A new report has revealed that a large pay gap exists between ethnic minority employees and their white counterparts. A study by networking group People Like Us and Censuswide suggests that the gap could be as much as 16% - equating to thousands of pounds over a working lifetime.
The study surveyed 1,167 UK adults and found that 24% of the racially diverse respondents thought they were losing out on up to £5,000 in pay compared to their white counterparts – equating to a loss of over £250,000 in earnings in a working lifetime. It also found that people from ethnically diverse backgrounds are also more likely to be passed over for pay rises.
In the wake of the BlackLivesMatter protests in 2020, many businesses made pledges around diversity and inclusion in the workplace – however, the Metro reports that only 13 out of the UK’s top 100 FTSE firms report on the ethnicity pay gap.
With so many businesses reluctant to voluntarily disclose ethnicity pay gaps, the CIPD is now calling for ethnicity pay reporting to become mandatory from April 2023.
In the meantime, however, it seems there’s a lot of work to be done in order for the actions of British businesses to meet up with their pledges on ethnicity and diversity.
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