‘We must do more’: Non-Indigenous businesses struggling to boost Indigenous staff numbers

Indigenous-owned businesses in Australia employ Indigenous staff at a rate 12 times higher than non-Indigenous-owned businesses, a new study from The Australian National University (ANU) has found.

According to lead researcher and PhD candidate Christian Eva, the findings demonstrate that non-Indigenous-owned businesses must do more to better integrate Indigenous knowledge and cultural practices into the workplace and boost the number of Indigenous staff.

Mr Eva said non-Indigenous-owned businesses should also acknowledge Indigenous peoples’ broader responsibilities within their communities by offering flexible working arrangements and cultural leave entitlements.

“The unique workplace practices of Indigenous businesses may explain their strong Indigenous employment rates. Our paper demonstrates it’s more likely workplace practices driving divergent Indigenous employment outcomes, rather than just local labour market conditions,” Mr Eva said.

“This disparity is of national importance as Indigenous employment is part of Australia’s Closing the Gap framework. However, as with many Closing the Gap outcomes, the gap between Indigenous and non-Indigenous employment is failing to close. It’s evident we must do more.”

The researchers analysed Supply Nation data of 2,291 Indigenous-owned businesses and compared it to a dataset of 680 non-Indigenous-owned businesses in Australia.

They asked non-Indigenous business owners whether they had a Reconciliation Action Plan (RAP) or if they offered cultural competence training to staff. Businesses were also asked whether they had other forms of Indigenous-focused workplace policies and practices.

“Despite an increased focus on Indigenous employment, the national Indigenous employment rate is failing to increase substantially, and many Australian businesses are still struggling to reach their Indigenous employment targets,” Mr Eva said.

“The findings highlight the crucial need for Australian businesses to incorporate Indigenous-led approaches to things such as organisational governance, human resource management and recruitment within Australian businesses.”

A recently published ANU paper, also led by Mr Eva, found that businesses with Indigenous staff in management positions had more than three times the number of Indigenous workers compared to businesses with no Indigenous management.

“It's therefore key for non-Indigenous-owned businesses to identify how they can create those pathways for Indigenous employees to progress into senior management roles and ensure there are equitable opportunities for progression within organisations for all employees,” Mr Eva said.

“Managers from an Indigenous background are also better placed to understand the unique cultural and personal tendencies of their Indigenous colleagues.”

The research is published in The Economic and Labour Relations Review.