Diversity (staff)

Commentary

Context CIS and The Co-operative Bank have reported the composition of their workforces since 2000 and 1999 respectively. During 2003, all staff continued to be employed by either CIS or the bank through distinct contractual arrangements. During the year, several central CFS functions were established - including Information Communications & Technology, Financial & Actuarial, Risk & Compliance, Marketing, Corporate Affairs and Resources. Staff within these central areas continue to be employed according to either CIS or bank terms and conditions. Differences in the pay practices and grading structures between CIS and the bank do not allow for exact like-for-like comparisons. As a consequence, discrete workforce statistics are reported for CIS and bank contracted staff. This year, for the first time, CIS reports the composition of different salary bands on the basis of gender and ethnicity. Attitudinal data is reported for CFS as a whole, as the development of central CFS functions makes CIS and bank reporting inappropriate in this area.

Recognition The Employers' Forum on Disability ranked the bank third (2002: second) and CIS fifth in its second annual Global Inclusion Benchmarki, further details are presented here. The Benchmark measures an organisation's commitment to disability, including its performance on the recruitment and retention of disabled employees, through published sustainability reports.

Governance, policy and new legislation Building on the work undertaken by CIS and the bank to date, during 2003, new Diversity Governance and Strategy proposals were developed for CFS. Ken Lewis, Resources Director, has responsibility for diversity across the organisation. A CFS Sustainability Steering Committee was established early in 2004. Diversity Working Groups, focusing on specific priority areas, will support the Steering Committee. The implementation of the Employment Equality (Religion or Belief) Regulations and the Employment Equality (Sexual Orientation) Regulations 2003 further extended protection to workers in employment from December 2003. The majority of employment rights protected by this legislation were already covered by existing CIS and bank policies. New provisions have been incorporated into the relevant policies as necessary. During 2003, best practice workplace diversity research was undertaken and this will inform the development of a CFS Diversity and Dignity at Work Policy. Policy proposals will be developed further during 2004 and, when completed, the Policy will be available on the website.ii

Staff survey responses For the first time, the staff survey collected data on respondents' gender, age, disability, ethnicity and part-time working status in order to facilitate an analysis of satisfaction by these groupings. The staff survey also included a new series of questions that were designed to assist understanding of any staff experiences of discrimination. Working patterns caused the highest levels of concern overall, with 11% reporting experience of discrimination, harassment or bullying related to this issue. In the longer term, it is intended that improved understanding of flexible working, arising from a new CFS Work/Life Balance Policy, will tackle this issue.

Gender - review The majority of bank staff are women (61%). In comparison, women account for a much smaller proportion of CIS staff (37%). This trend is particularly pronounced for Financial Advisers, where just 6% of employees are female. The under-representation of women and ethnic minorities amongst Financial Advisers will be a subject of further investigation during 2004. The upward trend in the proportion of women senior managers (those in 'Delivering Business Plans' and 'Translating the Strategy' levels) continued in the bank during 2003. In accordance with the Co-operative Group's definition of a 'manager' (paid £20,000 or more), women make up 39% of all management positions at the bank. Similarly, excluding Financial Advisers, who receive the majority of remuneration by commission, women account for 37% of all 'management positions' at CIS. In their responses to the staff survey, women reported a higher degree of satisfaction than men on questions related to work/life balance, well-being and opportunities to learn about other parts of the organisation.
 45% of the general workforce are women (Labour Force Survey, Autumn 2003). CIS and the bank have been benchmarked by Opportunity Nowiii and have both been rated as 'silver' in their 2003/04 survey, which is in line with the financial services sector average. Further details are described here.

Gender - targets The complexity arising from differences in pay practices and grading structures between CIS and the bank would have made a meaningful equal pay audit difficult to implement in 2003. CFS is proposing to restructure its pay practices over a period of time. An equal pay review will be undertaken once the new remuneration structures are in place. It is unlikely that this will be undertaken until 2006. A 'Women in Management' Steering Group was established in 2003 in the bank's Corporate Banking Division, to help gain further insight into the under-representation of women in managerial positions in this area. The group completed its work with a set of recommended actions including: a 'keep in touch' scheme for staff on a career break or maternity leave; the redesign of job advertisements to strengthen the focus on flexible working; and the development of a women's intranet site for Corporate Banking. These recommendations will be considered during 2004.

Ethnicity During 2003, both CIS and the bank continued efforts to increase the representation of staff from ethnic minorities. Both organisations are seeking to improve their recognition in ethnic minority communities, through participation in ethnic minority job fairs, by advertising positions in the ethnic minority press and through staff volunteering, especially through CIS' partnership with Whalley Range High School for Girls. In 2003, the number of staff who consider themselves to be from an ethnic minority increased from 3.5% to 4.3% for bank staff, but remained static at 2.9% for CIS (with just over 2% of CIS Financial Advisers considering themselves to be from an ethnic minority). In accordance with the Co-operative Group definition of a 'manager', just over 1% of 'managers' in the bank consider themselves to be from an ethnic minority. Similarly, just 2% of all CIS 'managers' (excluding Financial Advisers, who receive the majority of remuneration by commission) are from an ethnic minority. In responses to the staff survey, a varied picture of satisfaction was seen across the different ethnic minority groups. In general, white, mixed and black African respondents showed the most positive responses; however, large variations were seen by individual question. On the question of discrimination by ethnic origin, all ethnic minority groups were more likely to report experience of discrimination, harassment or bullying than white staff. 
 6.8% of the national economically active population are ethnic minorities (Labour Force Survey, Spring 2002). CIS and the bank have been benchmarked by Race for Opportunityiv and have both received a 'certificate of participation' in their 2003 survey, which is below the 'bronze' average achieved by the financial services sector. Further details are described here.
Ethnicity - Bank In 2003, the bank and smile commissioned focus groups and a small number of structured interviews to gain a better insight into the perceptions of local ethnic minority communities and the experience of ethnic minority staff. Results indicated that there was a low level of awareness of the bank and smile amongst local communities, and a general perception that the financial services sector was not an 'employer of ethnic minorities'. Staff were aware of the Equal Opportunities Policy, but would like to see a stronger commitment to the Policy. This initial research indicated few substantial issues. However, given the importance of this matter, follow-up surveys were issued to all ethnic minority bank and smile staff. A number of suggestions, including providing time off for religious festivals and a 'zero tolerance' policy on racial abuse, harassment and discrimination were mentioned. These recommendations have been used to inform the development of the CFS Diversity and Dignity at Work Policy.

Disability CFS is a member of the Employers' Forum on Disability and both CIS and the bank are holders of the 'Positive about Disabled People' symbol, which means that CIS and the bank have agreed to meet five commitments regarding the recruitment, employment, retention and career development of disabled people. The number of bank staff declaring a disability rose from 48 to 142 (3.4% of all staff) in 2003. The majority of these staff are based in Customer Services, where positive steps have been taken to promote a greater understanding of how differing needs should be responded to from the point of application through to joining a team. The number of CIS staff declaring a disability decreased slightly from 1.4% to 1.3%. In responses to the staff survey, staff declaring a disability reported lower than average satisfaction with career development and reported experience of higher levels of discrimination on the basis of age, working patterns and disability. 65 'reasonable adjustments' were made for 48 bank staff during 2003. Adjustments included reduced hours, changes to roles and new equipment. A total of 45 'reasonable adjustments' were made during 2003, for CIS staff, including 32 adjustments to IT equipment. A number of external organisations provided advice and equipment including Posturitev (musculoskeletal disorders), Broadstockvi (specialist seating and desks) and Guilbertvii (writing aids). A series of awareness-raising articles on disability, written by disabled staff, were published on the CIS intranet to promote the 2003 European Year of Disabled People (EYDP). Staff members published their experiences of living with epilepsy, visual impairment, ME and HIV, amongst others. Both CIS and the bank view staff volunteering as a means of awareness-raising, and promoted volunteering projects throughout 2003 as part of the EYDP. The development of new community projects was suspended in the latter half of 2003, pending a review of CIS' and the bank's community activities. During the year, CIS continued to promote its 'Return to Work' programme, which is designed to build confidence and motivation, and to improve job-seeking skills for people with disabilities, who have been out of work for long periods of time. 54 people participated in the programme in 2003, with 15 gaining employment as a result. This included the employment of one member of staff within the CIS Sales and Service Centre and three staff within general administration. The quality of the programme was recognised in 2003, when it was 'Highly Commended' at the regional National Training Awards. It had been intended that the 'Return to Work' programme would be extended to the bank and smile in 2003. However, business restructuring impacted on recruitment plans and hindered development of the programme. Further initiatives to improve the employment opportunities for people with disabilities will be introduced during 2004.

Age CIS and the bank currently operate retirement ages of 65 and 60 respectively. Overall, both CIS and the bank have a similar age profile. However, the bank is under-represented in the over 50 age group with 12% of staff in this age group. 18% of CIS staff are over 50, of which 212 CIS staff were over 60. In responses to the staff survey, satisfaction levels showed a decrease with age, with the most positive responses coming from the 16-24 age group and least positive from the over 50s.
 22% of economically active people in the UK are over 50 (Labour Force Survey, Autumn 2003).
Age - Bank During 2003, the bank successfully piloted a flexible retirement policy that enables staff to continue working past the current retirement age of 60, where there is mutual agreement between the bank and the member of staff. However, to ensure there is no impact on the ultimate pension benefits, the pensions paid will be based upon the 'Final Pensionable Salary' at age 60. At the end of 2003, eight bank staff were working beyond the age of 60. This scheme is currently being evaluated as part of the project reviewing staff terms and conditions.

Influence and action

Equal treatment In November 2003, the European Commission issued proposals to enforce the principle of the equal treatment of men and women in access to goods and the supply of services. In its current form, the Directive would have implications for those insurance and investment products where gender is regarded as a relevant factor for pricing; examples include life assurance, motor insurance, pensions and annuities. The Association of British Insurers (ABI), supported by CIS and other members, is broadly opposed to the proposals. If implemented, the Directive would lead to increased motor insurance premiums for women and would decrease the value of annuities for men.

Pensions During March 2003, CIS co-hosted with Age Concern a series of twelve 'roadshows' in support of the Department of Work and Pensions' consultation on the Pensions Green Paper on working and saving for retirement. This exercise represented the largest public consultation ever undertaken on pensions and their future strategic direction. Amongst the main themes to provide a focus for the consultation were: extending working lives, promoting private pension provision, protecting pension scheme members' interests and simplifying the tax system for pensions. CIS also provided a formal response to the consultation.

 
i www.employers-forum.co.uk/www/press15.htm
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ii www.cfs.co.uk
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iii www.opportunitynow.org.uk
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iv www.raceforopportunity.org.uk
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v www.posturite.co.uk
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vi www.broadstock.co.uk
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vii www.guilbert.co.uk
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