A majority of MPs have backed a recommendation to increase gender diversity in business by extending the “Women in Finance Charter” to cover all businesses in the UK. The recommendation comes from the professional accountancy body AAT (Association of Accounting Technicians). The Charter asks financial services firms to commit to implement four key industry actions; to have a named senior executive responsible and accountable for gender diversity and inclusion; set internal targets for gender diversity in senior management positions; publish progress annually and ensure the pay of the senior executive team is linked to delivery against these internal targets on gender diversity. More →

There is a ‘significant risk’ that the reporting ethnicity pay levels could be ‘counterproductive’ unless key differences between it and gender pay are recognised, said the Institute for Employment Studies (IES) in its response to the UK Government’s consultation on ethnicity pay reporting. Although the IES supports the government’s proposals to introduce mandatory reporting of ethnicity pay gap information, it suggests that cultural and practical barriers to collecting and reporting ethnicity data are greater than for gender pay. More time and greater government support are therefore needed to prepare for these changes. The consultation response voices specific concerns that measures to increase the recruitment of under-represented groups, for example through apprenticeships or paid internships, could serve to widen pay gaps initially. This could inadvertently discourage employers from taking positive action to improve their ethnic diversity. Reporting arrangements therefore need to also take account of changes in the levels of employment participation for different ethnic minority groups, as well as their pay.

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