Why businesses fail to tackle workplace racism – and how to do better

Racial discrimination remains a huge problem in Australian workplaces and the effect it has on the stress, health and performance of employees means they’re likely to leave for other work – which means businesses not addressing the problem will be left behind. 

Even though racial discrimination is illegal, statistics suggest Australian businesses still have a problem and need to be prepared to call it out while also upping their investment in cultural awareness training.

A report by the Scanlon Foundation Research Institute in 2021 revealed 1 in 5 people living in Australia was a target of racial discrimination, that’s over four million people.

Reconciliation and Allyship experts, Carla Rogers and Aunty Munya Andrews, co-directors of Evolve Communities believe education is the key to reducing workplace racial discrimination and the reason cultural insensitivity still occurs is because people lack knowledge.

They say there is greater importance on offering diversity education in the workplace because Australians haven’t necessarily received any cultural awareness or sensitivity training at school.

Ms Rogers warns workplacesthat lack cultural sensitivity will find it difficult to retain and inspire employees from diverse backgrounds.

A report by the Diversity Council of Australia and the University of Technology Sydney’s Jumbunna Institute for Indigenous Education and Research in 2020 revealed 28%per cent of respondents said they worked in culturally unsafe workplaces. 44% also reported hearing racial slurs in the workplace, and 59% said they had encountered appearance racism about the way they look.

Many businesses will celebrate cultural diversity – but not put any processes in place to ensure that their diverse team are adequately protected or educated.

One of the biggest challenges facing organisations today is a lack of engagement and high employee attrition.

A Diversity Council report released earlier this year found 43% of non-white Australian employees regularly experienced racism in their workplace.

Unless racism is identified and the language around it changes, companies that fail to respond will face lawsuits, brand damage and a drop in productivity that impacts their bottom line.

The price of inaction is huge and it should send a powerful message to organisations to take racism seriously.

How to address workplace racism:

• Identify and promote the benefits of diversity in the workplace

Explain the business case; how it strengthens the company’s reputation, drives innovation and increases profits that in turn, provides employees with job security and career growth. A staff member taking sick days because of racism adds extra pressure on the teams workload during their absence.

• Your organisation can play a crucial role in shaping anti-racism

Consider writing mandatory reporting into your value statement so racist incidents are reported when they occur.  Invest in a buddy system and appoint a race champion within your leadership team and ensure that inclusion and diversity is a permanent item on the agenda at management meetings.  An anti-racism position statement should be included in the code of conduct, and in employee contracts and enforced so it’s not just lip service.

• Provide training around racism

Invest in quality cultural diversity and multicultural education and training.The training needs to educate around the issues of racism, unconscious racial biases and discrimination. Use real-life examples of bad experiences and good practice. Set clear expectations of what your organisation stands for and maintain zero tolerance of racism.

• Workers need to feel confident in the complaint process

Racism can silence workers from raising issues or making a complaint. Sometimes, colleagues from different backgrounds don’t feel heard when they approach HR to raise an issue.Making it easier for staff to raise complaints will help demonstrate racial discrimination isn’t tolerated.

• Business leaders have a role to play in stamping out racism

Leaders have an obligation to support employees and commit to creating a culture of belonging.  Make sure you understand the multi-cultural landscape within your business. Foster open dialogues about racial issues and encourage employee discussions around their experiences or observations.

HAVE YOUR SAY:

How does your business foster positive leadership?

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