Data has revealed that ethnic minority staff are nearly twice as likely as their white counterparts to have a pay rise or promotion rescinded due to the current economic climate.

A survey found that 40% of ethnic minority workers experienced this issue, compared to 23% of white workers.

Sandra Kerr, race equality director at Business in the Community, said:

“Fairness in promotion and pay is vital, no matter the economic climate.

“However, the findings go hand in hand with BITC research which found that Black, Asian, mixed race and other ethnically diverse employees are more likely to report that they had been overlooked for a promotion than their white counterparts.”

She added that employers must ensure that they are giving all employees equal opportunity for progression, promotion and pay so that everyone feels valued and that they belong at work.

Shakil Butt, founder of HR Hero for Hire, said “ethnic minority workers tend to be over-represented in insecure and/or lower paid roles according to the Living Wage Foundation, which will mean during an economic downturn they are more likely to be impacted than white counterparts”.

He also said that to make fair decisions, especially during financial strain, leadership must reflect a broader diversity.

Butt stated: “For decisions to be equitable, there needs to be wider representation amongst the decision makers.

“As diverse staff tend to be absent from leadership roles, they are also disadvantaged directly.”

The study also showed that ethnic minority workers often work more unpaid hours than their white counterparts.

33% of ethnic minority employees reported consistently working more than eight hours beyond their contracted time each week.

On average, non-white employees worked 6.95 extra unpaid hours each week, compared to 6.27 hours for white employees.

Additionally, 26% of non-white employees work on weekends to catch up or get a headstart the following week, compared to 16% of white workers.

The research also revealed that 23% of ethnic minority workers have had time off for stress, compared to 16% of white employees.

The report also highlighted ethnic minority employees are more likely to fear negative consequences for discussing their pay.

While 70% of ethnic minority workers expressed concerns about the potential repercussions of wage discussions, only 51% of white workers felt the same.

According to the survey, these concerns are often linked to fear of being viewed as disruptive (30%), facing career limitations (27%), or even losing their jobs (22%).

Cheryl Samuels, people and culture director at Evelina London, said the historical structural inequalities have been felt across the employment landscape.

She added: “The fight to secure jobs and overcome those structural and systemic barriers means that the discussions don’t happen up front, because they are simply trying to get a foot in the door to prove their worth and value.”

Butt also stressed the importance of cultivating a culture where employees feel safe to voice their concerns.

He added: “Words alone are not enough.

“Staff need to feel safe from repercussions, heard, and respected.

“Having transparency around pay scales and how decisions are made can help to address and prevent rumours and speculation.”

People Like Us has also launched the #NameTheBias campaign, calling for greater parity in pay, including ethnicity pay gap reporting.

Sheeraz Gulsher, co-founder of People Like Us, said the charity is asking the government to introduce mandatory ethnicity pay gap reporting “without delay” as it will “provide businesses with the evidence to help them level the playing field”.

Tom Heys, gender and ethnicity pay gap expert at Lewis Silkin LLP, noted that while the government has committed to making ethnicity pay gap reporting mandatory, it has “failed to say either when or how it will be implemented”.

Heys added: “In these challenging times, employers are crying out for certainty.

“The government should immediately publish its plan – or even potential plan – for ethnicity pay gap reporting and allow employees to properly prepare.”