobility, found that the main beneficiaries of apprenticeships are the people who do not need them.3 The study showed how 'the Apprenticeship Levy, introduced in 2017, has disproportionately funded higher-level apprenticeships for learners from more advantaged communities, rather than those from disadvantaged socio-economic backgrounds, who would benefit more'.
As we look at the business and moral case for diversity and inclusion, the need to enable greater social mobility, and the real and lasting change that meaningful apprenticeship opportunities can make in a young person's life, and for an organisation, are clear. The only question that should exist for a business now is: how do I get started?
The views and opinions expressed in this article are those of the author(s) and do not necessarily reflect the position of Prospects/Jisc
Notes
- How diverse leadership teams boost innovation, BCG, 2018.
- 2018 Hays Asia Diversity & Inclusion Report, Hays, 2018.
- Apprenticeships and social mobility, Social Mobility Commission, 2020.
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