Firms reap rewards from ethnic diversity

Evidence of the financial benefits of having an ethnically diverse

workforce was presented to employers by the government last month.

Research commissioned for the Department for Education and Employment found that businesses introducing good race equality practices demonstrated benefits such as increased staff retention, improved employee relations and better sales.

Employment and equal opportunities minister Margaret Hodge presented a report, Business benefits of race equality at work, which contains case studies of 12 companies who have benefited from taking measures to ensure equality for ethnic minority staff.

Catering company the Mayday Group had seen benefits from changing their recruitment policies. Managing director Jane Sunley said: "Last year applicants from ethnic minorities who, without training, would otherwise not have been offered work, added £250,000 to our turnover."

And in the banking sector, Gordon Pell, former group director of UK Retail Banking for Lloyds TSB, said: "Over 40% of employees in this area are now from the ethnic minority community - resulting in a 30% increase in sales."

Copies of the full report Business benefits of race equality at work, are available by writing to: DfEE Publications, PO Box 5050, Sudbury, Suffolk CO10 6ZQ, price £4.95. A research brief is available free of charge from DfEE Publications or by accessing www.dfee.gov.uk/research.