It’s time for UK franchisors to wake up and embrace diversity, equality and inclusion, or risk getting left behind in the race for success, says the BFA’s Pip Wilkins
If we told UK franchisors that we’d found a way to help them enhance their creativity and innovation, improve their employee engagement and productivity, and help them attract and retain top talent and improve their customer relations – all while making them look pretty amazing – we’re sure they’d be straining at the leash to implement it, right?
Well, the truth is the answer could be as simple as embracing diversity, equity/equality and inclusion, or DE&I. It’s not sexy, it’s not on an app and it definitely isn’t driven by AI. It’s just good, old-fashioned kindness – and the good news is it will improve results for franchise brands who get on board.
What is DE&I?
For most of this year, the British Franchise Association (BFA) has been running a campaign looking at DE&I within franchising. Although the list is not exhaustive, DE&I is generally thought to include race, ethnicity, gender, sexual orientation, age, disability, nationality, and religion.
According to Inclusive Employers, a membership organisation for businesses and employers committed to prioritising inclusion and creating inclusive workplaces, the full and correct definition is as follows:
• Diversity: the mix of people
• Equality: the fair treatment of everyone, often linked to The Equality Act 2010, the legislative framework in the UK Equity – creating equal possible outcomes for everyone, because some people can experience substantial barriers in the workplace
• Inclusion: the culture in which the mix of people can come to work, feel comfortable and be confident to be themselves, working in a way that both suits them and delivers business or service needs.
Measurable success
According to a 2020 report by McKinsey, diverse companies “are more likely to financially outperform their peers.” Specifically, McKinsey stated that as per its 2019 analysis, “companies in the top quartile of gender diversity on executive teams were 25 per cent more likely to experience above-average profitability than peer companies in the fourth quartile” and regarding ethnic and cultural diversity, companies “in the top quartile outperformed those in the fourth by 36 per cent in terms of profitability in 2019.”
We can clearly see that enabling gender, ethnic and cultural diversity is imperative for businesses to grow and remain competitive.
A spokesperson at FASTSIGNS, a franchisor that embraces diverse hiring said: “We operate in a creative industry; if we were to only ever welcome one ‘type’ of person, we wouldn’t be very creative! Having a diverse team allows us to draw on cultural references and different drivers and motivations to help us create impactful signage that our customers can relate to.”
A pre-pandemic article by Deloitte in 2018 recorded the transformation of Quantas Airlines from a company with AUD$2.8 billion losses in 2013 to a record profit of AUD $850 million in 2017.
Quantas CEO Alan Joyce attributed the spectacular turnaround to: “A very diverse environment and a very inclusive culture,” which, “… got us through the tough times; diversity generated better strategy, better risk management, better debates, and better outcomes.”
Amrit Dhaliwal, the chief executive of homecare franchise Walfinch concurred: “Any franchise has much to gain from a diverse hiring policy when it comes to both franchisees and staff – it’s not just a ‘nice to have’.
“It starts with changing your mindset to become more inclusive and that must start at the top. Put yourself in the shoes of the prospective franchisee or employee. If you have ever looked at an organisation and wondered, ‘do they accept people like me?’ that’s the doubt they might be feeling, and they’re likely to take their talents elsewhere.”
How can franchisors become more inclusive?
I recently said in an interview about being a gay woman in franchising that a basic starting place, and one that frankly should already be in place, is for franchisors to adopt policies to ensure there’s no discrimination against marginalised communities in their workplaces.
Once a franchise has the correct policies in place, they should then look at inclusive hiring practices.
What are inclusive hiring practices?
It’s worth noting that these will help you avoid unlawful discrimination, which is covered under the Equality Act 2010. With this in mind, here are some things franchisors and franchisees should consider:
• Inclusive writing and language in job descriptions – use gender neutral language.
• Have an inclusive application process – give candidates a fair opportunity to demonstrate their capabilities.
• Offer reasonable adjustments throughout the interview process and be mindful of the needs of candidates with disabilities – they may need extra time.
• Understand the legal framework and make sure you know the law – attend a course on inclusive recruitment if necessary.
• Get expert help – seek advice from an employment lawyer or inclusive recruitment expert.
Embracing DE&I isn’t just morally and ethically the right thing to do – it also makes great business sense. As an association, the BFA hopes we can continue to drive the conversation and make franchise brands aware of the need for a more richly diverse community.
Download your free copy of What Franchise magazine, for more insights on how to improve your franchise’s people culture.
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