Ethnicity Pay Gap Analysis

The primary reason for the gap is the under-representation of black and minority ethnic staff at more senior pay grades in the corporate hierarchy, paired with their over-representation in more junior and part-time roles that receive lesser pay. Discrimination and prejudice and bias are key elements in this gap. Another contributing factor is the demographic composition of different groups — on average, ethnic minority communities tend to be younger, and young age is generally associated with lower rates of pay.

The ethnicity pay gap is a complicated problem, but there are methods that can help to close the gap. As a systemic issue that disadvantages certain communities, the pay gap can only be tackled by making systemic change.

Companies benefit from auditing their pay data to inform EDI strategy and ensuring that they take positive action to increase Black, Asian and ethnic minority representation in leadership roles to help to close the gap, and in building the capacity of all managers and leaders to understand how to address conscious and unconscious racism in their everyday work.

There are patterns for example in which groups of staff get career development opportunities, and what kind of work is allocated to them, and how much support and encouragement they get.