A Guide to Diversity and Inclusion in Recruitment for Small Businesses

Diversity and inclusion in recruitment isn’t just a tick-box exercise. It’s about embedding fairness and representation into your company’s DNA.

Building an effective team from scratch can feel overwhelming for many small business owners. But whether you’re preparing to launch or about to scale beyond your first employee, the way you hire plays a crucial role in your company’s future.

This guide is here to help you focus on actionable, high-impact steps to implementing a fair recruitment process.

The UK’s leading company formation agent, Rapid Formations, will walk you through everything from writing your first job post to maintaining an inclusive culture beyond the hiring stage.

Why Fair Recruitment for Small Businesses Matters?

A fair recruitment process ensures that each candidate has equal opportunity based on merit, not background. It’s about objective assessment and equal access.

However, for too long, recruitment practices have been biased and narrow-minded. Some recruiters have dismissed candidates because of their names, ages, or educational backgrounds.

They’ve also overlooked recently married women and new mothers, assuming their caregiving responsibilities might outweigh their professional roles.

Prejudice in recruitment still exists today. A recent UCL study revealed that ethnic minority graduates are 45% less likely to land an entry-role offer than those from more wealthy backgrounds.

But small businesses are in a unique and powerful position to do things differently from the start and lead with diversity and inclusion in their recruitment processes.

Not only is it the right thing to do, but building inclusivity also impacts employee satisfaction, innovation, and long-term profitability.

Companies that hire inclusively:

• Have been shown to outperform their competitors financially (according to McKinsey’s Diversity and Inclusion report)
• Innovate more rapidly and effectively by benefitting from a variety of perspectives
• Retain talented colleagues for longer

For small businesses, these are considerable competitive advantages.

How to Create a Fair and Inclusive Job Description?

The job description is a candidate’s first impression of your company. And often, it unknowingly carries biased language that discourages qualified individuals from applying. In fact, CIPD research shows that less than a fifth of UK employers make proactive efforts to remove bias from their job adverts.

Let’s take a look at what an inclusive job description should include:

1. Avoid loaded or gender-coded language like ‘strong’, ‘competitive’, or ‘rockstar’. These can deter female and non-binary candidates.
2. Skip unnecessary or contradictory requirements. For example, “Must have 10 years of experience” for an entry-level role is confusing and eliminates many talented applicants.
3. Include an equal opportunities statement. Mention your company’s commitment to equal opportunities and inclusive practices, provided you genuinely stand behind them.
4. Use neutral pronouns like ‘team member’ and ‘candidate’
5. Highlight your core values and work environment, not just performance metrics
6. State your flexible working arrangements, if applicable. Flexibility shows openness and consideration for people’s lifestyles and personal commitments, making roles more accessible.

Let’s put these guidelines into practice. Rather than saying, “We’re looking for a driven salesman to push KPIs and thrive in a high-pressure environment,” try something like this: “We’re seeking a results-orientated team member who is comfortable with setting goals and working in a dynamic, collaborative culture.”

Structuring a Bias-free Hiring Process

Even with a well-written job advert, bias can still creep in during interviews and offer decisions. Structure and awareness are key to maintaining diversity and inclusion in your recruitment process from start to finish.

Here’s how you can remove unconscious bias at every stage:

CV Screening

Anonymise applications by removing applicants’ names and dates of birth. If you’re using AI to scan CVs, ensure you set up appropriate prompts that focus on skills and relevant experience over personal details.

Interviews

Create structured interview formats with balanced and inclusive questions. Interviewers should also undergo relevant training in recognising and reducing implicit bias.

We also advise having a mixed panel of interviewers, including people from different departments, genders, and backgrounds.

Candidate Evaluation

Assess applicants on performance, potential, and team fit rather than gut feeling or cultural assumptions.

You should also document your decision-making process to stay accountable. The more transparent your approach, the less room there is for unconscious prejudice, and the more your business reflects a truly fair recruitment process.

Recruiting for Diversity Without Compromising Fit

You’ll likely be searching for people who are both experienced and a great team fit. You don’t need to sacrifice one or the other when building a fair recruitment process.

We can often judge someone’s team fit potential on how they look, speak, or act. However, to maintain fairness and inclusivity, pay attention to their personal values, work style compatibility, and commitment to shared goals instead.

These criteria will help you understand a candidate’s deeper purpose and long-term motivations, giving you a more meaningful idea of how they’d integrate into and support your company culture.

Start by defining your company’s core values. Next, frame interview questions around situational behaviours, not personality. For example:

• How would you handle a situation where you disagree with a team member’s decision?
• Tell me about a time when you had to manage conflict. How did you ensure a fair resolution?
• You’ve been asked to do a task outside your usual responsibilities and comfort zone. How would you approach it?

Such questions will help you assess whether someone will thrive in your company.

Beyond Hiring: Building an Inclusive Workplace Culture

Diversity and inclusion in the recruitment phase are just the beginning. What happens after a new team member joins your company is just as crucial.

Focus on building a culture where everyone feels they can contribute, grow, and be themselves. Here’s what that can look like:

Inclusive Onboarding

• Pair new hires with a mentor
• Provide an onboarding guide that informs new recruits about your practices
• Include diversity, equity, and inclusion (DEI) sessions in onboarding

Create a Sense of Belonging

• Celebrate cultural and professional milestones across all backgrounds
• Encourage employees to express their identities and interests
• Provide staff members with a dedicated platform to express themselves freely and safely

Measure and Improve

• Use team engagement surveys with inclusion-focused questions to assess and develop DEI in your business
• Track retention and promotion rates across different teams and demographics to ensure fair opportunities
• Implement a regular feedback system with your team to continuously improve

The key is to start with small, manageable steps and stay consistent. As your team grows, invite people to share their perspectives and ideas for developing and maintaining diversity and inclusion.

Put Diversity Into Practice Today

As a small business owner, every hire you make shapes the identity of your business. That’s why building a fair and inclusive hiring process is a strategic choice with lasting value.

By embedding diversity and inclusion recruitment into your practices, you’re laying a foundation for a workplace where innovation thrives and people feel empowered.

Ready to build a fairer, stronger team? Start by registering your business with the UK’s leading company registration service. If you have a small team and want to improve your diversity and inclusion practices, explore the Rapid Formations resource hub for helpful articles and advice.