Gapsquare Blog

Ethnicity Pay Gap Reporting - 5 Things You Need To Know Ahead of the Regulations

Posted by Hazel Lush on Jan 21, 2019 1:54:49 PM
 
It's 2019 and companies have survived their third year of gender pay gap reporting and whilst reporting the pay gap has not been   without its problems,  the world has already changed a great deal since the UK regulations were released. 
 
We are seeing that employers now understand, talk about and engage with gender equality. The pay gap is   increasingly talked about in the boardroom and bringing up the gap is not met with confusion these days as often as it is with a determination to do much more.  Another thing that emerged as a result of the regulations was that  the conversation began to turn to ethnicity pay. 
 
Companies large and small are looking to lead on inclusive diversity practices & the possibility of EPG regulations coming into effect soon have increased the sense of urgency around this. But how can you get started? Take a look at our 5 top tips based on our recent ethnicity pay gap report. 

1 -  Don't Underestimate The Task
The great thing about gender pay gap reporting was that it required A) data most companies have about their employees and B) a single comparison between binary factors (Male, Female) but things aren't so simple with ethnicity pay reporting: 'many organisations either have not collected or have low levels of data on the ethnicity of employees' argues the report, so now is the time to start recording this data, and the report suggests some useful ways to get started. 
 
The report also argues that 'it would be highly inadequate to limit ethnicity pay gap reporting to a binary option, i.e. BAME earnings as a percentage of White earnings'. Read more to find out why.
 
2 - Know The Causes, Turn Them Into An Action Plan
At Gapsquare we are strong advocates of communicating well when it comes to publishing equalities data and ethnicity pay reporting will be no different. In fact, it might be the case that the need is even greater with reporting the ethnicity pay gap.
 
There are a number of subtleties, outlined in Ethnicity Pay Gap Reporting: Are You Prepared?, that could cause a lot of harm in terms of public and internal relations which can be mitigated with an excellent understanding of the data and a communications and reporting approach that is clear is so essential. Having incredible data insights is no good if employees aren't sure how to interpret these. 
 
Ethnicity Pay Reporting argues that action plans and great communication is essential: "This paper firmly believes there should be a requirement for an action plan. This would give employers an opportunity to confirm their commitment to addressing the causes of pay disparity, establish measurements for year on year monitoring and to demonstrate to their employees and customers alike, that equality, diversity and inclusion are important."
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