Ethnic minority workers are nearly twice as likely as their white counterparts to have a pay rise or promotion rescinded due to the current economic climate, new data has revealed.
A survey of 2,036 working professionals, conducted by People Like Us and Censuswide, found that nearly two fifths (40 per cent) of ethnic minority workers experienced this issue, compared to only 23 per cent of white workers.
Sandra Kerr, race equality director at Business in the Community, told People Management: “Fairness in promotion and pay is vital, no matter the economic climate.
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“However, the findings go hand in hand with BITC research which found that Black, Asian, mixed race and other ethnically diverse employees are more likely to report that they had been overlooked for a promotion than their white counterparts.”
She added that employers must ensure that they are giving all employees equal opportunity for progression, promotion and pay so that everyone feels valued and that they belong at work.
Lutfur Ali, senior equality, diversity and inclusion adviser at the CIPD, also stressed that ethnic minorities face significant barriers in the workplace, which is exacerbated during periods of economic uncertainty.
“For example, the Race in the workplace: The McGregor-Smith Review and Resolution Foundation’s research show that ethnic minority workers continue to face significant pay penalties due to biased organisational practices, behaviour and culture.
“During economic downturns, budget cuts often target lower-level promotions or discretionary raises, further disadvantageing this group,” he added.
Over-representation in lower-paid roles
Shakil Butt, founder of HR Hero for Hire, echoed these points, adding that “ethnic minority workers tend to be over-represented in insecure and/or lower paid roles according to the Living Wage Foundation, which will mean during an economic downturn they are more likely to be impacted than white counterparts”.
He also stated that in order to make fair decisions, particularly during financial strain, leadership must reflect a broader diversity. “For decisions to be equitable, there needs to be wider representation amongst the decision makers. As diverse staff tend to be absent from leadership roles, they are also disadvantaged directly,” he said.
He noted that having financial pay decisions or promotions scrutinised or inspected to guarantee fairness and robustness in the process will help to reduce inequities and prejudice.
Similarly, Ali pointed out that to ensure equitable decisions, even during financial strain, organisations should adopt deliberate and sustained EDI interventions.
Key steps include effective leadership that understands the business benefits of thriving, diverse workforces, equitable decision making frameworks and a focus on equality of outcomes and transparent pay and progression policies, said Ali, highlighting that organisations should leverage ethnicity pay data as part of their EDI strategy, as pay [is] a key indicator of inequality and bias.
Ethnic minority workers more likely to work unpaid hours
The study also highlighted that ethnic minority workers often perform more unpaid hours than their white counterparts. A third (33 per cent) of ethnic minority employees reported consistently working more than eight hours beyond their contracted time each week.
On average, non-white employees worked 6.95 extra unpaid hours each week, compared to 6.27 hours for white employees.
Additionally, a quarter (26 per cent) of non-white employees work on weekends to catch up or get a head start on the following week, compared to 16 per cent of white employees.
Furthermore the research revealed that 23 per cent of ethnically diverse employees have had time off for stress, compared to 16 per cent of white employees.
Fear of repercussions for discussing pay
The report also highlighted ethnic minority employees are more likely to fear negative consequences for discussing their pay. While 70 per cent of ethnic minority workers expressed concerns about the potential repercussions of open wage discussions, only 51 per cent of white workers felt the same.
According to the survey, these concerns are often linked to fear of being viewed as disruptive (30 per cent), facing career limitations (27 per cent), or even losing their jobs (22 per cent).
Cheryl Samuels, people and culture director at Evelina London, explained that the historical structural inequalities have been painfully felt across the employment landscape, and given that minority colleagues often had to overcome prejudices, stereotypes and disparities in pay, “it’s no wonder that they feel unable or less empowered to discuss pay”.
“The fight to secure jobs and overcome those structural and systemic barriers means that the discussions don’t happen up front, because they are simply trying to get a foot in the door to prove their worth and value,” she said.
To create a safe environment for employees to discuss pay concerns, organisations should be more transparent about pay structures, advertise roles with clear salary ranges to minimise awkwardness and train managers to have fair, sensitive salary discussions focused on valuing experience and skills, she added.
Butt also stressed the importance of cultivating a culture where employees feel safe to voice their concerns. He emphasised that leadership must set the tone by encouraging open dialogue about any issues, not just pay-related ones, and ensuring that these concerns are taken seriously.
“Words alone are not enough. Staff need to feel safe from repercussions, heard, and respected. Having transparency around pay scales and how decisions are made can help to address and prevent rumours and speculation,” he added.
Call for mandatory ethnicity pay gap reporting
People Like Us has also launched a campaign called #NameTheBias, calling for greater parity in pay, including ethnicity pay gap reporting. Sheeraz Gulsher, co-founder of People Like Us, said the charity is 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 Lewis Silkin LLP, noted that while the government has committed to making ethnicity pay gap reporting mandatory, it has “failed to say either when or how it will be implemented”.
“In these challenging times, employers are crying out for certainty. The government should immediately publish its plan – or even potential plan – for ethnicity pay gap reporting and allow employees to properly prepare,” Heys added.
For further information, explore the CIPD’s resources on discrimination at work