Small but Beautiful?
May 2005
Small to medium-sized enterprises (SMEs) are “tired of being seen as ‘baddies’ and not good employers” according to SME advocate Alison Quesnel.
Despite UK research showing very low EEO compliance among SMEs, Ms Quesnel believes most SMEs in New Zealand are putting EEO principles into practice. They are doing so with or without paperwork “because a happy workplace is a productive workplace. SMEs are happy to listen and have information about EEO issues, but they do not want these to be regulated in employment law. Compliance is a huge issue for them already.”
Ms Quesnel, a member of New Zealand’s Small Business Advisory Council and of the EEO Trust Board, focused on the flexible approach to working adopted by small businesses. “SMEs are much more adaptable and familial in their approach. An absolute truth is that an SME's desire for informality, flexibility and autonomy drives their business, and in my view is what makes them successful.”
Associate-Professor Claire Massey of Massey University’s Centre for SME Research agreed up to a point. “A group of small firms don’t need to be told about equality practices, they don’t need to be told to be kind to their employees.”
But Massey, an SME expert, also noted from her own research that “there is a lot of ignorance among SMEs about any compliance, compliance in general. EEO principles are important principles we should all know about. So I certainly support any initiative that helps [SMEs] deal with them in a supportive, rather than punitive, way.”
Why might SMEs feel unsupported and overtaxed on EEO policies? SMEs do not have a significant voice in major forums that deal with EEO policy.
According to Statistics New Zealand’s Business Demographics:
- 65% of private enterprises are individual or family entrepreneurs with no employees
- 80% of all enterprises in New Zealand employ five people or fewer.
Meanwhile, small businesses are under-represented in Chambers of Commerce, and only 10.4% of the members of the EEO Trust Employers Group have five or fewer employees: 38 out of 364 members. This raises the question of whether policy-makers and law-makers are adequately reaching SMEs in both communicating and consulting on policy.
· 36% of the SME respondents said they would not hire a woman who was pregnant
· 44% would alter their interview questions depending on the gender of the candidate
· 51% did not have a written harassment policy or procedure
· 21% did not make it clear that harassment could result in dismissal
· 10% allowed the childbearing age of a female candidate to affect their selection decision
· 18% took active steps to redress gender imbalance in their workforce
· 71% of SMEs offered flexible working.
EEO principles enable SMEs to:
· Beat the skills shortage by recruiting on the basis of merit
· Create versatile workplaces which enable people to balance their lives
· Achieve business success through maximising the diverse talent pool.
- EEO Trust