Are retailers really doing enough to understand and eliminate discrimination?

We know how well the retail automotive sector responded to the challenges faced over the last 18 months but sadly, there is one all important area where we have fallen behind other business sectors. Discrimination incidents in the motor trade have risen tenfold and so have the very public claims brought against motor retailers, causing physical, financial and reputational damage.

Insurance companies have seen a sharp increase in employment practices claims brought against dealers and their management. This is particularly prevalent due to the large number of people employed, with retailers facing claims for all forms of discrimination, bias and sadly, even suicide.

My business (Hamilton Leigh) manages insurance programmes for motor dealers and the number of employment related claims we are managing has increased by 350% in the last 18 months. Given the effects of mental health since the pandemic began, this has come as no surprise. The common denominator in most of these instances is a lack of management awareness, training and appropriate action taken. I’ve witnessed first-hand the devastating effects these incidents have on work colleagues and families and I can assure you, it’s something none of us ever want to experience. 

The world is changing at a rapid pace and the old rules that we so often worked by are no longer applicable. How do we help our people adapt to these changes and how do we ensure our people work effectively together and feel safe and valued in their working environment?

Improving equality, diversity and inclusion in the workplace can help motivate and support employees and prevent legal or serious consequences arising from bullying, harassment and discrimination. It will also go a long way to help prevent reputational damage and protect the brands that we represent.

Diversity and inclusion are important to employees

Diversity and inclusion have become a high priority for a large percentage of employees. Not a day goes by without the media focussing on this highly sensitive subject. Members of Generation Z (born between 1995-2010) now make up the highest percentage of the world’s population. As these young people become a growing part of the workforce, their priorities and influence will have a major impact on their respective workplaces.

Many surveys have shown that millennial and Generation Z employees are more likely to value diversity and inclusion in the workplace. Furthermore, younger generations are less likely to turn a blind eye and to report instances of discrimination against them.

Invest in proper education and training

Regular training can help businesses address issues systemically and effectively. Educating all levels of management is key. Many of the claims we manage could have been prevented if management had a better understanding of the severe consequences of ‘doing nothing’. Businesses should consider opt-in educational programmes, specifically designed for managers and supervisors, with the intent of establishing a dialogue on relevant topics within the workplace and increasing awareness.

A good example of the need for proper training is bias and in particular, unconscious bias. Although it may not be possible to eliminate unconscious bias completely, proper training may go some way towards mitigating its effects and help to improve the workplace environment.

Employers have a legal duty to take care of employees and provide a safe working environment. In any event, there is a firm moral duty on employers to take care of people as they are in a unique position to support wellbeing and good mental health. Managing the risks related to workplace stress and preventing unfair treatment, such as bullying and harassment, will help to create a mentally healthy workplace.

Furthermore, employers that are proactive in assessing and measuring how diversity and inclusion efforts are progressing may be more likely to attract new and retain existing talent and gain a reputation as a business that genuinely cares for its people.

This cannot be a ‘Tick Box’ exercise

Just merely producing company manuals and bulletins is simply not enough. Appropriate time and resource are required to demonstrate to your workforce how serious their wellbeing is valued. Business leaders are good at introducing new systems and controls after an event but the damage may already be done; the reputational and financial effects of a discrimination incident are huge but these pail into insignificance compared with the physical damage and the potential cost to human life.

By Lee Cohen, managing director, Hamilton Leigh

Dealing with a complaint

Sandra Martins, senior lawyer at Radius Law, explains how to deal with a complaint of bullying, harassment, discrimination or victimisation:

• Take it seriously:
• The complainant may have claims in an employment tribunal against the employer and the accused;
• Dealing with the complaint inadequately may also give rise to a claim;
• If a claim is made, the tribunal will consider evidence gathered and documentation created during the process.
• Is it a criminal matter (e.g. an assault)? Consider involving the police.
• Follow the appropriate policy (e.g. grievance; bullying and harassment). No policy? Follow the ACAS Code of Practice on grievance procedures.
• The person handling the procedure should have had training.
• Keep an open mind and look out for the wellbeing of the complainant, witnesses and accused, throughout.
• Consider additional requirements: reasonable adjustments for disabled employees; an interpreter.
• Interview the complainant (allow a companion), accused and witnesses.
• Keep the process confidential, but don’t promise anonymity.
• Gather the relevant evidence (note how/why it was obtained): e.g. emails, text messages, paperwork, computer records, phone records, CCTV recordings. Comply with data protection law and respect employees’ right to privacy.
• Reach a decision, confirm it in writing, give the right to appeal and deal with the appeal.
• Wider actions: discipline the accused; diversity training for staff.
• Keep confidential records of process, meetings, witness statements, evidence and actions taken.