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CIPD calls for ethnicity pay reporting to be mandatory from 2023

Makbool Javaid, Partner - Simons Muirhead & Burton

A new guide has been launched by CIPD to help companies report their ethnicity pay gap as new research finds just 13 FTSE 100 companies currently report their ethnicity pay data.

Peter Cheese, chief executive of the CIPD, said:

“Ethnicity pay reporting is an important lever for businesses and their stakeholders to assess if and where inequality based on ethnicity exists in their workforce. That’s why we believe it is so important that businesses both capture and learn from this data.  While it’s positive to see some organisations voluntarily report their ethnicity pay, it’s clear that progress is slow and reporting is very inconsistent. Some companies just report their data while others report a commitment without sharing the data behind it.

“We know that gender pay gap reporting has driven greater transparency and accelerated progress, and we believe the same is needed for ethnicity pay reporting. Mandatory reporting of data, and the associated narrative that shows understanding of the data and the actions being taken to improve, for both ethnicity and gender pay, will help create fairer workplaces and societies and kickstart real change.”

The CIPD’s new ethnicity pay reporting guide will support employers on their ethnicity pay reporting journey from data collection to publishing a narrative and creating an action plan.

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