Figures from the ONS have today revealed that the ethnicity pay gap in London was ten times the national average in 2019, a staggering 23.8%.

The stark figure clearly illustrates that something needs to be done about the race pay gap, and although employers are starting to show more willingness to acknowledge the issue and begin to address it, many may not know how to go about it.

The figures also uncovered a 2.3% average ethnicity pay gap across the UK, with ethnic minority employees aged 30 and over tending to earn less than their white counterparts.

In response, Binna Kandola OBE, business psychologist and founder of business psychology consultancy, Pearn Kandola, has called for business leaders to tackle the problem head on by assessing the way they assess performance, development and progression.

She said “To address the race pay gap, as well as the gender pay gap, we need to look at the way we assess performance, develop people and provide opportunities for progression.

“There’s a tendency, possibly unwitting, in the workplace for managers to evaluate favourably someone who is like them. Based on superficial characteristics such as skin colour, it is assumed that they will have more in common with someone similar to them. In turn this makes it easier to connect on a personal level and the individual will glean more opportunities for mentorship, to take on more responsibility and to prove themselves.

“Considering that the majority of senior roles are filled by white people, this would suggest that white staff are given preferential treatment and are able to climb the ladder more quickly. For example, research has shown that minorities are less likely to be given timely and accurate performance feedback by managers. This could happen because managers are wary of giving negative feedback for fear of being accused of discrimination, however it could also indicate that the manager’s not as aware or concerned in improving the person’s performance and developing them further. Both have the same impact and can prevent the employee’s earning potential and opportunities to progress.

“Bias can still occur in even the most systematic and formalised of assessment and evaluation purposes simply because people themselves are the problem within these processes, and businesses can be reluctant to confront that fact. None of us is as objective as we believe we are, and none of us wants to believe that we make judgements about people based on their ethnicity. As a consequence, minorities are more likely to be found in roles which have fewer opportunities for progression and which ultimately pay less.”