The UK marketing industry, celebrated the world over for its creativity and innovation, harbours a troubling little secret: a significant pay gap that disproportionately affects ethnic minorities. Darain Faraz, co-founder, Braver/People Like Us, discusses what the industry's game plan should be.

 As the world undergoes dramatic and worrying changes, the push for greater honesty and equity in our industry (and beyond) has never been more urgent. 

The King’s Speech in July brought some potentially game-changing news. The government plans to introduce mandatory ethnicity pay gap reporting for employers with more than 250 employees through the draft Equality (Race and Disability) Bill. This bill aims to enshrine equal pay for ethnic minorities and people with disabilities, making it a legal requirement. Employers, consider this your wake-up call to start preparing for these changes now. 

At People Like Us, we’ve been pretty vocal about the systemic biases that people who look like me face in the workplace. Our advocacy, alongside many others, has been crucial in pushing for this legislation. Mandatory ethnicity pay gap reporting would be a huge step forward, forcing businesses to scrutinise their pay structures and rectify inequity when it comes to representation.

The Stark Reality: Pay Gaps and Whitewashed Agencies

Let’s talk numbers. An ethnicity pay gap means there’s a difference in average earnings between ethnic groups within an organisation. And that is of course, for those agencies that even have ethnic minorities in their ranks; Research last year from Hallam and The Agency Collective  revealed a shocking stat: nearly half (43%) of UK marketing agencies are still 100% white, up 4% from the year before. In a country where around 18% of the population is from an ethnic minority background, and in London (where huge swathes of our industry is based) that shoots up to around 46%, this is unacceptable. How can we create effective marketing if our industry doesn’t represent the audiences we’re trying to reach? 

Marketing Week's 2024 Career & Salary Survey adds insult to injury. It shows that marketers from ethnically diverse backgrounds earn on average 8.5% less than their white counterparts, despite a slight improvement from the 10.3% gap in 2023. This persistent pay gap not only affects financial well-being but also damages job satisfaction and overall morale. 

The introduction of gender pay gap reporting in the UK has shown us the power of transparency. Companies that addressed their gender pay gaps saw improved workplace culture and better recruitment and retention rates among female employees. Whilst it's not like for like, our experience on gender pay gaps suggests that tackling pay disparities head-on can lead to more inclusive environments, better business performance, and a better sense of belonging for employees.

Taking Action: Steps for Employers

So, what’s the game plan? As we gear up for mandatory ethnicity pay gap reporting, employers need to get their houses in order. Here’s how:

  1. Collect Accurate Data: Establish systems to accurately collect and categorise ethnicity data. Make the process transparent and encourage voluntary disclosure through clear internal communications. Building trust is key.
  2. Review and Analyse: Clarify your objectives, whether conducting a full pay audit or analysing pay gap figures by specific groups. Collaborate with an external consultancy for a robust framework and involve a diverse team to ensure fairness.
  3. Develop Action-Based Plans: Use the data to develop comprehensive action plans. By addressing disparities, you can enhance your reputation, improve employee satisfaction, and drive better business outcomes.

And let’s not forget the joy and benefits of having diverse perspectives in a marketing team. Learning about lived experiences and gaining genuine insights into different communities leads to better creative work and fewer brand-damaging mistakes. Plus, a diverse team means happier employees who can focus on their work without worrying about pay disparities or job progression.

Addressing these disparities and creating a more inclusive environment should be an urgent focus for us all. It's almost 2025, it's important not only to create a fairer and happier workplace, but to avoid reputational damage among an increasingly diverse workforce when reporting on it becomes mandatory. And let's be honest, how can we hope to effectively reach audiences we don't understand properly? The most successful businesses will be the ones that tackle this head on, and early.

Darain Faraz, who'll be writing a regular column for MAD//Insight, is a seasoned Marketing & PR leader with impressive stints at MySpace (remember them?), WWF, and most recently he was International Brand Marketing Director during his successful 11-year tenure at LinkedIn.

Since then, he co-founded Braver, a talent consultancy reshaping the UK Marketing & Communications industry since 2023. Braver champions diversity as a core asset, striving to create inclusive environments where varied perspectives, such as ethnicity, socio-economic background, sexuality and neurodiversity, thrive. Braver’s mission is to recognise the value in diverse thinking and foster truly representative workforces. Darain also co-founded People Like Us in 2019, a not-for-profit supporting UK professionals of Black, Asian, Mixed Race, and minority ethnic backgrounds in media and communications. The organisation offers networking events, career support, and advocates for fair pay and inclusivity.