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PWC study finds increasing number of employers calculating ethnicity pay gap

Makbool Javaid, Partner - Simons Muirhead & Burton

A PwC study of just over 100 employers has found that the percentage of companies surveyed now collecting ethnicity data on their people is up to 67% from 53% in 2018. The study also found that: (a) The percentage of companies surveyed calculating their ethnicity pay gap in 2020 has risen from 5% in 2018 to 23% in 2020; (b) 40% of the organisations that have calculated their gap have already published it voluntarily; and (c) Almost half of businesses surveyed are planning to disclose their ethnicity pay gap in the next three years. An additional 10% have already done so – up from 3% in 2018. For the bulk of companies not yet calculating their ethnicity pay gap, the most common reason for not doing so is a lack of ethnicity data. PwC point out that the insight that this data provides is into where change is most needed. By measuring inclusion as well as diversity, organisations can gain a holistic understanding of where improvements can best be made.

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