UK employers asked to publish ethnic pay gap

UK employers asked to publish ethnic pay gap
02 Mar 2018

The UK government has recommended that employers publish a breakdown of their workforce by race and pay band after it launched a new review into how barriers to ethnic minority progression at work are being tackled.

The Department of Business, Energy and Industrial Strategy (BEIS) plans to scrutinise the actions taken by employers, a year after the 2017 McGregor-Smith Review into race in the workplace was published.

The report found that the economy could benefit by £24 billion (US$33.5 billion) if black, Asian and minority ethnic (BAME) employees were given the same opportunities as their white counterparts. Recommendations included encouraging employers to publicly disclose what they are doing to improve racial equality at work and the government providing them with free online unconscious bias training.

Unconscious bias has been identified as a driver in racial inequality in recruitment and within the workplace.

Business Minister Andrew Griffiths said: "It is unacceptable that people are being held back in the workplace because of their ethnic background – we want to make sure that the economy works for everyone, so people have the same opportunities to progress and can achieve their true potential.”

The aim of the new research is to clarify what steps employers have taken to “haul down workplace barriers and harness the talent of a diverse workforce, helping us to assess if further action is needed", he added.

The review, which will be carried out by charity Business In The Community (BITC), will reveal whether companies with more than 50 employees are reporting on their ethnicity pay gap, as recommended by the McGregor Smith Review.

Sandra Kerr, BITC’s race equality director told People Management: "It’s good for the UK if we can ensure not only that people are being paid at the correct level, but are operating at the correct level for their skills and qualifications in organisations. Despite this, I anticipate employers will not be reporting on their ethnicity pay gaps, because they are currently too busy getting to grips with gender – but they may as well do both."

BITC will also scrutinise what employers are doing to tackle cultures of bullying and harassment towards BAME people at work. The findings are expected to outline the progress that employers have made so far and establish whether any further action is required to make workplaces more inclusive.

The announcement follows a December 2017 report from the Chartered Institute of Personnel and Development, which revealed that 20% of BAME employees believed discrimination had affected their career, compared with one in 10 white British employees.

 

The UK government has recommended that employers publish a breakdown of their workforce by race and pay band after it launched a new review into how barriers to ethnic minority progression at work are being tackled.

The Department of Business, Energy and Industrial Strategy (BEIS) plans to scrutinise the actions taken by employers, a year after the 2017 McGregor-Smith Review into race in the workplace was published.

The report found that the economy could benefit by £24 billion (US$33.5 billion) if black, Asian and minority ethnic (BAME) employees were given the same opportunities as their white counterparts. Recommendations included encouraging employers to publicly disclose what they are doing to improve racial equality at work and the government providing them with free online unconscious bias training.

Unconscious bias has been identified as a driver in racial inequality in recruitment and within the workplace.

Business Minister Andrew Griffiths said: "It is unacceptable that people are being held back in the workplace because of their ethnic background – we want to make sure that the economy works for everyone, so people have the same opportunities to progress and can achieve their true potential.”

The aim of the new research is to clarify what steps employers have taken to “haul down workplace barriers and harness the talent of a diverse workforce, helping us to assess if further action is needed", he added.

The review, which will be carried out by charity Business In The Community (BITC), will reveal whether companies with more than 50 employees are reporting on their ethnicity pay gap, as recommended by the McGregor Smith Review.

Sandra Kerr, BITC’s race equality director told People Management: "It’s good for the UK if we can ensure not only that people are being paid at the correct level, but are operating at the correct level for their skills and qualifications in organisations. Despite this, I anticipate employers will not be reporting on their ethnicity pay gaps, because they are currently too busy getting to grips with gender – but they may as well do both."

BITC will also scrutinise what employers are doing to tackle cultures of bullying and harassment towards BAME people at work. The findings are expected to outline the progress that employers have made so far and establish whether any further action is required to make workplaces more inclusive.

The announcement follows a December 2017 report from the Chartered Institute of Personnel and Development, which revealed that 20% of BAME employees believed discrimination had affected their career, compared with one in 10 white British employees.

 

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