‘Time for ethnicity pay gap reporting’

HR institute the CIPD has called for ethnicity pay gap reporting to be made mandatory for large organisations, and released a new guide to assist with monitoring.

It says that, while the Black Lives Matter protests of 2020 prompted organisations to speak up on the importance of equality and inclusion, just 13 FTSE 100 companies currently report their ethnicity pay gap. It is acting ahead of a parliamentary debate on the subject next week.

The institute says that, with so few voluntary disclosures to date, and slow legislative progress since the government launched its first consultation three years ago, the requirement should become mandatory for all large employers from April 2023.

Peter Cheese, chief executive of the CIPD, said: “We know that gender pay gap reporting has driven greater transparency and accelerated progress, and we believe the same is needed for ethnicity pay reporting. Mandatory reporting of data, and the associated narrative that shows understanding of the data and the actions being taken to improve, for both ethnicity and gender pay, will help create fairer workplaces and societies and kickstart real change.”

https://www.cipd.co.uk/knowledge/fundamentals/relations/diversity/ethnicity-pay-reporting-guide