RICHARD DENETTO FOREWORD
An ethnicity pay gap acts as a handbrake on economic growth at a time when the UK needs its economy firing on all cylinders. As this report shows, these gaps are driven largely by a lack of ethnic minority representation in senior, higher-paid roles and an over-representation in lower-paid ones. This underrepresentation in leadership is more than a fairness issue; it is an economic loss and a strategic risk. UK businesses are leaving billions in potential value untapped. The McGregor-Smith Review estimated that fully utilising ethnic minority talent could add £24 billion or 1.3% of GDP to our economy every year. We cannot afford to wait. Today, one in five Britons identifies as non-white, and the UK is set to become even more diverse. Business in the Community projects that by 2051, one-third of the population will come from an ethnic minority background. The choices companies make now will determine whether they are prepared for that future or resigned to playing catch-up. Since 2020, Change the Race Ratio founded by Lord Bilimoria, has
advocated for greater ethnic minority representation in business leadership. A core principle of our campaign is the power of data and the necessity of setting clear, public targets. Ethnicity pay gap reporting is a critical tool for any organisation serious about building an inclusive workplace. It signals commitment, exposes disparities, and drives accountability. The evidence is unequivocal: targets work. Through Change the Race Ratio, ethnic minority representation in senior management amongst members has risen from 9% to over 15% in just four years. Similarly, the Parker Review and the FTSE Women Leaders Review have helped to ensure that non-diverse boards are now a thing of the past in the FTSE 350. Understanding the demographics of your workforce and how those demographics shape people’s experiences at work is essential to unlocking productivity. It is time to make this standard practice, not the preserve of the 1–2% of leading organisations already prepared to release the handbrake on productivity.
Richard DeNetto CEO, Change the Race Ratio
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