Whilst we await the formal Bill being published, the UK Government has outlined plans to require organisations with 250 or more employees to report their ethnicity and disability pay data in additional to gender pay data. This is an important area to address, with recent statistics by Equality and Human Rights Commission showing not only is there a barrier to obtaining meaningful employment, but once employed the average disability pay gap is 13.6%. Further, those from minority ethnicity groups are also, on average, found to be significantly underpaid.

In this blog post HR Optimisation shares our 5 top tips for addressing the practical and cultural challenges which may arise from expanded pay gap reporting requirements.

1. Embed data collection into existing HR processes

Accurate data is the foundation for identifying and closing any workplace pay gaps. But meaningful diversity, equity and inclusion (DEI) strategies must move beyond spreadsheets and translate into real action.

Integrating data collection into familiar HR processes — like talent acquisition, onboarding, annual reviews, engagement surveys, and employee resource group (ERG) activities — can encourage greater participation. When employees see data collection as a normal part of the employee experience rather than a separate initiative, they are more likely to engage and disclose information confidently.

The goal is to create a culture where sharing data feels safe, respected, and clearly linked to action rather than inaction.

2. Ask the right questions, in the right way

The way you frame your questions can have a major impact on the quality of the information you receive.

For example, asking a simple yes/no question like “Are you disabled?” may not capture the nuance you need. A more thoughtful approach — such as “Do you feel disabled?” or offering a list of conditions for employees to select from — can lead to richer, more meaningful data.

Make demographic questions mandatory where possible, but always include a “Prefer not to say” option to respect personal choice. Be cautious with offering “Other” as a category, which some may find marginalising.

Also consider how and where you ask these questions, especially in diverse working environments where some employees may be desk-based, remote, or onsite but deskless.

3. Share the findings transparently

One common employee frustration is the feeling that once they submit data, they never see the outcomes.

Make your findings easily accessible and clearly communicate where employees can find them. Importantly, translate complex data into formats that are easy to understand — infographics, videos, or even short animations can bring insights to life and make the results more relatable to everyone, not just the data-savvy.

Transparency reinforces trust and shows employees that their input leads to visible results.

4. Share accountability for action

Collecting and reporting data is only the starting point. Progress in closing pay gaps will only happen when organisations back up reporting with committed, strategic action.

Responsibility for progress shouldn’t fall solely on HR teams. Instead, create cross-functional ownership by involving DEI leads, senior leaders, communications teams, and ERG representatives. A collaborative working group can bring diverse insights into the review process and help shape realistic, impactful action plans.

When accountability is shared across the organisation, pay equity initiatives become stronger and more sustainable.

5. Build allies, educate and communicate

Driving real change means building allies — including among majority groups who might initially view pay gap work as threatening to the status quo.

Senior leaders can be powerful advocates by openly discussing these issues and sharing their personal reflections. Visible leadership support reinforces the importance of pay equity initiatives across the organisation.

Finally, focus on ongoing education and creative communication. Tailor your messaging to different segments of your workforce and use a variety of channels to keep the conversation alive. When employees see consistent, thoughtful storytelling and engagement, they are far more likely to buy into the journey.

To learn more about how we can help you in your DEI strategy and pay gap reporting, get in touch with us today on hello@HROptimisation.co.uk