The underemployment and underpromotion of people from BME backgrounds is not only unfair for the individuals affected, but a wide body of research exists that has established that diverse organisations are more successful. As McKinsey identified in 2015, companies in the top quartile for racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians.

The lost potential and productivity – both from these individuals being more likely to be out of work or working in jobs where they are overqualified (and underutilised) – has a significant impact on the economy as a whole. If the employment rate for ethnic minorities matched that of White people, and BME individuals were in occupations commensurate with their qualifications, the benefits are massive. The potential benefit to the UK economy from full representation of BME individuals across the labour market through improved participation and progression is estimated to be £24 billion a year, which represents 1.3% of GDP.

During the course of this review, we have heard a number of examples of discrimination and outright racism that are illegal and clearly have no place in any 21st century company. Where these are identified, employers need to act fast and ensure that outdated and offensive views or behaviours are not tolerated. However, dealing with explicit discrimination alone will not change the fortunes of the majority of ethnic minorities in the UK.

In many organisations, the processes in place, from the point of recruitment through to progression to the very top, remain favourable to a select group of individuals. This bias is referred to as ‘unconscious’, sometimes wrongly, and it is reinforced by outdated processes and behavioural norms that can and must be improved, to create more inclusive working environments that benefit everybody.

This review has identified a number of changes that can be made by employers in the public, private and third sectors to improve diversity within their organisations. Some are easier, some more longterm and fundamental, but these changes will help organisations to recruit a more diverse workforce, take full advantage of their existing talent, and service their customer base more effectively by having a more representative workforce. If implemented, these should result in fairer, more inclusive workplaces, happier staff and ultimately, increases in productivity.

You can read the complete review here.