The State of Diversity, Equity and Inclusion in Australian Workplaces
The ethical and business cases for diversity, equity, and inclusion (DEI) are well known across Australian workplaces. More recently, staff shortages, one of the most significant challenges facing Australian organisations in 2023 has emerged as another compelling reason for organisations to ensure their workplaces can attract, support, and retain a diverse workforce.
While much of the public debate is dedicated to the role that migration and skills can play in addressing staff shortages and other challenges; less attention is given to the impact that diverse, equitable and inclusive workplaces can have in attracting and retaining staff.
The Australian HR Institute (AHRI) undertook research in November and December 2022 to provide a perspective on the current state of DEI in Australian workplaces. The research included a survey of 307 HR professionals and gathered a number of case studies drawn from respondents.
Two clear themes emerge from the research:
1. There is a clear gap between employer awareness, intent and action. The vast majority (84%) of HR professionals say that DEI is critical to the future success of their organisation. However, only half (50%) of HR professionals say that their leaders see DEI as a priority for their organisation, while a similar proportion (49%) of HR professionals also that say that their organisation is not placing enough focus on DEI. The gap between intent and practice is reinforced by the survey data which also highlights relatively low levels of transparency in terms of collecting diversity data.
2. DEI activity in Australian workplaces focuses largely on gender and to a lesser extent Aboriginal and Torres Strait Islander peoples Less effort is directed towards other under-represented groups; for example, people living with disability, people who are LGBTQIA+ and those from a lower socio-economic background. There is also a widespread perception among HR professionals that many groups are under-represented in their own organisations.
There is therefore significant scope to improve DEI practice in many Australian workplaces. This potential for boosting the employment rates of under-represented groups is illustrated in one recent international study, which shows that Australia rates as average when benchmarked globally in terms
of the employment rate of people with a disability (OECD 2022) (see Annex). According to official data, the employment rate of people with a disability aged between 15 and 64 is 48% By comparison, the employment rate for those without a disability in Australia is 80%.
There is an ethical, legal, economic and labour market imperative to creating diverse, equitable and inclusive workplaces in Australia. The pathway to realising this potential lies in leaders, managers and HR professionals working together to transform workplace culture through more deliberate interventions for the good of all Australian employees.
Key findings
ADOPTION OF DEI TARGETS AND INITIATIVES
- A small minority of HR professionals has set employment targets to improve the share of people who identify as having a disability or neurodiverse (11%), culturally diverse people (9%) and people who are LGBTQIA+ (5%) in their workforce. Fewer still have set targets to improve the representation of older workers (2%) and people from lower socio-economic backgrounds in their workforce (0%).
By comparison, almost a third of organisations have set targets to improve the representation of Aboriginals and Torres Strait Islander peoples (31%) and women (30%). On average, the share of organisations that have set targets is much higher in the public sector than in the private sector
and the not-for-profit sector. - Flexible working arrangements (66%), inclusive language used in job advertisements (53%) and using structured interviews [standard questions] for promotions and recruitment (41%) are the most popular tactics used by HR professionals to increase DEI through their recruitment practices.
- The most popular employment practices adopted by HR professionals to help boost the participation of under-represented groups are staff consultation exercises (65%), inclusive policies or practices such as equal parental leave (47%) and diversity training (45%). By comparison, fewer organisations report that they have introduced a leadership diversity taskforce (17%) or sponsorship and mentoring programmes (28%).
- 39% of HR professionals report that they require their managers to undertake training on diversity, equity and inclusion.
THE IMPORTANCE OF DEI TO BUSINESS STRATEGY
- 84% of HR professionals say that diversity, equity and inclusion (DEI) is either fairly important or very important to the future success of their organisation.
- Just half (50%) of HR professionals report that their leaders see DEI as a priority for their organisation. In addition, HR professionals are more likely to report that their organisation is not doing enough on DEI issues compared with those who are satisfied with their organisation’s efforts. Almost half (49%) of HR professionals that say that their organisation is not placing enough focus on DEI By comparison, 46% of HR professionals say they are satisfied with the level of focus on DEI at their organisation.
MEASUREMENT
- 45% of HR professionals say that they measure the DEI profile of their organisation compared with 43% of establishments that don’t 12% of organisations are either unsure or don’t know.
- Among those that measure their diversity profile of their organisation, the vast majority of HR professionals say their organisation measures gender (97%), Aboriginal and Torres Strait Islander people (81%) and culturally diverse people (75%). By comparison, a smaller proportion of HR professionals report collecting data on the current make-up of the workforce on people who identify as having a disability or neurodiverse (60%), older workers (57%), people who are LGBTQIA+ (56%) and people from a lower socio-economic background (7%).
- According to the survey data, the most under-represented groups in Australian workplaces are Aboriginal and Torres Strait Islander people and people who identify as having a disability or neurodiverse. More than three quarters (76%) of survey respondents perceive that both Aboriginals and Torres Strait Islander peoples and people who identify as having a disability or neurodiverse (76%) are under-represented in their organisation. A relatively high share of HR professionals (43%) also say that people who are LGBTQIA+ are not fairly represented in their organisation.
- When asked which groups were being prioritised by their organisations, the most commonly-cited groups were Aboriginal and Torres Strait Islander people (58%) and women (55%).
DEI AND LEADERSHIP
- 96% of HR professionals say that women are represented in senior management in their organisation. Representation in senior management is also high for older workers (84%) and culturally diverse people (60%) By contrast, representation is much lower for people who are LGBTQIA+ (29%), Aboriginals and Torres Strait Islander people (17%), people who identify as having a disability/neurodiverse (14%) and people from a lower socio-economic background (10%).
- Around a quarter (24%) of HR professionals report that at least one person in their senior management team, including the Managing Director or Chief Executive, have diversity targets in their key performance indicators. Around a third (32%) HR professionals are unsure.
- 86% of HR professionals say that women are represented on their board. By comparison, just 5% of HR professionals say that people who identify as having a disability or neurodiverse are represented on their board 16% of HR professionals report that Aboriginal and Torres Strait Islander people are represented on the board in their organisation.
- Almost half (48%) of HR professionals believe that mandatory quotas should be introduced to improve diversity in board positions compared with 29% who are opposed 22% of HR professionals said they didn’t know.
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