The CIPD is calling on the government to make ethnicity pay reporting mandatory from 2023 in order to boost equality in the workplace.
According to the CIPD, last year’s Black Lives Matter protests had many businesses publicly condemning racism and discrimination in the workplace, however, few have voluntarily chosen to report their ethnicity pay gaps.
As a result, the CIPD has launched a new guide to help organisations start collecting and reporting their ethnicity pay data, as well as guidance on creating action plans to make necessary changes.
Peter Cheese, chief executive of the CIPD, commented, “Ethnicity pay reporting is an important lever for businesses and their stakeholders to assess if and where inequality based on ethnicity exists in their workforce. That’s why we believe it is so important that businesses both capture and learn from this data.
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Email Jaime“While it’s positive to see some organisations voluntarily report their ethnicity pay, it’s clear that progress is slow and reporting is very inconsistent. Some companies just report their data while others report a commitment without sharing the data behind it.
“We know that gender pay gap reporting has driven greater transparency and accelerated progress, and we believe the same is needed for ethnicity pay reporting. Mandatory reporting of data, and the associated narrative that shows understanding of the data and the actions being taken to improve, for both ethnicity and gender pay, will help create fairer workplaces and societies and kickstart real change.”
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