Fifteen (15) UK companies have volunteered to report any pay gaps among employees based on ethnicity. The move is a sign that some big companies are seriously addressing systemic inequities.
A year ago, the UK mandated that companies with at least 250 employees should report their gender pay gap.
The gender pay gap reports have shown that the big pay gap between men and women is extremely slow in narrowing and has even widened in some companies like HSBC bank.
The 15 companies that signed the pledge to report their employees’ pay gap based on ethnicity are Bupa, Citigroup, Creative Equals, Deloitte, EY, KPMG, Lloyds of London, Jomas Associates, Santander, Stella McCartney, Sodexo, WPP, ITN, and Reluctantly Brave.
INvolve, the group that worked for the new collaboration of ethnicity-gap reporting companies, believes the policy has been a success because “conversations are happening now that weren’t before.”
Accounting giant Deloitte has been reporting its ethnicity pay gap since 2017 and Emma Codd, its managing partner for talent at Deloitte UK would like to see mandatory reporting by all companies.
Codd explained that gender pay reporting did not solve the issue in one year but it focused attention to it. She believes that the same thing will happen to ethnicity pay gap reporting.
In 2018, Theresa May’s government said it would start consultation regarding possible mandatory ethnicity pay gap reporting. The British think tank Resolution Foundation, estimated that ethnic minorities experienced a total cost of pay penalties of approximately £3.2 billion ($4.2 billion) per year.