Following on from the Parker Review on ethnic diversity at board level (see the article from our November newsletter here), in late March the McGregor-Smith Review on race in the workplace generally was published. The Review notes BEIS analysis which estimates that the potential benefit to the UK economy from full representation of Black and Minority Ethnic (BME) individuals across the labour market would be £24 billion per year, representing 1.3% of GDP. It goes on to make 26 detailed recommendations to improve diversity within organisations. Most of these are directed at employers and include:
- listed companies and all businesses and public bodies with more than 50 employees should publish five-year aspirational targets and report against them annually
- listed companies and businesses with more than 50 employees should publish a breakdown of employees by race, ideally by pay band, on their website and in the annual report
- businesses with more than 50 employees should identify a board-level sponsor for all diversity issues, including race, who should be held to account for the overall delivery of aspirational targets. To ensure this happens, Chairs, CEOs and CFOs should reference what steps they are taking to improve diversity in their statements in the annual report.