How to let Employment Equity work for your business

The Employment Equity Act is something that many companies have grown to fear. The fear of change, the fear of restructuring, and the fear of uncertainty of compliance.  

However, once this piece of legislation, which aims to achieve equity in the workplace, is viewed as a cultural diversity initiative, several colourful opportunities unfold. In a previous blog we discussed the importance of the Employment Equity Act , the purpose of this blog is to explain the aim of Employment Equity and its associated benefits in the workplace.

What is Employment Equity?

Employment Equity is a legal imperative but also makes good business sense, as research has shown that companies with a culturally diverse employment profile generally outperform their competitors by up to 35%.

Understanding the benefits of Employment Equity

When searching the internet, you will find many explanations regarding the benefits of cultural diversity and why it makes for good business practice. Let’s look at some of these benefits:

• The first benefit addresses the luxury of a variety of different perspectives. When you have employees from different backgrounds, different cultures and ultimately different mindsets, you will get an array of different perspectives. With that in mind, everyone shares a slightly different approach to the job and the problem at hand and in that lies the benefit. A diverse workforce gives you better insight into your customers’ needs because our customers in South Africa are extremely diverse.
• Another benefit that comes to mind is increased creativity and productivity. While diversity brings people with different aptitudes and abilities together in the workplace, they often have to work towards a common goal, with each employee having their own unique set of talents. Employees end up learning from their colleagues and can bring a variety of fresh new ideas and methodologies to the table. This increase in creativity and productivity is also rewarding, as has been proven by research. In the US article, "The economic value of cultural diversity: evidence from US cities", the authors conclude that “these findings are consistent with a dominant positive effect of diversity on productivity: a more multicultural urban environment makes US-born citizens more productive”.
• In South Africa we are fortunate to have a variety of diverse employees. With so many unique and diverse minds working together,  many more solutions will arise as every individual contributes their personal way of thinking, solving problems and making decisions. Companies that encourage diversity in the workplace inspire all their employees to perform to their maximum potential.
• The last benefit that cannot be ignored, especially in South Africa where Employment Equity is a priority, is the company’s reputation in terms of diversity and equity. In terms of company reputation, a diverse company looks good to the public and creates a positive vibe within the company’s work environment, within the industry and within the community in which the company operates. When you employ people from a diverse pool, your employees can relate directly with the community, which will ultimately enhance your brand and products.

In conclusion

In a diverse community, a diverse employee base promotes communication with customers and enables companies to develop their brand and products to meet the needs of a diverse market, thus making Employment Equity favourable and positive for business growth. Therefore, investing in a diverse employee pool will promote growth, not only in the business but also in terms of the employees and the company’s relationship with the community.

If you are unsure whether you are a designated employer or what the implications are of COVID-19 on Employment Equity, please refer to a previously published article named ‘Employment Equity compliance during the Covid-19 pandemic’.

SERR Synergy assists businesses with all the necessary legal aspects around the Employment Equity Act, ensuring full compliance and implementation of the requirements stipulated. Our Skills Development Facilitators are ready and competent to assist and will ensure that you are well prepared for your audits and inspections by the Department of Labour.

About the Author: Madeleine Gericke obtained her Honours Degree in Health and Social Psychology at University of South Africa in 2012 and has over 15 years of experience as a Skills Development and Employment Equity Consultant. She is currently working at SERR Synergy as a Skills Systems Developer.