Registered users can save articles to their personal articles list. Login here or sign up here

Why the ethnicity pay gap is even more complicated than gender

Companies have failed to gather information on employee ethnicity.

Companies in the UK are still grappling with the mandatory gender gap reporting that went into effect last year, revealing a widespread disparity in the salaries and bonuses of men and women. Now the British government may require them to similarly analyze the pay of workers of different ethnicities.

A survey of 80 large organizations by PricewaterhouseCoopers found 95% had not analyzed their ethnicity pay gap, with three quarters saying they did not have the data to do so. Concerns over whether it’s legal to gather information about ethnicity and data protection topped the reasons for failing to do so, as well as poor response rates from employees, difficulties in communicating about the process and worries about worker confidentially.

“This will be a more complex task than gender pay gap reporting,” the report said. Firms “will need to create a trusting environment where employees are willing to volunteer their data and believe it will be used to drive positive change.”

Last April marked the first time larger UK companies and public agencies were legally required to publish an assessment of the difference between what men and women in their workforce earned on average. More than 75% of the 10 000 UK firms that reported their pay gaps paid their male workers more than female workers. Now the government is considering the possibility of mandatory reporting by ethnicity to expose the pay gap for citizens of “Black, Asian and minority ethnic,” or BAME, origins.

A public consultation ended in January and already some firms, including PwC, Deloitte, KPMG and broadcaster ITN, have voluntarily decided to release their own numbers.

© 2019 Bloomberg L.P
 
Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   9

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

Can’t this ethnicity pay gap be done in South Africa?

This also got to do with the abuse of power:

1. Men, in the position of power, will be drawn to appoint the men they like, whom is not always the best man for the job.

2. Women, in the position of power, will be drawn to appoint the women they like, whom is not always the best woman for the job.

I am seeing this first hand all the time.

Life sucks if you’re not in power I guess?

pain, i am running my own business, but i do not abuse my ‘power’

but i DO feel sorry for you

Strange I have seen the opposite, a push for more gender diversity and AA have meant that in my career, I have seen those demographics be paid more and be pushed into senior positions and hired over other candidates.

There is also a element of pushing for higher salaries, that is down to the individual negotiating. No business worth it’s salt is going to hand out big increases without a fight.

A lot of the senior people I have worked with have been female so maybe I am desensitized to the whole thing but I just have not seen it.

The reality is the world is not run on a communist system and therefore comparing average salaries is useless. Salaries should be a direct feature of productivity and whoever is the most productive gets the most money, that principle should be blind to the underlying demographic.

With the extent of corruption and the number of illegal immigrants in SA and still entering SA, these issues eclipsing everything else in SA.

It may be better to implement a mandatory test for wealth for everyone, including indigenous lands, trusts, etc rather than just on gender or race.

The other problem with ethnicity testing is this….if you want a non-racial SA, as stated in the constitution, then when do you sunset defining and testing everything based on race or ethnicity.

If the figure of 10m + illegal immigrants is correct then quite honestly how does testing for anything help in SA???

Here I believe we see the symptoms of Identity Politics. Social Justice Warriors frantically trying to get Identity markers collected to support their narratives as activists (Cultural Marxists). Without these statistics they have no way to earn their wasted existence.

Focus should be on identifying and promoting individuals based on personal merit. If competence is missing, the individual, or organisation favouring the wrong individuals will ultimately fail. Individual merit and equality of opportunities must be the key criteria for judging injustice i.m.o.. Not the group identity the individual belongs to. If a competent individual is unfairly overlooked for a position or paid for job then by all means kick up that fuss. Problem is one can’t generalise and publish articles / surveys about it and form NGOs on that basis I suspect.

I think personal merit has nothing to do with it, it’s either you like the dude or you don’t. People look for personality that is aligned with theirs, usually compromising good quality of work because the other dude who “failed” the personality test could have brought that quality in spades. And people are kicking up that fuss from personal experience, not from some imaginary story.

Load All 9 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Or choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be suspended at any time.

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2