Looking at another change of the labour market and another driver comes from our increasingly diverse workforce. Figures from “The Working Foundation” state that “7per cent of the population are from Black, Asian or other minority ethnic communities” Although this could be said to be a driver in equality and diversity and that Asda have recognised this in their policy by offering “Religious Festival Leave” and having the commitment to “match the workforce profile in each store with the local population profile”, it is argued by Kirton and Greene that due to a number of labour segmentation theories “the class positioning of ethnic minority men was as low-waged workers resident in declining inner areas of British cities.” As well as this it is stated, “people become trapped by stigmatisation and labour market segregation is perpetuated into the next generation therefore a vicious cycle of insecure employment and unemployment is experienced by the minority ethnic groups”.
To me these statements could be said to be true, as from my own personal experience of working at Asda, I have rarely seen a large quantity of black managers. This shift in the labour market, to me, could affect the agenda for diversity and equality in a negative way. Employer’s may recruit people from the ethnic communities to fill in jobs that may breach health and safety regulations, they could be lower paid, poorer working conditions and maybe unsociable hours. Although this maybe a rash opinion, it seems to me that the increase in the population of ethnic communities will cause some business to adopt an umbrella stance, and incorporate a diverse and equal position, but exploit the people within these areas.
A further change in the labour market in recent years is the increased number of students taking higher education. Although not all companies recognise this, Asda have in a place a study leave scheme, which enable students to take the university calendar dates as unpaid leave, and then return to the company when they are not in term time. Again, a labour market change that encourages Asda to become diverse.
Other Drivers
The other drivers that encourage organisations to become more diverse according to Kandola and Fullerton (1998) are “good personnel practice, legislation, business sense, organisational commitment to equal opportunities, moral obligations, company image/PR, Director and organisational commitment”. Although there is a large list here I feel one of the main reasons a company tries to become diverse is for the perceived benefits of diversity and for their company image. The gains have been broken down into three key areas, “Proven, Debatable and Indirect”.
Proven
- Makes it easier to recruit scarce labour
- Reduces costs associated with excessive turnover and absenteeism
- Enhancing organisational flexibility
Debatable
- Promoting team creativity and innovation
- Improving problem solving
- Better decision making
- Improving customer service
- Increasing sales to members of minority culture groups
Indirect
- Satisfying work environments
- Improving morale and job satisfaction
- Improving relations between different group of workers
- Greater productivity
- Competitive edge
- Better public image
Some of the proven advantages of diversity will, in my opinion, make companies into thinking of becoming diverse. According to the CIPD, there are many proven benefits. In a recent report by the CIPD the Government have urged companies to have effective people management. Mr Brown commented that, “effective people management is not a nice-to-have but critical to the financial and strategic development in our twenty first century economy”. As well as the Government acting as a driver for diversity, the CIPD have listed why diversity matters. These can be some of the potential drivers.
- “Improving customer care and increasing market share”. (stated by the CIPD that diversity can open up new opportunities and broaden the customer base)
- “Development of ethics and values” (these are considered to be of ‘significant concern for organisations’)
- “Enhancement of people management” (helps derive competitive edge by recruiting and retaining the best talent)
- “Changes in society and personal expectations” (people are now more aware of equal opportunities and expectations of fair treatment have increased)
- “Complying with legislation” (laws that prohibit race, sex and disability discrimination)
- “Keeping up with best practice” (this can maintain organisational momentum and stimulate ideas)
The six points made by the CIPD paper combined with the benefits given by Kandola and Fullerton, will definitely drive organisations into becoming more diverse. Although the CIPD paper is extremely bias towards diversity, the points that are raised relate to the proven benefits that are mentioned in the MOSIAC. As well as the intervention of the Government in promoting people management as a “critical tool” and the benefits mentioned, in my mind there is no doubt that companies will be encouraged to become diverse.
Relating to the comment by Torrington et al “where skills are easily available there is less pressure on the organisations to promote and encourage the employment of minority groups”, I have to say that this quote could be proved to be wrong as pressures from the Government in driving diversity, the relative benefits that can be achieved and the increasing number of minority groups means that businesses cannot afford to overlook diversity.
Going back to the question of the role of the labour market in driving diversity, then I have to say that the labour market acts as a very important driver. Businesses realise that to compete then they have to be fully aware of their surrounding labour pools and how they can affect the business one way or another. This is why I believe that diversity has become such a huge issue over the past ten years or so, it is due to the labour market taking the form of some radical change and the businesses realising that there is now far more potential in the so called “minority groups” than was first realised.
References
accessed 8/11/2003
Kandola and Fullerton (1998) “Diversity in Action” 2nd edition CIPD 1998
Kirton and Greene (2000) “Dynamics of Managing Diversity”
Hewitt, Patricia (2002) “The Work Foundation”
Managing Diversity, An IPD positioning paper
Harvey, C and Allard, M J (2002) “Understanding and managing diversity” 2nd edition
Bibliography
Kandola and Fullerton (1998) “Diversity in Action” 2nd edition CIPD 1998
Kirton and Greene (2000) “Dynamics of Managing Diversity”
Hewitt, Patricia (2002) “The Work Foundation”
Managing Diversity, An IPD positioning paper
Harvey, C and Allard, M J (2002) “Understanding and managing diversity” 2nd edition
Appendix 1
Equality
Our wide range of innovative working practices includes:
- The first ever supermarket store manager job share launched in 1999 at our Barnsley store
- Child Care Leave - available for parents to stop work for a short period during the summer holidays, returning later with continuous service and maintained benefits
- Shift Swapping schemes - available for colleagues needing to be absent from work for specific family or domestic reasons
- School Starter scheme - a unique scheme that allows parents to take a half day holiday on their child's first day at school
- Grandparents' Leave - recognising the important contribution of grandparents on the birth of a new child, we allow colleagues to take one week's unpaid leave to support the arrival of a new grandchild
- Benidorm and Carers’ Leave - up to three months’ unpaid leave regardless of job, contracted hours or length of employment while treating service as continuous for our over fifties colleagues
- Religious Festival Leave - all colleagues are offered the opportunity to take a total of two days’ unpaid leave (in addition to statutory and public holidays) at any time throughout the year to celebrate religious festivals
- V Time - voluntary reduced working time is available for those wishing to reduce their working time by an agreed percentage over a given period whilst keeping the right to return to work full time at the end
- Big Break - colleagues can add one or two weeks’ unpaid leave to their annual holiday in order to make the trip of a lifetime
- Home Working and Flexitime – we offer both to colleagues without any impact on pay or benefits
- Career Breaks - of up to two years are available to all colleagues with three years’ service
- Maternity, Paternity & Adoption Leave – ASDA embraced new maternity, paternity and adoption leave a full calendar year before they became law. Maternity leave of up to 52 weeks is now available. Adoptive parents are treated equally with 52 weeks leave available.
Taken from
Accessed 15.11.03
