Making Indigenous employment everyone’s business: Indigenous employment and retention in non-Indigenous-owned businesses

Indigenous employment has attracted an increasing focus in recent decades from policy-makers, in the context of the gap between national rates of Indigenous and non-Indigenous employment. Non-Indigenous businesses are implementing a series of workplace and recruitment policies to enhance their rates of Indigenous employment, yet there is limited research demonstrating the impact of these policies. This paper uses primary survey data from a representative sample of Australian-based non-Indigenous-owned businesses to detail how Indigenous-focused workplace and recruitment practices are associated with Indigenous employment and retention. Descriptive analysis reveals that businesses with a workforce with 3.8% or more Indigenous employees (3.8% being the most recent Indigenous population proportion estimate) are more likely to maintain a series of Indigenous-specific workplace and recruitment practices, including celebrating NAIDOC, having a Reconciliation Action Plan (RAP), and cultural competency training, compared to businesses with fewer than 3.8% Indigenous employees. Businesses with higher Indigenous employee retention rates similarly demonstrate a higher likelihood to maintain these policies; however, the clearest delineation for businesses with 3.8% or more Indigenous employment and high Indigenous staff retention, is the presence of Indigenous management within these businesses. Revealingly, probit regression models demonstrate that Indigenous manager/s in a business are associated with a 50–60% higher probability of maintaining an Indigenous employment rate of 3.8% or above and an 11–16% lower probability of having poor Indigenous staff retention. Therefore, this paper reveals the importance of having Indigenous people in positions of organisational influence within non-Indigenous organisations, more so than implementing isolated workplace strategies.