There is an argument that BAME representation does not seem to be a priority for businesses. At least not in the same way that the commitment to bolstering gender diversity is being tackled. This is despite research from McKinsey’s ‘Why Diversity Matters’ report presenting the financial rewards of having an authentically diverse business. This indicates a real need to tackle the lack of focus around BAME within the boardroom.
As businesses seek to promote equality as part of their commitment to the diversity agenda, there seems to be growing awareness of the prevalence of ignorance around ethnicity. As a result of this ignorance and a nervousness of discussing the topic there maybe less emphasis being placed on the importance of BAME representation in the C-suite, and the wider workplace as well, than is required. The McGregor Smith Review highlights that only one in 16 top management positions are held by an ethnic minority person. This requires fundamental change.
It is clear that BAME individuals are not always given the same opportunities to progress or be placed in senior leadership roles. The UK economy would be £24bn better off if BAME employees progressed at the same rate as their white colleagues. If research has proven that diverse businesses perform better, and the entire economy might benefit as a result then why isn’t the lack of representation being challenged more aggressively?
The need for difficult conversations
If business leaders are not being wilfully discriminatory, what’s getting in the way of greater BAME representation in the C-suite? ‘Ignorance’ implies that those in power do not know what to do next or how to widen their talent pipeline, and this can be addressed to ensure that ethnicity is recognised and represented in senior positions.
For business leaders, evaluating the talent at the top of the boardroom is imperative. Having difficult conversations about how to increase the number of BAME positions in the C-suite has the potential to seem tough or challenging, but they are needed to ensure that the top end of the business is aware of the ignorance around greater ethnic representation. Approaching this successfully requires senior stakeholders and leaders to be direct and specific about re-focusing how diverse placements are made and ensure that the entire workforce is aware why this needs changing and how that change will be achieved.
Reversing ethnicity ignorance: the Government’s role
The role of Government in challenging and implementing changes to the way ethnicity ignorance is handled in the workplace is incredibly important. BAME representation is as pressing as gender and there have already been key steps taken to promote gender equality in the C-suite. Several Government policies have been implemented, such as gender pay gap reporting, shared parental leave, the Women in Finance Charter and the Hampton-Alexander Review. But what about how we support BAME workers seeking the same opportunities?
The Parker Review Committee, which was set up to explore the ethnic diversity of UK boards, published findings that outline the commitment required from businesses to ensure businesses deliver company-wide equality.
Importantly, in the charge to pursue this, the committee urged business leaders to improve the ethnic and cultural diversity of UK Boards to better reflect their employee base and the communities they serve. A notable recommendation here was for each FTSE 100 Board
to have at least one director from an ethnic minority background by 2021 and for each FTSE 250 Board to do the same by 2024.
These recommendations have been backed by the government, and the committee will seek annual reports from companies who have not achieved compliance with relevant targets. Without pressure from the government to adhere to policy and recommendations, some businesses may continue to fall behind.
Encouraging equality: the organisation’s role
Corporate bodies, businesses and other organisations need to be held to account for their role in promoting equality and eliminating ethnicity ignorance in the C-suite. For boardrooms to be truly diverse, they have to be made responsible for their role in providing representation of minority groups and candidates in the talent pipeline that are arguably overlooked for senior roles.
As pressure mounts for change, leading corporations are starting to take the steps needed to challenge the gulf that is apparent in workplace BAME representation. This is important in leading the change required to minimise the issues caused by ethnicity ignorance. Significantly, last year Lloyds became the first FTSE 100 firm to set an ethnic diversity target. The Group set a public target to increase representation of BAME colleagues to 8% of senior management.
The CIPD report, Addressing the barriers to BAME employee career progression to the top, noted that when asked about their career progression prospects in their current organisation, 40 per cent of BAME employees said they are satisfied with those prospects. To take steps towards promoting equality, especially in the boardroom, we need to hold corporations responsible for how they address progression.
There is a real opportunity here to influence wider societal changes. Making a diverse placement in a senior figure that acts as a role model for change is integral to how we address the scarce representation of minority groups we face today. Tapping into underutilised and diverse talent pools will provide opportunities for the C-suite to address its commitment to diversity and bolster the perspectives and thought that can be delivered.
We need to eliminate the current ethnicity ignorance that dominates the boardroom and realising the wider impact that the workplace has on BAME employees will help move this forward.
Audeliss Executive Search is committed to improving levels of BAME representation in senior management. We have a diverse and experienced talent pool of innovative individuals and if you need any help with your succession planning, don’t hesitate to get in touch with the team in New York or London.