Extending mandatory reporting beyond gender will raise transparency - EHRC

Posted On: 
11th October 2018

Today's announcement is a positive step towards creating truly inclusive workplaces that allow everyone to achieve their full potential, says David Isaac, Chair, EHRC.

Firms to be forced to reveal ethnic pay gap under government plans

Extending mandatory reporting beyond gender will raise transparency about other inequalities in the workplace and give employers the insight they need to identify and remove barriers to ethnic minority staff joining and progressing to the highest level in their organisations.

 

We have previously called for mandatory reporting on ethnicity in recruitment, retention and progression for employers with over 250 employees and welcome the Prime Minister’s commitment to consulting on this.

 

Our upcoming state of the nation report on equality shows that racial inequalities are still deeply entrenched in society and this is a positive step towards creating truly inclusive workplaces that allow everyone to achieve their full potential.

 

For background

-       Today we published a poll which showed that the gender pay gap has a significant impact on staff motivation and behaviour and that businesses are at risk of losing out on the best talent and putting themselves at a competititve disadvantage if they don’t take action to reduce their pay gaps 

-          We previously published research which showed that just 3% of organisations measure their ethnicity or disability pay gaps. It showed most employers fail to collect data on staff ethnicity and disability or do so inconsistently, meaning they are unable to remove the barriers to the progression and representation of disabled and ethnic minority staff in the workplace. This also recommended that mandatory reporting on ethnicity and disability be brought in