SRA progress on equality and diversity 2010 (February 2011)

• 1.

  The SRA regulates in the public interest and its strategic vision is to ensure that regulation is fair and proportionate. The regulatory functions of the SRA are complex and multifaceted. They include, but are not limited to, intervention into a solicitor's firm in the public interest, issuing practising certificates, engaging with consumers, commissioning research and applying guidelines within the legal education and training sector.

• 2.

  The SRA operates in accordance with the regulatory objectives set out in the Legal Services Act 2007. It exercises its functions independently and in the public interest but remains part of the Law Society of England and Wales due to administrative and legal reasons. The SRA regulates more than 100,000 solicitors in England and Wales.

• 3.

  The work of the SRA is overseen by the SRA Board, which consists of 16 members—nine of which are solicitors (including the Chair) and seven are lay members. The Board is assisted in its work by eight committees and groups.

• 4.

  The SRA is currently embarking on a transformation programme which will see the introduction of an OFR approach and the introduction of Alternative Business Structures (ABS) which will transform the way legal services are provided and regulated.

• 5.

  Internally the SRA is also undergoing change to ensure that it establishes itself as a regulator of choice and one that is respected and seen to be effective, fair and proportionate.

• 6.

  Equality and Diversity has continued to be a key priority for the SRA and the challenge is that, at a time of massive change, the SRA continues to improve on its performance and to realise its vision of being an employer and regulator of choice which is, and is seen to be, proportionate and fair.

• 7.

  Equality legislation has recently undergone radical change with the development and publication of the Equality Act 2010.

• 8.

  The SRA is defined as a public authority under the Equality Act and has an obligation to advance equality, eliminate discrimination, harassment and victimisation and foster good relations between groups.

• 9.

  We have reviewed our current strategy and begin preparing ourselves in meeting the requirements and challenges of the Equality Act. We believe that the progress we have made so far has established a strong foundation on which we can now build our new Equality Framework.

• 10.

  Our Equality Framework, which will be published in July 2011, will set out our vision on equality and human rights and explain how we intend to meet the requirements of the Equality Act.

• 11.

  This report is therefore our opportunity to share some our key equality and diversity achievements to date. It provides an overview of how we are working to embed equality and diversity principles into the business going forward. This report provides the basis for our future annual Equality and Diversity Reports.

Introduction - The SRA's E&D Strategy

• 12.

  At the heart of delivering our regulatory objectives is an assurance to provide consumers of legal services with a profession that encourages and values diversity, is fair, easy to access and offers value for money.

• 13.

  We recognise that equality and diversity (E&D) is a key component in creating a successful organisation that has the confidence and respect of those it regulates and serves.

• 14.

  The SRA's approach towards the promotion and progression of diversity has been continuous since its inception as an Independent Regulator in January 2007. The equality and diversity agenda gained further prominence when the SRA published its first Equality and Diversity Strategy in April 2009.

• 15.

  The strategy was developed in 2008 in consultation with a range of stakeholders including BME and other equality groups. The strategy set out our vision and outlined the actions it would take to embed equality and diversity into its business.

• 16.

  The strategy was also our initial response to the recommendations set out in the Ouseley report on 'disproportionate impact of regulation on BME solicitors' which was published in August 2008.

• 17.

  At the heart of our strategic vision is the aim of being seen as a fair and proportionate regulator that has the confidence of the profession it regulates. The following three key aims underpinned our strategic vision of becoming:

  • a fair employer which recruits, develops and retains a diverse and talented workforce;
  • a fair regulator, which is open, proportionate, non-discriminatory and transparent in the way it regulates a diverse profession;
  • an inclusive and stakeholder focused organisation.
• 18.

  The strategy was supported by an action/delivery plan providing us with a clear framework to deliver, monitor and evaluate progress on equality and diversity.

• 19.

  We have been reporting quarterly on the progress we have made against the strategy.

• 20.

  Lord Herman Ouseley audited the SRA's progress in mid-2009 and found that the SRA had made significant progress in progressing the E&D agenda within a very short period. Some our key achievements have included:

  • publication of a schedule of Equality Impact Assessments (EIA's) with our E&D strategy;
  • adopting a more 'outreach' and proactive approach to engagement with various sections within the profession—resulting in improved relationship with the diverse segments in the profession;
  • publishing a disclosure and transparency policy—the result has been improved transparency by providing reasons for inspections and investigations. We provide disclosure in 82 per cent of cases;
  • consultation and publication of our decision making criteria to achieve transparency in the way we regulate;
  • development of a range of internal training and developmental interventions to equip staff with the necessary knowledge, skills and competencies in regulating a diverse profession;
  • carrying out and publishing over 40 Equality Impact Assessments (EIAs) which is a risk management tool enabling us to identify the impact our policies, procedures and proposals have on equality. The EIA process has enabled us to take into consideration the findings and feedback from our stakeholders before making key decision about regulatory policy and practice;
  • establishing a successful annual diversity week which delivers a range of activities and events for staff and our stakeholders, providing an opportunity to raise awareness and understanding of equality and diversity;
  • commissioned and published research to further understand the reasons for disproportionality. This report, the Pearn Kandola Report July 2010, was published with an action plan for implementation of the recommendations;
  • established the Diversity Working Group chaired by the CEO—this group is responsible for championing E&D across the business and monitoring progress;
  • established the E&D Board group, chaired by the SRA Board Chair with membership comprising of lay and solicitor members to provide governance leadership over the E&D agenda—the group has been involved in the delivery of the disproportionality research report and in providing leadership in addressing the issues of discrimination in the insurance market; and
  • established the External Implementation Group, chaired by Lord Herman Ouseley—the group has been key to building more effective relationships with BME practitioners and in providing feedback to the Equality & Diversity Board group on key policies.
• 21.

  The strategy has provided the SRA with a framework towards putting equality and diversity at the heart of its regulatory business to meet both its legal obligation as a public authority and in establishing itself as a leading regulator in the field.

• 22.

  The challenges we have encountered have not deterred us from pushing the agenda forward as we have seen the benefits of our approach—ranging from a workforce being more open to discussing and dealing with the equality and diversity agenda to well established and positive relationships with key stakeholders across the various segments of the profession.

The SRA as an employer

• 23.

  We operate from two main sites in Leamington and Redditch, and we opened our London office in April 2010. As an Equal Opportunity employer we are committed to recruiting and retaining the best diverse talent. We have improved our recruitment campaign by advertising more widely so that we attract a wider pool of applicants.

• 24.

  We have developed a set of behavioural competencies to ensure that those we recruit can demonstrate their commitment to equality and diversity.

Our Employees

• 25.

  Our employee data for permanent and fixed-term employees (from July to December 2010) indicates that we have 591 employees with the following diversity profile:

  • 71 per cent female and 29 per cent male;
  • 4 per cent of our employees have declared themselves as having a disability (compared to 18 per cent of the working population in May 2009, according to the Labour Force Survey);
  • 1 per cent have declared themselves as gay/lesbian (as compared to 6 per cent of the UK population according to Stonewall);
  • 14 per cent are from black and minority ethnic groups (BME); and
  • 1 per cent are from a Black or Black British background.
• 26.

  14 per cent of our female employees have roles in senior positions (within the highest I, J, K and L grades). 9 per cent of male employees are employed in similar positions. 1 per cent of BME and 9 per cent of white employees sit within these grades. 18 per cent of women and 0.6 per cent of men work part-time.

• 27.

  We retain on average 99.1 per cent of maternity returnees. Our policies cover a wide spectrum of special leave and we total ten policies within this area. One of our biggest achievements is attracting and retaining female employees through our generous, flexible, benefits package. We rarely lose a female employee due to not being able to meet their child care or work commitments.

• 28.

  In addition to the above, one of the key recommendations in Lord Ouseley's review was the need to improve the diversity make up of our workforce, our board and committees.

• 29.

  We have had some success in relation to our workforce - with the BME workforce increasing from 9 per cent in 2007 to 14 per cent in December 2010. This is in proportion to the national BME average of 11.7 per cent and a Warwickshire BME average of 10.7 per cent, according to data from mid-2007 ethnicity population estimates from the Office for National Statistics.

• 30.

  We recognise that this improvement is not reflected in the senior grades or at Board and committee level and will be looking at a number of positive action proposals to try and address this in the coming year.

• 31.

  We are also aware that disabled employees are under-represented in the workforce and we are working with the Human Resource Department (HRD) to address this under-representation. We will be considering how to raise the profile of the SRA as an employer of choice.

Leadership and Culture

• 32.

  The SRA Board and the Senior Management Team (headed by the CEO) lead the equality and diversity agenda in the SRA. This leadership has been demonstrated by the Board continuing to support the achievement and promotion of equality and diversity as a key element to the organisation's success as an employer and regulator.

• 33.

  In 2009, the Board established an E&D Board Group to oversee the progression of the E&D agenda and the strategy. The Board's terms of reference can be found on the SRA website. The Board meets quarterly to discuss E&D issues impacting on the SRA's work and to assess progress against its E&D strategy.

• 34.

  The group's effectiveness can be demonstrated through their leadership and involvement in the commissioning and delivery of the disproportionality research that has assisted the SRA to better understand the reasons for disproportionality and in the recruitment of adjudicators in 2010 which resulted in a marked improvement in the diversity profile of adjudicators.

• 35.

  The Group also meet twice a year with the internal staff Diversity Working Group (DWG) to discuss equality and diversity issues and hear first hand from staff about progress being made.

• 36.

  The DWG is chaired by the CEO and comprises of nominated staff from across the business who meet to discuss E&D issues, share information and best practice and monitor progress against the strategic objectives. The group has played an important role in the assessment of EIAs and in delivering a range of diversity events to raise awareness of equality and diversity across the SRA.

• 37.

  The staff survey we carried out in 2009 included questions about diversity. The findings illustrated that over 50 per cent of SRA staff felt that they were aware of the progress being made on E&D and over 60 per cent believed that they had a role to play in promoting equality and diversity in their work. This information sets a good foundation for us to continue building an inclusive culture where staff feel valued and confident in dealing with the equality and diversity agenda.

Learning and Development

• 38.

  We have delivered a range of development programmes for staff to increase their knowledge, understanding and confidence on equality and diversity. The training we have delivered includes workshops on equality impact assessments (EIAs) and handling of discrimination complaints. These workshops have been well received and enabled our staff to gain an understanding of how equality and diversity impacts on their roles and responsibilities.

• 39.

  We have ensured that all of our Board and committee members have received equality and diversity training at the start of their appointments and they understand the impact of equality on decision-making.

Competency Framework

• 40.

  We have developed a behaviour competency framework for all staff which includes a range of diversity behaviours that we would expect from staff in carrying out their responsibilities. As we move towards becoming an outcome focused regulator, we would expect these behaviours to be demonstrated through the interactions our employees have with the diverse individuals who come into contact with the SRA.

• 41.

  We are committed to ongoing development for staff on equality and diversity as we believe that it is important for our staff to have the relevant knowledge and competencies to deal confidently with equality issues and see them having an important role in promoting the agenda on behalf of the organisation.

• 42.

  As we go forward, we will be working with our human resources department team to provide ongoing development programmes for our staff and consider positive action proposals to address under-representation in the workforce.

The SRA as a regulator

Diversity in the profession

• 43.

  The SRA regulates a diverse profession which is made up of individuals who come from a range of backgrounds. The diversity also extends to the type of work and size of practice. The annual trends analysis for the profession in 2009 indicated that of those who had a practicing certificate:

  • 45.2 per cent were women and 54.8 per cent were men – the trend shows that the population of women solicitors with practising certificates has increased by 86.9 per cent over the last ten years. It is interesting that women made up 61.7 per cent of those commencing training contracts in 2009 compared to 39.9 per cent of men.
  • BME practitioners made up 10.6 per cent of the population holding a practising certificate, which is a 5.5 per cent increase over the same period last year.

Promoting equality in the profession

• 44.

  One of our regulatory objectives is to 'encourage an independent, strong, diverse and effective legal profession'. We need to have up to date, accurate and complete data on the profession to enable us to monitor our regulatory outcomes and address and any disparities. We have been aware that the diversity data we hold about the profession had a number of gaps and needed to be updated.

• 45.

  We undertook a Diversity Census in 2009 to update the data we held about the diversity make-up of the profession. We were supported in this initiative by various practitioner groups and some firms who understood our reasons for requesting the data from the profession. The number of responses received from the profession totals to approximately thirty five thousand solicitors and is based on registered solicitors with a practising certificate. Only 30 per cent of the profession responded to our request—although the responses we received have helped us in updating our data set. We will use this data to analyse and monitor our processes and to identify trends.

• 46.

  Rule 6 of the solicitors Code of Conduct 2007 sets out the requirements in relation to equality and diversity. We have monitored compliance with these requirements by assessing the policies firms have in place to promote equality and diversity. We monitor the outcomes of the complaints we have received in relation to Rule 6 breaches and publish an annual report.

• 47.

  In 2010, we issued a warning card to the profession reminding them of their obligations under the rule and that we took breaches seriously. We have also worked with the Law Society to ensure that their Diversity Toolkit was aligned to the requirement of Rule 6.

Widening access to the profession

• 48.

  We have been using a number of measures to widen access to the profession and drive up standards. We have reviewed the Legal Practice Course (LPC) and made it more flexible while retaining coverage of the minimum knowledge and skills. LPC providers can tailor courses to meet the needs of different students and there is also flexibility of combining study and work. The LPC also allows students to apply for exemptions and ask for relevant prior learning to be accredited.

• 49.

  We piloted Work Based Learning (WBL) as an alternative to the traditional training contract. WBL places emphasis on actual work experience and demonstrable competence which is assessed in work. We ran two pilot cohorts and are now evaluating the programme. We intend to use the findings to assess whether WBL is a successful and effective alternative.

Monitoring regulatory outcomes and decision-making

• 50.

  The SRA regulates in the public interest and consumer protection is key to effective regulation. Fairness and proportionality is also key to our approach. Monitoring of our regulatory decisions showed that BME solicitors were over-represented in regulatory decisions. We took the following key actions to improve transparency in our decision making and ensuring that our regulatory policies were fair and proportionate:

  • published a transparency and disclosure policy under which we are committed to providing reasons for our investigations and inspections. We currently provide disclosure in 82 per cent of the cases.
  • consulted and published our decision-making criteria and included fairness as a key decision making principle.
  • carried out and published equality impact assessments on a number of our regulatory policies to address issues of disproportionality.
• 51.

  We have been monitoring the outcomes of our regulation decisions since 2004 and have found that BME solicitors are over-represented in regulatory decisions. We have been publishing the outcomes of our regulatory monitoring annually since 2008.

• 52.

  In 2009, we commissioned Pearn Kandola to carry out research to identify the reasons for the continued disproportionality. Pearn Kandola published their findings in July 2010 and that research provided us with a better understanding of where we needed to target our efforts to address this issue. The Board accepted the recommendations made by Pearn Kandola and approved our action plan which set out how we would implement the recommendations.

• 53.

  We will use the findings from this report to improve our processes, and to inform our new outcome-focused regulatory approach. We will continue to engage with a wide range of groups in the profession and outside who can support us in ensuring that regulation is fair and transparent.

Engaging with the profession

• 54.

  Since 2007, we have been proactive in our engagement with the profession. We have held a number of roadshows across the country to explain our regulatory approach and to listen to the views of those we regulate. We have found these roadshows very valuable as they provide us with a health check on how the profession perceives us and what we need to do to improve our processes and regulatory approach.

• 55.

  One of our key successes has been the improved engagement we have established with the diverse segments in the profession ranging from sole practitioners to large city firms. Though this approach we have also established good relationships with the key equality groups such as the Black Solicitors Network (BSN), The Society of Asian Lawyers (SAL) and the Lawyers with Disabilities Division (LDD).

• 56.

  We have held:

  • four joint workshops with BME groups—these provided an opportunity for us to share and explain our regulatory approach to BME solicitors and to listen tot heir views and gain feedback;
  • established regular meetings with the LDD—this has enabled us to improve our guidance to providers on addressing issues of disability such as the provision of reasonable adjustments;
  • begun to establish links with the Association of Women Solicitors and are now working with them on a joint event focusing on the impact of ABSs and the new regulatory approach on women solicitors.
• 57.

  Our engagement approach has enabled us to raise the profile of the SRA and explain how we work as well as provided the opportunity for the profession to give us their views about the SRA.

• 58.

  We have also incorporated equality and diversity requirements into our procurement process which resulted in more diverse range of firms applying to our disciplinary panel tender.

Conclusion – Going Forward

• 59.

  The SRA and the legal profession are in a period of unprecedented change as a result of the new legal landscape. This transformation will involve changing the way in which the SRA delivers its regulatory and equality and diversity objectives. The move to an outcomes-focused approach by October 2011 will mean that we will regulate firms in a proactive risk based approach to make sure legal practitioners offer good standards of service to the public.

• 60.

  We are working to make sure that equality and diversity is a driver behind this change by undertaking EIAs on new decisions and polices that are being developed. This has included embedding equality and diversity into our policy statements and, for example, in the new Handbook currently being developed. The introduction of outcomes-focused regulation (OFR) at the same time as the framework for permitting ABSs has created an opportunity for the SRA to consider equality and diversity from the earliest stages of planning and is a real chance to embed change through the proactive approach engineered by OFR.

• 61.

  Equality and diversity will fit nicely within the new OFR approach and we will harmonise this approach with our statutory functions arising out of the Equality Act 2010. The Act will require us to cover all of the protected characteristics of race, sex, age, disability, gender reassignment, religion or belief, sexual orientation and pregnancy and maternity except marriage and civil partnership and will require public bodies to have due regard to the need to:

  • eliminate discrimination, harassment, victimisation and any other conduct prohibited under the Act;
  • advance equality of opportunity between different groups; and
  • foster good relations between different groups.
• 62.

  We have reviewed our E&D Strategy and identified what has worked well and what we need to improve on. We will bridge the gaps identified through our Equality Framework and ensure that:

  • we continue to proactively engage and consult with the profession, including equality groups to inform good practice;
  • we have a clearer picture of our regulated community and the needs of consumers and the public so that we will be able to deliver a service that is appropriate and effective;
  • our policies and practices are fair, proportionate and free from bias; and
  • we provide our staff with the necessary support and development to embed equality and diversity principles into their work.
• 63.

  The SRA is moving the agenda on equality and diversity at a considerable pace, not least because of the changes brought in by OFR. We want to continue with this pace of change and embed equality and diversity by using multiple approaches to achieve a diverse working culture.

• 64.

  A key aim will be to work with our diverse stakeholders to become the regulator of choice. We want to ensure that our equality and diversity initiatives are inclusive to the profession we regulate, for consumers of legal services and for the public at large.

• 65.

  We are working to ensure our staff have the right skills, knowledge, competence and expertise in equality and diversity to provide effective, equitable regulation and support, and to apply our objectives of fairness and transparency.