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Saturday, October 24, 2026

Employee Diversity Reporting: the Requirements, Risks and (potential) Rewards - Lexology

This article is an extract from GTDT Practice Guide: Diversity and Inclusion 2021. Click here for the full guide.

Introduction

Employee data are a valuable commodity. This is not least because such data are needed in order to comply with an ever-increasing raft of legal obligations. Data can also be needed for employers to be able to track progress against metrics introduced in employee remuneration arrangements, including metrics linked to diversity at senior management levels.

Employee diversity data also serve a broader purpose for employers’ diversity and inclusion initiatives. The data enable employers to understand their baseline diversity, develop appropriate initiatives to improve diversity and inclusion, monitor progress against such initiatives, identify potential barriers to progress and select the most effective interventions.

However, in order to make use of employee diversity data, employers need to first be able to collect, store and analyse such data. Employees must also be willing to provide such data in the first place, which relies on there being a trusting and cooperative workplace culture.

This chapter considers current employee diversity reporting initiatives in the UK and likely future developments. It also explores some of the potential conflicts that could arise between different regimes, highlights some of the risks to employers when collating and reporting employee diversity data, and provides some practical tips to manage those risks.

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