The cost of underrepresentation & what you can do to change it
As a result of the cultural and structural impact of racism, Black voices and representation have been diminished, cut out and disempowered, leading to history missing the incredible contribution, impact and effects of Black people worldwide. We see this in education, where colonialism or slavery is often a footnote that doesn’t get discussed; or if it does, it’s a brief conversation and not one that explores the impact on society today. We see this in the lack of ethnic diversity at leadership in the FTSE 100; The Parker Review said in 2024, there are 12 ethnic minority chief executives in the FTSE 100, up from seven in 2022. Overall only 13% of senior management at the top 100 firms were ethnically diverse.
In our stakeholder engagement work at the Clear Company, we often hear people talking about the meritocratic approach they have in their hiring processes. Yet when we look at their processes we see the barriers that many underrepresented groups face such as hiring bias like specific university degrees, English-sounding name preferences, managers that haven’t been trained and no clear criteria to assess candidates against. We hear stories of business being done ‘on the golf course’ which as a hobby is typically only available to the most affluent or socially advantaged and typically male groups.
When it comes to social mobility, employment outcomes for Black men compared to White men still show significant disparities. In the UK, the employment rate for Black men was 69% in 2022, compared to 77% for White men, according to the Government data. The median earnings gap between Black and White men in the US has remained in the 35-40% range from 1980 to 2014.
Clearly we have a long way to go to increase representation and amplify the voices of our Black friends, family and colleagues in most western societies. A growing body of evidence shows how increasing representation can have multiple positive effects on businesses and economies. For example, better understanding the communities and customers that businesses serve, challenging ideas to come up with better outcomes, and tapping into incredible Black talent to address labour shortages.
The data highlights the opportunity cost for not including Black and Global majority people:
Economic Contribution: Black and Minority Ethnic (BAME) businesses contribute around £25 billion to the UK economy annually, highlighting the substantial role these businesses play in the overall economic landscape.
Purchasing Power: The combined purchasing power of Black, Asian, and Minority Ethnic groups in the UK exceeds £300 billion.
Untapped Potential: The Black Pound Report 2022 found that British businesses are missing out on a £4.5 billion market by overlooking Black and Asian consumers. This report emphasizes the need for brands to better understand and cater to the needs of Global Majority customers.
The Clear Company's Anti-racism Solution
Recognising the opportunity, our Global Majority colleagues, supported by allies, have developed our anti-racism solution: a suite of tools and support that empower organisations to make holistic inclusion progress. This research-led work, taking Neil Thompson’s PCS Model as the foundation, ensures that all forms of racism, and their interconnectedness are considered in the workplace.
The PCS Model
Personal (interpersonal or individual racism) – individual views and individual actions.
Cultural (racial stereotypes) – shared values or commonalities of approach.
Structural (systemic or institutional racism) – sewn into the fabric of society through how institutions behave.
Our anti-racism solution is designed to support organisations who want to become more inclusive through a holistic, three-step approach.
Assess: We begin by offering three types of assessment. These can be combined for a comprehensive review or taken separately for more focus on specific areas:
A lived experience survey, to understand what your global majority colleagues are feeling and experiencing at work
A leadership assessment, to understand how confident your leaders are feeling when taking about race and tackling racism
An organisational assessment, to understand the structural elements of policy and systems at work.
Act: Following the assessment, we provide you with a pragmatic action plan and support to help you address the gaps or celebrate the positive work your organisation is doing around anti-racism. We provide training on awareness, understanding race and language, and supporting cultural and behavioural change, working at every level of your organisation.
Advance: We know that change takes time – we can’t fix structural barriers or change our behaviours overnight - which is why our solution is intended to support change and progress over time. We offer follow up assessments over three years allowing you to see, evidence and celebrate the positive changes your actions have driven.
All credit and our huge thanks to Sellisha Lockyer, Susan Abumere, PhD, Khadija Lewis, Emma Nicholls and Alexandre Maria for developing our Anti-racism Solution. We are incredibly proud of this vital piece of work, which supports our mission of making the world of work more inclusive.
Anti-racist Leadership Assessment
Throughout October 2024 in honour of Black History Month, we are gifting free access to our Anti-racist Leadership Assessment. This survey tool provides insight into how you can lean into being anti-racist and lead from the top, providing you with a personalised, actionable report upon completion.