Category Archives: Employment Relations

The ‘Made Smarter’ review: a road to utopia or dystopia in negotiating the future of skills, apprenticeships and work?

By Maisie Roberts, CERIC Postgraduate Researcher

pandora's box

Junge, A. 2005. Pandora’s Box #1: Found Toolbox with Neon

The future of work: dystopia or utopia?

The recent industry-led independent Made Smarter review chaired by Professor Jurgen Maier, CEO of Siemens, provides a future vision of the UK’s industrial landscape in terms of advancing the remit of digital technology. Training and upskilling are central components of achieving a utopian future vision. However, the future of work seems to hinge on Maier’s warning (2017: 11):

“Get it wrong, and we risk further de-industrialising our economy, and becoming ever more reliant on imports. Get it right, and we will have found the key to rebalancing and strengthening our economy, creating many new, exciting, and well-paid jobs, and leading a renaissance for the UK as a true nation of creators and makers.”

From this perspective, the future of work remains a highly contested point of discussion, centred on two extremes, which either seem to epitomise a utopian land of promise or a scaremongering nightmarish dystopia. Indeed, when we think of the future of work we conjure up rather dystopian images of the superiority of artificial intelligence-driven robots who have the power and skill to take over the whole spectrum of work, leaving us without any hope of meaningful work. Precarious employment contracts, disposable workforces, intensified working hours and minimal employment rights are already a sad reality. Beyond this the underworld of Silicon Valley casts an unsettling shadow over society where our digital footprints are tracked, extradited and sold to feed a dystopian-like machine. Has Pandora’s box been opened with no return? And what’s the alternative?

 Trouble in utopia?  Skills and the fourth industrial revolution

 Currently, technology, innovation and digitalisation are key incentives for national economies and skills and training are viewed as essential in achieving aptitude in this area. Economies are revising their technologies and capabilities in line with this so-called ‘fourth industrial revolution’.

The first revolution used water and steam to power production whilst the second relied on electric power for mass production. The third drew on information technology to create automated production lines. The fourth builds on the foundations of the third, but merges physical, digital and biological realms to create new technologies. Amongst other emerging phenomena this includes the rise of big data and the Internet of Things, where cyber-physical systems communicate and exchange data with each other and with humans in real-time.

The process of creating a commodity has therefore changed from one where manual work would physically create a product from raw materials to one where technological and information-led networks shape new “modes of development” in an increasingly globalised context (Castells, 1996). This presents the question whether the nature of skill is changing under this new guise of capitalism underpinned by the “information age”.

This might mean that new skills are needed to navigate between raw materials and new technology, data and software, changing existing job structures as well as creating new jobs altogether. Here, skill is therefore essential to facilitate technological advancement. Indeed the World Economic Forum (2016) calls for complex problem-solving, creativity, critical thinking and teamwork amongst other skills, which are viewed as essential in navigating us into a utopian future of the fourth industrial revolution.

Conversely, there could be a move to the growing but rather dystopian phenomena of a so-called ‘lights out’ methodology. Under this approach, human labour becomes obsolete as factories become solely operated via automation with the ‘lights out’ to save on production costs, increase profit margins and respond to increased customer demand. Frey and Osbourne’s (2013) infamous paper, which estimates that 47% of all US employment is susceptible to computerisation certainly plays to this analogy.

Uncertainty ahead: The case of Germany and England

The fourth industrial revolution still remains very much a future vision, and one, which is not yet fully realised. How skills strategy integrates into the future vision of work remains uncertain as demonstrated by Germany and England.

Germany

The ‘dual’ German apprenticeship system adopts a corporatist and coordinated approach, in which both firms and vocational schools provide highly structured training (Bosch, 2010). Apprenticeships are protected from market forces in an almost utopian enclave where unions, chambers, employers and the state work collectively and pro-actively together to regulate the future path of the system.

Although Germany seems to epitomise a perfect apprenticeship system, it, too, is facing significant challenges. Previously up to 75% of young people would typically undertake an apprenticeship (Grugulis, 2007) but since 2013 university starts has overtaken apprenticeship starts and this number is rising (BMBF, 2016). Higher education is becoming a more popular option, much like the UK, with the promise of a free university education and higher graduate wages a key incentive for this choice.

Equally, the entire context and character of Germany’s labour market has changed too with the implementation of the Hartz reforms over 10 years ago, which brought in temporary, agency or so-called ‘mini’ jobs as well as cuts in unemployment welfare assistance. The traditional purpose of an apprenticeship was to provide comprehensive training to catapult an individual into a secure and permanent occupation for life. Yet the evolving fragmentation of Germany’s labour market could undermine the stability, time and effort required to develop well- defined routes to employment.

Germany’s pro-active strategy of “re-imagining work” through its “Work 4.0” concept highlighted in its initial green paper (2015), followed up by its white paper (2017) aims to tackle some of these issues. The reports highlight the need for occupational profiles to be adapted to meet changing skill demands, increasing continuing vocational training, more support for SMEs to develop training and a monitoring system to forecast future demand of skilled labour. The decreasing labour supply of young people is mentioned and as such the report calls for the opening up of skilled labour to more migrants, low-skilled workers, women, older people and disabled people. However, the reports do not seem to directly address the growing prevalence of higher education, which many have argued is leading to growing inequality and a reduction of firms participating (Thelen and Busemeyer, 2012). The future of apprenticeships therefore remains somewhat ambiguous in the Work 4.0 agenda.

England

England’s system is voluntarist and employer-led, with employers solely designing, regulating and managing the system. England lacks the collective ethos and stability of the German system. The English system is also prone to continuous political upheaval, particularly since the Thatcher years where participation in apprenticeships drastically declined (Gospel, 1995).

An apprenticeship levy was introduced in April this year with the aim to increase apprenticeship participation to 3 million apprenticeships by 2020. The levy targets employers with a pay bill over £3million, affecting 2% of firms. However, recent reports highlight that since the levy apprenticeship starts have decreased by 59% (BBC, 2017). Equally, only half of the eligible levy firms have actually registered to reclaim levy funds (CIPD, 2017). This suggests that many firms are disregarding the levy as a tax instead of a social responsibility to invest in apprenticeships. Hence, although the levy has good intentions, perhaps the inherently market-led nature of England’s economy deters employers from investing in the costs and time needed to create high quality apprenticeships.

The recent industrial strategy aims to reform the UK’s technical education system to make it more internationally competitive, invest £406m in STEM skills and create a new National Retraining Scheme to allow people reskill in the labour market. Much like the recent Made Smarter review, training and skills exemplify the road to utopia in the policy discourse. However, UK’s intermediate skills ranking is projected to stand at only 28th of 33 OECD countries by 2020 (UKCES, 2015) and its productivity figures were recently downgraded from the predicted 2% growth for this year down to 1.5%, soon to be followed by 1.3% in 2019 (OBR, 2017), the same rate as during financial crisis.

The Made Smarter review focuses in on these challenges. Firstly, it argues that lack of effective national leadership and cross-sector collaboration has failed to achieve a coherent strategy of industrial digitalisation. Secondly, poor productivity, limited business support, cybersecurity threats and significant skills shortages due to the fragmented apprenticeship system leads to poor levels of adoption of the digitalisation agenda, particularly among SMEs. Finally, the UK’s infrastructure does not support the scaling-up of technology to support companies, meaning that innovation is under-leveraged. As such, the need for training is paramount in the report, which calls for the upskilling of a million industrial workers. Yet the current employer-led approach to apprenticeships in England, where the nature of the market dictates its future, contrasts to this utopian image.

Summing up

 Utopia, true to its definition as both a no-place and a good place, is a useful framing device, which helps us consider what we might want for ourselves in our future society. The Made Smarter review offers us two very different future outcomes, one with new, exciting and well-paid jobs, creating a society of creators and makers, or, an alternative route towards a de-industrialised, stagnant and import-reliant society. Juergen Maier clearly acknowledges that the UK faces a number of challenges in creating his future vision of industry and employment, including poor productivity and infrastructure. Lack of coordination, leadership and collaboration amongst businesses, academia and other institutions are also listed as central concerns.  Interestingly, Germany’s “re-imagining work” white paper actively engaged in a public dialogue and called upon workers, businesses, unions and other institutions to help contribute to the future vision of work in partnership together. This helped to ease the mystery behind the notion of digitalisation and its implications on work, whilst providing a voice for all in navigating towards a collective vision of the future world of work.

From this perspective, we need to ask what skills and work we really value in society today. Apprenticeships, training and skills development can clearly provide increased national productivity, innovation and meaningful job creation if implemented correctly (Finegold and Soskice, 1989). Yet apprenticeships are too often considered as a magical tool to swiftly solve all of society’s problems, such as youth unemployment, deepening skills gaps and productivity slumps to name a few (Keep and Mayhew, 2010), without much consideration of what is actually needed to secure these essentially utopian benefits. If we truly admire the inherent value of skills and apprenticeships as a means to meaningful and productive employment for society, more weight, investment, regulation and prestige needs to be placed on them.

References

BBC. 2017. Apprenticeship numbers fall by 59% after levy imposed. [Accessed 1 November 2017]. Available from: http://www.bbc.co.uk/news/business-42092171

BMBF (Bundesministerium für Bildung und Forschung). 2016. Report on Vocational Education and Training 2016. [Online]. [No Place]: Federal Ministry of Education and Research. [Accessed 1 November 2017]. Available from: https://www.bmbf.de/pub/Berufsbildungsbericht_2016_eng.pdf

Castells, M. 1996. The Rise of the Network Society, 2nd ed. Oxford: Blackwell Publishers.

CIPD. 2017. Half of Eligible businesses register to reclaim apprenticeship levy funds. [Online] [Accessed 1 November 2017]. Available from:  http://www2.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2017/10/09/half-of-eligible-businesses-register-to-reclaim-apprenticeship-levy-funds.aspx

Department for Business, Energy and Industrial Strategy. 2017. Made Smarter. Review 2017. [Online] [Accessed 1 November 2017]. London: Department for Business, Energy and Industrial Strategy. Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/655570/20171027_MadeSmarter_FINAL_DIGITAL.pdf

Department for Business, Energy and Industrial Strategy. 2017. Industrial Strategy: building a Britain fit for the future. [Online] [Accessed 1 November 2017]. London: Department for Business, Energy and Industrial Strategy. Available from: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/664563/industrial-strategy-white-paper-web-ready-version.pdf

Federal Institute for Labour and Social Affairs. 2017. Re-Imagining Work, White paper, Work 4.0. [Online] [Accessed 1 November 2017]. Berlin: Federal Institute for Labour and Social Affairs. Available from: http://www.bmas.de/SharedDocs/Downloads/EN/PDF-Publikationen/a883-white-paper.pdf?__blob=publicationFile&v=3

Federal Institute for Labour and Social Affairs. 2015. Re-Imagining Work, Green paper, Work 4.0. [Online] [Accessed 1 November 2017]. Berlin: Federal Institute for Labour and Social Affairs. Available from: http://www.bmas.de/SharedDocs/Downloads/DE/PDF-Publikationen/arbeiten-4-0-green-paper.pdf;jsessionid=FFFC52E6F5D81905E8B5D4EE90F3E69C?__blob=publicationFile&v=2

Finegold, D. and Soskice, D. 1988. The Failure of Training in Britain: Analysis and Prescription, Oxford Review of Economic Policy, 4(3), pp. 21-53.

Frey, C, B. and Osbourne, M. 2013. The Future of Employment: How Susceptible are Jobs to Computerisation? Technological Forecasting and Social Change, 114, pp. 254-280

Gospel, H. 1995. The Decline of Apprenticeship Training in Britain, Industrial Relations Journal, 26(1), pp. 32-44.

Grugulis, I. 2007. Skills, Training and Human Resource Development: A Critical Text. Basingstoke: Palgrave Macmillan.

Junge, A. 2005. Pandora’s Box #1: Found Toolbox with Neon [Online] [Accessed 1 November 2017]. Available from:  http://www.jungeart.com/assemb/photo_display.php?start=4

Keep, E, and Mayhew, K. 2010. Moving beyond skills as a social and economic panacea, Work, Employment and Society, 24(3), pp. 565-577.

OBR (Office for Budget Responsibility). 2017. Economic Fiscal Outlook. [Accessed 1 November 2017]. Available from: http://cdn.budgetresponsibility.org.uk/Nov2017EFOwebversion-2.pdf

Thelen, K. and Busemeyer, M. 2012. Institutional Change in German Vocational Training: From Collectivism toward Segmentalism. In: Busemeyer, M. and Trampusch, C, eds. The Political Economy of Collective Skill Formation. Oxford: Oxford University Press. Pp. 68-100.

UKCES. 2015. UK Skills Levels and International Competitiveness 2014. [Online] [Accessed 1 November 2017]. Available from:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/470017/skill_levels_2014.pdf

World Economic Forum, 2016. The 10 skills you need to thrive in the Fourth Industrial Revolution. [Online] [Accessed 1 November 2017]. Available from: https://www.weforum.org/agenda/2016/01/the-10-skills-you-need-to-thrive-in-the-fourth-industrial-revolution/

 

 

 

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Report launch: how do we engage more employers in employability and skills programmes?

Jo IngoldDr Jo Ingold, Lecturer in Human Resource Management and Public Policy, CERIC, Leeds University Business School.

3 December 2017, at an event in Westminster for policymakers, practitioners and academics, we’ll be launching our final report from a four-year ESRC-funded research project about employer engagement in employability and skills programmes.

Employers are critical to the success of employment activation and employability programmes, yet there’s been surprisingly little research about employers’ perspectives on them. In the first phase of our research, we surveyed over 1,500 employers in the UK and Denmark. In the second phase, we undertook more than 100 in-depth interviews with employers and providers delivering employability and skills programmes in both countries, to provide a ‘two-sided’ perspective on employer engagement.

Employers’ perspectives on employability programmes

Employers were generally positive about employing unemployed candidates, but less so about employability programmes, particularly in the UK. A critical difference between the countries was that, while every Danish employer we interviewed had taken part in at least one programme (and often more), among UK employers participation was more sporadic. UK employers were most familiar with apprenticeships above other provision. A key reason for not engaging in programmes was that employers thought they were inappropriate to their needs. They were put off by the large number of programmes and providers, lacked knowledge about them and about how to access programmes, and were unsure about their value. The most popular reasons for engaging were to access an alternative recruitment channel, to develop talent and to ‘give people a chance’.

Critically, employers felt that the benefit conditionality system and employability programmes themselves could ‘tarnish’ candidates. Employers were particularly dissatisfied about receiving large numbers of job applications as a result of conditionality and entitlement conditions. The lack of a tailored service from providers could also result in employers being sent candidates who were of ‘poor quality’, unsuitable, or ill-prepared.

Employers were generally positive about employing disabled people, although only a small number of UK employers had done so, and not necessarily through employability programmes. In Denmark the Flexjobs scheme for disabled people (offering subsidized jobs under special conditions, in-work support and reduced working hours) was popular with employers. Importantly, in both countries very few employers had made changes to their recruitment and selection processes to encourage candidates from disadvantaged groups, despite recognising the shortcomings of the standard application and interview method.

Our survey data found two distinct groups of employers in terms of engagement in employability and skills programmes. Firstly, those who were ‘instrumentally engaged’ on an ad hoc basis in specific initiatives but not that ‘committed’ to them. Secondly, those who were ‘relationally engaged’ and were more committed and involved in a broader range of programmes on a repeated and sustained basis. This distinction was supported by the interview data. The survey and interview data showed that relational engagement was higher in Denmark than the UK. Crucially, UK employers did not feel that employability programmes were designed with their needs in mind and, compared with Danish employers, had very low trust in public policies.

Providers’ perspectives

The data from providers in both countries showed striking similarities with the employer data, in terms of barriers to engagement and reasons for engaging, as well as in their perspectives about what relational (or in-depth) employer engagement meant. However, the fact that UK employers had less ‘institutional’ trust in government policy and programmes critically left more ‘gaps’ to be filled by providers. They tended to achieve this through the development of ‘inter-personal’ relationships with employers, based on trust. So these relationships were largely between individuals from provider organisations and from businesses, rather than based on relations between organisations. But, although these relationships were critical to employer engagement, they were also fragile and trust could be easily lost. This wasn’t helped by changes to programmes, regulations and contracts in localities.

UK providers also expressed concern about employers’ fluctuating demands for labour, which were difficult to meet. Additionally, there was a gap between employer demands and the individuals that providers’ held on their caseloads, who were possible candidates for vacancies. Providers felt that this gap could not be filled by programmes in their current form. One way of providing a good ‘offer’ to employers was by being able to provide a ‘spectrum’ of services (ranging from pre-employment training to in-work support and training). But providers could only really do this successfully if they’d won a range of employment and skills contracts (from different government departments), or merged with or acquired organisations that had. Alternatively, providing a range of services to employers required working with other organisations, sometimes competitors (what is often referred to as ‘co-opetition’).

This research reveals the extremely fragmented landscape of employment and skills provision in the UK, as well as the remoteness of employers from them (notably the situation was slightly different in Scotland, where these policies are devolved responsibilities). The current formulation of employment and skills policy assumes that employers will engage and will provide opportunities for unemployed individuals. But this research (and the previous research we conducted about the UK Work Programme) suggest that employers are not beating the door down to take part in these programmes, despite them being a potential avenue for increasing workforce diversity. If the government wants to seriously address labour market disadvantage and in particular to halve the disability employment gap, an urgent re-think is needed about the current direction of policy.

Policy recommendations

  • In their current form, programmes are not working effectively for employers. Employers still lack knowledge about programmes, don’t recognise their potential benefits and consider them inappropriate to their needs.
  • A smaller number of programmes, with more continuity and stability but less complexity and fragmentation would make it easier for employers to engage.
  • Changes need to be urgently made to avoid employers receiving large numbers of job applications from benefit claimants in order to fulfil conditionality requirements, as this is damaging to employers’ views of initiatives. A critical aspect of this is better targeting of applications to employers.
  • Devolution is an important opportunity to improve employer engagement in the design and implementation of initiatives and to devise programmes that are responsive to local needs.
  • Merging different government departmental funding streams for employability and skills provision would be helpful, especially as the government looks to replacement European Social Fund provision.
  • More employers need to be equipped with information about ways to make their recruitment and selection processes more inclusive and effective.
  • To maximise resources and to provide a better service to employers, we need more mechanisms for sharing evidence-based good practice across different providers, programmes, cohorts and areas, which currently the competitive contracting frameworks mitigate against.

This research was funded by the Economic and Social Research Council and followed on from ‘Seedcorn’ research funded by CERIC and Leeds University Business School. More information about the research can be found here.

 

CERIC to host workshop on Universal Basic Income and the Future of Work

JPEG Yellow-BlueKate Hardy, Vera Trappmann and Charles Umney

In the face of widening disparities of wealth, changes in work and employment in which low pay dominates and the ability of work to lift people out of poverty declines, debates about the future of social protection have come to the fore. In contexts from the Global South to the ‘developed’ North wage labour appears decreasingly able to distribute social wealth or protect individuals and households from poverty.

In this context, scholars, activists and policy makers have begun to examine alternatives to existing systems of welfare, including negative income tax, cash transfers and universal basic income and guaranteed minimum income. Basic income has become the most visible and perhaps most contested of these proposals. The notion of a universal basic income – a non-conditional base income for all citizens – has attracted increasing popular purchase within social movements, institutions and governments. Numerous academic pilot experiments from Canada to Namibia and India have been undertaken, while governments are rolling out experiments in Finland, Barcelona and Utrecht. Proponents of basic income have been drawn from across the political spectrum, finding support from Milton Friedman and Bill Gates to Frances Fox Piven and Shadow Chancellor John McDonnell.

On 26th January, CERIC will host a workshop bringing together theorists, practitioners and social movements to this day long workshop will explore these questions, focusing on basic income, wage labour, work and employment, by asking:

• How does basic income relate to changes in the labour market, including the growth of the digital and gig economy?
• How does it impact on work and employment?
• How might it effect women’s rights and gender equality?
• What can we learn from basic income experiments in progress?

This will be is a CERIC event to discuss key contemporary issues in work and employment.

The event is sponsored by the Centre for Employment Relations Innovation and Change (CERIC) and Leeds University Business School (LUBS).

 

Building a Better Case for Women on Boards (by Cheryl Hurst, Postgraduate Researcher)

Over the last decade the concern for the underrepresentation of women in corporate boardrooms has steadily increased. The low number of women at the top of organisations has pushed the agenda for determining the circumstances and factors that both promote and impede women’s access to these top levels. In an effort to advocate for increasing the numbers of women on boards, research has tended to focus on the benefits women will bring to the company.

Often referred to as ‘The Business Case’, research in this area focuses on the importance of hiring from the complete talent pool; on the relationship between women and firm value; as well on the unique experiences and talents women characteristically can bring to organisational settings. Yet this ostensibly pragmatic emphasis, on connecting equality with the achievement of value related to organisational goals, is not as straightforward as researchers and policy makers make it seem.

Below, the challenges and concerns for the business case are addressed in the hopes of shifting dialogue to focus on the ideas of justice and fairness.

Changing Traditional Views of ‘Strengths and Experiences’

One of the main arguments delivered to companies is that by expanding their recruitment to include more women (and other minorities), organisations will benefit from the use of the untapped talent pool, bringing in different strengths and experiences (Seierstad, 2016). By pushing this argument it cannot be forgotten that women’s attributes may not fit within traditional ideas of what makes a successful board member.

This gives organisations the ability to argue against hiring from underrepresented groups, making the claim that they do not fit the requirements of the positions that need to be filled. Organisations have yet to widely adopt a view of ‘strengths and experiences’ that does not stem from the traditional model that values traits typically associated with men. This means that even as women accumulate varied experiences they may still not be viewed as appropriately qualified for the upper echelons of corporate leadership.

Previous and Existing Barriers

The focus on recruiting women solely as part of an effort to bring in new talent also ignores previous and existing barriers, including the discriminating tendencies of employers that women have faced throughout their academic and organisational careers.

Barriers may have resulted in women taking different avenues and approaches to the accumulation of ‘experiences.’  These different avenues, once again, do not reflect traditional perceptions of appropriate qualifications.  Without the qualifications traditionally thought of as necessary, there is a decreased chance of women being recruited, even if they have other relevant qualifications.

Those in top positions (predominantly men) who are responsible for a substantial amount of organisational rewards are still not offering equal promotions, pay rises, training, and networking opportunities to women as they are to men, again shaping the ‘strengths and experiences’ women are likely to have.

Performance Rationales

The focus on firm value has gone further, leading to performance related economic rationales for increasing women on boards. Since the early 2000’s research on board diversity and firm value has increased, showing positive relationships between the number of women and minorities on boards and an organisation’s value (Carter, Simkins, and Simpson, 2003).

The performance argument has been increasingly picked up in the media. In January of this year, the New York Times published an article asking: A Trillion-Dollar Question: Why Don’t More Women Run Mutual Funds? Again, the article conveys to readers that a mixed-gender team produces better returns. Similar articles have been published in The Guardian and Forbes, all using the ‘Business Case.’

Empirically, the argument that women increase performance is highly contested. Boards with higher numbers of women are shown to have been better performing boards overall, prior to and after hiring a more diverse range of members. This stresses the possible bias that better performing boards are able to focus more generally on diversity improvement from the start (Seierstad, 2016). While links have been found between increasing women on boards and company performance, the causality is disputed. This in itself demonstrates a need to move towards more concrete justice arguments.

Critics of the business case for increasing women on boards have also demonstrated that diversity management as a whole can actually be financially detrimental to organisations. There is a high cost to ‘diversity management’ techniques that are implemented unsuccessfully or without proper consideration (Noon, 2007). These costs are often related to high-turnover and absenteeism among women who do not feel welcome within the organisation or where proposed options for flexible working hours are not properly executed.

The business case also ignores how organisations benefit from the discrimination of women and minorities by exploiting their skillset and paying them lower wages than their white male counterparts (Noon, 2007). In even further divergence from the business case, research has highlighted that some countries and organisations have actually experienced negative consequences both in organisational performance and within capital markets after changing their existing board to include a more diverse range of people, with the potential of other attributing factors being overlooked (Bohren and Staubo, 2014).

Ideas of Justice and Fairness

While business case arguments have the overall goal of increasing women on boards, the presentation and ultimate message often becomes somewhat distorted when put into practice.  Instead, a focus on notions of justice and fairness in the advancement of diversity management will offer organisations and policy makers fewer avenues to refute the implementation of diversity strategies. The social justice rationale for increasing the representation of women is based on the principle that women represent half of the population and should therefore represent half of the boards in power (Seierstad, 2016; Dahlerup, 2005).

The social justice rationale does not disregard the potential economic benefits completely, but promotes/advocates a genuine commitment to equality and justice. Changing the argument is not positioned here as a complete solution, but reflects a necessary step in the pursuit of gender parity on corporate boards.  It is argued here that a sole (and contingent) focus on diversity for economic benefits negates the importance of changing views towards women in organisations because it is ethically just.

References

Bøhren, Ø. and Staubo, S., 2014. Does mandatory gender balance work? Changing organizational form to avoid board upheaval. Journal of Corporate Finance28, pp.152-168.

Carter, D.A., Simkins, B.J. and Simpson, W.G., 2003. Corporate governance, board diversity, and firm value. Financial review38(1), pp.33-53.

Dahlerup*, D. and Freidenvall*, L., 2005. Quotas as a ‘fast track’to equal representation for women: Why Scandinavia is no longer the model. International Feminist Journal of Politics7(1), pp.26-48.

Noon, M., 2007. The fatal flaws of diversity and the business case for ethnic minorities. Work, employment and society21(4), pp.773-784.

Seierstad, C., 2015. Beyond the business case: The need for both utility and justice
rationales for increasing the share of women on boards. Corporate Governance: An International Review.

AuthorCheryl Hurst, University of Leeds

 

BBC interview with Dr Liz Oliver on Uber driver row

Dr Liz Oliver was invited to BBC Breakfast to talk about Uber’s appeal to the Employment Tribunal decision that a group of current and former Uber drivers should have been classed as workers rather than self-employed contractors.

Liz took part in an interview alongside Mr Farrar who was one of the claimants to the employment tribunal claim. She explained that the key issue was the identification and classification of a contract between Uber and the drivers. She pointed out that three contract forms are important to employment law: a contract DSC_4741of employment where the individual is an employee and has access to the full body of employment protection, a ‘worker’ contract which places the individual within the scope of some but not all employment protection (a kind of “employee-lite”) or self-employment where the service provider is in business on their own and falls outside of the scope of employment protection. At Employment Tribunal the claimants successfully showed that they were workers and that placed them within the scope of The National Minimum Wage provisions and the Working Time Regulations 1998 (which includes limits to working time and access to paid holiday). The key question was whether the way that the working relationship has been characterised by Uber companies within the written terms of their agreements with drivers and with passengers matched up to the ‘true relationship between the parties’. Uber describes the relationships in terms of agency. Rather than contracting with drivers to provide services to passengers, Uber describe their role is as an agent or broker; they simply bring drivers and passengers together. Ultimately the contract to take and provide a ride is between the driver and the passenger. The structure of these contractual relationships is at the heart of the Uber business model and the company has shown keen to defend its position. They were given leave to appeal to the Employment Appeal Tribunal and the hearing begins today.

A number of similar claims have been made by people who provide services through platforms so this decision will be watched closely by those who ‘participate in the platform economy’.  In Liz’s view the argument that Uber drivers are workers is a valid and strong one. However a favourable outcome for drivers would by no means end they story. An important question for examples is when drivers be considered to be workers, throughout the whole time that they are logged onto the App and ready to receive rides or only for the duration of the ride itself. Bottoming out questions such as these will test the how the architecture of existing regimes such as the framework of the national minimum wage accommodates the opportunities that platforms provide for flexible ways of working. Another question is how platforms would respond to further pressure to contract with service providers as workers. Would they seek to place more risk onto service providers to emulate self-employment more closely or would they assert more control over service providers in a manner more akin to employment? The growing body of litigation in the area of contract form is clearly playing a catalytic role in finding an appropriate way to combine flexibility and fairness. Here it seems that service providers themselves are pursuing a more ambitious set of outcomes than those proposed in the recent Taylor review of modern working practices.  Nevertheless litigation is a blunt tool when it comes to finding imaginative solutions. Could the key actors in the world of platform service provision find a space outside of this high stakes context to grapple with these issues? Innovation is, after all, at the heart of the development of the platform economy.

You can watch the interview through BBC iplayer although the programme is only available for 24 hours. BBC One (from 1h11m) 27th September – Broadcast

The key to a solicitor’s career success? Creating connections

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By Juliet Kele, Doctoral Student and Teaching Fellow, WERD

Employment lawyers regularly counsel and advise both employers and employees on a diverse matter of workplace related issues, but do they ever reflect upon the employment relationship, and inclusive working practices within their own firms? Historically, the legal profession has been perceived as an ‘old boys club’ – and can still be argued as such in modern times. The senior positions in most law firms are filled with middle-aged, white men (‘male, pale and stale’). These issues have animated my research in aiming to discover whether a smaller law firm size has a favourable impact upon the career progression of female and ethnic-minority lawyers.

The findings of this research reveal that while smaller law firms were thought to have a more supportive culture than larger firms – in terms of implementing flexible-working initiatives and being ‘family-friendly’ employers – lawyers with high levels of social capital were looked upon more favourably at each career progression round.

Using interviews conducted within Yorkshire small and medium-sized legal practices (firms with fewer than 250 employees), my research considers how career progression is experienced by a diverse range of employees and the factors perceived to influence career progression in this context. My analysis shows that a crucial factor perceived as having a positive effect upon career progression – regardless of the smaller firm size – was that of having high levels of social capital: favourable connections and networks.

Some individuals acknowledged their ‘luck’ of good connections – for example, paralegals being able to move companies with their supervisors – and individuals gaining their current position through connections or recommendations. Moreover, it was felt that in smaller law firms, competing against fewer colleagues, individuals may be able to foster a closer mentoring and sponsorship relationship with supervisors than in larger businesses. This, in turn, may be beneficial to career advancement as management come to recognise and acknowledge the efforts of their staff.

Part of a solicitor’s work responsibilities is the development of connections and constant networking. These are highly-desirable skills, not only for the business interests of the company but are also for accelerating the speed of career progression. However, my research demonstrates this may be easier for some groups than for others.

While the smaller law firms were considered to have more supportive cultures than larger firms, for female lawyers aspiring to progress their careers, as reported by the Law Society Gazette, one main stumbling block endured: the choice between career and family. The general impression was that there were still ‘fairly limited opportunities’ for progression in law firms for female employees who wished to have families. Due to familial responsibilities, they felt unable to commit to the extensive demands on their time in terms of networking in connection to both servicing existing and generating new clients, often known as ‘rainmaking’.

Female employees admitted that being a woman in the legal profession was ‘difficult’. Although they had invested heavily into their legal education, they still felt that their colleagues expected them to have children. While some female employees thought that they should not have to choose between prioritising family and work, others said that there was still a ‘sacrifice’ to be made for women in the legal profession. Moreover, two female solicitors directly stated that being pregnant was a career obstacle and disadvantage they had experienced.

Similarly, minority ethnic lawyers also had greater levels of commitments outside of work; either relating to religious observations, responsibilities to both their close and extended families and in assisting their wider communities. The legal profession itself was criticised: with long-working hours and frequent late-nights, networking and weekend work, maintaining a work-life balance was challenging – as one respondent said: ‘something’s got to give’. The opportunity cost here is deciding whether to dedicate more time to family life or to career advancement.

Working-fathers also made sacrifices, but they came at more of a personal than career cost. Work-life balance was important to them, as their ‘biggest career driver’ were their new families. Some working-fathers also criticised the legal profession stating it was ‘a younger man’s game’ – they said that their priorities now shifted more towards a family-focus and being at home with their families; rather than rain-making for their employers.

In sum, from my research, these smaller law firms and their workforces recognise the importance assigned by its valuable ‘knowledge workers’ to maintaining a ‘work-life balance’. These legal practices thus awarded more prominence to the implementation of flexible-working practices than larger companies.

This smaller company size was felt by employees – especially those with external commitments – to have a more accommodating organisational culture than larger law firms. Despite this, with importance continuously placed on a long-hours culture, building connections and constant networking, lawyers with the highest social capital levels will make the most advances in their careers. These lawyers continue to be of the ‘male, pale and stale’ variety.

The 6th CERIC Doctoral Conference 2017: ‘The Employment Relationship’

Ceric 2017 Blog Picture

CERIC Doctoral Students: Marina Boulos, Juliet Kele, Meenaskshi Sarkar and Frederike Scholz.

‘Work’ is a central activity for people for economic reasons as well as a person’s social and psychological well-being. Since work is formalised in an ‘employment relationship’, it is essential to question and comprehend all aspects of this core component of people’s lives. Today the ‘employment relationship’ as understood traditionally appears to be changing at an unprecedented rate. New organisational forms, employment contracts, the rise of the self-employed and the gig economy make it imperative for us to question the traditional paradigms through which we understand the labour market and people’s experiences within it.

Building upon its past successes, the Centre for Employment Relations, Innovation and Change (CERIC) conference organising committee at Leeds University Business School are pleased to announce the theme for the 6th Doctoral Conference: ‘The Employment Relationship’. As in previous years, the CERIC Doctoral Conference offers an inclusive environment for doctoral students at any stage of their PhD to share their research and knowledge with peers, but also academics within CERIC. It offers a great opportunity for doctoral students within the Work and Employment Relations field, but also other areas of social science research, to receive constructive and valuable feedback, and to network with academics that are interested in many aspects of the ‘employment relationship’.

CERIC is pleased to offer a prize for the best presentation, which will be the costs (up to £400) to cover attendance at a leading conference of the student’s choice. There is also a prize of £100 for the best poster presentation.

This year’s conference organising committee consists of four doctoral researchers who focus on different aspects of the ‘employment relationship’.

Workplace Stress: Is Prevention Better Than Cure?

Within her PhD research, Marina Boulos explores what is actually done about stress in the workplace. Who is responsible? How is stress managed? Can it be prevented? With the research project, she is trying to answer these questions via two case studies by interviewing main actors in stress management, as well as their employees. Her study tries to discover who’s considered to be responsible for managing stress, designing, implementing and evaluating stress management interventions in organisations.

Career advancement in small and medium enterprises (SMEs): experiences of a diverse workforce

Juliet Kele is investigating how career progression is structured within small and medium-sized law firms in the Yorkshire region; the factors affecting such progression; and how and whether diversity within the smaller firm workforce is managed. The impetus for this research is that despite the economic importance of small- and medium-sized enterprises (SMEs), they remain insufficiently studied regarding diversity issues. Juliet uses intersectionality theory in order to examine gendered practices in the SME context.

British Pakistani taxi drivers: An insight on class, culture and employment habitus.

Meenakshi Sarkar has adopted an ethnographic study nestled within the structure and agency debate. While most academics agree that there exists an ethnic penalty in the British labour market, Pakistanis seem to be paying an additional Muslim penalty and a Pakistani penalty, which pushes them to the bottom of the pile in comparison to other ethnic minorities.  Almost 1 in 4 Pakistani men in the UK drive taxis for a living. Is it a choice or a result of constraints? Meenakshi argues that the intersectionality of class, affiliations, gender, and ethnicity form a habitus (Bourdieu, 1984) which metaphorically forms a mental ‘cage’ which impacts on their their agency. The choice to drive taxis is steeped in years of neglect, discrimination, marginalisation and constraints – both real and perceived – in the labour market.

Disability inequality and the recruitment process: responding to legal and technological developments

Frederike Scholz has adopted an emancipatory research approach that has investigated the experience of disabled jobseekers and the growing use of online recruitment and selection practices within the UK. Online recruitment and selection practices can be viewed as inequality regimes that are built on the principle of ‘ableness’, which discount individuals who are not seen as ‘ideal’ because of impairment. In order to understand all aspects of the employment relationship, Frederike has also investigated organisations’ knowledge about the discriminatory impact of online recruitment tools.

The deadline for abstract submission of up to 300 words is Friday, 14th April, 2017

(Notification of acceptance will be sent by Tuesday 18th April).

The abstract submission can be made via email – cericphd@leeds.ac.uk

To register please go to: http://business.leeds.ac.uk/about-us/article/2017-centre-for-employment-relations-innovation-and-change-ceric-doctoral-conference/

Marina, Juliet, Meenakshi, Frederike and the CERIC team look forward to welcoming you on Wednesday 10th May.

For further information, please contact The CERIC team at cericphd@leeds.ac.uk