Mandatory ethnicity pay reporting could be introduced to help level the disparities in the pay and progression of ethnic minority employees compared with their white counterparts.
In response to the Race Disparity Audit’s Ethnicity facts and figures website data, the Prime Minister has launched a consultation that will invite employers to share their views on a mandatory approach to ethnicity pay reporting. It has been launched since the number of organisations publishing information on the pay gap for people from different ethnic backgrounds voluntarily remains low.
The consultation, open until January 2019, will set out in detail what information employers should publish to allow for decisive action to be taken while also asking employers how ethnicity data can be collected without placing undue burdens on businesses.
Theresa May said: “Our focus is now on making sure the UK’s organisations, boardrooms and senior management teams are truly reflective of the workplaces they manage, and the measures we are taking today will help employers identify the actions needed to create a fairer and more diverse workforce.”
The consultation was announced in conjunction with the government’s new Race at Work Charter, which will commit businesses to a set of principles and actions designed to drive forward a step-change in the recruitment and progression of ethnic minority employees.
The Charter offers businesses a clear set of actions to work towards in helping to create greater opportunities for ethnic minority employees at work. It follows the findings from the government’s Race Disparity Audit on how people of different ethnic backgrounds are treated across society.
“All organisations should recruit from the widest pool of talent and support progression. The race at work survey of over 24,000 employees showed that all too often ethnic minority staff are still encountering significant disparities at work,” said Sandra Kerr, Business in the Community race equality director.
“The Race at Work Charter will support leaders and line managers to take practical steps to tackle the barriers, with five clear actions. By signing up, we can ensure the workplace is representative of British society today.”
Sarah Gregory, Diversity & Inclusion Partner at Baker McKenzie, one of the organisations that has already signed up to the Charter, added: “The Charter builds on our ongoing commitment as a Firm to recognise and celebrate the talent of our diverse workforce and to ensure that everyone can be their authentic selves.”
