More Diverse Workforce Could Generate £24bn For UK Economy

Businesses with more than 50 employees have been urged to publish a breakdown of their workforce by race and pay band

More Diverse Workforce Could Generate £24bn For UK Economy

The UK economy would receive a £24bn boost if workplaces were more diverse, a new report has found.

The Baroness McGregor-Smith Review, published by Baroness McGregor-Smith CBE, has suggested that UK GDP would increase by 1.3% annually if black and minority (BME) workers were given the same opportunities as their white colleagues.

Currently, BME employees are more likely to be in low-paid, low-skilled positions – despite the fact they are more likely to have a degree.

Just 6% of BMEs currently reach senior management positions, and have a 12% lower employment rate than their white counterparts.

In a bid to help increase equality and diversity in business, enterprises with more than 50 employees have been urged to:

  • Publish a breakdown of their workforce by race and pay band
  • Draw up five-year aspirational diversity targets
  • Nominate a board member to deliver on these targets

In part of its plan to combat workplace discrimination, the government has launched a Business Diversity and Inclusion Group which will be chaired by business minister Margot James.

The group will help businesses and organisations work together to “build an economy that works for everyone.”

Baroness McGregor-Smith said:

“The time for talk on race in the workplace is over, it’s time to act. No-one should feel unable to reach the top of any organisation because of their race.

“If businesses and the government act on my recommendations, it will show everyone from a minority background that Britain’s workplace is for everyone not just the privileged few.”

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