RECOMMENDATIONS FOR POLICYMAKERS
3. Introduce Incentives for Organisations Taking Action Beyond mandates, the government can drive progress by rewarding good practice.
Recommended actions: Link public funding, government contracts, and procurement eligibility to equity and transparency standards. Offer tax or investment incentives to organisations demonstrating leadership in closing the pay gap. Publicly recognise and showcase high-performing employers to shift cultural norms. 4. Support SMEs to Build Capacity Many small and medium-sized enterprises (SMEs) lack the resources or expertise to implement comprehensive pay equity strategies. Recommended actions: Provide government-funded toolkits and consultancy support for SMEs. Establish regional hubs or partnerships with industry bodies to promote good practice. Encourage SMEs to participate in sector-specific benchmarking networks.
5. Drive a Whole-Government Approach to Workforce Equity Government must lead by example and embed pay equity into all areas of public service.
Recommended actions: Ensure all public sector bodies report on ethnicity pay gaps and develop co-created action plans. Introduce performance targets for representation and progression of ethnic minority staff. Mandate DEI impact assessments for policy development and organisational restructuring.
Example: Scotland’s Gender Representation on Public Boards Act (2018) led to a rise in women’s representation from 45% to 68%. A similar model could accelerate progress on ethnicity.
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