Benefits of diversity in the workplace as Labour cabinet leads by example

A diverse workforce can be hugely beneficial to a business. Sir Keir Starmer is paving the way with his new Labour cabinet, being the most diverse cabinet to date in terms of education, previous employment, and genuine lived experience.

Unlike previous cabinets, which were dominated by privately educated Oxbridge graduates, the new Labour government cabinet includes members of parliament (MPs) who represent the various educational and vocational backgrounds prevalent within the UK. The cabinet has ministers with employment backgrounds in a variety of sectors, from social worker to Queen’s Counsel (QC), now King’s Council (KC).  This brings a lot of ‘real world’ experience into the cabinet.

This appears to be a deliberate move by the prime minister to bring more diverse perspectives to the highest level of government.

The cabinet is made up of not just educationally diverse, but also socioeconomically diverse, backgrounds. For example, deputy prime minister Angela Rayner’s mother could not read or write, and Rayner left a comprehensive school without qualifications. We understand that frequently there are direct correlations between parental experience and the development of the next generation. Social mobility efforts seek to remove the barriers faced by individuals who grew up in disadvantaged circumstances, and the new cabinet provides many role models for these individuals to follow.  

Further, prime minister Starmer faced criticism after stating that, where he can, he will not work Friday nights. Even though he is an atheist, his wife and children are Jewish, and so he avoids Friday evening working to observe Shabbat with his family. This again provides many UK citizens with a high profile, public facing role model who demonstrates commitment to religion and a work-life balance.

By putting together a group of such diverse members, the prime minster has formed a cabinet with a range of experiences and perspectives to help inform their political decisions. Having a socially and educationally diverse cabinet is good for the UK, as it means the government can better understand and represent the needs and aspirations diverse people and families, and in turn ensure the voices of many UK citizens are being heard and advocated for. It allows Starmer to draw upon a wide-ranging skillset that can help address the complex issues of running a country. 

Why this approach can boost organisational successes

Businesses across the UK should consider the benefits of diversity, much like the new government has. This can help firms flourish by tapping into a broader skillset or different areas of expertise.

Another benefit may be an increase in customer satisfaction due to the wider range of experience diversity may bring to an organisation. There is a direct correlation between employee satisfaction and customer satisfaction. Research by the Institute of Customer Service found that organisations with high employee engagement scored 30% higher in customer satisfaction ratings than those with low employee engagement.

Representation of different skills and backgrounds across a business can also result in happier employees. A study by Gallup found that engaged, happy employees are 27% less likely to take time off due to health issues, reducing absenteeism and associated costs for businesses. Companies with high employee engagement also tend to perform better financially. The Engage For Success report by the UK government found that companies with high engagement levels had 18% higher productivity and 12% higher profitability.

Supported employees are also more likely to contribute to innovative ideas. According to a study by Deloitte, companies with an inclusive culture are six times more likely to be innovative and agile, enhancing their overall performance. This can also spike productivity, with unhappy employees proved to be 10% less productive, the University of Warwick found.

Co-written by Frances Wagstaff of Pinsent Masons.