How HR views DEI – and what needs to change

There is a clear gap in understanding the impact of diversity and inclusion initiatives in Australian workplaces, a new report has found.

According to The State of Diversity, Equity and Inclusion in Australian Workplaces report, published 23 February, the vast majority (84 per cent) of HR professionals say that DEI is critical to the future success of their organisation; however, only half of these say their leaders see DEI as a priority.

A further 49 per cent of HR professionals say their organisation is not placing enough focus on DEI, highlighting a clear gap between employee awareness, intent and action.

The report also shed light on where efforts are being placed on the DEI front — and what needs to be improved.

The bulk of DEI activity in Australian workplaces seems to focus largely on two core demographics:

1. Gender (97 per cent of organisations with a DEI strategy)

2. Aboriginal and Torres Strait Islander Peoples (81 per cent of organisations with a DEI strategy)

By comparison, 60 per cent of organisations with a DEI strategy are focused on people who identify as having a disability, 50 per cent on older workers, 56 per cent who are LGBTQI+ and 7 per cent on people from a lower socioeconomic background.

“There is therefore significant scope to improve DEI practice in many Australian workplaces,” the report said.

“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).

“According to official data, the employment rate of people with a disability aged between 15 and 64 is 48 per cent. By comparison, the employment rate for those without a disability in Australia is 80 per cent.

“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.”

How to facilitate change

The report found there are practical measuring tools organisations can better utilise to bolster DEI in their workplace.

Currently, the most popular employment practices adopted by HR professionals to help boost the participation of under-represented groups are staff consultation exercises (65 per cent), followed by inclusion policies or practices such as equal parental leave (47 per cent) and diversity training (45 per cent).

Meanwhile, just 17 per cent of organisations report that they have introduced a leadership diversity taskforce.

Targets are also under-utilised, according to the report. It noted only a small minority of HR professionals had set employment targets to improve the share of people who identify as having a disability or neurodiverse (11 per cent), culturally diverse people (9 per cent), people who are LGBTQIA+ (5 per cent), older workers (2 per cent) and people from a lower socioeconomic background (0 per cent).

Commenting as part of the report, Amanda White, who is the global head of diversity at RES, spoke about the importance of implementing proactive DEI measures.

“Two years ago, the group introduced a new diversity and inclusion strategy. One of the key tenets of the strategy includes a clear commitment by senior management to diversity and inclusion,” she said.

“This commitment is reflected in the establishment of five employee affinity network groups. The groups cover five dimensions of diversity, equity and inclusion, including age, LGBTQIA+, race, gender and disability, each of which have an executive sponsor from the group executive team. The group also has an ‘Origins’ working group that is dedicated to First Nations people and a Reconciliation Action Plan.

“The groups have developed and delivered key changes to policies and practices at the organisation. Key policy developments include the introduction of both a menopause policy, a gender affirmation policy, gender-neutral parental leave, pay and bonus gap reporting, domestic family violence support and the introduction expansion of cultural holidays. Meanwhile, a review of recruitment practices, which aims to remove artificial barriers to hiring under-represented groups across the organisation, has led to key changes to job descriptions and the organisation’s use of AI.”