claimed they felt under pressure to conduct ethnicity pay gap analysis. Perhaps most encouraging is that


three out of four employers (74%) have already collected pay data by ethnicity or are planning to do so in future and 31% have published or are planning to publish their pay gaps. Yet as Michelle Sequeira says: “To truly make a difference, employers must look beyond their pay gaps... to widen the pools from which they recruit and take steps to reduce unconscious bias in processes. Most important of all is creating a genuinely inclusive workforce that allows people to be themselves and thrive both in and outside of work.”


PUTTING THE ‘S’ IN ESG The scope for GM expertise to work with HR and talent teams to make the playing field more equal for global people is wide. That senior leaders are already onboard, as Mercer’s research suggests, is a bonus. Responsible


business and


more environmental, social and governance reporting (ESG) is offering the potential for employers to really offer detail on how their people are their greatest asset. One approach suggested by the CIPD is to improve the transparency of all aspects of workforce reporting, including workforce composition, employee relations and wellbeing, reward and recognition, skills and capabilities. “There is already strong


momentum behind wider corporate reporting across environmental, social and governance (ESG) but it’s clear more needs to be done on the ‘S’ part of ESG,” observed Peter Cheese, launching the CIPD’s report, How do Companies Report on their Most Important Asset?, which is published with workplace pension and saving representative PLSA, and pension scheme Railpen. “Now is the time for more


transparency and action, but this requires more guidance and clearer frameworks for reporting. The creation of an accepted baseline framework for workforce reporting would help organisations report how they manage and invest in their people in a clear and consistent way and improve reporting practices over time. In turn, this would improve key outcomes such as staff development and retention, employee inclusion and wellbeing, and enhance


organisational performance.” HR’s role in improving inclusion


through action and stepping up to the challenge of reporting is being matched by the investment community, which is demanding more transparency and better- quality reporting on people issues. In March, the UK’s Investment


Association, the trade body for investment managers, reported the diversity along with climate change are top of mind for investment managers this AGM season. In line with the demand for this business- critical knowledge and insight into people risk and opportunity, the Association’s IVIS (Institutional Voting Information Service) is highlighting with a ‘red top’ FTSE 100 companies that fail to meet the Parker Review target of having one ethnically diverse board member and an ‘amber top’ FTSE 250 companies that do not disclose the ethnic diversity of their boards or have an action plan to achieve the Parker Review targets by 2024. The information service will


similarly expose FTSE small cap companies where women represent 25% or less of the board and 25% or less of their Executive Committee. This builds on the existing red top approach taken for FTSE 350 companies where the expectation is for women to represent at least 33% of the Board and 28% of the Executive Committee and their direct reports. “Investment managers want to


support companies to deliver long- term, sustainable returns on behalf of savers and pensioners up and down the country,” said Andrew


Ninian, Director of Stewardship and Corporate Governance at the Investment Association. “Climate change and the transition to net zero is not an issue which can be left for future management teams or boards, investors wish to see the actions the current leadership will be taking, and investment managers will be watching closely this AGM season to ensure they are doing just that. “While good progress has


been made with greater female representation on boards and in senior leadership across the FTSE, investment managers now want to see this positive momentum include ethnic minority representation on boards and are calling on all FTSE 100 companies to meet the Parker Review target this year.”


FRAMING THE ISSUE The direction of travel for capturing key workforce data is clear and momentum is building towards full disclosure and workplaces that are more diverse, equitable and inclusive. GM has a critical role to play in working out how its processes and policies can engage a greater diversity of people and include people in an equitable matter. There are big social and


economic challenges ahead and we need diversity of thought and experience to overcome them. Building for strength in our sector means including and reflecting societies and marketplaces in all their diversity and talents. The key question for global mobility and the relocation supply chain is how can we support global people and leaders to deliver this?


35


THINK GLOBAL PEOPLE DIVERSITY, E QUITY & INCLUSION


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