Following an audit last year, businesses may be forced to publish their ethnicity pay gap. This is as a result of the audit demonstrating large differences in pay and promotion opportunities for ethnic minorities.
Theresa May announced the compulsory disclosure of pay:
“Every employee deserves the opportunity to progress and fulfil their potential in their chosen field, regardless of which background they are from, but too often ethnic minority employees feel they’re hitting a brick wall when it comes to career progression.”
The planned consultation is set to last until January next year, giving businesses the opportunity to express their opinions.
Several of the UK’s most well-known companies have already expressed interest. Indeed, KPMG, Saatchi & Saatchi, the NHS and the Civil Service have already signed up. Moreover, public sector companies must disclose their intentions to increase the number of senior roles filled by ethnic minorities.
The mandatory reporting of the ethnicity pay gap aims to promote a diverse workforce.
Theresa May continued:
“Our focus is now on making sure the UK’s organisations, boardrooms and senior management teams are truly reflective of the workplaces they manage, and the measures we are taking today will help employers identify the actions needed to create a fairer and more diverse workforce.”
In addition to the announcement, the PM also revealed a ‘Race to Work Charter’. It aims to drive the recruitment and career progression of ethnic minorities.
In September, we reported that the UK government was set to launch a review into obstacles for women in business. The review aims to explore the barriers female entrepreneurs face. This is due to the fact that only one in five British businesses being female run. As a result, the government set a target to promote women to senior roles of FTSE 350 companies. Indeed, by 2020 women must make up one-third of boards and executive committees.
As the future of business remains uncertain amid Brexit, one thing that is certain is the desire to diversify senior working environments. The report of obstacles to female entrepreneurs and the disclosure of the ethnicity pay gap aim to drive employment diversity. Every employee, regardless of their ethnic background or gender, deserves to excel in their career.