Advance Inclusion in your workplace
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Our monthly Member Community events provide Inclusive Employers members with a collaborative space to discuss key topics, share challenges, and network. In this session, we explored the complexities of ethnicity pay gap reporting. Below, we summarise the rich insights, challenges, and solutions shared during the latest discussions.
Addressing challenges in ethnicity pay gap reporting
Pushback and nervousness from leadership
Many members shared that leadership teams are hesitant to adopt ethnicity pay gap reporting due to fears of exposing significant disparities. Unlike gender pay gap reporting, ethnicity pay gap data can be influenced more significantly by small changes in personnel, which adds to leadership apprehension.
Building confidence for conversations about race
A common theme was leaders’ apprehension about offending others, highlighting a need for confidence-building and training to facilitate open and respectful conversations about race.
Best practices for data collection and storytelling
Innovative data collection strategies
Participants discussed various methods to improve data completion rates, aiming for at least 60-80% to draw meaningful conclusions:
- Boosting confidence in confidentiality: Transparent communication about data use and its impact (e.g. “Because you shared your data, we’ve been able to…”).
- Engagement methods: Pop-ups during logins, tick boxes on pay slips, and paper options for offline workers.
- Mandatory completion: Making data collection a step in recruitment or setting deadlines for completion, with fields defaulting to “Prefer not to disclose” if left empty.
- Bringing data to life: Storytelling was highlighted as a key tool to make data relatable and actionable. For example, sharing real-life outcomes such as reasonable adjustments offered to employees with disclosed disabilities or neurodivergence.
Tackling misunderstandings and nuances in reporting
Positive action vs positive discrimination
Some organisations struggle with the distinction between positive action and positive discrimination. Attendees discussed mandating diverse shortlists and educating internal stakeholders to clarify this important difference.
Challenges in categorising ethnicity
There was significant discussion about avoiding binary classifications like “white vs non-white,” which can oversimplify and other different ethnic groups. Members expressed the importance of creating nuanced categories to capture the lived experiences of diverse employees.
Actions to close the ethnicity pay gap
Attendees shared practical steps they have taken to address disparities:
- Reverse mentoring: Building cross-level understanding and engagement.
- Career conversations and apprenticeships: Offering tailored development opportunities.
- Diverse recruitment practices: Leveraging agencies to find diverse talent and advertising in inclusive spaces.
- Technology: Using tools like Apply to track employee progress through recruitment and identify barriers.
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Explore the benefits of MembershipBuilding confidence for transparent reporting
Anticipating results and planning action
Fear of sharing ethnicity pay gap findings can hinder progress. Members recommended pre-emptively planning actions to address likely outcomes, helping to build leadership confidence and mitigate concerns.
Global reporting challenges
Global organisations face additional complexity due to differences in terminology, legislation, and reporting categories. These require careful navigation to ensure accurate and meaningful reporting.
Expert support for impactful ethnicity pay gap reporting
Producing an effective ethnicity pay gap report requires a thorough understanding of data storytelling, legislation, and organisational context. Inclusive Employers offers consultancy to support the development of your accompanying report and draft a polished, impactful document.
Turn your data into actionable insights that drive meaningful change. Fill in the form below to learn how our expertise can support your organisation in closing the ethnicity pay gap.