The voluntary goal of having at least one board member from an ethnic minority has been exceeded by 96 per cent of FTSE 100 businesses and 60 per cent of FTSE 250 companies by the end of 2022, according to The Parker Review.
The Parker Review Committee has commended the progress of FTSE 350 listed companies in increasing ethnic minority directors on their boards in its newly published report titled ‘Improving the ethnic diversity of UK business’.
It has also announced that it is extending its targets for the first time to cover senior management teams and to include some large private businesses as well.
Large private companies and top management teams are now included in the revised targets, which were formerly restricted to the boards of directors of the FTSE 350. This growth is in line with changing demographics: in the UK, ethnic minorities make up around 17 per cent of the population.
Companies are urged to encourage employee self-identification and set goals for the participation of ethnic minorities in senior management.
The Parker Review seeks to improve the competitiveness of UK businesses in diverse marketplaces by utilising the abilities of individuals from minority ethnic backgrounds. Equal job opportunities for ethnic minorities is another goal it aims to achieve.
Barnett Waddingham Pay Gap Analytics Lead Melissa Blissett says: “Employers must not hold back from ethnicity pay gap reporting just because it isn’t yet a legislative requirement. Whilst it’s encouraging that the Parker review found that 60 per cent of the FTSE 250 firms have met the “one by 2024” board target, the review now turns it’s eye to Senior Management Teams.
“Ethnicity pay gap reporting – and analysis of the underlying data within it – is critically important for employers to have the insights they need to ensure an inclusive culture and offer fair opportunity for career progression, such that this extension of targets can be achieved. It’s important to not lose sight of why these targets are in place; securing the best of the best talent into key roles at the very top of British business, to generate better productivity and performance across the UK.”
The Parker Review co-chair David Tyler says: “We are now extending our targets for the first time to cover senior management teams and to include some large private businesses as well. The details of all this are set out in our Report. We believe that extending beyond the initial targets we set in 2017 is timely, six years on, given the progress made in this period and given the increasing representation of ethnic minorities in the UK who now comprise about 17 per cent of the population according to the 2021 Census. We believe too that these new targets will help to enhance the performance of business and the opportunities of ethnic minorities.”
