Ethnicity Pay Reporting – New Guidance for Employers

Signing a large book at a desk

How does your organisation manage ethnicity pay differences? Is this something that your organisation thinks about? Do you feel that the salaries you offer to staff are fair to all ethnic groups?

On 17th April 2023 the Government published guidance for employers on how to measure, report on and address any ethnicity pay differences within their organisation.

While UK businesses are more diverse, there is still a lot of work to be done to ensure that pay and career progression is fair across different ethnic groups.  It is therefore important for employers to analyse their pay information and determine any differences in the average pay.

Organisations with a workforce of 250 staff already have a statutory responsibility to measure and report gender pay differences. Although ethnicity pay reporting is not mandatory, some organisations are now reporting ethnicity pay information.

However, Ethnicity pay reporting is more complicated than gender pay reporting as gender pay compares two groups of employees, and analysing ethnicity pay will include more groups.

Organisations need to consider how they combine the various ethnic groups to make sure that their reporting is accurate and personal information remains confidential. The guidance will provide support with this.

It is important that organisations identify and analyse any potential pay differences so that action can be taken if necessary. Of course, there can be explanations as to why there are differences in pay between the ethnic groups.

It could be that an organisation may need to investigate further as to why there are these differences – this could be done by issuing staff questionnaires, analysing recruiting and career progression to establish any potential cause.

If you would like guidance regarding ethnicity pay reporting, please call us on 01483 362732.