Minderoo’s Indigenous Employment Index measures employment parity

The Minderoo Foundation has released the first research of its kind to measure Indigenous employment outcomes in Australia, highlighting the steps needed to reach employment parity.

The Woort Koorliny Australian Indigenous Employment Index 2022, in partnership with Bankwest Curtin Economics Centre (BCEC) reveals that the Indigenous employment rate across Australia’s largest surveyed employers is 2.2 percent.

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Of the 42 employers surveyed, including Atlassian, Commonwealth Bank, EY, Rio Tinto, Toll Group and Wesfarmers, only two employers fell into the highest performing category for Indigenous employment practices and outcomes, and almost a third in the lowest performing category. The rest, almost half (55 percent), made up the “growth” category.

“The research finds there is genuine commitment from participating organisations to Indigenous employment, and that progress is being made, as recognised by many interview participants,” the report says.

“There is still much work to be done, however, to improve the attraction, retention, and progression of Indigenous employees, while creating culturally safe and inclusive environments where all employees can thrive.”

According to Shelley Cable, director at Minderoo Foundation’s Generation One, whose mission is to reach employment parity for Indigenous Australians in one generation, the employment gap in the decade between 2008 to 2018 has barely changed, with it estimated to have closed by only one percent throughout this time.

“This is not a reflection of the potential of Indigenous Australians, or our capability to contribute to today’s workforces,” she said.

Indigenous talent retention

The report reveals that employers are struggling to retain Indigenous talent, with 62 percent of organisations that collect Indigenous retention data reporting lower retention of Indigenous employees compared to the rest of the workforce.

It is reported that organisations tend to prioritise recruitment over retention and development.
“Indigenous employment targets are critical in driving employment outcomes, and must be complemented by a comprehensive strategy that addresses the full employee lifecycle,” the report says.

Leadership

Self-determination was one of the employer practices that Indigenous employees identified as key to Indigenous participation in the workforce, whereby Indigenous leaders are integral to creating cultural safety at work.

Unfortunately however, the report shows that Indigenous employees are almost entirely absent from senior leadership positions in Australian big business, with only 0.7 percent of organisations reporting relevant data having appointed Indigenous leaders into senior and executive roles.

“There is a very low share of Indigenous representation on boards, as well as senior and executive leadership teams. It is suggested that employers increase the visibility of current Indigenous leaders in the workplace, as well as invest in professional development and leadership opportunities for those in entry level and middle management positions,” the authors write.

According to insights from Indigenous employees showcased in the report, “Indigenous leaders can act as role models, support other Indigenous employees, and, importantly, centre and elevate Indigenous voices and perspectives.”

Despite a strong preference for Indigenous leaders, non-Indigenous leaders that show a genuine commitment to Indigenous employment are recognised as beneficial to Indigenous employment.

But their leadership must be proactive and engaging in driving change.