In-work poverty, ethnicity and workplace cultures

JRF Poverty & Ethnicity Programme

Dr Maria Hudson, Hudson ResearchDr Gina Netto, Heriot Watt University

on behalf of research teamNovember 1st 2013, Phase One launch event

Research aimsRelationship between in-work poverty,

ethnicity, and workplace cultures How are workplace opportunities shaped? Who are the winners and losers? Role of ethnicity?

Engage with employer attitudes/ behaviour, including

discrimination Employees’ attitudes/actions vs employers’

attitudes/actions Facilitation of constructive change

Large employer sample supporting exploration of cultures of progression

SECTOR TYPE OF ORGANISATION GEOGRAPHICAL AREA

Private sector 1 company in the Hospitality industry2 Facilities management companies

In urban area

1 in urban area and 1 in semi- rural areas

Public sector 2 Councils2 NHS Trusts1 NHS good practice case study

1 in Urban and 1 in semi-rural areaIn urban/semi-rural areas

Social enterprise sector

2 large voluntary sector organisations (housing associations)

1 in semi-rural areaand 1 in urban area

Low paid worker sample

IDENTITIES OCCUPATIONAL ROLES INCOMES including benefits

65 in total Typical jobs: Domestics, Cleaners, Catering Staff, Support staff, Carers, Clerical roles

Individual income: 5-25KLargest number: 10-15K

25 households income less than 25K per year

Migrant workers (31), BME (17) White British/Scottish/Irish (17)

31 ethnicities: Central + Eastern Europeans Black British, British Asian, African

Slightly more females than males

38 full-time workers and 26 part-time workers (17 women, 9 men)

19 claiming at least one benefit (excluding child benefit)

Under claiming: especially migrant workers

Majority aged 18-55

17% Muslim, 26% Catholics

Three self identified as disabled

Key points ILack of low paid worker progression

opportunities ↔ dynamics of low wage traps Lack of stepping stones for vertical progression Rigidity of progression requirements; insistence

on formal qualifications Little scope for horizontal movement Lack of investment in training for the next step Lack of advice, mentoring, coaching Unsupportive line managers Ineffective performance development reviews

Key points IIWorkplace opportunities also shaped by ethnicity:Access to developmental opportunitiesAccess to networks , flows of informationExtent to which skills and potential are recognisedUnequal treatment – stereotyping, prejudice & favoritism

Low wage traps fuelled by Informal practices & Power imbalances

Key points III

Positive dispositions to some employees

Management mindsets, behaviours and conscious and unconscious bias

Negative bias to other employees

• Closer links

• Better development opportunities

• Progression

• Lower morale, trust and aspiration

• Progression ceilings reinforced

• Lack of transparency around progression opportunities

Way forward – Towards countering In-work poverty

A multi-stakeholder approach Strategic policy and organisational responses led by

Government Leadership and organisational commitment of

employers in public, private and voluntary sector Involvement of trade unions and community

organisations

Actions for Government As Policy leader

Close the gap between the anti-poverty agenda and the equality agenda Over-representation of ethnic minorities in the lowest

income decile should have high relevance in any anti-poverty strategy

Need for greater recognition of the limitations of universalist approaches in tackling poverty

Anti-poverty strategies should recognise the relevance of equality of opportunity in employment as a route out of poverty

Actions for Government - As Investor in Employability Schemes

Working with partner organisations, government can..Pay more attention to the range and nature of Modern Apprenticeship Schemes and the organisations involvedStrengthen requirements for diversity monitoring and review of the apprenticeship schemes, eg. make this a condition for funding Target disadvantaged geographical areas/groups to supplement more universalist approaches

Actions for Employers I Employers can take measures to ensure that:

Workforces are ethnically representative at all levels

- Monitoring (development/progression/retention) - Access to opportunities - Positive action

Informal groups and dynamics do not undermine equal opportunities

- Training/ tool-kits- Management accountability

Actions for Employers II

Employers (including public sector bodies) can encourage subcontractors to: Comply with equal opportunities policies through

procurement of services through supply chains Demonstrate opportunities for progression among its

workforce Ensure compliance with equal opportunities policies

through requiring diversity reports of workforce data Pay a living wage

Questions for workshop discussion1. How can employers be encouraged to support

development and progression for low-paid workers from all ethnicities?

2. What are the best ways to spread good practice?3. Our research has focused on large employers, how

far do the findings also relate to SMEs?4. What kind of support and encouragement do SMEs

need in order to make progression for low paid workers a reality?