By: Eastern Eye Staff
BARCLAYS’ ethnicity pay gap increased in 2022 – despite the bank successfully doubling the number of black managing directors in the UK.
Black employees earned 19.6 per cent less hourly pay than white employees on average in 2022, and 52.8 per cent less bonus pay. The hourly pay gap therefore increased by 0.4 per cent, and the bonus pay gap by 1.2 per cent. In response, Barclays say they’re committed to improving representation and ensuring equal pay for all.
Under-representation to blame
Staff aren’t receiving different pay for the same roles, rather the pay gap is a direct result of under-representation, Barclays say (the majority of their black staff are in junior positions, which have lower hourly and bonus pay rates).
Barclays therefore aims to boost numbers of Black and minority ethnic employees in senior positions. Their “race at work” campaign endeavors to give more jobs to underrepresented employees (including, Asian, black, and mixed race people), bringing the nationwide numbers up by 25 per cent by 2025.
Promoting disability inclusion
Barclays is also dedicated to disability inclusion – around 9 per cent of their employees have a disability of some kind. Their Disability Confident scheme, in particular, ensures potential employees with disabilities are given a fair opportunity to show they can do the job. Indeed, equitable employment opportunities are essential for people with disabilities worldover. In the United States, for example, equitable employment is a key factor that creates a disability-friendly city (along with factors, such as, affordable and accessible healthcare).
Closing the gender pay gap
Barclays is also dealing with a significant gender pay gap. Female employees received 35.9% less hourly pay on average, than male employees, and 67.6 per cent less bonus pay. However, in contrast to the ethnicity pay gap, the gender pay gap closed somewhat in 2022 (the hourly pay gap dropped by 0.4 per cent, while the bonus pay gap dropped by 2.3 per cent).
Since 2017, there’s been a 37 per cent rise in the number of women in senior positions at Barclays – 31 per cent of managing directors and directors at Barclays are now women. Although Barclays is pleased more women are entering senior roles, they acknowledge serious moves need to be made to achieve equality. As such, the bank has set an ambitious goal for the end of 2025: by then, a third of their senior roles should be filled by women.
“Currently, women and certain ethnic groups are underrepresented in senior roles at Barclays”, commented Barclays CEO, C S Venkatakrishnan.
“Being transparent about that, and the pay gaps that result, is important. It helps us track where we are in the pursuit of our goals, and helps us understand what tangible actions we can take to improve representation over time.”
Ultimately, Venkatakrishnan considers improving inclusion essential for the business.
“I am clear that Barclays can only make the long-term progress we are striving for by continuing to build an inclusive culture, where all colleagues feel confident that they can progress in their careers to reach their full potential, regardless of their gender, ethnicity or other protected characteristics,” Venkatakrishnan said.