Big Four Supports Mandatory Reporting of Ethnicity Pay Gap
The Big Four audit and consultancy firms are supporting compulsory reporting of ethnicity pay gap suggested by INvolve, an organisation that is a champion with regards to inclusion and diversity in business, and have developed guidance and procedures regarding reporting of necessary data
A number of organisations like Creative Equals, ITN, Bank of England, Lloyd’s of London, Citi, Bupa, Stella McCartney, Santander, Jomas Associates, Reluctantly Brave, WPP and Sodexo as well as PwC, KPMG, EY and Deloitte.
The organization want to see reporting of pay gap based on ethnicity being made compulsory for all UK businesses, and are working to ensure the same before any mandate from the government does so.
The group is committed towards bringing institutional changes through transparency of data as well as having open discussions as to why pay gap on the basis of ethnicity exists within various organizations.
Involve has laid out a reporting framework for all those business entities that want to voluntary report the pay gap that exists due to ethnicity within their entity.
The UK government is consulting on the prospect of whether to make reporting of pay gap based on ethnicity compulsory for business entities. Involve has said that irrespective of the results of the consultation, the business entities that have signed its mandate feel that it is important for companies and other business entities to evaluate the existence of pay gap based on ethnicity.
Sanjay Bhandari, partner at EY has said that talking about ehtnicity is hard. The reporting of pay gap on the basis of ethnicity provides motivation with regards to overcoming the fear of openly talking about ethnicity and race. Our challenge is to then hold our ground and not be inclined towards topics that are comfortable for us to talk about.
All the Big Four firms have given their input in the preparation and development of the white paper concerning providing guidance to companies regarding reporting of pay gap as well as recommending best practices to follow with regards to self-identification, how to examine the data and steps to improve any pay gaps discovered during the reporting process.
On an average white people earn between £67 and £209 per week more when compared with individuals having similar qualification and academic background but from a different ethnicity, according to a study by INvolve. The report also highlighted that workplaces with diverse ethnic portfolio are 35 per cent points more likely to outperform financial industry averages.
Only around 3 per cent employers of large scale business entities have reported pay gaps based on ethnicity. Out of the business entities that signed INvolve’s mandate, KPMG, EY, Deloitte, ITN and Bank of England have already published their data related with ethnicity pay gap.
- Global Ethics Code Playing Catch Up with Latest Technology Developments
- Regulator Launches an Inquiry into Operations of a Birmingham Based Charity
- Leading UK Furniture Business Collapses into Administration
- How Technology is Shaping the Future of Financial Services for the Better
- ICAEW Signs MoU with ICAI
- Companies House Updates the Penalty Appeal Proceess for Late Filing
- In The Next Recession, You Can Make Money Rather Than Lose It