The Asian community has welcomed Prime Minister Theresa May's decision to publish data covering their ethnicity pay gap launched on last Thursday. This crackdown on the ethnic pay gap is her wider attempt to demonstrate a progressive policy agenda and 'burn injustices in the society'. 50 years have gone by since the Race Relations Act was introduced, and a year since the government published the first race disparity audit, under leadership Baroness Ruby McGregor Smith, an Asian herself. Ethnic minority community is doing really well in universities, yet their successes are not reflected as much in the professional world.
According to the 'Race At Work' report, 52% of ethnic minority workers believe they need to leave their current organisation to prosper in comparison to 38% of their white counterparts. In public sectors, only 14% of the working-age population is from the ethnic minority, 6.4% of senior managers in NHS are from the ethnic minority communities, while 3.7% of police officers, 3.4% of head teachers and 2.4% of Armed forces are from the same.
Baroness Smith, who has been known as the first Asian woman CEO in a FTSE 250 company, told Asian Voice that she wanted the stories of extra ordinary people and their journeys to be told. “Show the steps of career progress- there is a story to learn from each.”
“Right now people of BME backgrounds in the UK do not excel in the workplace at the same rate as their white counterparts.
“We need to understand what the obstacles are that are preventing them to do so, and take strong actions to overcome them,” she added.
Business and third sector organisations hence were called upon to take part in this review.
Home Secretary Sajid Javid said, “Everyone should have the opportunity to get their dream job. That is why I asked Baroness McGregor-Smith to undertake this review and find out why people from BME backgrounds find it more difficult to reach the top.”
Simon Woolley, Chair of the government’s race disparity unit advisory group told The Guardian, “The announcement by the Prime Minister is an important step. Larger companies and public-sector organisations will have to publish data showing whether they pay their people fairly. And talented ethnic-minority people will be able to see which organisations have turned their commitment to diversity into action.This isn’t about “quotas” or promoting people who don’t deserve it. Employers need data to identify what steps to take to improve fairness in the workplace. And the fact employees can see where pay gaps are greatest will encourage leaders to take stronger action.”
However, Omar Khan, director of race equality at think tank Runnymede, also welcomed the initiatives, but reportedly said that "greater ambition and investment" would be necessary to fully address racial inequalities in the UK and called for a "fully funded race equality strategy."
He expressed concern that the proposals may not justify a number of other government policies, that exists including the hostile environment for some immigrants such as the Highly-skilled migrants and a policy of austerity that affects low-income families in Asian and Black households disproportionately.
Measures to tackle disparities
Developed jointly by the government and Business in the Community (BITC), the new Race at Work Charter announced by the Prime Minister meant to commit businesses to a bold set of principles and actions designed to drive forward a step-change in the recruitment and progression of ethnic minority employees.
The government, which has named WPP UK Country Manager and Chairwoman of MediaCom UK & Ireland Karen Blackett OBE as its Race at Work Champion, has already secured a number of high-profile inaugural signatories to the Charter, including NHS England, Standard Life Aberdeen, Norton Rose Fulbright, Saatchi & Saatchi, KPMG, RBS, the Civil Service and the world leader in communications services, WPP. In addition, financial services company Lloyds Banking Group, also among the Charter’s signatories, is the first FTSE 100 company to set a goal to increase the representation of ethnic minority employees at senior levels.
In the first consultation of its kind, the government will invite employers to share their views on a mandatory approach to ethnicity pay reporting, since the number of organisations publishing information on the pay gap for people from different ethnic backgrounds voluntarily remains low.
The consultation, which is open until January 2019, will set out in detail what information employers should publish to allow for decisive action to be taken while also asking employers how ethnicity data can be collected without placing undue burdens on businesses.
In a statement Prime Minister Theresa May said, “Every employee deserves the opportunity to progress and fulfil their potential in their chosen field, regardless of which background they are from, but too often ethnic minority employees feel they’re hitting a brick wall when it comes to career progression.
“That’s why I’m delighted to launch the Race at Work Charter, which gives businesses a clear set of actions to work towards in helping to create greater opportunities for ethnic minority employees at work.
“One year on from publishing the Race Disparity Audit, the government is delivering on its promise to explain or change ethnic disparities in all areas of society, taking action to support young people into work with funding of £90 million from dormant bank accounts , and acting on the recommendations of the Lammy review including by increasing diversity within prison officer recruitment.
“Our focus is now on making sure the UK’s organisations, boardrooms and senior management teams are truly reflective of the workplaces they manage, and the measures we are taking today will help employers identify the actions needed to create a fairer and more diverse workforce.”
Matthew Fell, Chief UK policy director at the Confederation of British Industry (CBI), reportedly said, "Transparency can be a catalyst for action in tackling the ethnicity pay gap, in the same way that it has been so successful for gender.
"Reporting must be done in a way that is supported by both businesses and employees, to recognise the wide range of ethnic groups and legitimate staff concerns about intrusiveness where sample sizes are small.
"Companies want to work with the Government to achieve their goal of becoming more inclusive employers."
Sandra Kerr, Business in the Community Race Equality Director said, “All organisations should recruit from the widest pool of talent and support progression. The race at work survey of over 24,000 employees showed that all too often ethnic minority staff are still encountering significant disparities at work. The race at work charter will support leaders and line managers to take practical steps to tackle the barriers, with five clear actions. By signing up, we can ensure the workplace is representative of British society today.”
Karen Blackett OBE, WPP UK Country Manager and Chairwoman of MediaCom UK & Ireland said, “Embracing diversity and inclusion is not a choice, it’s a business necessity. Clients choose WPP precisely because of the capability and creativity of our people; it’s why we’re focused on attracting, developing and promoting the best talent from across a range of backgrounds. Creativity powers business growth and this only happens by having diversity of talent in the room and reflecting society in the content we create.
“As the Government’s Race at Work Champion, I’m committed to helping businesses address inequality at all levels by taking practical steps such as introducing apprenticeships, offering mentorships and capturing ethnicity data to create a more inclusive and representative workforce.”
Baker McKenzie Diversity & Inclusion Partner, Sarah Gregory, said, “Huge progress has been made to improve the experience of ethnic minority colleagues in the workplace, but more still needs to be done. This is why, we are very excited today to be signing the Race at Work Charter and together with the Government and other businesses look at improving ethnic minority representation at all levels of seniority. The Charter builds on our ongoing commitment as a Firm to recognise and celebrate the talent of our diverse workforce and to ensure that everyone can be their authentic selves.”
