Why is racial equity important to businesses?

No matter your background, everyone has the right to thrive in and out of work. And since 2020, we’ve seen a boom in DEI initiatives in businesses off the back of racial inequality that was heavily covered in the media.

Did you know businesses that take racial equity into account as part of their culture, have seen an improvement in their employees’ job satisfaction? They’ve also observed increased loyalty, creativity and even recorded an average revenue 58% higher across three years than those which did not. By doing the right thing, you can observe how your people feel and work at their best, as well as observe positive business growth.

Even though race is one of the protected characteristics under the Equality Act (2010), sadly, racism at work is still rife in the UK. In today’s article, we’ll discuss what racial equity is, the differences between equity and equality, what it is in relation to the workplace, as well as how to promote racial equity at work.

What is racial equity?

Racial equity means understanding that people from a variety of backgrounds need different things to succeed. It’s all about sharing and redistributing opportunities and resources, as well as prioritising those from commonly discriminated and prejudiced communities. Racial equity also considers that certain racial groups have faced historical and even ongoing systemic discrimination – something that employers should supply further support to help their people overcome any barriers they may face.

What is the difference between racial equity and equality?

Equality focuses on everyone getting the same opportunities but largely ignores the nuances in historical exclusion and discrimination. Equity, on the other hand, recognises this and focuses more on fairness for marginalised and/or disadvantaged groups to succeed in the opportunities they wish to pursue.

What is racial equity in the workplace?

Regardless of race and ethnicity, everyone deserves the right to succeed in the work they do. Racial equity in the workplace looks like giving individuals from different groups additional resources and support systems in order to facilitate this. From a business perspective, accommodating racial equity improves company culture, educates your people, and even facilitates economic benefits for the workplace too.

A workplace may implement steps towards racial equity by:

• Ensuring departments have people from a variety of backgrounds

• Implementing polices and regular training on anti-racism, inclusion and other DEI initiatives

• Have regular, open discussions on racism and unconscious bias

Why is racial equity important for businesses?

The 2022 Racial Equality in the Workplace survey found that 70% of ethnic minority employees reported experiencing or witnessing racism at work. Of this large percentage, there was a sense of hostility in their working environments that impacted their mental health and job performance.

With duty of care being a legal requirement, businesses must ensure all staff – regardless of their background – feel safe in their working environment. Racial equity is just one of many ways organisations can facilitate this.

It addresses inequity and inequality

Businesses have a duty of care to their employees to facilitate a healthy working environment for both mental and physical wellbeing, which is rooted in the Health and Safety at Work Act 1974 and Management of Health and Safety at Work Regulations 1999. By having anti-racism policies in place, they can help facilitate their people as well as be legally compliant.

Increases employee wellbeing

A racially equitable place of work can help others feel more comfortable expressing themselves, their ideas and encourage more social interaction at work. This in turn can benefit team collaboration.

It improves business performance

A support system for racial equity can help improve wellbeing, which then aids work engagement and productivity. Plus, as we established previously, businesses who confronted inequity saw their average revenue grow 58% higher across three years than those which did not.

It can help attract and retain top talent

People from different backgrounds bring all kinds of skills into the workforce. By having an organisation that facilitates racial equity, you can ensure access to a wider talent pool of candidates, as well as enhance your reputation as a workplace that caters to these individuals.

How to promote racial equity in the workplace 

To ensure everyone - regardless of their background – has access to opportunities to progress their careers, we need to ensure racial equity can be facilitated. This starts by addressing any root causes of discrimination, education and facilitation by senior leaders.

1. Root cause analysis

If discrimination due to race is taking place in your organisation, you need to understand the root cause. Is it certain individuals provoking a colleague? Is unconscious bias taking place when promotions and opportunities are up for grabs? Is it a lack of awareness of harmful behaviour and language or a mixture of these elements?

By identifying the root cause of injustice, you can take steps to remove inequity.

2. Mitigate microaggression

Someone may think a joke or comment on someone’s race might be minor, but this certainly won’t be the case for the individual they’re referring to. If this kind of behaviour passes in a workplace, it can normalise it as part of your working culture.

Educating your people on microaggressions – no matter how harmless they may seem – you can help diminish them in the workplace. It can also help individuals feel more accepted in their place of work, and likely to step forward for opportunities without fear of receiving said microaggressions.

3. Deal with racism promptly

If an individual in your workplace has come forward about experiencing racist behaviour, or you witness it in any capacity, it’s important to address it as soon as possible. It’s also important to ensure it’s dealt with appropriately and that you consider the individual’s wellbeing during this process.

4. Review policies and procedures

Do you have an anti-racism in place? If not, then this is the perfect opportunity to add one. If you have on already, is it robust enough?

Here are just some of the many things you can include in your anti-racism policy to promote equity:

• Definitions (racism, equity, equality, microaggression, bias, institutionalised racism etc)

• Laws surrounding racism

• Employee rights if experiencing racism

• Consequences of racist behaviour

• Schemes and/or mandatory training to regularly inform and educate within the organisation

5. Provide formal and informal training on racism and racial equity

Having formal training sessions on racism, equity and equality can ensure your people are well-informed of this type of discrimination and how they can ensure a culture of equity within the business. This is especially important, given racism and religion are protected characteristics. Having informal discussions and challenging others when microaggressions, jokes or outright racist behaviour arises should also be encouraged in order to educate others on the right way to consider people from diverse backgrounds.

How an Employee Assistance Programme can help with racial equity in business

With our Employee Assistance Programme (EAP), our trained counsellors can support your people and individuals who may be experiencing discrimination because of their race. Naturally, many feelings can arise which may impact their wellbeing. Our trained counsellors can help your people with their wellbeing, as well as signpost legal advice should they need it. The service is available 24/7, 365 days a year, so if an individual is feeling more affected before working hours or even late at night, they can reach out for support at any time.

Conclusion

Raising awareness of racial inequity, racist behaviour and discrimination is key to mitigating it. With the right tools and processes in place, your people can be informed of how to think about race, how to treat others from diverse backgrounds, and how to ensure they also have what they need to succeed in their line of work. Not only is it the right thing to do, but your organisation will reap the benefits, by being a place of equal opportunities and a brand name future candidates may greatly aspire to work for.