BBC executives praised for ditching £350,000 bonuses after failing to meet diversity targets

Diversity experts have applauded the decision by BBC executives to forgo their bonuses collectively worth £350,000, after the broadcaster failed to meet its diversity targets.

The corporation set itself stringent targets in 2004 of increasing the percentage of black and minority ethnic staff to 12.5% and 7% at senior management level, to be met by 31 December 2007.

It said that while progress had been made, it would not meet some specific commitments on workforce numbers.

Sally Humpage, employee relations and diversity adviser at the Chartered Institute of Personnel and Development, said the BBC directors had taken a "positive step" that other organisations could learn from.

"This bold step sends out a message to the rest of the company that everyone is responsible," she said. "Organisations need to set out objectives on diversity and then measure performance around those objectives. The BBC has taken a strong lead where others can follow."

Atul Shah, chief executive of consultancy Diverse Ethics, and an adviser to the BBC, said the executives' action was laudable.

"Commercial business leaders rarely sacrifice bonuses under any circumstances and their remuneration is much higher than that of the BBC executive directors," he said.

But Luke Crawley, assistant general secretary at broadcast union Bectu, said the BBC should go further.

He said: "This is a positive and strong message it is sending out, but it would do no harm for this action to cascade further down the management board."

Mark Thompson, director-general of the BBC, who set up a diversity leadership council at the corporation in 2005, is still set to receive a bonus as determined by the remuneration committee of the BBC Trust.

This story was first published by Personnel Today

Wimbledon pays women equally - but will Gordon Brown?

The Fawcett Society today issued a challenge to the new prime minister to be the first to ensure that women and men in the UK are equally rewarded for their work.

Although equal pay legislation has been in force for more than 30 years, there's still a pay gap women working full-time still earn on average 17% less per hour than men working full-time, and women working part-time earn 38% less.

Dr Katherine Rake said: “Women tennis players are finally enjoying equal pay at Wimbledon – it’s time for Gordon Brown to give all women a sporting chance and finally end the pay gap. The ball’s in his court.”

Practical steps to end the pay gapAs the leading campaign for equality between women and men, Fawcett has set out the practical measures that Government could take to end the pay gap. These include:

• Safeguards: Compulsory pay audits for all organisations
• Bold ambitions: The Government to set dates for finally closing the pay gap
• Tackle long hours: Full sign-up to the EU’s Working Time Directive and other steps to tackle our long hours working culture, which limits the ability of women with caring responsibilities to compete on an equal basis with men.
• Include men: Government and employers to encourage men - not just women - to engage with work-life balance issues.
• New rights: a right to work flexibly for all employees, unless there is a strong business case against it

Research by Capital Consulting and Cranfield School of Management reveals UK companies are failing to develop top people

Training and development experts have championed the importance of talent management after a new report found more than half of UK businesses are failing to develop their top people.

Research by recruitment outsourcing provider Capital Consulting and Cranfield School of Management, found that only 49% of UK businesses had implemented talent development programmes.

Having questioned 608 HR directors, the research pointed to a lack of financial investment and insufficient senior management support as the main obstacles to talent development.

It found that while six in 10 respondents said talent management was essential to increasing profit, only four in 10 strategically managed their star talent. One in five did not link the strategy to their business plan, while only 15% measured the return on investment.

Victoria Winkler, training, learning and development adviser at the Chartered Institute of Personnel and Development, told Personnel Today she was not surprised by the findings. However, she believed that skills awareness was growing, and was not only on the agenda of HR departments, but also chief executives and finance directors.

"HR teams need to put a talent management structure in place to get the most out of their employees," she said. "It can have a major impact on the bottom line and retaining staff."

Jeremy Tipper, group managing director of Capital Consulting, said: "Creating an effective talent management framework has the potential to make HR directors organisational heroes because of the ever-growing impact it will have on business performance."

Dr Emma Parry, research fellow at Cranfield School of Management, said the report should serve as a wake-up call to employers. "The disconnect between what senior managers are saying and what they are doing is very worrying," she said.

Suppliers with poor diversity records will fail in public sector procurement battle

Government proposals to increase equality in the multi-billion pound public sector procurement process will see suppliers with poor diversity records shoved to the bottom of the pile, according to legal experts.

The Discrimination Law Review, published earlier this month, stressed that in carrying out procurement, public authorities must have regard to the need to eliminate discrimination and promote equality.

With public sector procurement in the UK worth more than £125bn a year, public authorities represent a major customer base.

Earlier this year, Personnel Today exclusively revealed that technology giant Microsoft ditched a supplier with a poor attitude towards diversity. The company's HR director Dave Gartenberg said: "In one case, we changed provider because they were cavalier towards the topic. They were supplying a perfectly good service, but we stopped using them."

Sandra Wallace, head of equality and diversity at law firm DLA Piper, said: "Companies with a strong equality and diversity record will have an immediate advantage when bidding for contracts.

"Just as the Microsoft case highlighted, the Green Paper confirms that companies that fail to recognise the importance of good diversity practice are placing themselves at a competitive disadvantage."

Critics have argued that firms with poor diversity performance should be excluded from bidding for contracts altogether. But Wallace said the government was unlikely to go that far.
"There is a debate as to whether a simple breach of discrimination law should disqualify a company from tendering for public contracts," she said. "What is more likely to emerge is practical guidance on how to factor equality into the procurement process."

The CBI said employers recognised procurement could be a "highly effective tool" for encouraging equality, as long as contracts focused on results, and not on "box-ticking".

This story was first published by Personnel Today

Suppliers with poor diversity records will fail in public sector procurement battle

Government proposals to increase equality in the multi-billion pound public sector procurement process will see suppliers with poor diversity records shoved to the bottom of the pile, according to legal experts.

The Discrimination Law Review, published earlier this month, stressed that in carrying out procurement, public authorities must have regard to the need to eliminate discrimination and promote equality.

With public sector procurement in the UK worth more than £125bn a year, public authorities represent a major customer base.

Earlier this year, Personnel Today exclusively revealed that technology giant Microsoft ditched a supplier with a poor attitude towards diversity. The company's HR director Dave Gartenberg said: "In one case, we changed provider because they were cavalier towards the topic. They were supplying a perfectly good service, but we stopped using them."

Sandra Wallace, head of equality and diversity at law firm DLA Piper, said: "Companies with a strong equality and diversity record will have an immediate advantage when bidding for contracts.

"Just as the Microsoft case highlighted, the Green Paper confirms that companies that fail to recognise the importance of good diversity practice are placing themselves at a competitive disadvantage."

Critics have argued that firms with poor diversity performance should be excluded from bidding for contracts altogether. But Wallace said the government was unlikely to go that far.

"There is a debate as to whether a simple breach of discrimination law should disqualify a company from tendering for public contracts," she said. "What is more likely to emerge is practical guidance on how to factor equality into the procurement process."

The CBI said employers recognised procurement could be a "highly effective tool" for encouraging equality, as long as contracts focused on results, and not on "box-ticking".

Story first published in Personnel Today

Bullying is bad for business performance

April 2007 special viewpoint from Ian Dodds Consulting, the D&I strategy consultants.

IDC’s monthly viewpoints have consistently highlighted situations which result in people feeling excluded by organisations. Bullying is one of these, and it is this month’s subject because to my great dismay IDC’s consultants have experienced this from a member of a diversity team in a public sector client organisation.

Persistent criticism, ignoring or deliberately excluding people, undervaluing effort, changing targets without discussion or notice and setting impossible deadlines are all examples of bullying cited by the HSE and the Andrea Adams Trust.

IDC’s consultants experienced all of these behaviours from one particular individual. Had it not been from a member of a diversity team I might have considered it just part of the range of good and bad experiences that come with providing services to clients. But surely members of a diversity team have a duty to behave inclusively in an exemplary way with all the people they interact with.

This is because bullying leads those on the receiving end to lose self-esteem and ultimately question their own self-worth. Clearly, this is likely to have a negative impact on their performance. They are likely to withdraw and disengage and, in extreme cases, leave their jobs.

It does not matter that the behaviour experienced by IDC’s consultants was probably unintentional. It is ethically and morally wrong for one person to behave in such a way towards another, and even more so if that person works in the field of diversity and should be most aware that diversity is founded upon the concept of respecting and valuing others.

In our work, bullying and harassment are sometimes not considered by clients to be important aspects of the diversity and inclusion agenda. However, they are and should be; because they cause exclusion and distress to those who experience them. Last month we considered micro-inequities, which have a similar impact. Both these and bullying should be mainstream considerations for diversity practitioners, because of the negative impact they have, both on individuals and on business performance.

IDC’s consultants have considerable experience of enabling clients to create a working environment where bullying and harassment are minimised.

Incidentally, in this instance IDC withdrew its consultants from the project and formally raised the issue with the client. I believed it was important for IDC as a diversity consultancy to take a stand on inappropriate behaviour by someone employed by a client in a diversity role.

Read more viewpoints from Ian Dodds Consulting

Women’s minister Ruth Kelly spends £500,000 from Quality Part Time Work Fund in bid to reduce gender pay gap

Minister for women, Ruth Kelly, will grant nearly £500,000 to a number of organisations to create more quality part-time jobs at senior level, in an effort to reduce the gender pay gap.

The scheme comes a year after the Women and Work Commission report, which was commissioned by the prime minister to help women reach their full potential.

Royal Mail is one of the first beneficiaries - it was awarded £25,000 in funding from the Quality Part Time Work Fund. The company will need to match the grant to develop job-share and part-time managerial posts in two sorting office sites in London.

It aims to make 10% of management jobs on these sites part-time within 18 months.

Other successful bidders for the fund include Kelloggs, Tesco, three local authorities, Durham constabulary, and four voluntary sector organisations.

Kelly said: “The part-time pay gap is still too wide with women working part-time earning 40% less than men working full-time. Working with a range of employers across business, local government and the voluntary sector, we can kickstart the process of enabling more women to work part-time in senior posts.”

Small businesses under misconception of being fully compliant with age discrimination legislation could face tribunal claim02 April 2007 Small businesses are risking tribunals as they fail to make changes to employment policies following age discrimination laws, research has suggested.

A survey of 750 small businesses by conciliation service Acas revealed that only 17% have introduced changes to their employment and recruitment practices. Respondents said they had not made changes because they believed their organisations already complied, or that the regulations did not apply to their business.

Two-thirds of employers in the survey thought they were fairly or very well informed about the age discrimination regulations. However, fewer than 30% gave a correct response to a question about whether it is still lawful to have a retirement age.

Acas chair Rita Donaghy said: “These results are worrying as they highlight a potential timebomb in smaller companies in terms of tribunal cases. Age discrimination can affect all employees, young and old and to comply can be very simple and quick.”

This story was first created and published by Personnel Today

Firms warned to develop diversity policies after Microsoft ditches supplier

Employers have again been warned to tighten their diversity practices after it emerged that Microsoft UK stopped using a supplier due to its poor policy on the issue.

Dave Gartenberg, HR director at Microsoft UK, told Personnel Today that the global IT firm was increasingly looking at its suppliers' diversity policies.

"In one case, we changed provider because they were cavalier towards the topic," he said. "They were supplying a perfectly good service, but we stopped using them."

Microsoft's UK arm is learning from its experiences in the US, where many private companies insist on good diversity policies from their suppliers.

"We just think it is the responsible thing to do," Gartenberg said.

The decision follows moves by Barclays last year to request diversity statistics from its legal advisers as part of its corporate social responsibility policy.

The Chartered Institute of Purchasing and Supply (CIPS) confirmed that private firms were now increasingly insisting on good diversity practices from their suppliers.

CIPS director of marketing Brian Ford told Personnel Today: "It is a growing trend for suppliers to be asked for their diversity policies. We have seen this grow over the past few months and we can't see that changing. It would be sensible for employers to put policies in place so they can't be caught out."

The Institute of Business Ethics (IBE) agreed that private firms were increasingly looking at the make-up of the companies they do business with.

Simon Webley, research director at the IBE, said: "More than 200 of the FTSE 350 companies now have codes of ethics. These include core values of the company, and diversity is beginning to appear on these plans."

The Equalities Review last month recommended that a company's diversity policies should be a key factor when awarding public service contracts.

But business groups have long insisted that contracts should be awarded on value for money, rather than diversity policies.

This story was first created and published by Personnel Today

Significant numbers of public bodies break Disability Equality Duty law by failing to publish details of disability schemes

Almost one-third of public authorities still have not published the details of their disability practices and policies, despite the government’s Disability Equality Duty becoming law in December 2006.

The Public Bodies’ Response to the Disability Equality Duty report found that only half (54%) of authorities had included any evidence of involving disabled people in their Disability Equality Scheme.

The study of more than 1,750 public authorities by the government’s Office for Disability Issues and the Ipsos Mori Social Research Institute included government departments and central government bodies, police authorities, NHS Trusts and Strategic Health Authorities.

Anne McGuire, minister for disabled people, said: “Implementation of the Disability Equality Duty is the key to improving the lives of disabled people. It’s a huge step forward that just over half of all public bodies audited by the Office for Disability Issues were found to have given disabled people a real opportunity to influence and shape the policies and services which have an impact on their lives.

“But it’s disappointing that a significant number of public bodies missed the December deadline to publish a scheme - and the Office for Disability Issues, working with the Disability Rights Commission, will be taking appropriate action to ensure all public bodies are playing their part in promoting equality for disabled people.”

Most public authorities, with the exception of schools in England and Wales, were required to produce and publish their Disability Equality Scheme by 4 December 2006.

This story was first created and published by Personnel Today

Employers Forum on Age warns national minimum wage band for younger workers is ageist

The national minimum wage (NMW) band for younger workers constitutes age discrimination and must be brought into line with the adult rate, the Employers Forum on Age (EFA) has warned.

Last week, the government announced a 3.2% increase in the adult rate, from £5.35 to £5.52 per hour, with effect from October 2007. But staff in the 18- to 21-year-old bracket will only be paid a minimum rate of £4.60 per hour.

EFA director Sam Mercer said this sent out "completely the wrong message" to employers about the consequence of making decisions based on age in the workplace. "We are frustrated by the refusal to address the fact that under the current bands, 18- to 21-year-olds are paid less, simply because of their age and irrespective of their capabilities or responsibilities," she said.

The EFA call for action follows a warning from lawyers that the NMW flouts the new age laws and that apprenticeships specifically targeted at younger people would eventually be proved illegal.
Age discrimination in employment became illegal on 1 October 2006. The EFA is lobbying the government on the issue of minimum wage age bands. An Early Day Motion has been tabled in Parliament and now has 88 signatures representing cross-party support.

"The current argument from the government that employers might potentially avoid taking on younger workers if they had to pay them the same amount as workers over 21 is simply reinforcing the discriminatory practices that the legislation was designed to eradicate," Mercer said.

Employers' and unions' views on the NMW rise
EEF: "We are pleased the government has recognised the additional costs that many employers will face when statutory annual holiday entitlement increases in October."

CBI: "The NMW has brought real benefits to many lower-paid workers, but it is right that this year's increase took account of business reality."

CIPD: "If the NMW is to succeed, it must be set at a rate that improving pay at the bottom of the labour market does not have adverse consequences for jobs, inflation or the wider economy."

T&G: "We are concerned that the progress that has been made in tackling inequality could be rolled back if the minimum wage fails to even keep pace with inflation."

GMB: "The figure of £5.52 is still well short of half of the UK average hourly rate for full-time workers."

TUC: "Everyone stands to gain from making the minimum wage as robust as possible, so the government should use this year to continue moving its enforcement work up a gear."

This story was first created and published by Personnel Today

Number of female senior managers in FTSE 350 firms falls by 40% in five years

The number of female senior managers working in major UK businesses has fallen sharply by more than 40% in the past five years, according to figures from professional services company Pricewaterhouse Coopers.

In 2002, 38% of senior manager level posts in the FTSE 350 were occupied by women, but this has now sunk to just 22%.

The news will come as a surprise to many companies that have introduced flexible working arrangements and appointed heads of diversity in an attempt address equal opportunities in the workplace and retain talent.

At the most senior level, the figures show an improvement, but progress is painfully slow. The ranks of FTSE 350 female full-time chairmen or chief executives have grown, but can still be counted on one hand.

The study suggests one possible reason for this is the growing cost of childcare. The cost of a typical full-time nursery place in England has increased by 27% in the last five years, according to the Daycare Trust.

There is also evidence that more women are going into business for themselves. The number of self-employed females in the UK recently rose above a million for the first time according to the Labour Force Survey.

Sarah Churchman, head of diversity at PricewaterhouseCoopers, said: “At the top, things are moving slowly in the right direction but our middle management data paints a very different picture.

“Businesses tend to pay more attention to gender issues in senior positions and there appears to be an assumption that a supply from the middle ranks will eventually feed through. For big companies at least, this pipeline is shrinking at a worrying rate.”

The report is based on figures from PricewaterhouseCoopers Monks pay database which records pay benchmarking information on more than 10,000 UK management roles.

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Equalities review recommends public service contracts should be awarded on basis of diversity

Multi-million pound contracts could soon be won or lost on the diversity of a company's workforce.

The government-commissioned Equalities Review last week recommended that diversity policy should be a key factor when awarding public sector contracts. It said the law should be changed to place greater responsibilities on public bodies, including "a specific requirement to use procurement as a tool for achieving greater equality".

Panel member Sir Robert Kerslake told Personnel Today that private firms bidding for public service contracts should be made to provide details of their workforce make-up, and an outline of the steps they are taking to improve diversity.

"This can and should be an important factor in the decision to award contracts," said Kerslake, chief executive of Sheffield City Council. "It is a duty of the public body to actively take into account equality of employment."

Communities secretary Ruth Kelly signalled the government's willingness to act on the report, commissioned by prime minister Tony Blair in 2005. "This review makes clear that further progress will not happen without government action," she said. "We must remain prepared to take tough decisions."

A formal response is expected by the autumn, but the CBI insisted that public service contracts should be awarded on the basis of value for money, rather than the diversity of a workforce. It said employers should not be subjected to additional bureaucracy or legal risk.

The Equalities Review was led by Commission for Equality and Human Rights chairman Trevor Phillips. He warned that unless drastic action was taken, inequality in the UK would remain at an "intolerable level". At the current rate of change, it would take nearly 100 years for the ethnic employment gap to be closed.

10 steps to equality
Defining equality
Building a consensus on equality
Measuring progress towards equality
Transparency about progress
Targeted action on persistent inequalities
A simpler legal framework
More accountability for delivering equality
Using procurement and commissioning positively
Enabling and supporting organisations in all sectors
A more sophisticated enforcement regime

This story was first created and published by Personnel Today