Call for mandatory ethnicity and disability pay gap reporting

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The Equality and Human Rights Commission (EHRC) is calling for mandatory reporting on staff recruitment, retention and promotion by ethnicity and disability, after research found just 3% of organisations measure their ethnicity or disability pay gaps

The national equality body says employers’ failure to collect such data consistently means they are unable to remove the barriers to the progression and representation of disabled and ethnic minority staff in the workplace.

Its research found that whilst a clear majority (77%) of employers say that ensuring workforce diversity is a priority for their organisation, under half (44%) record or collect data on whether employees are disabled or not and only one-third (36%) record or collect data on employee ethnicity.

Under a quarter (23%) collect data on staff pay and progression that can be broken down by ethnicity and disabled and non-disabled staff, and only 3% of organisations actually analyse this data to explore differences in pay and progression between different ethnicities and disabled and non-disabled staff.

Just over half of employers say that they face barriers to collecting this data, with some saying that it is too intrusive and onerous. The research also found that employers tend to use binary categories such as White/ black, Asian and minority ethnic (BAME) and disabled/non-disabled when reporting, which disguises vast differences between pay gaps for different ethnic minority groups or for people with different impairments.

The EHRC cites more nuanced data which shows, for example, Bangladeshi men born in the UK experience a 26% pay gap compared with White British men.

To overcome this data deficit, the EHRC say it plans to work with the government and the Office for National Statistics and other organisations working in this area to support employers by providing practical guidance on how to sensitively and consistently collect, report on and use employee data on ethnicity and disability.

The EHRC also says that it should be a legal requirement by April 2020 that employers with over 250 employees monitor and report on ethnicity and disability in recruitment, retention and progression and publish a narrative and action plan alongside their data explaining why pay gaps are present and what they will do to close it.

Caroline Waters, EHRC deputy chair, said: ‘We’ve seen how mandatory reporting has led to employers redoubling efforts to address their gender pay gaps. We need the same level of scrutiny and focused action on opportunities for disabled and ethnic minority staff in the workplace.

‘Collecting meaningful data will give employers the insight they need to tackle the underlying causes of inequality and ensure that disabled people and those from ethnic minorities enjoy a working environment that allows them to reach their full potential.’

The EHRC report Measuring and reporting on disability and ethnicity pay gaps is here

Report by Pat Sweet

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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