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The Cause Of Pay Gap Analysis

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The Cause Of Pay Gap Analysis

But the main complaint from business groups was its failure to recommend a statutory reporting obligation of the kind in place since for gender pay disclosure. A headline gap of 2. These persistent pay disparities partly reflect occupational segregation, with many ethnic minorities clustered in low-paid jobs with little chance of progression. Andrea Barry, an analyst at the Joseph Rowntree Foundation, notes Bangladeshi men are The Cause Of Pay Gap Analysis times as likely as white Analysid men to work as chefs and waiters, while Pakistani men are more than 10 times as likely to work as taxi drivers. But they also reflect the barriers to career progression in professional life. Ethnicity pay gaps are largest in managerial, professional and skilled occupations — and when employers examine pay differentials within their organisations, they generally find ethnic minority employees are concentrated in frontline roles, and under-represented at senior level.

The Cause Of Pay Gap Analysis

A growing number of employers — from law and accountancy firms to local authorities and large companies such as Sainsbury and Network Rail — now report ethnicity pay gaps on a voluntary basis. However, business groups have repeatedly urged the government to introduce a mandatory reporting requirement, modelled on gender pay disclosure, arguing that practical difficulties can be overcome.

Pay reporting can highlight organisations The Cause Of Pay Gap Analysis sectors where this is not happening. BITC has found that barely one in 10 large companies reports on its ethnicity pay gap voluntarily, and points to a sharp drop-off in gender pay reporting last year, when the pandemic led to a suspension of the usual requirement to disclose the pay gap between male and female staff.

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The government consulted in on options to introduce a mandatory requirement, and has tested possible approaches to reporting with various businesses, but it has not yet taken further action. Ethnicity pay reporting is more complicated than for gender. One issue is disclosure: many companies hold only patchy data because employees do not have to disclose their ethnicity and some Analysiis reluctant to do so — or unable to find a box to tick that matches their heritage.

The Cause Of Pay Gap Analysis

A bigger issue is sample sizes. Ideally, employers would give a detailed breakdown of outcomes for different ethnic groups, but it is not always possible to do this while preserving anonymity. Cred argued that many employers recruiting from predominantly white areas do not have enough ethnic minority staff source a median pay comparison to be meaningful.

But business groups say these issues are manageable, if companies also put the headline figures in context and explain how they plan to close pay gaps. With more than nationalities among Case staff, it collects more granular data to inform internal policy but does not publish figures where the sample size is too small to be reliable.

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Recommended Sainsbury, meanwhile, has published figures showing that median pay for black employees is higher than for white colleagues — explaining that more black staff work in London stores with a higher pay weighting. Mean pay for black employees, who are under-represented at senior level, still lags. But publication of a click metric can, and has, served as the catalyst for an Cauuse and action.]

The Cause Of Pay Gap Analysis

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