Chris Hayward, Chief Executive of NMBS, looks at how different approaches to diversity and inclusion in the builders merchants’ sector are starting to gain momentum, and the impact this could have on business.

Emotions can run quite high whenever I mention a particular business issue that has been overlooked for so long in the builders’ merchants sector. Most commonly referred to as Equity, Diversity and Inclusion (EDI), or Fairness, Inclusion and Respect (FIR), this has now become a major item on every board’s agenda, and it can generate a lot of debate.

For some people in the industry, let’s be honest, even talking about EDI is seen as ‘woke’ (unfortunately used as a pejorative term), and part of an unfamiliar business environment that makes them feel deeply uncomfortable. We all know somebody like this.

But for many industry leaders, the business imperatives of having a more diverse and inclusive organisation are completely clear and increasingly urgent. Their emotional response to the issue is one of conviction.

McKinsey confirmed almost 10 years ago that companies in the top quartile for ethnic and racial diversity in management were 35% more likely to have better financial returns. Credit Suisse analysed 2,400 companies and found that those with at least one female board member yielded higher return on equity and higher net income growth than those without.

Diverse teams also include people with disabilities, neurodiverse people, people who have different gender identities or sexual preferences, or just different life experiences, cultural or socio-economic backgrounds.

The evidence is overwhelming. Diverse teams are smarter. They make better decisions. They are more innovative. But the research also shows that diversity on its own is not enough – you also need a fair, inclusive culture to get the real rewards. And that means a workplace where all employees are empowered to thrive. Inclusion is relevant to all of us. It is fundamentally about individual experience and allowing everyone at work to feel they have a voice, they can contribute and they feel part of the organisation.

So EDI is good for business. No, scrub that – I will say now that EDI is critical for business. Just try recruiting or retaining the best young people into your organisation today if you are not committed to EDI in all its glory. Just watch the legal and reputational risk created by ignorance, bias or discrimination. Just follow the money, and the contracts denied to businesses that can’t demonstrate a positive, diverse culture and an inclusive approach to people management.

These are the risks – and the opportunities – being addressed in the builders’ merchants sector by the Construction Inclusion Coalition and its pledge to support a sector to ‘Built on Better’.

The Coalition was established by leading organisations across the construction industry, including NMBS, Aliaxis, Baxi, Bradfords, Highbourne Group, Ibstock, Knauf, Travis Perkins, Wavin, Wolseley, and the BMF. It is currently chaired by Angela Rushforth, Managing Director of Toolstation, and together we seek to enhance the impact of all our individual diversity, equity and inclusion initiatives.

As Anthea Marris, Project Director of the Construction Inclusion Coalition, has said to me many times: “For the future success of our industry, we need to attract and retain diverse talent and create an environment where all our colleagues feel safe, empowered and confident.

"Through the Coalition, we are fostering collaboration, establishing a network to share knowledge and resources across the industry, and co-creating solutions to make a difference. A rising tide lifts all boats.”

The Coalition’s first area of activity has been gender diversity, looking at how we can attract and keep more women in the sector. For example, it recently benchmarked the maternity policies of its 25-or-so member businesses, and found a varied picture.

Some members only offer Statutory Maternity Pay while others offer 25 weeks of fully paid leave. Some policies only cover maternity leave, while others have full family-friendly policies covering leave for maternity, paternity, adoption, dependents, carers and time off for fertility treatment.

Coalition members have pledged to drive the recruitment, retention and progression of under-represented groups. So the industry is being urged to improve three things straightaway:

  • Consider enhancing maternity pay offering. According to Bright Horizon’s 2023 research, 72% of employers in the UK offer enhanced maternity pay. The same research proves that this helps with talent attraction and retention.
  • Ensure maternity policies, as a minimum, cover support for pregnancy loss, extended adoption and surrogacy leave, and paid time off for fertility treatment.
  • Review the wording of policies to ensure that they are both gender and family-role inclusive, support phased returns, and offer flexible working.

These are simple, practical steps that we can all take as business leaders. I urge everyone in the builders’ merchants sector to follow the work of the Coalition, get involved and become part of the rising tide.

NMBS is a strong supporter and funder of the Coalition, and we are an active strategic partner in its major conference coming up on 1 October at which Coalition members will celebrate the first anniversary of this vital initiative, and gather to network, share, learn and leave inspired to create more inclusive workplaces.