- Statistical robustness – minimum sample sizes are needed to ensure that the data shows an accurate picture of what pay looks like within an organisation
- Anonymity – any reporting framework will need to ensure that individual’s rates of pay cannot be extrapolated from reports, particularly if they are part of an ethnic group that makes up a small percentage of employees in an organisation
- Data collection barriers – organisations had highlighted practical and legal challenges to collating the data
- The wide range of ethnic groups within the UK – ethnicity is not “binary” and representation of different ethnic groups differs across the UK. Organisations and government needed to be careful not to make sweeping statements about ethnicity, as average pay varies significantly across groups
- The potential for results to be skewed – a reporting exercise within the Civil Service found that 22% of employees did not provide their data, which that the data showed average pay within every ethnic group was higher than average median pay in the Civil Service.
consultation into mandatory ethnicity pay gap reporting highlighted issues including:Establishing a framework for mandatory ethnicity pay gap reporting is complicated as the data is not binary, can be easily skewed, and there are challenges with anonymity and data collection, a minister has said. During a debate in response to a petition that called for the governent to bring forth legislation that would require employers to publish their ethnicity pay gap, Paul Scully, the minister for small business, consumers and labour market, admitted there are numerous statistical challenges to introducing the requirement. “We want to make sure we’re doing the right things to genuinely move things forward,” he said. “The key to that is determining what it makes sense to report on and what use the data can be put to. It’s far from straightforward.” He said the Department for Business, Enterprise and Industrial Strategy’s (BEIS)