In-work poverty, ethnicity and workplace cultures

JRF Poverty & Ethnicity Programme

Breakout session presentation for BTEG-Inclusion conference on

Increasing ethnic minority employment 4th February 2013

Research aims• Relationship between in-work poverty,

workplace cultures, ethnicity

• Informal work practices: shaping opportunities, winners and losers

• Discriminatory attitudes and behaviour• Employees’ attitudes and actions vs employers’• How to create change

Large Employer sample supporting exploration of cultures of progression

Private sector 1 Hotel2 Facilities management companies

HotelCo (urban area)FacilitiesCo1 (urban area)FacilitiesCo2 (urban/ semi-rural area)

Public sector 2 Councils2 NHS Trusts1 NHS good practice case study

Council1 (urban area)Council2 (semi-rural area)NHS1 (urban area)NHS2 (urban area)NHS3 (urban/ semi-rural areas)

Social enterprise sector

2 Housing organisations Housing1 (semi-rural area)Housing2 (urban area)

Low paid worker sample – 65 interviewsScotland (30), England (35)

Slightly more females than males

Majority aged 18-55

Migrant workers (31), BME (17) White British/Scottish/Irish (17)

31 ethnicities: Central + Eastern Europeans Black British, British Asian, African

17% Muslim, 26% Catholics

Three self identified as disabled

Typical jobs: domestics, cleaners, waiters, catering staff, support staff, carers, clerical roles

38 full-time workers and 26 part-time workers (17 women, 9 men)

Individual income: 5-25KLargest number: 10-15K

25 households income less than 25K per year

19 claiming at least one benefit (excluding child benefit)

7 claim Working Tax Credit + Child Tax Credit, 6 claim Child Tax Credit

Under claiming: esp migrant workers

The case studies and the business case for diversity

Number and range of initiatives

Clearly articulated business case for diversity Poorly articulated business case for diversity

And bcd specific to one business aim

And bcd related to multiple business aims

Least developed

FacilitiesCo2HotelCoHousing2

FacilitiesCo1 NHS2Council2

Most developed

NHS1Housing 1

Council1

Restructuring and equalities in supply chains

• Out-sourcing in public / social enterprise sector case studies

• Equal opportunities policies in procurement/ supply chains

• A window on supply chains: FacilitiesCo1 & FacilitiesCo2

Ethnic minority recruitment & progression

• Case studies in super-diverse urban areas–Progress in recruitment –Next step, progression gap (e.g. Council1)

• Case studies in diverse semi-rural areas –Working on recruitment and community

representation (e.g. Housing1)

Equal Opportunities? The gap between policy and practice

‘We need to understand that there may be a formal organisational culture proclaiming common values and beliefs, but behind this façade there are likely to be different informal subcultures reflecting distinct values and beliefs’.

(from Noon & Blyton, 1997, The Realities of Work)

LOW WAGE TRAPS

UNSUPPORTIVE LINE

MANAGEMENT

INEFFECTIVE PERFORMANCEDEVELOPMENT

REVIEWS

UNDER-EMPLOYMENT

LACK OF STEPPING STONES

LITTLE SCOPE FOR

HORIZONTAL MOVEMENT

The realities of low paid workLACK OF ADVICE,

COACHING, MENTORING,

WORK SHADOWING

LEARNING TO WORKEXPLOITATIO

N

RIGIDITY OF PROGRESSION

REQUIREMENTS

Key point: Low paid workers across all ethnicities affected by..

...Low wage traps

Wasted potential

ETHNICITY AFFECTS

PRACTICES

STEREOTYPING

UNDER-EMPLOYMENT

BULLYING, HARASSMENT,

BANTER

Ethnicity & organisational subcultures

FAVOURITISM

CONFIDENCE, ESOL NEEDS, LACK OF ROLE MODELS

HOURS OF WORK & ACCESS TO ESOL

CLASSES

COMMUNITY LANGUAGE SKILLS, ESOL & SOCIAL NETWORKS

Management mindsets & behaviours

• Conscious and unconscious bias Impacts:

Morale, trust, aspirationReinforcing progression ceilingsPersistent underemployment and in-

work poverty

Key point: Additional layers of disadvantage for BME/ migrant

workersEthnicity affects progession ceilings

Wasted potential

‘The most deprived people are going to stay deprived, if there is no support, if there is nothing …to get them out of that. We do need extra support, we don’t have people in our families whose higher income can support us, so who do we turn to?...If we don’t get the right support, the right encouragement, we are just going to stay at the bottom.’ (Council2, low paid worker, Bangladeshi woman)

Emerging solutionsSuggestions for providing routes

to better paid work

Bench-marking and ethnic monitoring

• More monitoring/ better data

• Pro-active use of the data!

Acknowledging gap between official cultures & informal

cultures

• Closer organisational scrutiny of informal cultures

• Step 1? Appointment of Director of Culture change

Community engagement, worklessness & labour market progression

• Creative thinking & progression initiatives• Integrating equality?Example 1: Pre-employment programmesExample 2: Linking tenants with adult educationExample 3: Apprenticeship schemesExample 4: PATH Trainees/ positive actionExample 5: Talent Pools

Promoting career development among low paid workers

Awareness of subconcious bias and recognition of potential

“Working to learn, not learning to work”• Informal training/ coaching /mentoring • Work placements• Positive role models, good news storiesWidening social networks, workplace

interactions, horizons…Creative progression planning

‘I think it is the image they are projecting, it makes people feel like they can’t go for certain roles. So maybe they just need to have a different approach, better communication with their staff, that the opportunities are available for everyone…And maybe, when they are doing adverts or something, they should put a few black faces… Otherwise certain people will not go to certain places.’ (HR Manager, FacilitiesCo1)

Summary

• Gap between equal opportunities policy and reality for low paid workers– Low wage traps and progression ceilings–Wasted potential

• Changing management mindsets & behaviour–A more strategic organisational approach– Leadership and tailored approaches

Workshop discussion questions• How can low paid worker career

progression be supported?• What kinds of interventions will

challenge negative informal workplace cultures?

• How do we encourage employer/ management take-up of good practice?