CMI Comments on the Ethnic Pay Gap

The Chartered Management Institute has long been urging employers to address the issues of the ethnic pay gap.

Following Theresa May's consultation on ethnic pay gap reporting, please see below CMI's comment from Ann Francke, CEO, Chartered Management Institute:

We welcome plans to promote greater transparency for measuring and monitoring the ethnic pay gap. Our “Delivering Diversity” report last year showed that Black, Asian and minority ethnic (BAME) people are under-represented in business and especially in top management roles. Around 12.5% of the UK population are BAME yet they hold only 6% of top management positions. This is not just an ethical issue. There is a real commercial value to improving diversity in the workplace: when you have ever-more diverse customers, you need diverse management and leadership to thrive. We have calculated that closing the ethnic pay gap could add £24 billion a year to our economy.

Requiring companies to release their ethnic pay gap statistics will expose which employers are succeeding and which are failing in this area. There is a real commercial value to this: when you have ever-more diverse customers, you need diverse management and leadership to thrive. But transparency is only the first step - we also need actions plans setting out how organisations plan to close the ethnic pay gap.

Ann Francke, CEO, Chartered Management Institute

- Ends -

Notes to editors

About CMI

The Chartered Management Institute (CMI) is the only chartered professional body for management and leaderships, dedicated to improving managers' skills and growing the number of qualified managers.

Our professional management qualifications span GCSE to PhD equivalents, including the unique Chartered Manager award, which increases earning potential and improves workplace performance. We have been registered as an apprentice assessment organisation by the Skills Funding Agency.

CMI has led the way in developing a suite of trailblazing management apprenticeships with a 40-strong group of employers. These start from Level 3 (team leader) and Level 5 (operations manager) through to Chartered Manager Degree Apprenticeship. The Senior Leader Master's Degree Apprenticeship gives employers the option to upskill up to executive and C-suite level. CMI is a Skills Funding Agency-registered apprentice assessment organisation.

We provide employers and individual managers with access to the latest management thinking and with practical online support that helps them to embrace change, create high-performing teams and keep ahead of the curve.

With a member community of more than 157,000 managers and leaders, we promote high standards of ethical practice through our Professional Code of Conduct, and help managers to build their expertise through online networks, regional events and mentoring opportunities.