On 5th February 2020, Baroness Prosser laid a bill in the House of Lords which calls for the introduction of ethnicity pay gap reporting in addition to a number of other initiatives. Last year I explained why ethnicity pay gap reporting cannot follow the same process as gender pay gap reporting so now is the time to explore how ethnicity pay gap reporting could be carried out.
The Royal Statistical Society (RSS) and I have published two articles to help employers better calculate and interpret their gender pay gaps. The first article lists 10 recommendations to improve the quality of gender pay gap reporting, the second is an article in Significance magazine which explores in more detail, two of the recommendations concerning medians and quartiles.
After two years of mandatory gender pay gap reporting, there is increasing pressure to bring in pay gap reporting for other protected characteristics. At the moment, ethnicity is receiving the greatest attention and a number of politicians are calling for the introduction of mandatory ethnicity pay gap reporting.
In this post, I will explain why I am opposed to an ethnicity pay gap reporting process which simply replicates the gender pay gap reporting process. In a future post, I will explore what an ethnicity pay gap reporting process should look like if parliament decides it wants to make this law.
The core expertise that Statisticians offer to the world is drawing conclusions from small samples. Therefore, knowing how to design surveys, estimate the right sample size, decide on the right way to ask the question or measure a property are all essential skills for any statistical thinker. The skills you need to be competent in Sampling & Surveys are best captured by my Survey Wheel.
This is intended to be a briefing note for anyone interested in seeing gender pay gap data being used properly. Gender pay gap data is now part is the business and political discourse in the UK and is likely to be so for some time. If the goal of gender pay gap reporting is to remove disparities in pay between men and women, then it is essential that the public has confidence in both the quality of the data being published and the correctness of any interpretations of the results. With the first round of data reporting out of the way, it is time to learn lessons, identify improvements and see that these are implemented. Following extensive analysis of the 2017 round of results, I have identified 12 ways to improve the quality of the data being reported and make interpretations of the results more meaningful.
[Read more…] about Pay Gaps #3 – 12 ways to improve public confidence in gender pay gap data