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Latest NewsEthnicity pay gapEthnicity

Ethnic minority workers lose out in pay discussions

by Jo Faragher 8 Jan 2025
by Jo Faragher 8 Jan 2025 Four in 10 ethnic minority workers have been denied a pay rise or promotion
Shutterstock
Four in 10 ethnic minority workers have been denied a pay rise or promotion
Shutterstock

Ethnic minority workers are almost twice as likely to be denied a pay rise or promotion, according to research from campaign group People Like Us.

Its survey found that 40% of ethnic minority workers have had a pay rise or promotion rescinded due to the current economic climate, compared to 23% of white workers.

It also found that a third of ethnic minority employees reported working eight or more hours above their contracted hours each week. Non-white workers work on average 6.95 extra unpaid hours each week, compared to 6.27 hours for white workers.

Ethnicity pay gap

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Ethnicity pay gap reporting: a global challenge 

The poll revealed that there is a high level of support for greater pay transparency, with 58% in support of the UK adopting the EU Pay Transparency Directive.

This will require companies to share information on salaries before interviews and employers must not ask about a candidate’s salary history.

However, seven in 10 ethnic minority workers feel uncomfortable discussing pay, fearing negative consequences, compared to 51% of white workers. Their key concerns include being seen as disruptive (30%), facing career limitations (27%) or even losing their job (22%).

When asked about the prospect of a right to disconnect, which appears not to feature in the government’s forthcoming Employment Rights Bill, 50% of respondents said they were in support.

Ethnic minority workers reported doing more out-of-hours work compared to white employees, however. Just over a quarter (26%) of non-white employees work on weekends to catch up or get a head start on the following week, compared to 16% of white employees.

Furthermore, 23% of ethnically diverse employees have had time off for stress, compared to 16% of white employees.

People Like Us has launched a campaign called #NameTheBias, which calls for greater parity in pay, including ethnicity pay gap reporting.

Sheeraz Gulsher, co-founder, said: “It’s clear that ethnic minority workers are consistently on the backfoot when it comes to pay and representation, this effect has been felt more harshly due to the current economic climate.

“We’re asking the government to introduce mandatory ethnicity pay gap reporting without delay as it will provide businesses with the evidence to help them level the playing field.”

Tom Heys, gender and ethnicity pay gap expert at law firm Lewis Silkin, pointed out that the government has committed to make ethnicity pay gap reporting mandatory but has failed to say either when or how it will be implemented.

He said: “In these challenging times, employers are crying out for certainty. The government should immediately publish its plan – or even just potential plan – for ethnicity pay gap reporting and allow employers to properly prepare.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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