Embracing Responsible Contracting: A Path to Inclusion for Small Businesses and Nonprofits
As the workforce evolves, small businesses and nonprofits must navigate an increasingly complex landscape of contract work, which has increased by 60% since 2019. By employing contract workers, organizations can benefit from flexibility and specialized skills. However, this approach can also lead to disparities in workplace equity, disproportionately affecting marginalized groups. As small businesses and nonprofits navigate this new reality, embracing responsible contracting can play a crucial role in promoting workplace inclusion and equity.
Understanding Contract Work
Contract work, often referred to as temporary or contingent work, involves hiring individuals through third-party vendors for specific roles over a fixed period. While this practice is common among large corporations, small businesses and nonprofits are not immune to the potential disparities it can create. Contract workers often face lower pay, fewer benefits, and limited career advancement opportunities compared to directly employed workers. These disparities can perpetuate occupational segregation and inequality, particularly among marginalized groups.
Addressing Disparities in Workplace Equity
Contract workers typically face significant challenges compared to their full-time counterparts. Many are from marginalized communities, including Black, Indigenous, Latinx, Asian, women, and nonbinary individuals. This demographic reality can contribute to inequities within organizations, as contract workers often report lower wages, fewer benefits, and limited career advancement opportunities, despite performing similar tasks as full-time employees.
For small businesses and nonprofits, addressing these disparities is not just a moral imperative; it can also enhance organizational culture and community reputation. By fostering a more equitable workplace, organizations can build stronger teams and improve employee satisfaction across the board.
The Impact of DEI Initiatives
Diversity, equity, and inclusion (DEI) initiatives are essential for creating inclusive workplaces. However, many contract workers may not benefit from these efforts, limiting their access to professional development opportunities and creating further disparities. As small businesses and nonprofits implement DEI strategies, it’s crucial to include contract workers in these initiatives to ensure everyone feels valued and supported.
The Responsible Contracting Standard
To create a more inclusive environment, small businesses and nonprofits can adopt the Responsible Contracting Standard developed by TechEquity Collaborative. This comprehensive guide provides strategies for embedding inclusive practices into contracting processes. The six key pillars of high-road contracting include:
Offer family-sustaining pay and benefits.
Provide equal pay for equal work.
Implement workplace safety protocols and protect worker voice.
Enact equitable procurement practices.
Create pathways for contract roles to permanent positions.
Improve transparency for workers, businesses, and the community.
By integrating these practices, small organizations can better support contract workers and create a more inclusive workplace culture.
Collaborating for Greater Impact
Small businesses and nonprofits can amplify their impact by collaborating with other organizations that prioritize responsible contracting. By working together, they can share best practices, resources, and strategies for creating a more equitable workforce. This collaboration not only strengthens individual organizations but also fosters a community-wide commitment to inclusion.
Mitigating Risks Through Responsible Contracting
Embracing responsible contracting is not just about fostering inclusion; it also serves as a risk mitigation strategy. Small businesses and nonprofits are not immune to legal and financial risks associated with contract work. Ensuring fair treatment of contract workers can help avoid potential liabilities and reputational harm. By adopting responsible practices, organizations can safeguard themselves while demonstrating their commitment to equity.
Conclusion
As the workforce landscape continues to evolve, small businesses and nonprofits have a unique opportunity to embrace responsible contracting as a means to promote inclusion and equity. By adopting the Responsible Contracting Standard and collaborating with like-minded organizations, they can create more equitable workplaces that benefit all workers. In a time when workplace inclusion is increasingly critical, responsible contracting is a proactive step toward ensuring that every worker feels valued and supported.
Reference:
Expanding Equity. (2023, October 27). Responsible contracting as part of your DEI, vendor and business strategies. Carolyn Yang. https://expandingequity.com/voice/responsible-contracting-as-part-of-your-dei-vendor-and-business-strategies/
