Why Diversity is good for business

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Why Diversity is good for business
Amanda Jones 19th September 2008
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The co-operative a diverse set of businesses

• A diverse set of businesses
• Food Retail, Funerals, Travel, Healthcare, Motor,
  Farming, Legal Services, Property etc
• Over 4,500 outlets
• Over 4.5m members
• 73,000 employees
• Underpinned by our ethical approach, values and
  principles.

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Background UK Dynamics

• UK dynamics
• Demographic changes in labour force
• Last 10 years reduction of 1.75m people between
  the ages 16 to 24
• 47 of UK labour force is female yet only 28 of
  all directors are
• 6m women (40 of those in work) are in part-time
  jobs
• 80 of ethnic minority groups are under the age
  of 25
• Indian/Asian pupils out-perform white
  counterparts at GCSE
• Girls continue to outperform boys at all levels
  of education in the UK from Key Stage 1 to higher
  education
• 1m people with disabilities want to get into work
  and cant
• 6m carers across the UK
• Research shows that companies with higher
  proportion of women in management have better
  financial performance
• Critical mass of 3 women in average management
  teams of 10
• Average economic operating profit of 11.1 vs.
  5.6
• Key balance of women and men working together
• Market value by demographic segments

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Why Diversity will remain key to business success

• Talent remains critical to business success
• The UKs track record in appointing senior women
  and other demographic groups
• The UKs ethnic minority employment gap
• and in Greater Manchester
• Occupational segregation
• Middle Management pinch-point
• Economic Success
• Purchasing power of demographic groups
• Positive impact on society
• Treatment of ex-offenders in the workplace
• Employment for people with disabilities

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Are we ready for the future?

• More cultural and the need for work design
  changes
• Impact of changes in incapacity benefit
• Engage talent more effectively
• Re-shape roles to be more effective
• For more immigration
• An aging demographic with increased caring
  responsibilities
• For technology to drive further discrimination
  for those without sufficient literacy and numeric
  skills

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Getting culture wrong Impact on business

• Bad for employees, customers and performance
• For the individual leads to stress, absence and
  resignations
• For businesses leads to
• Loss of intellectual capital
• Loss of high achievers leading to loss of
  competitive advantage
• Increased absenteeism through stress associated
  costs
• People effectiveness and delivery decreases
• Decreased employee motivation, commitment and
  morale
• Poor employee relations
• Less diversity amongst staff therefore less
  creativity/opportunity
• Damaged reputation as employer of choice
• It becomes difficult for employees to treat
  customers with respect if they themselves are not
  treated with respect.

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Cost impact for UK businesses

• Getting the culture wrong
• Bullying costs the UK 30bn per annum through
  absence
• People experiencing bullying can become up to 50
  less effective, even if they dont take time off.
  
• Grievance procedures can cost up to 3K and
  Employment Tribunals up to 1m.
• 1 in 3 people leave their jobs through bullying
• Disengaged people, people who cant face the
  thought of work or cant concentrate on it hold
  businesses back from being successful.
• Corporate reputation damaged
• Getting the business opportunity wrong
• Means the smart competitors will get it right
  first

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Why Diversity is important to us as a business

• Talent doesnt come in one shape and size
• and we want the best people to work for us
• Our customers have different demographic profiles
• and we want them all to shop with us
• Were a community retailer
• and theres where our employees and customers
  come from
• So we have to get smart about doing this well

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Our approach to Diversity

• Strategy Principles
• Access to the widest possible breadth of talented
  people to run and be part of our businesses
• Recognise and respond to changing demographics,
  social values and attitudes that impact customers
  to ensure that we access and engage diverse
  markets
• Reflect the Communities in which we live and
  operate
• Success requires multi-strand approach including
• Foundation activity around creating the right
  environment. One foundation stone is about
  creating the right environment for diverse groups
  to contribute

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Where weve seen a positive impact

• For our employees
• Improvement in our employee benchmarks attract
  prospective employees
• Our graduate programme is getting it right
• Increased employee engagement evidence though
  employee opinion survey
• All of our processes have been improved
• Removal of retirement age
• Positive feedback from employing people with
  disabilities
• For our customers
• Business opportunities are opening up
• Within the community
• CSR is improving
• Increasingly engaged in placing people into work
  e.g. Mencap

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Why Diversity is good for business
Amanda Jones 19th September 2008