The entire UK economy could receive massive benefits if businesses increase their workplace diversity. A review, entitled “The McGregor-Smith Review”, released on 28th February 2017 and explained more on these benefits.

In particular, workplace diversity could potentially improve the UK economy with an additional £24 billion per year. The review also revealed that the UK Gross Domestic Product (GDP) could increase by 1.3% per year. This would mean a possible bright future ahead for both businesses and their customers.

The McGregor-Smith review, found on the UK Government website, aimed to record the effects of workplace diversity and how it could be improved. It advised companies (that contain over 50 employees) to release a detailed breakdown of its workforce. They would need to focus on race and pay band in their reports.

Baroness McGregor-Smith, who organised the review, encouraged businesses to create five-year diversity goals. These would need to focus on generating better workplace diversity. Businesses would need to elect a board member, whose job would entail working on the delivery of these goals.

She said: “There is no reason why every organisation in the UK should not have a workforce that proportionately reflects the diversity of the communities in which they operate, at every level.”

Roughly 500 individuals and businesses contributed to the study by providing evidence. Some of the businesses included those from the FTSE100.

Speaking of the proposals made Baroness McGregor-Smith said: “If businesses and the government act on my recommendations, it will show everyone from a minority background that Britain’s workplace is for everyone not just the privileged few.

“The consequences of continuing to do nothing will be damaging to the economy and to the aspirations of so many. So from the cabinet table to the board rooms, there is no more time for excuses – just change.”

Valuable Benefits

The reason for such urgency links to the multiple benefits some companies already found in their work environment. Big names such as KPMG and NHS found that their diversity in their workforce led to better innovation and teamwork. They also found that they had improved their understanding of customer demands.

All these positive benefits result from employing talents from ethnic minorities. However, there still remains noticeably low statistics for ethnic minority employees. The McGregor-Smith review found that only 6% only reach towards top-level management positions. And the employment rate for those from ethnic minority background remains 12% lower than others.

Baroness McGregor-Smith believes these figures need to change. And other companies have voiced their opinions too.

CBI Director for People and Skills Policy, Neil Carberry said:

“Creating inclusive workplaces where employees are able fulfil their potential regardless of their ethnicity is not only the right thing to do, these businesses are more productive and innovative too. As this review points out, companies must take the lead to make a real difference and many are already making progress.”

Now the government have launched two programmes, entirely invested in promoting workplace diversity.  One named “Business and Diversity Inclusion Group” aims to connect businesses together to work on creating a more diverse workforce and check on employee’s development.

The other, “Business in the Community”, will also release information on companies that successfully bring diversity into their workplace.

With these new plans taking action, it’s hoped that business will recognise the potential values. And, eventually, make excellent contributions to the whole UK economy.