The Chartered Institute of Payroll Professionals
News On Line
Back to contents
A welcome step to ethnicity pay gap reporting Published: 27 April 2023 Emailed: 3 May 2023
The government has published the ‘ Ethnicity pay reporting: guidance for employers ’ who wish to voluntary analyse and report on their ethnicity pay. This is in response to action 16 from Inclusive Britain.
An ethnicity pay gap is a measure of the difference between ethnic groups’ average earnings across an organisation or the labour market as a whole over a period of time, regardless of role or seniority. This circulation is a landmark as it is the first time the government has provided advice on determining policies to measure pay disparities.
The guidance includes advice on:
collecting ethnicity pay data for employees
•
• how to consider data issues such as confidentiality, aggregating ethnic groups and the location of employees • the recommended calculations and step by step instructions on how to do them • reporting the findings • further analysis that may be needed to understand the underlying causes of any disparities • the importance of taking an evidence-based approach towards actions.
The government states:
‘‘ Ethnicity pay reporting is one of the tools employers can use to build transparency and trust among employees.
We want to help those employers who want to report their ethnicity pay data by providing a consistent approach that they can follow, which will allow for meaningful comparisons.
To maximise the impact of ethnicity pay reporting, employers should then outline the actions they intend to take to reduce any disparities, including how success will be measured.
Ethnicity pay reporting is much more complex than gender pay reporting. While gender pay analysis only involves a comparison between two groups, ethnicity pay analysis can potentially involve many more ethnic groups, depending on how ethnically diverse a workforce is. ’’
However, some professionals believe that making reporting compulsory, especially for larger organisations will encourage in closing the ethnicity pay gap for good.
The governments response to Action 16 in 2022 was:
‘‘We recognise the significant obstacles for employers looking to create ethnicity pay gap mechanisms, including employee confidentiality, that allows meaningful comparisons to be made. So we will work with experts to produce guidance which will enable employers to identify the causes of pay disparities and take relevant steps to mitigate them. Ethnicity pay gap reporting is just one type of tool to assist employers in creating a fairer workplace. It may not be the most appropriate tool for every type of employer seeking to ensure fairness in the workplace. We also want to avoid imposing new reporting burdens on businesses as they recover from the pandemic and so we will not be legislating for mandatory reporting at this stage, rather we will support employers with voluntary reporting.’’
Back to contents
The bank rate hikes to 4.5% Published: 11 May 2023 Emailed: 17 May 2023
The Bank of England (BoE) has announced that the bank rate has been uplifted by 0.25%, now set at 4.5%. The bank rate is still at its highest level since the 2008 financial crisis.
cipp.org.uk
Page 186 of 314
Made with FlippingBook - Online magazine maker