Diversity in business means better staff retention

1:35pm Monday 9th June 2008

Firms which promote a diverse workforce enjoy business benefits including higher productivity and improved staff retention rates, according to a new report backed by both sides of industry.

The TUC and the CBI said employing people on their abilities, regardless of sex, race, disability or age, brought big rewards, as they published a guide on how to promote diversity.

The report urged companies to remove any bias against older workers, offer flexible shifts to help parents and develop links with local communities.

Richard Lambert, director general of the CBI, said: "Employers who take steps to encourage a more diverse workforce notice huge benefits from doing so, whether it is hiring skilled staff, understanding their customers' needs better or more fundamentally through improved morale and productivity.

"It does not have to be hard work or legally complex either - simply making the effort to work out your precise needs, reaching out as widely as you can, then hiring, training or promoting the best person on merit."

TUC general secretary Brendan Barber said: "The need to unlock the talents of all - to create a truly representative workforce - is even more crucial at a time of economic uncertainty. The issue is not whether business can afford to diversify, but whether it can afford not to.

"Employers wanting to diversify the workplace will always find unions a willing ally.

"Diversity policies work best when the entire workplace is involved. Our growing network of equality reps in workplaces across the UK are helping deliver diversity from the boardroom to the shop floor."

Minister for Equality Harriet Harman said: "Equality and diversity is not just right in principle, but is necessary for Britain to be a modern and successful economy. This guide will be important ."