Labour Research November 2021

Equality news

HR body wants ethnicity pay reporting by 2023

Calls are growing to make ethnicity pay reporting mandatory, with HR body the Chartered Institute for Personnel and Development (CIPD) wanting to see it in place from 2023.

While last year’s Black Lives Matter protests led many organisations to publicly condemn racism and discrimination, CIPD research shows that few have voluntarily reported their ethnicity pay gaps, despite the increasing expectation from the public, investors and other stakeholders. Just 13 FTSE 100 companies did so in their most recent annual report, according to the research. However, of those, 10 organisations published for the first time, suggesting that greater public scrutiny of race inequalities prompted these employers to act.

With so few voluntary disclosures to date, and slow legislative progress since the government launched its first consultation three years ago, the CIPD is calling for ethnicity pay reporting, including the requirement to publish a clear narrative and action plan, to become mandatory for all large employers from April 2023.  

And it suggests that organisations use the same snapshot dates that are currently in place for gender pay gap reporting, so data would be collected in March-April 2023 and would need to be reported within one year.