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Driving representation: why sustainable business demands diversity

We rely on diversity of thought and experience across all levels and functions

When we published our Sustainability Report in June, it was clear from the comments on our social channels that some people were confused about our third pillar on Diversity, Equality and Inclusion (DE&I). Why, when sustainability is seemingly about climate change and the environment, were we talking about representation and pathways to careers in Science, Technology, Engineering and Maths (STEM)?

The United Nation’s (UN’s) 17 Sustainable Development Goals (SDGs) make it clear that equality and education are vital to our planet’s future, and it makes up a core part of our sustainability strategy.

We can't ignore the data

Not everyone sees representation the same way. Some might be happy to speculate on or justify why more men than women are in STEM careers and leadership positions, or why people who went to private school are overrepresented in certain industries or on executive boards. If the statistics don’t add up, we’re not going to accept that that’s just the way it is, so we’re working hard to remove barriers that might prevent talented individuals from dreaming big and getting the opportunities they deserve.

From our most recent Gender Pay Gap report, women make up 13% of our overall workforce, up from 12% in 2020, and 17% of our Senior Leadership Team, but only 5% of our technical functions compared with 58% in our non-technical functions. While these figures are in line with the motorsport sector, it’s clear we have a lot of work to do.

We wouldn’t ignore on-track data or make excuses that lead to inaction, so why do this when it comes to inspiring, recruiting and nurturing the best talent? As a sports team that strives to be both competitive and sustainable, if we accept the data without working to change it, we’re not only out of step with our own values, but we’re also creating a big problem for ourselves.

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Empowerment, not tokenism

Diversity isn’t about do-gooding or tokenism. Our world needs the best and brightest minds to develop innovative climate change solutions, but if talent isn’t found and nurtured, progress will be slower. As a motorsport team, we can’t afford to miss out on the best people and in turn our own performance because we haven’t worked to remove barriers to success.

Diverse workforces don’t just make moral sense: research shows they offer high-performance teams a competitive advantage. According to McKinsey & Company, gender diverse companies and ethnically diverse companies, respectively, are 15% and 35% more likely to out-perform others. We rely on diversity of thought and experience across all levels and functions, reflective of our fans, our partners and our communities, to challenge the status quo and drive innovation and performance.

The 2021 report from the Institution of Engineering and Technology (IET) estimates the current UK STEM shortfall to be 173,000 workers, costing the UK economy £1.5 billion a year. In 2021 we launched our flagship DE&I programme McLaren Racing Engage to tackle the STEM skills shortage, address systemic inequalities, and find new ways to unlock the full potential of all individuals with talent, passion and a drive to succeed.

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Removing blind spots and barriers

Our experiences, education, socio-economic and cultural backgrounds all affect how we express ourselves and communicate, which can mean that arbitrary factors and unconscious biases influence how we recruit talent.

‘That’s the way it’s always been done,’ isn’t the mantra of forward-thinking organisations, so we’re doing things differently and learning how to recognise talent in all its guises.

In October 2020, as part of our existing strategy to establish a credible HR baseline and to drive a data-led DE&I programme, we commissioned diversity consultancy Chanzo to undertake a strategic review of McLaren Racing. The review, which included a policy and process audit and comparator analysis, recognised our strong commitment to DE&I and set out recommendations for ambitious yet practical measures to improve our data and insights, recruitment practices and internal HR processes.

Our new applicant tracking system shows how we’re working to de-bias recruitment through positive measures such as the introduction of psychometric and ability testing, gender decoder tools, leader coaching, and finding talent through new channels such as emerging universities and different advertising sources.

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Our recent hiring trends give us cause to be optimistic about the future. 33% of all applications received in 2021 were from female candidates and 43% of new hires were female, while 12% of all 2021 recruits were from ethnic minority backgrounds.

Through schemes such as McLaren Racing Engage and our own hiring practices, we’re hoping to have 40% of our employees come from under-represented groups by 2030.

Our third pillar is all about empowerment and opportunity – the more we tackle inequality, the better chance we have of tackling climate change.

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