Deloitte publishes 2019 ethnicity pay gap data and its total earnings gap
12 November 2019
Deloitte UK has today published its 2019 ethnicity pay gap data. Deloitte first published its ethnicity pay gap data in 2017 on a voluntary basis, as part of its commitment to transparency and encouraging change.
Deloitte’s mean pay gap is 14.5% (up from 12.9% in 2018) and the median pay gap is 6.7% (7.9% in 2018). The firm’s median bonus gap is 27.7% (25% in 2018) and its mean bonus gap is 42.9% (45% in 2018).
Encouraging change through transparency
Deloitte also voluntarily publishes its total earnings gap based on ethnicity, which takes into account earnings for the whole firm, including equity partners. The mean total earnings gap is 43.5% (decreased from 43.9% in 2018) and the median total earnings gap has increased to 12.8% (from 10.6% in 2018).
In 2017 Deloitte published a target that, by 2021, 10% of its partners would be from an ethnic minority, in line with the Parker Review. It set out that its Executive committee will have at least one BAME member, and each of its business leadership teams will include at least one BAME member.
At the same time, Deloitte’s Executive agreed an ethnicity action plan. This plan set clear actions focused on attracting, developing, and retaining ethnic minority employees. The plan is underpinned by an ongoing focus on ensuring an inclusive workplace culture. Deloitte is now enhancing its ethnicity plan as part of its wider inclusion efforts.
In June 2019, just over 10% of those promoted to partner were from an ethnic minority, demonstrating progress. While people from an ethnic minority made up 25% of Deloitte’s overall workforce in April 2019, only 6% of partners and 11% of directors (the grades attracting the highest levels of remuneration) are from an ethnic minority.
Dimple Agarwal, managing partner for People & Purpose at Deloitte UK, commented: “Deloitte’s ethnicity pay gap is due to the lower proportion of ethnic minority people holding the most senior positions within the firm, an issue that we are continuing to address.
“We believe that transparency, combined with targeted action and engagement in the public debate around inclusion, can make a real difference in tackling some of the challenges we face around diversity. We want to ensure the firm is representative of the society in which we operate and the clients we serve.
“Since 2017 we have had a dedicated ethnicity action plan to address this imbalance. Meaningful and sustained change takes time but we are starting to see the results of some of our actions. This year we’ve seen a rise in the proportion of ethnic minority promotions at partner level and an increase in the number of ethnic minority students applying to join our firm – both encouraging signs that our actions are starting to have an impact.”
Aspirations and actions
Last year Deloitte piloted a reverse mentoring programme, pairing junior women and employees from an ethnic minority with partners from a different business area. The pilot programme received very positive feedback and the programme has been doubled in size in 2019 and also extended to LGBT+ employees.
Agarwal concludes: “Today’s pay gap report shows that we still have some way to go and that’s why we are fully committed to providing an inclusive working environment, alongside targeted actions to help achieve the balance and diversity of thought we want to have in our firm.
“We are proud to have been one of the first organisations to sign the Race at Work Charter developed by the government and Business in the Community (BiTC) in October 2018 and to have contributed to the government consultation on ethnicity pay gap reporting.”
Notes to editors
Deloitte continues to focus on increasing its disclosure rates, in particular amongst new joiners to the firm, in order to ensure that its calculations are reflective of the whole organisation and we can better track year-on-year trends. Over the past quarter, we have worked with leaders across the firm to encourage our people to disclose their personal data, whilst helping them understand the benefit and impact this information can have to support our efforts for greater parity.
Ethnicity action plan
Deloitte is monitoring its pipeline of future ethnic minority leaders, reviewing all promotion and reward decisions from an ethnicity perspective, has established a BAME Advisory Council to feed into the firm’s strategy, and identified development opportunities both within and outside of the firm (including through external mentoring programmes).
We are proud to have a number of our people recognised for the work they do to support BAME colleagues, including UK Chairman Nick Owen who was named top Advocate Executive at this year’s EMpower Awards.
Deloitte has been recognised for the steps it has already taken to ensure that there are no barriers to its people progressing within the firm. Deloitte was one of the first organisations to sign the ‘Race at Work Charter’ developed by the government and Business in the Community (BITC). It was also listed as one of BITC’s ‘Best Employers for Race’ for the second year running and as a ‘Top 10 Employer’ at the Investing in Ethnicity Awards 2018.
How the data is calculated
The ethnicity pay gap, not to be confused with the issue of equal pay, shows the difference in the average hourly rate of pay between Black, Asian and Minority Ethnic (BAME) and non-BAME employees and is expressed as a percentage of average non-BAME earnings.
What is a ‘median’ calculation?
The median is the figure that falls in the middle of a range when the wages of all relevant employees are lined up from smallest to largest. The median gap is calculated based on the difference between the employee in the middle of the range of BAME wages and the middle employee in the range of non-BAME wages.
What is a ‘mean’ calculation?
The mean is calculated by adding up the wages of all relevant employees and dividing the figure by the number of employees. The mean ethnicity pay gap is calculated based on the difference between mean BAME pay and mean non-BAME pay.
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