Out-Law News 1 min. read

Diversity is good for business, says EU survey


Eighty-three percent of companies who have adopted diversity policies – tackling various forms of discrimination – believe that they make good business sense, according to a European Commission survey published today.

The report, The business case for diversity: good practices in the workplace, reveals that the most important benefit of diversity policies is that of resolving labour shortages and recruiting and retaining high quality staff – highlighted by 42% of all respondents.

Labour issues are growing in importance as demographic changes begin to shrink the EU's workforce.

The second most important business benefit, cited by 38% of almost 800 firms responding to the survey, was enhancing a company's reputation and standing in the local community. And more than 26% of companies saw improvements in their capacity to create and innovate.

Some 50% of the companies participating in the survey are actively engaged in promoting workplace diversity. Many of the companies stressed that legal compliance with non-discrimination and equality legislation is not a driver for implementation, but the desired outcome of their policies.

But half of the firms surveyed have still to implement a diversity policy. While companies in the north and west of the EU revealed a wider use of and experience in diversity policies, the report reveals that those in southern Europe and the new EU Member States need more information on how to develop them.

The main obstacles in promoting diversity, according to respondents, are lack of information and awareness of diversity practices (around 20% noted this), difficulty of measuring results (also around 20%) and discriminatory attitudes and behaviour in the workplace (17%).

As well as a survey, the report also includes a collection of good practices from various companies with diversity policies. Examples include the provision of non-discrimination training for managers and staff; the creation of employee networks representing disabled, gay, lesbian, ethnic minority employees; company-wide campaigns on the value of older employees; and diversity objectives for managers linked to performance appraisal.

The good practices highlight how diversity policies bring tangible results. In one case, they helped a company reduce its employee turnover rate from 25% to under 7.5% in less than four years, thereby making significant savings in employment and training costs.

Most examples of good practice were received from companies in the UK, followed by Spain, Germany, France, the Netherlands and Belgium.

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