Understanding Workplace Discrimination: Its impact on your business and how to address it

Understanding Workplace Discrimination: Its impact on your business and how to address it

Discrimination in the workplace is a pressing issue that affects not only Employees but also businesses as a whole. Employers and HR teams play a critical role in preventing and addressing workplace discrimination.

In our article, we explore what discrimination is, its legal definition, its impact on businesses, and what policies Employers should implement to create an inclusive and equitable work environment.


Why not take a look, let’s take a read:



As an Employer how do I understand what discrimination is?

Discrimination refers to treating individuals unfairly or unequally based on certain characteristics, such as race, gender, age, disability, religion, sexual orientation, or national origin. It can manifest in various forms, including but not limited to:


  • Direct Discrimination: This occurs when someone is treated less favourably because of a protected characteristic. For example, not hiring a qualified candidate solely because of their gender
  • Indirect Discrimination: This takes place when a seemingly neutral policy or practice disproportionately affects individuals with specific characteristics. An example is having a height requirement for a job that may disproportionately exclude women
  • Harassment: Harassment is unwelcome behaviour related to a protected characteristic, which creates a hostile work environment. It can include offensive jokes, slurs, or offensive comments
  • Victimisation: When an individual faces negative consequences, such as retaliation or exclusion, for asserting their rights against discrimination



As an Employer how do I understand the legal definition?

In the United Kingdom, several key laws address workplace discrimination, including:

  • Equality Act 2010: This landmark legislation provides protection against discrimination based on characteristics such as age, disability, gender, race, religion or belief, sexual orientation, and gender reassignment. The Act covers direct and indirect discrimination, harassment, and victimisation
  • The Equality Act (Sexual Orientation) Regulations 2007: These regulations explicitly prohibit discrimination based on sexual orientation



How can it impact my business?

Discrimination in the workplace can have profound negative effects on businesses, let’s take a look in more detail:

  • Talent Drain: A workplace tainted by discrimination struggles to attract and retain top talent. Discriminatory practices can drive away qualified candidates, leading to recruitment challenges
  • Decreased Productivity: Discrimination can create a toxic work environment, causing stress and decreased morale among Employees. This, in turn, hampers productivity and creativity
  • Reputation Damage: News of discrimination incidents can spread rapidly through social media and news outlets; this can easily and quickly tarnish your company’s reputation. This can deter potential customers and investors
  • Legal Consequences: Discrimination lawsuits can be financially devastating. Businesses found guilty of discrimination may face hefty fines, legal fees, and damage to their brand



As an Employer what policies should I have?


To combat workplace discrimination and create an inclusive and equitable work environment, as an Employer you should implement the following policies:


  • Anti-Discrimination Policy: as an Employer you should develop a clear and comprehensive anti-discrimination policy that explicitly outlines your company’s commitment to equal opportunity, diversity, and inclusion
  • Equal Employment Opportunity (EEO) Statement: as an Employer you should include an EEO statement in job postings and company communications to show your commitment to diversity and compliance with anti-discrimination laws
  • Harassment Prevention Policy: as an Employer you should implement a policy that prohibits harassment and provides clear guidelines on reporting and addressing harassment complaints
  • Diversity and Inclusion Initiatives: as an Employer you should establish initiatives to promote diversity and inclusion within the workplace. Encourage diversity in hiring, mentorship programs, and awareness training
  • Complaint Reporting Procedure: as an Employer you should create a confidential and easy-to-use procedure for Employees to report discrimination or harassment concerns. Ensure that complaints are promptly and thoroughly investigated
  • Training Programs: as an Employer you should conduct regular training programs for Employees and managers to raise awareness about discrimination, harassment, and diversity and inclusion



As an Employer how can I make improvements?

To make meaningful improvements in addressing workplace discrimination, we would make the following suggestions:


  • Leadership Commitment: your leaders should champion diversity and inclusion efforts and lead by example
  • Data Collection: as an Employer you should collect and analyse data related to diversity and inclusion within the company to identify areas that require improvement
  • Continuous Education: as an Employer you should stay updated on changes in anti-discrimination laws and best practices to adapt policies and practices accordingly
  • Feedback Mechanisms: as an Employer you should encourage feedback from Employees to gain insights into their experiences and suggestions for improvement



In conclusion

Workplace discrimination is a significant concern in the United Kingdom, impacting both Employees and businesses. Employers and HR teams must be proactive in preventing and addressing discrimination, aligning their practices with UK anti-discrimination laws. By implementing robust policies, fostering a culture of diversity and inclusion, and committing to continuous improvement, UK businesses can create a workplace that benefits everyone involved while maintaining legal compliance and upholding ethical standards. An inclusive workplace is not only a legal obligation but also a source of increased productivity, innovation, and social responsibility.



How can we help you further?

We are here to provide you with full advice, support, and guidance. We can advise in any HR or Employment Law matter: you can contact a member of our team on 0333 006 9489 or [email protected]





This article contains a general overview of information only. It does not constitute, and should not be relied upon, as legal advice. You should consult a suitably qualified lawyer on any specific legal problem or matter.

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