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Ethnicity pay gap impacts 43% of black employees

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A staggering 66 percent of employees think their employer needs to do more to close the ethnicity pay gap, according to new research by Glassdoor.

But, among white workers this figure reduces to just 40 percent. With black professionals holding less than 2 percent of the UK’s management and leadership positions, there is little room at the top of companies to advocate for change.

Ahead of October’s Black History Month, Glassdoor today publishes the UK’s top 25 companies for diversity and inclusion, according to those who know best – the employees. 

While some employers are committed to equality, the survey found black employees are being impacted by the ethnicity pay gap and that their workplace experience is not equal to their non-black co-workers.

 

Will transparency close the widening ethnicity pay gap?

The research revealed that more than two in five black employees (43%) have personally experienced a pay gap because of their ethnicity or think this pay inequality exists in their current workplace. 

In contrast, over half (57%) of white workers think there is no ethnicity gap at their company.

Furthermore, over one in two black workers (51%) think the ethnicity gap has widened in the last 2 years. In comparison, 29 percent of white employees believe the same. So what should companies do to close the ethnicity pay gap

Almost six in ten black employees (57%) believe the solution would be to increase pay transparency.

 

Getting DE&I right

Talking about the research, Glassdoor economist Lauren Thomas says:Diversity and inclusion have been increasingly prioritised by employers in the last two years. And our list showcases a wide range of companies from multiple industries whose employees feel valued and included.

“However, it is clear that more still needs to be done before equality can be achieved in the workplace. Increased transparency around diversity and inclusion isn’t easy, but it is a powerful way to highlight progress and incentivise accountability. And while mandatory ethnicity pay gap reporting is still in discussion, many companies, including Glassdoor, are voluntarily publishing their diversity and inclusion reports. Ultimately, company investments in diversity and inclusion efforts are both a social good and a critical part of a company’s workforce management strategy—a particularly salient consideration at a time when finding and retaining talent is so difficult.”

Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.

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