Tesco Edition 4q1s5

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PEOPLE

Using diversity and inclusion to provide better service

Introduction

Tesco works in a competitive market where products, stores, tastes and even the way customers shop are constantly changing.

Tesco is the UK’s leading retailer, serving millions of customers

Tesco needs to be proactive in preparing to face these changes.

every day. It also employs more people than any other company,

This means finding talented people who will be ambassadors for

with over 300,000 employees in the UK. With almost 3,000 stores,

the brand in the communities it serves. Diverse communities mean

Tesco has a presence in every major town and generated revenues

that it needs to recruit and train people who reflect this diversity,

of over £42 billion in 2011/12. Stores range from the convenient

so that all sections of society are included. This case study looks

town centre Metro and Express formats, to larger Extra stores.

at how Tesco benefits by focusing on diversity and inclusion in its

Tesco provides banking, insurance and telecommunications

employment strategies.

services as well as having a strong online presence.

Diversity and inclusion Tesco is a business that puts people first, ensuring its customers and colleagues are at the heart of everything it does.

In the UK we have a diverse society. There are people from many different backgrounds and cultures. There are also changes taking place in the number of men and women in the population. These

‘Our core purpose is to create value for customers to earn

changes to population are called ‘demographics’. One key

their lifetime loyalty. Our success depends on people: the

demographic is that an increasing number of older people are

people who shop with us and the people who work

working – an ageing workforce. Tesco’s policy is to ensure that its

with us.’

workforce has a balance of different people. It is keen to search for talent wherever it lies. At Tesco, ‘Everyone is welcome’. Tesco

Earning customer loyalty is crucial and Tesco focuses on this by

recognises that every person is different and will bring unique

helping customers in lots of small ways which together can make

talents and experiences to a role.

a big difference. ‘Every little helps’ is more than just a slogan. It describes Tesco’s way of working with all of its stakeholders, and that includes colleagues as well as customers.

‘Difference can be our strength because talent and diversity are two sides of the same coin. To focus on one while ignoring the other is like trying to run a store with no customers – it just won’t work’.

Curriculum topics covered: • Equal opportunities • Diversity • Inclusion • Benefits of a diversity strategy

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Tesco has a particular understanding of what is meant by ‘talent’. It believes in recognising the strengths of each individual person, regardless of their background and investing in them to help reach the goals that they set for themselves – being the best they can be. There is a constant hunt for talent.

Talent is about people and we all have a role in talent spotting, recruiting, developing, promoting, moving, rewarding and engaging them’.

Diversity, inclusion and equal opportunities are so central to the workplace that there are laws to ensure fair treatment. For example, it is against the law to make unfair choices against people on grounds of age, race, disability, gender or sexual orientation. This is called discrimination. In addition, managers and personnel teams meet regularly to talk Tesco’s diversity strategy is central to the way it approaches

about who is ready for a move to meet a new challenge or help

recruitment, training and development and is reflected throughout

them develop. This all takes place within a regular annual cycle, so

the objectives of the business. In practice, that means that every

each employee’s objectives and development plans can be

role and every employee at Tesco has a place in something called

regularly reviewed and updated.

the ‘framework for talent’. This framework is used to find and develop talent for the future and has three parts: • talent plans for the business • career plans for individuals • succession plans for jobs. All colleagues set objectives and draw up personal plans for development as part of a regular review process. Every employee has the same opportunity to discuss his or her performance and career and is given the opportunity to get on.

Engaging with diverse groups Tesco has established a number of networks to ensure that it engages with all its people. Its four key networks are: • Out at Tesco. This group represents those with different sexual orientations. It has over 1,000 lesbian, gay, bisexual and transgender (LGBT) and is recognised by other groups as an excellent example of how such networks should operate. • Women in Business. This is the longest established network. There are a number of branches ing women’s issues, raising the profile of women in the business and ing them to develop their careers through training, mentoring and career sponsorship. • Tesco Asian Network. This helps to raise the profile of careers at Tesco to Asian groups. It holds two events each year where Asian colleagues are invited to attend to network, share experiences and visit a ‘careers fair’ about opportunities at Tesco. It has inspired a series of ‘parents’ evenings’, which have helped Asian parents to understand the career opportunities available at Tesco and understand the range of jobs their children could enjoy in the business. • ABC Network. This is the most recent network, which builds on an idea raised at an Asian Network event. Its aim is to make Tesco the employer of choice for African, Black British and Caribbean colleagues and to provide training and development opportunities which will enable more black people to reach senior positions within the business.

www.thetimes100.co.uk

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Tesco recognises that within each person there is raw talent, ideas and energy. It sees that everyone is an individual who is seeking a good work-life balance and aims to help all employees to be the best that they can be. It encourages the business to create challenging, interesting and flexible opportunities to release this potential at every level of the business, from the shop floor to the boardroom. By ensuring that the best people are in the right jobs, Tesco is able to compete in a highly competitive market. The main strands for Tesco’s diversity strategies are: ‘

‘Everyone is welcome’

‘Raising the bar on talent’

We all have talents; we just

As Tesco sees the unique

need the encouragement to

talents of people, it will have

realise potential.

interesting people in interesting jobs.

Tesco also has strong links with many organisations representing disabled people, such as Whizz-Kidz. It also has its own Diversity

Tesco reflects the

It takes risks on talent to

Council. The Council sets the diversity strategy for Tesco. Its goals

communities it serves. It

bring extra skills to the

are to show that Tesco is inclusive, to make everyone welcome and

searches for talent within

business.

to play an active role in the diverse communities it serves. Tesco is

groups that are under-

currently working with disabled colleagues to establish whether

represented.

there is a need for a disability network. The business also works with a number of diversity partners. These partnerships help Tesco

Tesco values difference. It

All are helped to develop and

to build and improve its diversity strategy. These partners are:

welcomes its benefits for

build new and diverse talent.

• Stonewall. Tesco is a ‘Diversity Champion’ member of

itself and its customers.

Stonewall, a charity which exists to ensure equal rights for lesbians and gay men in a society where they can be open,

Tesco brings in talent through

By engaging with its people,

honest and safe at home, at school, at work and in

creative channels to find the

Tesco helps them to engage

the community.

best and most diverse

with its customers.

• EFD (Employers Forum on Disability). EFD is currently working

people.

with Tesco to help it to do a better job for disabled colleagues.

Tesco sets clear objectives

It will also help encourage more disabled people to choose

with expectations of both

Tesco as a great place to work.

performance and potential.

• Opportunity Now. This group offers for gender equality in business. It is committed to ing the business to offer opportunities to both men and women. Its key objective is equal treatment of genders but, as it is women who are most often under-represented, this tends to be its focus.

A diversity strategy The importance that Tesco places on diversity is shown by the detail of its strategy. The key aspects are that ‘everyone is welcome’ and the aim is to ‘raise the bar on talent’. Tesco has a dedicated talent and diversity team. This team communicates the diversity strategy throughout the business to ensure that its objectives are reached. www.thetimes100.co.uk

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www.tesco.com

Former Tesco Chairman Sir David Reid is chairman of the Trustee Board at Whizz-Kidz, a charity that s and empowers young wheelchair s. Tesco therefore has a strong relationship with the charity. Whizz-Kidz was chosen as Tesco’s Charity of the Year in 2006. Research conducted by Whizz-Kidz showed that many young wheelchair s found it hard to develop adult skills and outlooks, so the charity provides training to help young people become more confident and independent. Tesco is backing a five-year project, launched by Whizz-Kidz and also ed by the National Lottery, to set up a network of clubs for young wheelchair s. The ‘Kidz Unlimited’ project provides a chance for young disabled people to socialise and raise issues that are important to them. It also provides training, work skills, advice and access to work placements.

Conclusion Tesco recognises that the communities it works in are diverse and

Benefits of a diversity strategy Tesco’s diversity strategy brings many benefits to the business. It means, for instance, that Tesco is always aiming to recruit from the widest possible talent pool, helping it find the best person for the job. The workforce will have a better understanding of customer needs as it reflects the same diversity as the customer base. It also opens up new ideas and opportunities that may arise from different cultures. Having a mixture of different age groups within the workforce can also help to raise morale. The mix of young and older people brings a broad range of knowledge, experience and social skills to the company. A diverse workforce is more flexible, since it consists of a wide range of people from all walks of life, all able to work together to deliver the best service in all circumstances. It also leads to better performance and lower costs, since

constantly evolving. In addition, each individual has skills and potential that Tesco can help them to realise. Tesco’s diversity and inclusion strategy ensures that ‘everyone is welcome’ and that systems are in place to help people reach their potential. This strategy helps Tesco find, train and employ the best talent from all parts of society, particularly groups that may otherwise be underrepresented, for instance, young wheelchair s. This strategy helps to create a workforce that reflects the same diversity as is found in society. This means it better reflects Tesco’s customer base. The business wants to attract and keep the best people so it works hard to make Tesco a great place to work. By encouraging employees’ development, Tesco works to ensure all colleagues – wherever they work – can fulfil their potential. A strategy that s its people and is good for customers is therefore one that is good in helping Tesco to provide better service in a competitive market.

employees are able to offer a variety of expertise that enables jobs to be done effectively, improving productivity and reducing waste.

1. Describe what is meant by diversity and equality. (2 marks)

disabled or disadvantaged groups. Tesco offers an interview

2. Explain which groups are particularly covered by equality laws. (4 marks)

guarantee to candidates from Remploy, Shaw Trust and Whizz-

3. Analyse Tesco’s diversity strategy, explaining why it is

Kidz – three organisations that work with disabled people. This

important to the workforce, the customers and the

guarantee means that where Tesco has a vacancy and any of these groups has a suitable candidate, he or she must be

business. (6 marks) 4. Describe the different network groups and

interviewed. The interview guarantee does not mean a job offer will

organisations that Tesco s. Evaluate why each

be made, but in many cases applicants from these partners get

is of importance in helping the business be more

the job as they are the best candidate. Tesco also offers work

competitive than its rivals. (8 marks)

placements to give candidates the experience of working in retail. Tesco | Using diversity and inclusion to provide better service

Exam-style questions

A key part of the strategy is Tesco’s aim to employ people from