UK COMPANIES should be willing to voluntarily publish their ethnicity pay gap data, rather than waiting for government to make it mandatory, according to a new report.

Bridge the Gap, a new guide from the CBI in collaboration with law firm Eversheds Sutherland, says that closing the ethnicity pay gap is about making society fairer and overcoming inequalities. 

The CBI added that the business case for it is watertight. 

According to figures published in the report bridging the ethnicity pay gap could uplift UK GDP by up to £24bn a year, and companies with the most ethnically and culturally diverse executive teams are 33% more likely to outperform their peers on profitability.

The report acknowledged that there’s no one-size-fits-all approach to closing the ethnicity pay gap at work, but recommended three areas where companies should focus their efforts.

These were building inclusive company cultures; leading from the top, and encouraging open, inclusive conversations about race at work.

Matthew Fell, CBI Chief UK Policy Director said: “Companies who are already reporting their ethnicity pay gap understand what long-term, meaningful action they need to take to tackle race inequality at work.

Creating strategies

“They are leading from the front – improving how they attract, hire and promote employees from ethnic minority backgrounds. But many companies have so much more they can and should be doing.”

He added: “Firms have to get better at speaking about race at work; developing campaigns to encourage employees to share their ethnicity; and creating strategies to improve BAME representation all the way up to the boardroom. Business can be a real force for good. But to build a fairer society, all of us business need to take action now. 

Representing society

“The CBI is committed to help companies learn from each other and make progress – until UK business is truly representative of the society it serves.”

Naeema Choudry, a partner and equality expert at Eversheds Sutherland, said: “It is imperative for businesses to create the right environment for career advancement and development for all their employees – whatever their ethnicity.

She continued: “Ethnicity pay gap reporting is a key step in ensuring such progression, as it enables businesses to understand any ethnicity pay gaps that may exist and then to carefully consider what practical steps need to be taken to close them.

“This guide provides plenty of advice to organisations that are unsure of where to begin and much needed clarity on the support that’s available.”