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Nigel Marriott's Blog

An independent statistician using data to understand our world and to predict the future

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Pay Gaps #19 – Employers should report their Ethnicity Pay Fingerprints

November 29, 2020 By Nigel

The UK government has promised to give their views and proposals for introducing Ethnicity Pay Gap (EPG) reporting by the end of 2020.  A year ago, I pointed out statistical, data & ethical issues with EPG and listed 5 possible ways EPG could be introduced but I have not yet focused on what employers should be reporting.  I have now concluded that Ethnicity Pay Fingerprints are vastly superior to Ethnicity Pay Gaps and my new recommendation is that all employers with 500 or more employees should be required to report their Ethnicity Pay Fingerprint (EPF) instead of their Ethnicity Pay Gap.  If EPF is widely adopted and found to be beneficial then I would recommend that reporting of other protected characteristics such as gender & disability should be reported using Pay Fingerprints instead of Pay Gaps.

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Filed Under: Diversity Tagged With: classification, Closing Gaps, data quality, EPG, Ethnicity Pay Fingerprint, Ethnicity Pay Gap, Gender Pay Gap, Statistician

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