Guidance

Local Enterprise Partnerships and BME workers: A practical guide to addressing skills challenges

Updated 1 December 2022

Foreword

The government wants to make Britain a country that works for everyone. A country where everyone, regardless of where they live, their gender, and their race or religion, has a fair chance to make the most of their talents and hard work.

I am pleased with the progress we have made since 2010 to increase employment. However, for certain groups, there is still more to be done. Diversity in the workforce matters.

To understand the issues faced by different ethnic groups, the Prime Minister commissioned the Race Disparity Audit and we published the findings on GOV.UK in October 2017. The audit revealed disparities across different aspects of public life, including a gap in unemployment rates between black and minority ethnic (BME) and white people.

The Prime Minister called upon all of society to ‘explain or change’ the disparities and also made a commitment to increase the number of workers from ethnic minority backgrounds in employment by 20%, by 2020. We have already taken steps to meet this ambition.

Local Enterprise Partnerships (LEPs) will play a key part in helping the government to deliver this commitment and to harness the potential of local authorities and employers to influence positive behaviour change in the labour market.

I am aware that LEPs have their own initiatives in place to help increase BME employment, which I encourage you to continue to develop. This will help to build a fairer society, making sure that people have all of the support they need to make the most of their potential to find and progress in work, whatever their background, race or religion.

This guide is intended to complement the work you are doing to improve employment outcomes for BME groups. I hope it provides helpful advice and information to help you take forward your plans.

Alok Sharma MP
Minister of State for Employment

Executive summary

As part of turning this vision into a reality, the Race Disparity Audit was published in October 2017, to shine a spotlight on the differences in outcomes across ethnicities, and revealed an employment gap between BME and white people. The government is not hesitating to act on the audit’s findings, however uncomfortable some of them are, and is using the findings to influence policy at a local and national level. The government aims to reduce this employment gap, as well as increase BME employment by 20% by 2020, as part of the government’s wider aim to make this a fairer country for all.

Britain has always been a culturally diverse nation, with a strong work ethic that contributes to our society and to our economy. The employment rate for BME groups is at a record high of 65.1% (2018, ONS). Since the government made its commitment to increase BME employment in 2015, 475,000 ethnic minority workers have moved into employment in Great Britain. This is a 14% increase in the number of BME people employed and 71% towards the 2020 target, 3 years into the 5-year period.

However, there continues to be a significant gap in the employment rates between white and BME groups.

This guide is intended to be used as an aid for Local Enterprise Partnerships (LEPs), in particular skills managers tasked with supporting the work of the Skills and Employment programme boards. It provides information of initiatives that LEPs can adopt in order to address the BME employment gap, to build a fairer society.

These include:

• local engagement to raise awareness
• specific needs of challenge areas
• traineeships
• apprenticeships
• mentoring circles

How LEPs can help increase BME employment

Local engagement to raise awareness

One way to improve BME employment prospects, particularly in regards to influencing employers, is to raise awareness of the BME employment agenda in the local LEP area.

How this could be achieved:

• a business-focused conference or roundtable to look at the business case for having a diverse workforce, that represents the communities that are being served
• an employer forum to discuss and develop local initiatives – local business champion, local projects
• supporting businesses by making available practical tools and guidance for recruiting a diverse workforce, such as the See Potential employer pack.

Employers can also consider unconscious bias training and name-blind recruitment.

Unconscious bias impacts on attitudes, behaviour and individual and organisational decision-making. Being aware of your own unconscious biases (such as through BITC’s toolkit) and unconscious bias training reduces the impact of unconscious bias, leading to better decision-making and a more inclusive and diverse workforce

Studies have shown, as the McGregor Smith Review points out, that ethnic minorities perform better in the recruitment process when it is name-blind. The DWP’s study found that 74% more applications needed to be sent from ethnic minority applicants in order to generate the same success rate. The government recruited a number of employers in 2015 to pledge to recruit on a ‘name-blind’ basis. These employers are:

• Deloitte
• Learn Direct
• Virgin Money
• BBC
• Local Government Association
• KPMG
• Civil Service
• Teach First
• NHS
• HSBC

We encourage LEPs to use their influence with employers and encourage them to consider their recruitment practices, such as introducing unconscious bias training for all staff, to use inclusive advertising and name-blind recruitment in selection processes, as well as representative panels. LEPs can also help increase BME employment prospects through raising awareness of the benefits of traineeships and apprenticeships for both individuals and employers, to encourage people from a wide range of backgrounds to apply for these opportunities.

Challenge Areas

The Race Disparity Audit revealed big differences in employment outcomes between ethnic groups. You can have a look at all the data the audit covers at the ethnicity facts and figures website.

Twenty ‘challenge areas’ have been identified by further research from DWP. These are defined as areas with high BME populations and a wide gap between the BME and white employment rate. Initiatives are being developed to run in the challenge areas, tailored to the demographic and needs of the area.

The challenge areas are:

• Barnet
• Birmingham
• Bradford City
• Brent
• Ealing
• Glasgow
• Hackney
• Harrow
• Hounslow
• Islington
• Leicester
• Luton
• Manchester
• Newham
• Redbridge
• Sheffield
• Southwark
• Tower Hamlets
• Waltham Forest
• Westminster

Building on DWP analysis since the Race Disparity Audit was published, DWP provided data packs to all the 20 challenge areas in April 2018. These have equipped the areas with information on local demographic, claimant groups and the labour market, underpinning their work to increase BME employment.

DWP have also undertaken qualitative research in all the challenge areas to understand what jobcentre and employer and partner initiatives are already in place. Where there are gaps or where best practice can be applied, jobcentres will develop local solutions, for example, community partnerships, to improve BME outcomes.

A roundtable stakeholder event hosted by the Minister of State for Employment in June brought together organisations from across the challenge areas to discuss the Race Disparity Audit and the problems BME people face. The event was a success, and generated discussion on what works currently, and what problems are still to be tackled. This event and the qualitative research will shape new interventions to be put in place.

We are still designing new interventions to help BME people into employment. We plan to test them in 3 volunteer trial areas, Hackney, Oldham and Smethwick, from October 2018, the first anniversary of the Race Disparity Audit. These areas were chosen because they represent a range of BME groups and barriers to employment from across the country.

These interventions will be reviewed in 2019, and the findings will be disseminated to the other challenge areas later in 2019 so they can develop their own new interventions.

LEPs can help these challenge areas by engaging with Jobcentre Plus and employers in the areas, and raise awareness of BME employment initiatives or gaps in provision in the area. Additionally, LEPs can encourage best practice by employers, and signpost jobseekers towards traineeships and apprenticeships.

Traineeships

The Department for Education runs the Traineeships Programme, a flexible education and training programme with work experience, where Jobcentre Plus work coaches refer claimants aged 16 to 24 to education training providers who (in conjunction with employers) provide work preparation training, work experience, and English and maths where needed. The aim of the programme is to give young people the skills and experience needed to progress to an apprenticeship or sustainable job as quickly as possible.

The programme supports social mobility, as traineeships provide quality training for young people who need to develop their skills and experience to enter the labour market. For more information, please refer to the employer fact sheet.

Traineeships are an important stepping stone for many young people, particularly those qualified below level 3, with little to no work experience, to enter work or an apprenticeship, but without the current skills required to succeed in gaining one.

Traineeships are effective at supporting 16 to 24 year-olds. The year 2 process evaluation, published in July 2017, (based on a sample rather than administrative data) found that two thirds of trainees progress to a positive destination: 20% into apprenticeships, 34% into work and 12% into further learning, with strong participation from BME groups at 24%^{[footnote 1]}.

Traineeships can last between 6 weeks and 6 months and will include:

• work preparation training provided by the training organisation
• English and maths for those without GCSE A* to C, or grade 4 or higher in these subjects, provided by the training organisation
• a high-quality work experience placement with an employer

In addition to these basic elements, employers and the training provider can add flexible additional content to meet the needs of their business and the local labour market. For example, young people can undertake a ‘flexible element’, such as technical and professional qualifications that will help the learner move into work or remove a barrier to them entering work.

LEPs can consider their areas, the employers and community that is being served, and whether sector specific traineeships in particular areas are worthwhile.

Additionally, LEPs can encourage employers to think about offering traineeships to potential trainees, and ensure that they use inclusive recruitment practices. If employers are interested in finding out more about traineeships and the benefits they can bring to a business, they can contact their local education and training providers or the National Apprenticeship Service or by using their enquiry form.

Apprenticeships

In addition to the target to increase BME employment by 20% by 2020, the government also has a target to increase the proportion of BME people starting an apprenticeships by 20% by 2020, as part of its ‘2020 vision’.

In April 2017 the Apprenticeship Levy was introduced which changed the way apprenticeships are funded. It requires all employers operating in England, with a salary bill of over £3 million a year, to invest in apprenticeships. The Levy will fund an increase in apprenticeship numbers, and help provide high quality apprenticeships. This is part of the government commitment to deliver 3 million more apprenticeships start by 2020.

Apprenticeships benefit the employer, the apprentice and the economy. The cost to train an apprentice typically pays for itself, due to the increased productivity of the apprentice, through 1 or 2 years of completion^{[footnote 2]}.

The Apprenticeships Diversity Champions Network

The Department for Education launched the Apprenticeships Diversity Champions Network (ADCN) in February 2017, now chaired by Helen Grant MP. The Network is comprised of over 50 organisations, including Rolls Royce, BBC, BAE Systems and a number of small- and medium-sized employers, and have engaged in over 400 collaborations with partner organisations. It has been established to champion apprenticeships and diversity amongst employers and encourage more people from underrepresented groups, including those with disabilities, women, and BME communities, to consider apprenticeships.

All members of the network agree to monitor their diversity, including BME, and to share data with the network on a quarterly basis. Several members have pledged to hit a specific target of BME apprentices each year, including DIVA, Balfour Beatty, Enterprise and Telematics Solutions. Some members have already reported higher numbers of BME apprentices, such as Rolls-Royce with 11% of their higher apprenticeship programme being individuals from BME backgrounds, and 6% of their work experience placements, up from only 3% the year before.

Members meet every quarter to share top tips, such as anonymised CV and bias training, working with the supply chain, community outreach and positive action. The ADCN also aims to influence the behaviour of other employers to support more people from underrepresented groups, and to encouraging other employers to promote diversity in apprenticeships.

The Five Cities Diversity Hubs

The Five Cities Diversity Hubs project also supports the government ambition to increase the proportion of BME people starting an apprenticeship by 20% by 2020. This project centres around 5 cities – London, Birmingham, Manchester, Leicester, and Bristol. It is leading the way in partnership with the National Apprenticeship Service. The project is focused on taking local action, addressing barriers, and sharing best practice in order to break down barriers and make meaningful progress to equalise BME apprenticeship starts with the local population.

How LEPs can help

LEPs can identify employers it can support that are committed to increasing BME employment through apprenticeships, including levy-paying employers. Once these employers are identified, Association for Employment and Learning Providers (AELP) and Association of Colleges (AOC) will provide suitable apprenticeship training for the employees. Jobcentre Plus will be able to signpost unemployed BME people to apprenticeships, which the employers themselves have identified will be able to benefit their business. LEPs can also help increasing BME employment rates by promoting and marketing BME apprenticeships.

Further Information

• Education and Skills Funding Agency – Apprenticeships
  
  
• Education and Skills Funding Agency – Funding Rules
  
  
• Department for Education guidance – Apprenticeship Funding
  
  
• Get in Go Far – includes all kinds of resources for employers, individuals, parents etc.

Business in the Community Mentoring Pilots

Business in the Community (BITC) has found that BME people value mentors more than other ethnic groups. They are more likely to want a mentor and more likely to value the impact of having one, and have a greater desire to expand their personal networks. DWP is therefore working with BITC on new mentoring pilots.

BITC launched a successful mentoring trial in Brixton in 2014, born out of a successful Prince of Wales’ Seeing is Believing visit. These visits gather a select group of senior business leaders, to think strategically about how to close the gap between the boardroom and the community. The Brixton visit highlighted the need for BME jobseekers to increase their engagement with employers and develop their understanding of different industries’ recruitment processes and ‘sift’ criteria. The pilots consisted of 3 mentoring sessions, which were viewed very positively by the young people, with over 80% saying in their feedback that they found the mentoring either ‘excellent’ or ‘very good’.

The new mentoring circles consist of 3 workshops delivered by employers, senior leaders and a Jobcentre Plus coach. The purpose is to give the attendees insight into the organisations and strengthen their job searching skills. Participants learn how to create a personal profile, are given walk-throughs of application forms and interview processes, and information about different routes into the organisations and their sectors and partners.

DWP’s National Employer Partnership Team are working with Business in the Community on these mentoring pilots. The government helped organise the events and identified the Jobcentre Plus offices with the most unemployed young people, to guide where the pilots took place in London, Birmingham and Greater Manchester in June 2018.

DWP will expand the mentoring circles to all BME challenge areas this summer.

LEPs can encourage employers to consider the benefits mentoring can provide to them as employers and to participants. Additionally, LEPs can encourage employers to think about using mentoring to engage people from the communities their business serve, such as the BITC and DWP mentoring circles.

Further Information on Business in the Community

• About Business in the Community
  
  
• Race
  
  
• Let’s talk about race – pocket guide
  
  
• Become a member

Impact of Universal Credit

As Universal Credit (UC) is rolled out, we will expect more ethnic minority individuals to be subject to work related requirements (conditionality) as a condition of receiving UC. Legislation sets out what types of requirements can and cannot be applied, and within these parameters requirements can be tailored depending on individual and household information, characteristics and earnings.

We know that gender matters when it comes to employment, and even more so for the Pakistani and Bangladeshi group, where employment rates for females is less than half of White groups. So from September 2018 we will trial an event to engage with Pakistani and Bangladeshi women in Birmingham Yardley, in a community setting, who will be brought into contact with jobcentres for the first time under conditionality rules for benefit by Universal Credit. The participants will undertake a learning journey that reflects and complements the DWP Claimant Commitment.

This builds on from an exercise in Poplar, East London that tested messages around conditionality and encouraged partner organisations (including community groups, customer stakeholder groups, advice services and charities) to provide joined-up help and advice to support households claiming Universal Credit.

To maximise participation and community support for the Birmingham trial we are working with community partners. Learning from this trial will be spread to the other challenge areas so they can run their own tailored engagement events.

LEPs can help by engaging with their local communities, employers and Jobcentres to ensure those looking for work with multiple and complex needs get the joined-up support they need to secure and stay in work.

Useful websites

• Business in the Community
  
  
• The Learning and Work Institute (LWI)
  
  
• Centre for Social Justice
  
  
• Understand the law on Racial Discrimination
  
  
• Religion and belief and the workplace guide
  
  
• Religious holidays and festivals
  
  
• ACAS
  
  
• Office for National Statistics

To engage with Jobcentre Plus directly, contact the Jobcentre Plus service leader for your area.

Other DWP Activities

The government has already been taking action to tackle the BME employment gap by:

• maximising the effectiveness of Jobcentre Plus activity:
  • providing local data for BME training and awareness for DWP work coaches
  • investing in DWP employer and partnership facing staff with more undertaking a City and Guilds Level 4 Award
  • equipping jobcentres in BME challenge areas with local data packs to understand the local demographic, claimant groups and local employers and labour market (see page 9 on challenge areas)
  • rolling out Action Learning Sets throughout 2018 – these are new BME focused learning and development material for DWP employer and partnership staff
    
    
• building labour market knowledge and influence BME behaviour:
  • working with Department for Education to increase referrals and take up of traineeships and apprenticeships
  • working with Business in the Community on mentoring pilots
  • working with community partners in Birmingham to engage with BME jobseeker partners who will subject to conditionality requirements for the first time under UC
    
    
• influencing employers:
  • educating employers on the benefits of diversity through enabling unconscious bias training, name-blind recruitment and developing communications activity
  • the BME Action Learning Sets support DWP employer engagement staff to have those influencing, encouraging and relationship building conversations with employers

We know there is still more that we all can do. LEPs and their network have a direct impact on the economy and UK productivity. Therefore, LEPs are vital to reducing the BME employment gap, and providing employment opportunities for all. We welcome the support and influence you can provide to achieving the government’s aims.

Get in touch with us at: racedisparity.auditcorrespondence@dwp.gov.uk or phone Andrew Jennings, BME / Racial Disparity Audit Policy on 0207 449 5520

1. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/504343/traineeships-starts-by- learner-demographics.xls ↩

2. BIS Research Paper Number 67: Employer Investment in Apprenticeships and Workplace Learning (2012) p. 16 ↩