Reporting and responding to ethnic pay disparities
“If we do not understand how systemic racism shows up at work, then we cannot address it.”
Zoe Kabir, Home Truths 2 expert partner
Money matters
One way in which civil society’s racism problem can manifest is in terms of unjust pay for Black and Minoritised Ethnic staff. The ethnicity pay gap measures the difference in the average pay between Black and Minoritised Ethnic staff compared to white British counterparts.
Measuring and publicly reporting ethnicity pay gap data can make it easier to see how Black and Minoritised Ethnic employees are situated in civil society organisations and create impetus for pay equity.
Publishing data
Civil society has been slow to publish annual ethnic pay gap data. In 2022, only 27 of the top 100 charities by income reported their figures.
The data published reveals an ethnic pay gap of 22 per cent – meaning that if the average white worker earned £25,000 a year, their average Black or Minoritised Ethnic counterpart would earn just £19,500. Where possible, it is usually more helpful to calculate pay gaps in relation to white colleagues for specific Black or Minoritised Ethnic people as pay can vary significantly.
Ethnicity pay calculations
The ethnic pay gap can be calculated through the following four steps:
STEP 1
Calculate the average hourly pay for both white and Black and Minoritised Ethnic workers.
STEP 2
Subtract the average hourly pay for Black and Minoritised Ethnic workers from the average hourly pay for white workers.
STEP 3
Divide this pay difference by the average hourly pay for white workers.
STEP 4
Multiply the result by 100 to get the ethnicity pay gap percentage.
Causes of pay disparities
Ethnicity pay gaps exist because Black and Minoritised Ethnic people are over-represented in relatively low-paid roles and occupations.
Most importantly, gaps are generated because of a variety of overlapping institutionalised and structural factors. These can be due to direct racist recruitment and progression practices. There can also be more indirect reasons, e.g., family wealth, educational attainment and qualifications, previous work experience and nationality.
Paying dues
While it is no magical solution, reporting ethnicity pay gaps can call attention to financial realities of being classified white or Black or Minoritised Ethnic in civil society.
And the ethnicity pay gap calculation – particularly seen in the light of additional factors such as gender and class – can help organisations to understand that to end racism we cannot take the world as we find it, we have to actively remake it.
A space for reflection
Reflect on these questions in a way that feels right for you. You might choose to write, draw, record a voice note or video, or talk it through with a trusted friend or collaborator.
- How do ethnic pay disparities show up in organisations you work with?
- What is needed to end these disparities?
- What specifically are you going to do next?
