A recent study by The Australian National University (ANU) has revealed that Indigenous-owned businesses in Australia employ Indigenous staff at a rate twelve times higher than that of non-Indigenous-owned businesses. This significant disparity underscores the urgent need for non-Indigenous companies to adopt more inclusive employment practices.

Christian Eva, the lead researcher and a PhD candidate at ANU, emphasised that the findings indicate a clear requirement for non-Indigenous-owned businesses to integrate Indigenous knowledge and cultural practices more fully into their workplaces. He pointed out that these businesses should also consider the broader responsibilities of Indigenous peoples within their communities by offering more flexible working arrangements and cultural leave entitlements. By doing so, they increase Indigenous employment numbers and foster a more diverse and inclusive workplace culture, which can lead to improved productivity and innovation.

Eva explained that the superior Indigenous employment rates in Indigenous-owned businesses could be attributed to their unique workplace practices. He suggested that these practices drive Indigenous employment outcomes rather than local labour market conditions alone. He highlighted the national significance of this issue, noting that Indigenous employment is a crucial aspect of Australia’s Closing the Gap framework aimed at reducing disparities between Indigenous and non-Indigenous Australians. However, he said, the employment gap remains stubbornly wide, signalling a clear call to action.

In their research, the team analysed data from Supply Nation on 2,291 Indigenous-owned businesses and compared this with data from 680 non-Indigenous-owned companies across Australia. They investigated whether non-Indigenous businesses had a Reconciliation Action Plan (RAP), offered cultural competence training, or had other Indigenous-focused workplace policies and practices.

Eva pointed out that despite a heightened focus on Indigenous employment, the national Indigenous employment rate has not seen significant improvement, and many Australian businesses are still not meeting their Indigenous employment targets. To address these issues effectively, he stressed the importance of incorporating Indigenous-led strategies in organisational governance, human resource management, and recruitment.

Furthermore, another ANU study led by Eva found that businesses with Indigenous staff in management positions employed over three times as many Indigenous workers compared to those with no Indigenous managers. This finding suggests a vital strategy for non-Indigenous-owned businesses to boost Indigenous employment and highlights the potential of Indigenous leadership in driving positive change. Creating pathways for Indigenous employees to ascend into senior management roles and ensuring equitable advancement opportunities within organisations can significantly impact Indigenous employment rates.

Eva also noted that managers from Indigenous backgrounds are particularly well-placed to understand the unique cultural and personal nuances of their Indigenous colleagues, enhancing the overall workplace environment. This comprehensive approach fosters excellent employment opportunities for Indigenous individuals and enriches the organisations’ cultural competency.

More information: Christian Eva et al, Closing the employment gap: Estimations of Indigenous employment in Indigenous- and non-Indigenous-owned businesses in Australia, The Economic and Labour Relations Review. DOI: 10.1017/elr.2024.37

Journal information: The Economic and Labour Relations Review Provided by The Australian National University