Hats off to the Bank of England and the FCA for taking a lead on diversity and inclusion by suggesting a direct link between D&I metrics and their pay packet.
D&I has to be led from the top. Bosses have to be committed to it if we are to make a real difference and too many delegate it and then forget about it as long as boxes are ticked.
I am ashamed to say that in the recruitment sector hardly any firms even measure diversity. APSCO and the REC, our trade bodies have worked hard to gather the data from their members but only a few capture the data.
Recruitment is part of the supply chain so why aren't employers demanding D&I data from their recruitment suppliers, the very people who provide their own staff?
Improving diversity and inclusion makes total commercial sense as McKinsey research shows that ethnically diverse companies are 35% more competitive and 83% more innovative. Gender diverse companies are also 15% more competitive, so it's not just the moral thing to do there is a commercial benefit.
Every employer regardless of size needs to understand their own diversity statistics, find out why they are what they are, set some goals to reflect the communities they operate in, and create strategies to improve. It's not easy, it takes time, commitment, and resources.
At Aspire we are still in our first year of having a clear strategy and I agree it's not easy, but neither are many business challenges. There is no excuse for not trying.
In a discussion paper the regulators outline several suggestions including regular reporting, linking renumeration to D&I metrics, internal audits, and considering the approach to non-financial misconduct.