Indigenous managers are getting the job done

The paper, a summary of a larger study titled Making Indigenous Friendly Businesses led by the Australian National University (ANU), found Indigenous employment was 12 times higher in Indigenous-owned businesses than non-Indigenous-owned businesses.

The policy brief released by Indigenous business directory Supply Nation comes as Australia this week marks the 17th anniversary of the National Apology to Indigenous Peoples.

Researchers surveyed 680 non-Indigenous businesses to understand the difference having an Indigenous manager on board made.

Those businesses that did include Indigenous managers as part of their team reported multiple benefits, including:

• More than 45% of organisations with Indigenous managers reported implementing their Reconciliation Action Plan (RAP) compared with just 13% of businesses without Indigenous managers
  

• A higher rate of cultural competency training delivered across the business, (47% vs 11%)
  

• Businesses with Indigenous managers reported more engagement with cultural events such as NAIDOC Week and Reconciliation Week (63%) than businesses with no Indigenous managers (23%)
  

• More than 73% of businesses with Indigenous managers conducted Acknowledgement of Country ceremonies at significant events compared with 46% of firms with no Indigenous managers
  

• Companies with Indigenous managers had a higher percentage of Indigenous staff in the organisation (4%) than compared to those with no Indigenous managers (1.3%).

The paper recommended organisations prioritise hiring and or training Indigenous managers in senior roles and make this part of their Reconciliation Action Plans.

“A characteristic of the Indigenous business sector is its substantial Indigenous employment outcomes,” the paper found.

“This is in stark contrast to non-Indigenous businesses and the Australian economy at large, in which rates of Indigenous employment are still below parity.”

The researchers said more should be learned from Indigenous business practices to better inform workplace and government policies designed to increase employment of First Nations Peoples.

This should include ways to create workplaces that were culturally informed, anti-racist and values driven, they said - "Not just in theory, but in practice.”

The paper found the Indigenous business sector was experiencing a sustained period of growth, with an increasing number of Aboriginal and Torres Strait Islander entrepreneurs becoming business owners.

“While it is not a characteristic of all Indigenous businesses to maintain high rates of Indigenous employment, we know that there are many factors that may lead to Indigenous-led organisations attracting and requiring an Indigenous workforce.”

The paper revealed that the number of Indigenous Australians in senior management positions was very low.

“There are a number of barriers to and within the workforce that impact the Indigenous population more acutely than the non-Indigenous population, but Indigenous owned businesses are incredibly effective at removing these barriers.

“Put simply, all things being equal, Indigenous businesses create their employment outcomes not because of what they are or what they do (for example, geography, industry), but how they do it.”

The paper concluded that while the research had revealed some novel findings, the answer when it came to Indigenous employment was the same as it had always been: Indigenous people know what is best for Indigenous people.

“The Indigenous business sector demonstrates the substantial social impact for Indigenous peoples that can be delivered via Indigenous self-determination.

“For non-Indigenous businesses, there is clear evidence to suggest that the incorporation of Indigenous people with their management structures can help support higher rates of Indigenous employment.”

The ANU study was conducted in partnership with the National Indigenous Australians Agency (NIAA), Indigenous Business Australia (IBA) and Supply Nation.

Supply Nation CEO Kate Russell said research to support the growth of the Indigenous business sector was critical.

"We know that Indigenous-owned businesses are more likely to hire Indigenous employees. Overall, it's 12 times higher in those businesses than non-Indigenous businesses. The results of the survey clearly show that employing Indigenous managers or promoting to senior positions will bring significant positive impact for the businesses, leading to greater social outcomes."

Russell said the paper contained valuable insights on how organisations can benefit from hiring and developing Indigenous managers for senior management roles.

"The survey shows that businesses that employ Indigenous managers and develop for promotion have greater practical positive change and engagement through their RAPs, which of course contributes to closing the gap, something we should all be working towards," she said.

"The policy paper recommends prioritising hiring and development of Indigenous employees to assume senior roles and incorporating that as a target in the organisation’s RAP. It will definitely assist better corporate culture and ESG goals."

Prime Minister Anthony Albanese delivered the Closing the Gap statement at Parliament House in Canberra on Monday.

The PM revealed that just five of the 19 targets outlined in the strategy were on track to being met and admitted that while the road ahead wasn’t easy, the nation couldn’t “turn our back” on entrenched disadvantage and violence affecting Indigenous people.

The federal government announced a range of new initiatives, including:

• a cap on the price of essential groceries for people living in remote Indigenous communities
• a funding injection for the Indigenous Business Australia’s Home Loan Capital Fund to increase opportunities for First Nations people to buy their own homes
• 150 scholarships for Indigenous psychology students to increase the availability of culturally safe mental health support.

“To close the gap would ultimately erase the gulf that lies between us and our true potential as a nation,” said Albanese.

“It is about ensuring that all Australians get the same chance in life.”

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