EPG 2025 Report Dec 25

BARRIERS TO PROGRESS AND PRACTICAL ACTIONS

LIMITED REPRESENTATION IN SENIOR ROLES One of the most visible and persistent manifestations of the ethnicity pay gap is the lack of ethnic minority representation at senior levels. While many sectors have made progress in diversifying entry-level recruitment, this diversity often fails to translate into leadership. The data, and lived experience, consistently reveal: Strong ethnic diversity at junior levels, often concentrated in operational or support roles. Steep drop-offs at middle management, where decision-making influence begins to emerge. Minimal presence at executive and board levels, where strategic direction and power are consolidated. This pattern reflects a “broken pipeline” in which talented individuals are systemically stalled or diverted at key transition points. The absence of diverse leadership signals more than just a representation gap, it sends a powerful message about who is valued, who belongs, and who has the authority to lead. The consequences are significant. When staff do not see people who look like them or share similar lived experiences in positions of power, it can undermine confidence, engagement, and aspiration. This fosters mistrust in organisational commitment to equity and contributes to cycles of attrition and underrepresentation that reinforce existing disparities. Crucially, leadership representation is not merely symbolic, it actively shapes how organisations function. It determines: Whose voices are heard and validated in strategic conversations. Whose potential is recognised and invested in. Which issues are prioritised and how inclusion is resourced and embedded.

PRACTICAL ACTIONS FOR MAKING CHANGES To close the ethnicity pay gap, organisations must move beyond pipeline rhetoric and interrogate the structural and cultural conditions that prevent

progression. This includes:

Rethinking leadership criteria, Investing in equitable development pathways, Driving leadership accountability using data insights Creating environments where diverse leadership is the norm, not the exception.

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