Ethnicity pay gap reporting is not mandatory
Research by People Like Us and Censuswide has revealed that workers from Black, Asian, mixed-race and minority ethnic backgrounds only earn 84% of what their white counterparts are paid. This is 16% less and equates to losing up to £255,000 pounds every year.
The findings also revealed that people from racially diverse backgrounds are passed over for pay rises – and this happens more frequently the more senior they become with a third passed over at entry level. This figure is more than half at senior manager and director level.
According to the research 59% of racially diverse respondents believe this ‘progressional glass ceiling’ is down to the colour of their skin. With the pandemic shining a spotlight on diversity and inclusion in the workplace, it’s important that HR teams need to review their pay structures.
Darren Hockley, Managing Director at DeltaNet International commented:
“The sheer fact that ethnic minority workers are paid 16% less than their white colleagues shows the reality that ethnicity pay gaps continue to exist in organisations. HR teams and business leaders in the UK have a long way to go. While it’s still not mandatory for ethnicity pay gap reporting, some organisations such as PwC are already publishing them to be transparent. The findings clearly show that HR teams must start doing ethnicity pay gap reporting as it will give them the push they need to review their pay structures and question themselves if they are doing enough to address the pay gap. Reporting is the best way to start improving racial equality in the workplace.
“Organisations must understand the benefits of diversity and inclusion, and this means everyone, regardless of ethnicity, are getting paid their worth. For organisations to retain their best talent and ensure their business continues to prosper, it’s high time business leaders focus on addressing all pay gap issues, including gender and ethnicity. Business leaders ought to undertake unconscious bias and diversity and inclusion training to ensure everyone within their business are not under-represented and paid below their worth.”
