9 minute read
The briefing
Diversity
Overcoming Pay Disparities based on Ethnicity
MIDDLE EAST Nurul Sabri, a senior consultant at HKA, discusses the gender pay gap in the industry, and how ethnic minorities often face greater challenges when seeking parity
There have been many discussions about gender diversity and equality in the construction industry as well as gender pay gap. For women working in the industry especially ethnic minority women, the challenges are even more acute. Not only is there a gender pay gap affecting women but in addition, ethnic minority women in the region are also subjected to alternate pay structures based on ethnicity or race. The topic of pay disparity by ethnicity is not uncommon in the UK and US and has been widely discussed. It represents the unfair divergence between the pay of different groups of people by demographic characteristics. In my opinion, addressing not only the gender pay disparity, but also the ethnicity pay disparity, is key to fostering an equal and inclusive working environment.
A critical first step to achieving meaningful change is for the industry as a whole to acknowledge the issue exists. Simply put, we cannot address an issue if we refuse to accept it exists. Next is to change mind-sets and behaviour. McKinsey research in Model for Effective Change Management states that transformations stand the best chance of success when they focus on four key actions to change mind-sets and behaviour. By understanding why or the reason for a change will inspires people to behave in support of such change.
There are few suggestions on actions that we can focus on to bring meaningful changes, which is divided into four key areas: Educate, Lead, Culture and Measure.
1. EDUCATE
• Eliminate Bias
It is said that pay discrimination often is rooted in different forms of bias, including biases about specific ethnicity and their value. Combating biases is critical to getting this right. McKinsey said biases can lead to blind spots, making people to overlook the individual abilities. Employees should be paid what they are worth. Value should not be determined by skin colour nor gender, but from an employee’s dynamism, skills, and knowledge.
Continuous anti-bias training is also critical to combat workplace biases that devalue the contributions of specific ethnicity. To move in a new direction, the change must be led from the top. Senior leadership must challenge biase when they see it and advocate and revise company policies to promote equality in pay practices within workplaces.
• Public Awareness
We should create public awareness that differentiating employees’ pay within the same grade on the basis of ethnicity is wrong, unfair, discriminatory, and considered unethical. The aim is to attract people’s attention towards this subject, which might lead to small talks amongst them. Hopefully this small talk could lead an interest
Speak up
Nurul Sabri says that employees need to speak up and have difficult conversations if they want to create a better work environment for themselves.
2022
towards this subject and make people interested to do an in-depth study about this and take necessary action.
2. LEAD
• Be an ally and consistently taking key allyship actions
Being an ally (allyship) allows those who are at lower risk of discrimination the opportunity to advocate for the underprivileged colleagues to gain visibility, validity, and credibility for their work and contributions. Allyship from senior leaders and more privileged colleagues can make a big difference. However, being an ally alone is not enough. The ally should consistently take key allyship actions such as advocate for equal payment structures for all and actively confront discrimination against underprivileged colleagues.
• Regulate legislation prohibiting discrimination based on ethnicity
Passing law is an important step towards the change. In the UK and the US, there are laws providing protection against pay discrimination due to race, colour, religion, sex or national origin. The new UAE Labour Law which will take effect on 2 February 2022 expands on general prohibition on discrimination and prohibits discrimination on the basis of race, colour, sex, religion, national origin, social origin and disability. Such law is good to support and promote equality and inclusiveness at workplace.
3. CULTURE
• Speaking up and Having Difficult Conversations
Too often employees stay in situations where they are being undervalued for fear of not finding another opportunity, or fear of ruining the relationships with the bosses and leaders that they have internally. In order to overcome this, one needs to speak up and start to be comfortable in having difficult conversations. Difficult conversations are a necessary part of working well with others. Reaching an understanding is often the first step toward creating a better work environment.
4. MEASURE
• Employee Engagement Survey
It is important for companies to consistently measure the fairness of its pay policy. For example, my company, HKA, carry out an annual Employee Engagement Survey that helps the company to understand, amongst other things, employee’s views on the fairness of pay scales and its process of calculating pay. The survey seeks to understand whether (i) the effort, skill and experience are accurately reflecting in the employee’s pay and (ii) the process of calculating pay in the company is fair and unbiased. Such survey results are vital to help companies continuously improve in this aspect.
There is no doubt that narrowing or overcoming the pay disparity based on ethnicity will not be an easy process. But neither is it a defence against action. It will require the commitment of all levels and a strong collaborative approach. We are all accountable. Let’s overcome this pay disparity based on ethnicity together.
The Future of Infrastructure T he energy supply sector (electricity, heat/cold, and other energy) is one of the largest contributors to global
MIDDLE EAST Dr Hassam Chaudhry, director of Studies for Architectural Engineering at the School of Energy, Geoscience, Infrastructure and Society at Heriot-Watt University Dubai, looks at the future of the energy sector and the role integrated renewable energy will play
greenhouse gas emissions, responsible for approximately 35% of total emissions. Households consume 29% of global energy and contribute to 21% of resultant carbon dioxide emissions.
In January 2017, the UAE launched the “Energy Strategy 2050”, a national energy strategy based on supply and demand. The strategy aims to improve the contribution of clean energy in the total energy mix from 25% to 50% by 2050 and cut the carbon footprint of power generation by 70%. While the energy sector has historically been moving slowly towards incorporating strategies and products that reduce its harmful impacts, it is now looking to change its course.
In the UAE, there has been a massive growth in urbanisation. Despite the COVID-19 pandemic and the delay by one year of EXPO 2020 Dubai, urbanisation, and development have continued to rise at a rapid rate. Research indicates that buildings consume 80% of the overall energy demand in the UAE and 40% across the globe. Moreover, the UAE’s Federal Electricity & Water Authority (FEWA) estimates that around 60% to 70% of energy demand in the UAE currently stems from building HVAC requirements.
Furthermore, the infrastructure in the UAE is estimated to grow at a compound annual growth rate (CAGR) of approximately 5% by 2026. Globally, according to the World Economic Forum (WEF), a transition of energy, materials, and infrastructure is necessary for the next two decades to keep global temperature increases below 1.5 degrees
while ensuring the energy future is affordable, secure, and inclusive.
The study also states that recent trends and technologies are changing energy production, delivery, and consumption. In parallel, world demand for raw materials could double by 2060. Getting on track to net-zero emissions by 2050 will require annual investment in clean energy infrastructure to reach nearly US$4 trillion by 2030. One solution that might keep costs lower is integrated renewable energy.
INTEGRATED RENEWABLE ENERGY While there is still a long way to go, the industry has researched major changes and building technologies to address the challenge. Integrated renewable energy is considered a crucial technology for the energy transition. It combines the individual electricity, heat/cold, and mobility energy sectors, ensuring efficient, economical, and the right use of renewable energy. Compared to conventional energy systems, these systems have numerous benefits, such as decentralised energy production, environmental impact reduction, and better energy security.
Its source, renewable energy, is available in most parts of the world. From solar power to hydro and wind to geothermal – renewable energy
provides the sector every opportunity to reduce its carbon footprint.
A diverse range of promising technologies is already available to enhance the flexibility of energy systems such as smart grids, energy storage, demand response, and green hydrogen. For example – one such technology is the fuel cell electric car that is powered by hydrogen, making them more efficient and environmentally friendly as they emit water vapour and warm air only.
Furthermore, operating a reliable electricity system requires the instant pairing of supply and demand. Renewable energy-enabling technologies can help maintain the supply-demand balance by acting as either supply or demand, making it a flexible resource that can help grid operators manage the integration of renewable resources and respond
Working together
Only by viewing the whole energy system in its entirety and understanding how it all works together can decarbonisation be achieved, says Dr Hassam Chaudhry.
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to changes in system conditions.
Several positives and benefits can be achieved when renewable energy sources (such as solar and wind), distributed generation, energy storage and related technologies, and demand responses are integrated with the transmission and distribution systems. Benefits such as using clean energy instead of carbonheavy fossil fuels, better utilisation of available assets resulting in a lower cost of production, the system reliability, resiliency, and security are increased due to the use of the integrated technology.
Integrated renewable energy systems work in a coordinated manner and, through their versatility, can provide long-lasting benefits across the globe. Although adopting such systems has been slow, it is now time to fully use the system to benefit the larger good. Underpinning the above is the ever-increasing need to create a more sustainable future. Although renewable energy is the answer to most environmental issues, it will not facilitate the decarbonisation of the economy on its own, only by viewing the whole energy system in its entirety and understanding how all distinct elements can work together efficiently– energy carriers, infrastructures, and consumers – can decarbonisation goals become a reality.
