POSTED: July 25 2019
The ethnicity pay gap: more needs to be done

The ethnicity pay gap: more needs to be done

The Chartered Management Institute is calling on the Government to do more now to tackle the ethnicity pay gap.

The CMI commenting on the first analysis of ethnicity pay gaps in Great Britain using newly reweighted earnings data from the Annual Population Survey has characterised the new figures as highlighting that “more needs to be done”.

Rob Wall, Head of Policy at CMI said: “More must be done to tackle the gap the ethnicity pay gap. The new data from ONS shows the scale and complexity of the challenge we face in closing the ethnicity pay gap.”

“There are many factors which contribute to the ethnicity pay gap – educational, occupation, country of birth – and a range of policy interventions will be needed to address these. At CMI, however, we believe that building the pipeline of BAME managers and leaders and getting more BAME men and women into senior management and leadership positions is key to closing the ethnicity pay gap. Reports suggest that around 6% of senior managers are from a BAME background, despite BAME people making up around 13% of the UK working age population.”

“There are a number of steps that employers can take to start building this pipeline of BAME talent and close their ethnicity pay gaps. The first step must be to collect and publish pay and progression data on BAME employees, in the same way data is published on the gender pay gap. A few already do this, but most do not. In fact, the latest CMI research suggests that one third of businesses do not even collect data on their employees’ ethnicity. At CMI we have been calling for publication of ethnicity pay and progression data to be mandatory for large employers since 2017. It is time for Government to act.”