Unintended consequences of disability pay gap reporting

According to a study by the Business Disability Forum, mandatory disability workforce reporting and pay gaps could have unintended effects for disabled employees.

In its report, Towards meaningful disability workplace and pay gap reports it found that, while the intention behind reporting the disability pay gap is good, reporting the pay gap on its own will not result in meaningful changes for disabled workers at work.

Yesterday (18 March), the government announced a Consultation on the mandatory reporting of ethnicity and disability pay gaps. Employers with 250 employees or more would be required to report pay gaps in the same manner as they do for gender pay gaps.

The BDF warns that mandatory reporting may lead employers to refuse requests for reasonable accommodations, such as a decrease in hours, so that their disability pay gap does not increase.

One employer said that it refused to make adjustments, such as job carvings (redesigning roles around someone’s specific needs) or reduced working hours because they would impact its disability pay gap.

Researchers found that employers and disabled employees are less likely to support mandatory reporting because they don’t think that the data collected will be useful or that it is the right kind of data that can make a meaningful change in work.

In the same way, organisations that are proactive in adjusting workplaces or providing flexible work options for disabled employees report a decrease in the number of employees who disclose their disability. Employers who have good processes do not need to be aware of an employee’s disability. They only need to know what the employee finds difficult.

According to one employee who responded to the research, inclusion appears to be “double-edged”. Do we need to declare a disability in order to be included? “Employers should be nice to everyone.”

The BDF also noted that employers could be required to report disability in four different ways, with each having its own requirements. Many already do so under existing obligations, such as the Public Sector Equality Duty.

The report concluded that disability pay gaps are not about the amount disabled people earn but rather why they make what they do. The research showed that disabled employees often wanted to earn more and work more, while others preferred to manage their disabilities.

Angela Matthews is the director of BDF’s public policy and research. She said, “At first, it seems like a simple thing to do and that reporting on disability workforces should be mandatory. Our research shows that reporting numbers alone won’t achieve greater inclusion of disabled people at work and in the wider labor market.

“Worse yet, such reporting could even come at a cost of inclusion. Both disabled employees and employers have expressed concerns over the unintended effects of current proposals.

“Meaningful disability workplace and pay gap reports must measure the experiences of disabled workers in the workplace. They cannot just give a snapshot on how many disabled employees were employed and what they earned at a particular time.

We urge the government to consider our recommendations and findings as they implement their plans.

The BDF recommends to the government that:

• Recognizes that employers and employees are both responsible for mandatory reporting. It advises that “reportable figures” are not the number of disabled workers in a workplace, but how many have told their employers they are disabled.
• Check that the proposal does not discourage employers from expanding or implementing disability employment programmes, “job carving” initiatives or other measures to reduce their pay gap.
• Employers can submit a narrative along with their data to show the story behind them. This will allow businesses the opportunity to share best practices and tell what they are planning to do to improve the inclusion of disabled people.
• Be sure to ensure that your reporting requirements include both hourly pay and hours worked. This will allow you to consult with your employees about their satisfaction with the hours they’re working.
• Explains what it will do to employers who engage in practices that cause disability people to have a bad experience.

Consultation on mandatory reporting of ethnicity and disabilities pay gaps closes 10 June.

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