What springs to mind when you hear the words “fair work”? No doubt answers would focus on basic pay and conditions, but thinking more deeply brings a whole range of elements – and all ones which will be critical to Scotland’s economic transformation.
The Scottish Government is currently seeking responses to its Fair Work framework – a new policy which aims to offer all individuals “an effective voice, opportunity, security, fulfilment and respect in the workplace”. It seeks to “balance the rights and responsibilities of employers and workers for the benefit of individuals, organisations and society”.
A happy, healthy workforce is integral for Scotland’s economy to thrive, and underpinning a strong economy is attracting and retaining talent, ensuring the wellbeing and skills of the workforce are maintained and creating a strong culture of research, innovation and development.
But beyond all of these – which, of course, we must strive for – we need to consider the context of our current reality.
One in four of Scotland’s children are officially recognised as living in poverty; women are facing sustained and seemingly intractable inequalities in the workplace (Stella Creasy brought a stark example of this to light last week); sustainability policies are no longer a "nice to have" in the race to net zero; and we are in the midst of recovering from a global pandemic.
Fair Work – and what it is suggesting – is one that business leaders need to understand and play their part in addressing.
Why? Because for leaders, be it as a business owner or running a cross-sector organisation, there are three key benefits to being a Fair Work employer.
Firstly, consider how your support will positively affect your employees. Being a great employer is vital, especially in the wake of the pandemic. This means supporting staff; prioritising flexibility; having a genuine interest in their wellbeing; promoting inclusion and diversity; and paying a competitive salary.
This creates a strong culture and a happy work environment, which in turn breeds creativity and productivity, leading to a more successful organisation. Hardly rocket science, with plenty of evidence to back it up. But creating a positive culture requires commitment and dedication from purposeful leaders.
Secondly, by being a great employer with happy, productive team members, you will have a positive effect on the community you serve. A financially stable individual, who has a workplace which prioritises flexibility, will be able to manage the challenges of childcare arrangements, caring for others, and having a better standard of living. Being a good employer will have ripples wider than the workplace – your organisation will be playing its part in tackling wider issues, like poverty and inequality.
And finally, being a Fair Work employer shows to the world that you’re an organisation with purpose. It shows you care, and that you want to make a positive contribution to society.
During the pandemic, we saw collaboration and community spirit leading the way in recovery, and by holding on to these values and truly living them through your practices, your “licence to operate” goes up. It will also help future-proof the workforce, as research has shown that those in "Gen Z" prioritise working for organisations with a purpose, meaning you’re more likely to attract talent.
With all the challenges currently facing business leaders, be it moving towards what we hope will be the end of a global pandemic or expediting efforts on the journey to net zero, the Fair Work framework may seem like another item on the agenda. But by creating a positive, healthy culture in the workplace, we can create positive, healthy individuals and communities – which is the backbone of a strong, fair and equitable economy
Louise Macdonald is national director of IoD Scotland
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