Press Release

Warm welcome for Equalities Bill

26 June 2008 – Reacting to plans being announced today by Equalities Minister, Harriet Harman, Ruth Spellman, chief executive of the Chartered Management Institute applauds the proposals, saying it is ”a long-time coming, but a welcome and definite move in the right direction.  

In addition to outlawing all forms of age discrimination, the Bill proposes action over the gender pay gap and will aim to eradicate race discrimination.

“Our own research shows that organisations perform more effectively when the workforce reflects a mixed group – across age, gender and race.  In a marketplace dominated by skills shortages and increasing levels of global competition it is important to maximise the talent pool.”  

Research from the Chartered Management Institute has explored issues around race, gender and diversity.  Key findings have included:

- age barrier: 6 in 10 reporting disadvantage at work because of their age

- no parity: in 2007 female managers earned an average of £43,571 - £6,076 less than the male equivalent of £49,647 and more women (7/8 per cent) than men (6.4 per cent) are resigning

- diverse reaction: ethnic minority groups feel let down when it comes to skills development, with more Asian (24 per cent) and black (22 per cent) managers reporting ‘inadequate’ or ‘very inadequate’ development than white managers (16 per cent).

On age discrimination, Spellman says:
“Discrimination on the basis of birth dates has never made sense and, with 70 per cent of the workforce in 2020 already in employment, action needed to be taken to protect the rights of older workers.  The days of a single, linear career are over, but the onus should not just be on individuals to find appropriate new roles.  Employers must share this responsibility by helping to build the skills that individuals and businesses will need to succeed in the future.”

On the gender pay gap, Spellman adds:
“It is clear that lack of parity in pay remains an issue.  Despite the weight of legislation we are not making sufficient progress.  Their increasing likelihood to resign, as the National Management Salary Survey shows, is a cause for concern.  If employers allow gender gaps to continue the knowledge gap in UK organisations will be exacerbated at the very time we are trying to challenge the skills crisis.”

On the issue of diversity in the workplace, Spellman argues:
“Despite increasing demands for openness and transparency many of the barriers to achieving greater diversity at a senior management level persist.  It should be a key concern for employers because they run the risk of wasting a talent pool that is scarce.  Put simply, what this talent thrives on is challenge, to grow, and to achieve. And if the challenge and opportunity goes, so will they.”