Press Release

Government needs to add more weight to new Single Equality Bill by promoting the business case for diversity

26 June 2008

Responding to the Single Equality Bill published today, the Chartered Institute of Personnel and Development (CIPD) welcomes the proposals but forewarns the Government that as well as updating discrimination law, it is imperative to promote the strong business case for diversity if significant progress on equality for all is to be made.

Dianah Worman, CIPD Diversity Adviser, said: “The UK cannot afford to miss this unique opportunity for radical change in the way unfairness is tackled. This bill seeks to simplify existing legislation which can only be a plus for employers. Government now needs to ensure that they spell out exactly how the proposals will function so that employers don’t unwittingly fall foul of the law.

“To lead in the diversity field, employers have to deliver legal obligations and implement systemic change in all business practices. This is evidenced in our new research report, Managing Diversity and The Business Case, to be published in September. The report sets out the nature of the business case and pulls together a range of findings about its relevance to diversity progress and business performance.

“The CIPD welcomes the move to requiring employers to report average earnings as a step in the right direction to resolving unequal pay. However employers should be aware that this broad brush approach won’t guarantee the absence of individual unfair cases, even if there is no difference in the reported averages. Employers will need to rigorously examine how they address unequal pay in their organisations, and ensure they clearly communicate how reward systems structures are managed. This way, employees can judge for themselves if they are being paid fairly.  Failing to do this may put organisations at a competitive disadvantage, particularly in light of the rules on public procurement.

“Business should be grateful that Government has opted for a light-touch approach to pay equality and not introduced compulsory pay audits. But they should recognise that if appropriate action is not taken to address the equal pay issue, then more legislation may follow.

“We welcome the Government’s strong leadership position on  the introduction of ‘balancing measures’ as part of the enabling legal framework because they are needed to support the progress of diversity. But these will be highly contentious in some quarters and require clear guidance on what the law sets out to do and why. This will be vital  to ensure people understand what they are and their legitimacy to avoid backlash based on false perceptions about them.

“Finally, law on its own is simply not enough. Government needs to engage employers to take action because it makes business sense. They should publish easily accessible practical guidance for employers to follow, and instigate a national education and awareness campaign with signposts to help and support. Failing to do this will short-change the UK economy at a time when business needs all the help it can get. Diversity needs to be demystified and good practice communicated down to the grass roots, where a real difference can be made.”

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