CIPD viewpoint
Explore the CIPD's collected perspective on the key issues impacting work, including recommendations, supporting evidence and links to resources for policymakers and employers
Explore the CIPD’s point of view on race inclusion in the workplace, including actions for Government and recommendations for employers
Every person, regardless of ethnicity or background, should be able to fulfil their potential at work. Employers who take action to support equal progression and participation in the workplace, across ethnicities, will grow their talent pool and address skill shortages in the process.
In the UK, too many individuals from an ethnic minority background still face discrimination and disadvantage when trying to get into and progress at work compared with their white British peers.
According to the McGregor-Smith Review (2017), the employment rate for black and minority ethnic (BME) groups is only 62.8% compared with an employment rate for White workers of 75.6%. This gap is even worse for some ethnic groups; for instance, the employment rate for those from a Pakistani or Bangladeshi background is only 54.9%.
Overall, about 1 in 8 of the working age population are from an ethnic minority background, yet these individuals make up only 10% of the workforce and hold only 6% of top management positions. The Parker Review (2016) of the ethnicity of UK boards found that only 85 of the 1,050 director positions in the FTSE 100 are held by directors of colour.
Addressing this issue is not just about tackling discrimination; it is also about boosting business performance. It is estimated the economy stands to gain an additional £24 billion if there was full representation and progression across ethnicities in the workplace.
We recognise that any one term will not resonate with everyone. As such, we advise employers to be sensitive in the language and terminology used when talking about race and ethnicity, being sure to engage and invite input from both their own staff and external experts. Here, we follow the Race Disparity Audit’s recommendation, referring to ‘ethnic minorities’ rather than the terms BME/BAME, which highlight particular groups while omitting others. However, both BME and BAME are widely used by government departments, public bodies, the media and other groups when referring to ethnic minority groups in the UK. We therefore reference the terms BME and BAME only in relation to research that has already been conducted using these terms (such as the government review by Baroness McGregor-Smith and previous CIPD research).
Every person, regardless of their ethnicity or background, should be able to fulfil their potential at work. The need to create more diverse and inclusive workplaces has been recognised but not acted on for too long, and ethnicity pay reporting can serve as a catalyst.
CIPD research shows that there is a significant lack of ethnic diversity at the top of UK organisations. Ethnic minority employees are more likely than those from a white British background to say they have experienced discrimination, that their career progression has failed to meet their expectations and that they have felt the need to change aspects of their behaviour to ‘fit’ into the workplace.
As well as the cost to individuals of missing out on job opportunities due to prejudice or bias, employers who don’t take action will be left with a more limited talent pool, and inequalities in progression opportunities mean people’s skills will be underused.
While there has been some shift in board composition, it has not been to the extent or at the pace required. It is important to build on the success of campaigns that have increased female representation at the top of organisations to make significant strides with ethnic diversity.
The CIPD is actively contributing to government consultations on the issues and supporting employers to drive sustainable change in their organisations. For example, in 2019, the CIPD in consultation with senior level members provided practical recommendations to the UK Government on whether organisations should be required to report on the pay differentials between people from different ethnic backgrounds.
We were also one of the first organisations in the UK to sign the Race at Work Charter. Internally, the CIPD’s EmbRACE employee action group on race and ethnicity is actively working with HR to raise staff awareness of issues and advise on action the CIPD needs to take as an organisation.
Explore the CIPD's collected perspective on the key issues impacting work, including recommendations, supporting evidence and links to resources for policymakers and employers
Resources and guidance to help people professionals tackle racism and racial discrimination in the workplace
Engaging with ministers, other policy makers and our membership to inform our views to influence government