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15 Oct 2018

Ethnicity pay gap: Companies could be forced into revealing figures

Companies may be forced to reveal their ethnicity pay gap under plans unveiled by the Prime Minister to help minorities at work.

Theresa May has started a consultation process to determine whether current reporting methods are sufficient in addressing inconsistencies between the pay and career prospects of minorities.

This follows the successful launch of gender pay reporting which has changed the conversation regarding pay equality between males and females here in the UK.

The government undertook a Race Disparity Audit last year that showed varying outcomes for minorities in areas including employment, education, health and criminal justice. Black male university graduates earn on average 24% less than their white counterparts, while the pay gap between black and white female graduates is 9%. Pakistani and Bangladeshi men and women face even bigger disparities, with a gap of 27% for male graduates and 15% for female graduates.

The hope is that increased transparency by companies with over 250 employees will begin to reduce the ethnicity pay gap and bring equality to pay in the workforce.

Here at Claremont, we are monitoring the outcome of the consultation closely with plans in place to extend our Gender Pay Reporting Solution to cover ethnicity pay gap reporting too.

The gender pay reporting framework that Claremont has developed already exceeds the legislative requirements for gender pay reporting; including ONS age bandings, position, grade and job analysis. This easily configured framework provides the perfect platform for organisations to meet their gender pay reporting obligations easily.

We are well versed in this area of expertise and in a recently published article, we outlined the benefits and savings that one of our clients made using our solution. Follow this link to learn more.

To discover more about making your gender pay reporting quicker, smarter and more consistent, please speak to one of our HCM specialists.

Ethnicity Workplace

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