The information on the portal can be updated at
any time (for example, if an employee develops a
disability). Aside from gender, the data is treated as
confidential and is not visible to line managers. The
data is used to analyse progress towards targets,
especially ethnic diversity at different levels.270 RBS
realised ethnic minorities were underrepresented
at higher levels within the bank – 11 percent of staff
are from an ethnic minority group, but this falls to 8
percent across the top four levels of the organisation.
Examining the data has led to greater insight about
the challenges employees face as well as highlighting
the scale of underrepresentation at management
level. RBS has now set a target to reach 14 percent
ethnic minority leaders by 2025.271 The data the bank
collects is not only used to monitor recruitment but
also to identify talent and ensure that progression
and promotion practices in the bank are not
(unconsciously or consciously) favouring certain
groups. The bank actively encourages interviewers to
challenge themselves and to identify any unconscious
bias in the shortlisting process – over 80 percent
of RBS staff have undertaken unconscious bias
training.272
Ethnic pay gaps cannot be identified or closed if
there is an absence of data to show this. Effective
action requires organisations to establish the current
landscape of where they stand today, set aspirational
targets for what they expect their organisations to
look like in five years’ time and measure progress
against those targets annually.273
38
Furthermore, several jurisdictions internationally
have also expanded existing legislation aimed
at gender pay equity to encompass ethnicity or
are considering doing so.274 There are increasing
indications from Aotearoa New Zealand and
abroad that gender pay gap laws provide a basis
to model ethnic pay gap laws where much of the
ethnicity pay equity legislation explored above was
initially developed upon existing gender pay equity
legislation.275 Several of the recommendations
made by literature from the UK lend themselves
to this generalised pay equity policy. However, the
simultaneous need for legislation and policy targeted
specifically to ethnicity is also stressed.276 In addition
to legislation, large international companies are
increasingly opting to create policies internally that
address gender and ethnicity pay gaps.
6.1.1 Comprehensive pay transparency
Pay transparency commonly includes a combination
of different rules and policies such as banning
employers from requesting a prospective
employee’s wage or salary history, requiring that job
advertisements include the expected compensation
for the role and forbidding pay secrecy.277 There
has been a widespread focus on implementing pay
transparency legislation as a way to close pay gaps.278
A significant contributor to ethnicity pay gaps is
structural racism, which impacts pay and upward
career progression through institutional habits
present from the point of recruitment. Therefore, the
literature suggests that pay transparency legislation
270
Adams et al., Measuring and Reporting on Disability and Ethnicity Pay Gaps, 117.
271
Adams et al., Measuring and Reporting on Disability and Ethnicity Pay Gaps, 117.
272
Adams et al., Measuring and Reporting on Disability and Ethnicity Pay Gaps, 117.
273
McGregor-Smith, Race in the Workplace.
274
Equality and Human Rights Commission, Fair Opportunities for All, 25-26; Employment and Social Development Canada,
Employment Equity Act, 3; Pay Transparency Act, 2018, chap. 5, (Ontario, Canada); Senate Bill No. 973, 2020, chap. 363
(California, United States of America); New Zealand Human Rights Commission, Equal Pay and Pay Equity, 5-6.
275
In Aotearoa New Zealand: Public Service Commission. Guidance Measuring and Beginning to address Māori and Ethnic Pay
Gaps in the Public Service. Wellington: Public Service Commission, 2021, 2. https://www.publicservice.govt.nz/assets/SSC-SiteAssets/Workforce-and-Talent-Management/Guidance-Measuring-and-beginning-to-address-Maori-and-ethnic-pay-gaps-inthe-PS.pdf. Abroad: Brown, Rickard, and Broughton, Tackling Gender, Disability and Ethnicity Pay Gaps, 41-42; Equality and
Human Rights Commission, Fair Opportunities for All, 25-26.
276
Brown, Rickard, and Broughton, Tackling Gender, Disability and Ethnicity Pay Gaps, 41; Equality and Human Rights
Commission, Fair Opportunities for All, 25-26; Brown, Duncan. “Gender Pay Gaps, the UK Experience: How Do We Close
Them, How Do We Bring Research Into Practice?.” Compensation & Benefits Review 51, no. 4 (2019): 153.
277
Coghlan, State Policy Strategies for Narrowing the Gender Wage Gap, 1.
278
Employment and Social Development Canada, Employment Equity Act, 51-52; Pay Transparency Act, 2018, chap. 5,
(Ontario, Canada); Senate Bill No. 973, 2020, chap. 363 (California, United States of America); New Zealand Human Rights
Commission, Equal Pay and Pay Equity, 1; Chifley Research Centre. Closing the Gender Pay Gap. Kingston: Chifley Research
Centre, 2019, 20. https://www.chifley.org.au/publications/closing-the-gender-pay-gap/.