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Non-Indigenous businesses are struggling to employ Indigenous staff, leading to a need to better integrate certain practices to increase such numbers.
According to a new study from the Australian National University (ANU), Indigenous-owned businesses in Australia employ Indigenous staff at a rate 12 times higher than non-Indigenous-owned businesses.
The researchers analysed Supply Nation data of 2,291 Indigenous-owned businesses and compared it to a dataset of 680 non-Indigenous-owned businesses throughout Australia.
Lead researcher Dr Christian Eva said the findings clearly demonstrate that non-Indigenous-owned businesses must do more to better integrate Indigenous knowledge and cultural practices into the workplace and boost the number of employed Indigenous staff.
Eva also noted in his study that non-Indigenous-owned businesses should acknowledge Indigenous peoples’ broader responsibilities within their communities. This can be undertaken by offering flexible working arrangements in the workplace, as well as cultural leave entitlements.
“The unique workplace practices of Indigenous businesses may explain their strong Indigenous employment rates. Our paper demonstrates [that] it’s more likely workplace practices driving divergent Indigenous employment outcomes rather than just local labour market conditions,” said Eva.
“This disparity is of national importance as Indigenous employment is part of Australia’s Closing the Gap framework. However, as with many Closing the Gap outcomes, the gap between Indigenous and non-Indigenous employment is failing to close. It’s evident we must do more.”
For the study, non-Indigenous business owners were asked whether they had a Reconciliation Action Plan (RAP) or if they offered cultural competence training to staff. Businesses were also asked whether they had other forms of Indigenous-focused workplace policies and practices.
“Despite an increased focus on Indigenous employment, the national Indigenous employment rate is failing to increase substantially, and many Australian businesses are still struggling to reach their Indigenous employment targets,” said Eva.
“The findings highlight the crucial need to incorporate Indigenous-led approaches to things such as organisational governance, human resource management and recruitment within Australian businesses.”
Through other research, Eva found that businesses with Indigenous staff in upper management positions had more than three times the number of Indigenous workers compared to businesses with no Indigenous management.
“It’s, therefore, key for non-Indigenous-owned businesses to identify how they can create those pathways for Indigenous employees to progress into senior management roles and ensure there are equitable opportunities for progression within organisations for all employees,” said Eva.
“Managers from an Indigenous background are also better placed to understand the unique cultural and personal tendencies of their Indigenous colleagues.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
