BT removes diversity criteria from managers' bonuses
- BT has decided to scrap the diversity measures in the bonus schemes for its middle managers.
- The current system ties up to 10 percent of annual bonuses to diversity targets related to gender and ethnicity.
- The removal of these targets may raise concerns about the company's commitment to inclusion and diversity.
In recent weeks, BT, a former state-backed telecoms group based in the UK, announced a significant change to its bonus structure for its middle management team. This decision comes just after the company's chief executive, Allison Kirkby, criticized other businesses for their reduced commitments to diversity and inclusion. Starting next year, the telecom giant plans to eliminate the diversity, equity, and inclusion component from the annual bonus scorecard for approximately 37,000 lower-level managers. This aspect of the bonus scheme currently holds a potential 10 percent weight based on targets regarding gender, ethnicity, and disability representation, as well as employee engagement from underrepresented groups. Despite the removal of these diversity targets for lower-level managers, BT intends to maintain such measures for its 550 senior leaders, reflecting a level of prioritization at the higher management level. The change in bonuses is reportedly aimed at streamlining evaluation metrics, as BT shifts the focus to a general engagement survey involving all employees. Critics of this policy shift may view it as a setback for the diversity and inclusion initiatives that have been gaining traction in various industries, which could undermine the progress made in establishing more equitable workplaces. The implications of these alterations may resonate far beyond just the financial impact on manager bonuses. Stakeholders and employees alike will likely watch how this decision shapes the company’s culture and its commitment to diversity. As the corporate environment increasingly emphasizes the importance of representation and equity, the removal of such targets might raise questions about BT's long-term strategy and accountability in fostering an inclusive work environment. With this significant move, BT may face skepticism regarding its sincerity in advocating for diversity and whether it can maintain credibility in its initiatives aimed at improving inclusion across its workforce. Companies across sectors may closely monitor this development, as it could either challenge or reinforce the ongoing discourse surrounding corporate responsibility and social justice efforts in the workplace.