Ethnicity Archives - TALiNT International

Government confirms no mandatory ethnicity pay reporting

22/03/2022
All Regions, UK

Employers told to voluntarily report ethnicity pay

Ever since the Gender Pay Gap Reporting Regulations were introduced in 2017 the industry has been discussing whether the UK Government would introduce mandatory ethnicity pay reporting requirements for UK employers. Over the years, there have been several calls to action and lobbies for the Government to do so but pleas have fallen on deaf ears as last week, the Government confirmed that “at this stage” it will not be introducing a mandatory requirement for UK employers to report on their ethnicity pay – much to the dismay of many industry bodies, regulators and employers.

Considering the sharp focus on DE&I post COVID-19, this decision is somewhat disappointing as Laurie Ollivent, Senior Associate, Employment & Incentives and the Diversity Faculty at Linklaters commented: “Whilst the Government hasn’t ruled out introducing mandatory ethnicity pay reporting in the future, it is clear that we should not expect it as a legal requirement in the UK anytime soon. But what the Government has said is that for those employers who choose to voluntarily report on their ethnicity pay gap, they are supportive of the recommendation that employers should publish accompanying action plans and a diagnosis which explains any pay gap and addresses any disparities, and once employers are equipped with a trustworthy, consistent standard for reporting, they should take meaningful action to identify and tackle any causes of disparate pay. In other words – employers need to focus on their narratives. Whilst we accept there are challenges to ethnicity pay reporting beyond those employers face with gender pay reporting which means that the data alone will only ever be a blunt tool to identify potential disparities, the expectation of a narrative without further guidance on what this should look like and the requirement for employers to tackle any causes of disparate pay and report on progress may be off-putting for some businesses considering whether to voluntarily report on their data at this stage and risks halting progress on voluntary reporting rather than encouraging it. 

Simon Kerr-Davis, Counsel, Employment & Incentives and the Diversity Faculty at Linklaters also made comment: “The Women and Equalities Committee report from early 2022 highlighted the increase in employers choosing to voluntarily report on their ethnicity pay gaps. The report states that in 2021, 19% of UK employers voluntarily reported on ethnicity pay – up from 11% in 2018. Whilst this sounds promising and is a large increase, many believe that mandatory reporting obligations are needed – much in the same way as gender pay reporting obligations – for other businesses to follow suit and really drive and achieve change across UK business.

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Covid-19, DE&I, Ethnicity, gender pay gap, Linklaters
Categories Employers

Black and Asian workers ‘paid 16% less than white people’

11/01/2022
All Regions, UK

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.”

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DE&I, DeltaNet International, Ethnicity, Pay
Categories Employers

Black workers more likely to be refused pay rise

24/05/2021
All Regions, UK

Black professionals are twice as likely to be turned down when asking for a pay rise than their white counterparts, according to a new study.

The findings were included in an in-depth white paper published by Robert Walters, which surveyed more than 7,500 workers year-on-year between 2019 and 2021.

The poll found that 42% of black professionals were refused a pay increase after negotiation, compared with 21% of white professionals. For black women, the situation was even worse – 63% were turned down when asking for more pay.

Further, even when they were successful in negotiating a pay rise, black professionals were less likely to get 75-100% of what they asked for, achieving this just 21% of the time, against 35% for white employees.

Black workers were also more likely to be deterred from even asking for more money, with 37% saying they hadn’t even tried, against 23% for their white peers.

Habiba Khatoon, Director at Robert Walters, said: “This report is one of the most significant pieces of research into diversity and inclusion in the workplace in the past two years, and specifically highlights the failures that come from a lack of effective inclusion – where company structure, culture, and/or policies negatively impact underrepresented groups.

“Whilst D&I has rightly been a prime concern for leadership teams, who now understand how critical an active D&I policy is for their organisation’s success, it remains the case that almost no protected characteristic – be it gender, sexuality, ethnicity, disability or age – can be said to be properly represented in the workplace.”

The recruitment firm noted that the temporary hold on the government’s decision on whether or not to enforce mandatory ethnicity pay gap reporting was making it difficult to assess the exact state of play.

While ONS figures showed that in 2019 the gender pay gap between all minorities and white British workers had shrunk to just 2.3%, it noted that, “this simple comparison between white and ethnic minority groups does, however, mask a wide variety of experiences among different ethnic minorities”.

In fact, the Robert Walters report found that the top five ethnic groups most dissatisfied with their pay were all minorities.

Needs not being met

Pay wasn’t the only issue noted, however. Some 41% of black professionals also felt there were a lack of opportunities available to them, with 34% stating that no relevant training courses were on offer.

Three times the number of black, and two times the number of Asian professionals stated that lack of representation was holding them back, compared with their white peers. One-third of black professionals said their career expectations were not being met by their employer.

Meera Raikundalia, Co-Founder of the Black Young Professionals (BYP) Network, which contributed to the Robert Walters report, said: “The UK has an abundance of black and ethnic minority talent, however, it appears that they remain hugely under-represented in the workplace. When asked to name business leaders from an ethnic minority background, just 34% of respondents could recall even one role model, in comparison to 75% of white respondents.

“It is clear that you can’t become what you can’t see, and it is therefore key for organisations to consciously attract and showcase minority talent at the top of their organisation to show there is a clear path to success for minority candidates.”

Photo courtesy of Canva.com

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DE&I, Employer, Ethnicity, inclusion, Pay, Salary
Categories Employers, Recruitment Agencies

Tag: Ethnicity

Government confirms no mandatory ethnicity pay reporting

Black and Asian workers ‘paid 16% less than white people’

Black workers more likely to be refused pay rise