Deloitte UK admits Ethnicity Pay Gap

Deloitte logo outside building

Deloitte admits that its BAME employees in the UK are earning less pay than non-ethnic counterparts, meaning they face an ethnicity pay gap.

For the first time ever, Deloitte, a UK professional services firm, has reported on its ethnicity pay gap. It admitted that BAME employees are earning 12.9% less on average per hour than their non-ethnic counterparts.

The business publicly revealed the news on 6th December 2017. Deloitte explained how the median hourly pay gap for those from ethnic minorities is 8.7%.

This also applies to bonuses received. The median pay gap is 34.7%, with the mean ethnicity pay gap at 41.9%.

In the report, the firm also acknowledged the reason for this gap. It explained that a lower proportion of BAME employees hold the most senior positions within Deloitte. Looking at its entire workforce, 18% hail from minority backgrounds. However, in senior roles, this decreases to a meagre 5%.

As a result, the firm revealed its intention to place diversity as a key focus. Creating a diverse workforce, particularly in higher positions, while also reducing its ethnicity pay gap.

For example, it will plan to achieve targets set out by the Parker Review, despite not listing as an FTSE 100 or 250 institution. In late 2016, this review explained that FTSE 100 companies should aim to have a person of colour as a director by 2021. FTSE 250 businesses should also achieve this by 2024.

Deloitte plans to increase their diversity so that 10% of directors will come from BAME backgrounds. Each executive group and business leadership team will also have at least one member who is from an ethnic minority. They hope to achieve these targets by 2021.

Emma Codd, a Managing Partner for Talent, said: “Our focus on providing a culture and environment where everyone can be themselves, thrive, develop and succeed is starting to have a positive impact.

“While today’s pay gap report demonstrates that there is still some way to go, we are fully committed to achieving the balance we should have through targeted actions alongside our continued focus on providing an inclusive culture.”

While their pay gap will concern many, it’s refreshing to see the firm admit this is an issue for them and one they plan to tackle. As we have seen in recent months, areas such as civil services still underrepresent BAME communities.

However, Deloitte has already made great progress with diversity. In their Impact Report 2017, they were recognised for the work they have taken to provide equal opportunities for all. Ensuring they can advance in their careers, rewarded on their merits.

In addition, Business in the Community (BitC) identified the firm as one of the top companies for ethnicity.

It appears then Deloitte is committed to the targets it has created for 2021. Many will hope they continue their path in promoting diversity and tackling the pay gap. Read more on the firm’s report here.

Image courtesy of Reuters/Hannah McKay.