ETHNICITY AND GENDER PAY GAP ANALYSIS

"Companies with “two-dimensional” diversity are 45% more likely to report that they had captured a larger portion of the market and 70% more likely to have entered into a new market in the past year. (Harvard Business Review)

Organisations that are committed to developing a culture that is inclusive, transparent, and accountable must seek to actively promote workforce diversity and equality of opportunity in everything. We see Gender and Ethnicity Pay Reporting as critical in driving change in your organisation and ensuring it remains a great place to work.

Before exploring pay gaps, it is important to consider that employment rates – the percentage of a group with a paid job, excluding the self-employed – vary between ethnic groups, and by gender. For example, among both men and women, White British people have tended to have the highest employment rates in the period 2002-2014, at around 70%, although Indian people have also had noticeably high employment rates. The employment rates of Pakistani and Bangladeshi women have been consistently low – below 30%. (Equality Human Rights).

 

Gender pay gap reporting regulations came into full effect for the first time in the UK in 2017. All employers with over 250 staff – in the private, public or non-profit sectors – must comply with the UK Government’s gender pay gap reporting requirements on an annual basis.

The gender pay gap is the measure of the difference in average pay between all men and all women across an organisation. This is different from equal pay gap which is the failure to pay a male and a female like pay.

Commonly, gender pay gap is driven by 

  • Employing more males than females at a senior level

  • Employing more females in support and non-revenue generating roles

A number of factors such as level, location also impact differences in pay.

The ethnicity pay gap is the difference in average pay between all White and all Black, Asian, and Minority Ethnic (BAME) employees and has been calculated using the gender pay gap statutory methodology.

 

Commonly, the ethnicity pay gap is driven by:

  • Employing fewer BAME individuals in senior roles

  • Of the BAME population, employing proportionately more individuals in junior roles.

HOW WE CAN SUPPORT YOU 

  • Gather, refine and analyze data in partnership with our strategic partners Spktral - Our pay gap specialists and independent consultants can help you at every stage of your pay gap journey. Making better people decisions starts here

  • Conduct findings and internal stakeholder reviews for your next report, suggesting areas of improvement and providing extra rigour

  • Consult on innovative ways to reduce the identified gaps and create equal opportunities for all. 

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