How to measure and report an ethnicity pay gap

Author: Susie Munro

Summary

Click on any of the hyperlinks to go to more detailed guidance below.

• Be aware that ethnicity pay gap reporting is currently voluntary, but consider the potential benefits to the organisation and wider society.
• Consider using Brightmine Pay Equity Analytics to simplify the process.
• Gather ethnicity data for the workforce.
• Comply with the UK GDPR when processing ethnicity data.
• Define the groups to report on, taking into account the need for employee anonymity and statistical robustness.
• Decide what calculations to carry out.
• Decide who to include in the calculations, for example whether to include casual workers and partners.
• Collate the relevant payroll and ethnicity data.
• Calculate the mean and median pay gaps.
• Calculate the quartile pay bands.
• Calculate the mean and median bonus gaps.
• Provide a narrative to accompany the data.