McKinsey Institute for Black Economic Mobility

Race in the UK workplace:

The intersectional
experience
Despite meaningful progress, achieving workplace equity has proved chal-
lenging. Addressing intersectional communities—such as Black, Bangladeshi,
and Pakistani women—could yield far-reaching benefits.

This article is a collaborative effort by Sundiatu Dixon-Fyle, Klaudia Gegotek, Tania Holt, Tunde Olanrewaju,
Dara Olufon, Nyasha Tsimba, and Ammanuel Zegeye, representing views from the McKinsey Institute for Black
Economic Mobility.

© Hiraman/Getty Images

June 2023
 Many organizations have risen to the challenge of
understanding their progress in championing racial
equity and supporting the advancement of diverse
workers. However, they have found fair and equitable
progress hard to achieve—in part because the needs
of different groups vary considerably and must be
reflected in diversity initiatives. Our research found
Black, Bangladeshi, and Pakistani groups (hereafter
referred to as “BBP,” the focus of this article) in the
United Kingdom were the furthest behind on pay
and labor force participation.1 For example, in 2019,
BBP individuals earned 15 to 16 percent less than
White British workers. In contrast, Indian and Chinese
workers earned 16 and 23 percent more, respectively,
than White workers.
Additional McKinsey research highlights the
difficulty in achieving progress across the board. We
identified 80 UK companies that have higher-than-
average female or ethnic-minority representation in
executive teams when factoring in other dimensions
of diversity beyond color.2 Two-thirds of these
organizations have successfully and impressively
elevated female representation, but only 50 percent
have achieved high ethnic-minority representation.
This suggests UK companies struggle to
simultaneously achieve gender and ethnic diversity
(Exhibit 1).
This outcome is particularly notable for workers
who fall at the intersection of gender and ethnicity,

1
For more on the stark differences between the various ethnic minority groups, see Tera Allas, Marc Canal, Dame Vivian Hunt, and
Tunde Olanrewaju, “Problems amid progress: Improving lives and livelihoods for ethnic minorities in the United Kingdom,” McKinsey,
October 15, 2020.
2
Sundiatu Dixon-Fyle, Kevin Dolan, Dame Vivian Hunt, and Sara Prince, “Diversity wins: How inclusion matters,” McKinsey, May 19, 2020.

Exhibit 1

Two-thirds of companies have high female representation, but only 50 percent

have high ethnic-minority representation.

Companies maintaining higher-than-average representation of given group in executive levels

for past five years

Women

66% of companies

17% Both women and ethnic minorities

50% of companies

Ethnic minorities

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2 Race in the UK workplace: The intersectional experience

 ‘As we expanded our operations, we quickly realized that two communities, Black and
Bangladeshi, face very different issues and will need a different approach. The Black girls
we were supporting mostly struggled with lacking confidence and mentorship, as well as
limited resources due to an upbringing in impoverished areas. The Bangladeshi girls often
faced more of a cultural challenge: they are expected to become moms and care for a family,
and therefore their careers were not prioritized or encouraged as much at home.’

–E xecutive of a London-based organization focused on uplifting youth of

ethnic minorities and kick-starting their careers

such as BBP women. Our research found that
BBP women are at the greatest disadvantage on
key metrics of workplace equality compared with
all other ethnicity and gender combinations—for
example, Chinese women and White British men
(Exhibit 2). In essence, the effect of the progression
barriers may be compounding for individuals with
multiple “identities.”
Addressing the challenges BBP women face in the
workforce will require more-targeted actions but
could yield far-reaching benefits to companies and
the economy (see sidebar “About the research”).
According to McKinsey research, organizations
with robust ethnic-minority representation in
leadership teams are 33 to 36 percent more likely
to outperform their peers on profitability.3 Further,
our analysis shows that closing the pay gap could
translate to a 30 percent increase in the average
BBP woman’s annual salary.
Exploring participation and pay
of BBP women of different ages
In this article, we focus on understanding why BBP
women of different ages experience large and
varying unconditional pay gaps (the difference in
median hourly earnings between ethnic minorities
and White workers, without controlling for factors
such as education) compared with White British
men (Exhibit 3). The unconditional pay gap is quite
different from the conditional pay gap, which
assesses pay differences of workers in the same job,
for example. The unconditional pay gap is largely
driven by two key factors: a person’s occupation and
the level of seniority a person achieves. For instance,
a 40-year-old senior partner at a global law firm is
likely to earn a lot more than a 40-year-old junior
teacher in a public school. While we uncovered
some encouraging findings, particularly for younger
BBP women, the overall picture for BBP women
is mixed.

3
The 2020 data set included 1,039 companies in 15 countries. For more, see “Diversity wins: How inclusion matters,” May 19, 2020.

Race in the UK workplace: The intersectional experience 3

About the research
Our analysis relied on several data
sources, which we augmented with
proprietary research in the form of surveys
and in-depth interviews. For the purposes
of this report, we define “Black” and
“White” as follows:
Black: Black African, Black Caribbean, or
mixed race including Black
White: White British
UK Annual Population Survey
Most of our analysis is based on data
from the Annual Population Survey (APS)
spanning 2012 to 2022. APS is an ongoing
household survey in the United Kingdom
that explores socioeconomic variables
at the local level. It is the recommended
government data source for labor market
analysis, collecting comprehensive
information on the UK population’s
employment, unemployment, and
economic inactivity status.
For the analysis, we focused predominantly
on ethnic-minority participation in the
labor market, assessing it by age, gender,
occupation, and sector, as well as the
reasons behind economic inactivity.
Because this article focuses on career
progression within traditional employment,
our statistics do not include the self-
employed population unless stated
otherwise. For the wider BBP population,
our calculations are likely to underestimate
the segment’s total workforce, given
that a significant proportion of the BBP
population is self-employed.
4 Race in the UK workplace: The intersectional experience
In line with recommendations from the UK
Office for National Statistics, we applied
the appropriate person and income
weighting when analyzing data on ethnic
minorities to ensure the survey samples
are representative of the UK population.
Still, because the sample size is about
320,000 and some ethnic-minority groups
are smaller and might be living in areas
that are harder to reach, we expect BBP
workers to be underrepresented in
the sample.
Survey
Few sources are able to collect data on
the career progression of workers, mostly
because it is a highly individualized
experience. To approximate the
experiences of the BBP population in the
labor market, we conducted a survey of
2,758 respondents across all ethnicities,
with an additional boost for the BBP
population. The survey collected basic
demographic data and participation
variables and delved into the experiences
of individuals with job applications,
interview feedback, support in promotions
and career ambitions, and pay and
bonuses. Similar to the APS, the potential
shortcoming of the survey is the limited
ability of the sample size to represent the
UK population accurately.
Interviews
To obtain a view on the lived experiences
of BBP women and provide a preliminary
assessment of the field-tested diversity,
equity, and inclusion (DEI) solutions, we
conducted interviews with nearly a dozen
HR executives and everyday workers who
agreed to share some of their experiences
and lessons learned on DEI efforts. While
the number of interviews is insufficient for
us to draw any conclusions, the interviews
added a real-world dimension to
our analysis.
Future of work
We drew on The future of work after
COVID-19, a McKinsey Global Institute
report, to estimate the opportunity or
risk from trends, including remote work,
digitalization, and automation.1 The report
examines aspects of the postpandemic
economy—the future of work, consumer
behavior, and the potential for a broad
recovery led by enhanced productivity
and innovation—across eight countries,
including the United Kingdom. The report
was published shortly after the pandemic,
so some of the trends, especially those
affected by the economic recovery of the
past two years, may diverge from
our findings.
Green Park Foundation senior
representation data
We would like to thank Green Park
Foundation for sharing its data on
senior representation in the FTSE 100.
Green Park’s capabilities enable the
organization to identify the ethnic and
gender backgrounds of FTSE 100 senior
teams. We used Green Park’s data to
estimate the number of BBP women in
these senior teams.
1
“The future of work after COVID-19,” McKinsey Global
Institute, February 18, 2021.
Exhibit 2

Black, Bangladeshi, and Pakistani (BBP) women are more vulnerable and fare
worse than White women and BBP men across pay and labor participation.

Black, Bangladeshi, and Pakistani women in the United Kingdom vs other ethnic groups, 2022, %
Male Female Top 3 most disadvantaged demographics vs White British men

Other
White Bangla- White ethnic
British Black Pakistani deshi other minority Indian Chinese
Earning more than 31
White British men

20

8
3
1
—

7
10 10
14
17
Earning less than 19
White British men 21
24 23
27

Participation in
78 73 71 64 72 43 72 43 85 79 74 59 84 72 77 60
labor force, %

Total population, 44.4 3.2 1.6 0.6 4.3 3.1 1.9 0.5
million

Note: Pay gap is calculated without controlling for factors driving or explaining the gap. A negative pay gap has reversed relative to the reference population.
Source: UK Office for National Statistics, Annual Population Survey, 2022

McKinsey & Company

Race in the UK workplace: The intersectional experience 5

 Exhibit 3

Younger Black, Bangladeshi, and Pakistani generations are driving

improvements in pay and participation.

Pay gap, 2022, % difference compared with White men

Black women Bangladeshi and Pakistani women

Earning more
than White men

Aged 16–25
11

0 Aged 26–35 Aged 36–45 Aged 46–55 Aged 56–65

7
11

21
25
28 27
Earning less 32
than White men 36

Note: Pay gap is calculated without controlling for factors driving or explaining the gap. A negative pay gap has reversed relative to the reference population.
Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

McKinsey & Company

BBP women aged 16 to 25 are signaling
a new future
The unconditional pay gap has closed for BBP
women aged 16 to 25. Bangladeshi and Pakistani
women earn on par with White male workers in
the same demographic, and Black women earn 11
percent more (Exhibit 4).
When BBP women enter the workforce, they
gravitate toward occupations on the upper end of
the pay scale: the participation of BBP women aged
16 to 25 in the three highest-paying occupations
(managers, educators and workforce trainers, and
health professionals)4 doubled over the past decade,
whereas their participation in the lowest-paying
occupations (food services, customer service, and
agriculture) has declined (Exhibit 5). The largest
increase occurred among health professionals
(such as doctors, nurses, and midwives), where
the representation of young BBP women rose five
percentage points to 7 percent.
The improved outlook for the youngest BBP women
has been shaped by the confluence of several
beneficial factors. More BBP women have pursued
further education, with an increase of 16 percentage
points for Bangladeshi and Pakistani women and
ten percentage points for Black women doing so
over the past decade. As a result, they are more
likely to secure higher-paying jobs upon graduation.

4
Managers include occupations whose tasks consist of planning, directing, and coordinating resources to help organizations and businesses
function efficiently. Most of these occupations require knowledge of and experience with the associated production processes, administrative
procedures, or service requirements. Educator and workforce-training professionals plan, organize, and undertake teaching and research
activities within educational establishments and coordinate the administrative work and financial resources of these establishments. Health
professionals provide medical treatments and diagnoses for people and animals, conduct research into treatment and drugs, dispense
pharmaceutical compounds, provide therapeutic treatments for medical conditions, and administer nursing and midwife care.

6 Race in the UK workplace: The intersectional experience

Exhibit 4

Young Black, Bangladeshi, and Pakistani women now earn as much as or more
than White men of the same age.

Unconditional pay gap1 for Black, Bangladeshi, and Pakistani women vs White men aged 16–25, %
2012 2022

Bangladeshi and Black women Median hourly

Pakistani women wage, 2022

11
Earning more than
young White men

£11.13

1
0

£10.00

Earning less than

young White men
11

Note: Unconditional pay gap is calculated without controlling for factors driving or explaining the gap. A negative pay gap has reversed relative to the reference
population.
1
Calculated as a proportion of the total labor market participation, including only those in traditional employment, aged 16–65. This sample excludes
self-employed groups, accounts for population growth, and reflects the proportion of ethnic groups in the labor market.
Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

McKinsey & Company

‘The good news is that there are a lot of jobs in healthcare and a lot of diversity, at least at
the junior levels. However, it isn’t all rosy—healthcare workers are burnt out after COVID-19.
Many lost loved ones and colleagues, and [we’ve seen] reports of how ethnic minorities were
disproportionately affected.’

–Black African woman, junior-level clinician, healthcare professional

Race in the UK workplace: The intersectional experience 7

 Exhibit 5

Black, Bangladeshi, and Pakistani women aged 16 to 25 are securing more

higher-paying jobs than they were a decade ago.

Change in participation of Black, Bangladeshi, and Pakistani (BBP) women aged 16–25 in
highest- and lowest-paying occupations, proportion of BBP female workers, 2012–22, %

Three highest-paying occupations¹ Three lowest-paying occupations²

47

38

14

2012 2022 2012 2022

Key takeaway Participation of BBP women in 9% of BBP women were lifted out
highest-paying occupations more of the lowest-paying jobs.
than doubled in the past decade.

1
The three highest-paying occupations are managers, educators and workforce-training professionals, and health professionals.
2
The three lowest-paying occupations are food services, customer service, and agriculture.
Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

McKinsey & Company

Our research also suggests that the youngest
BBP workers have greater access to social capital
(knowing family or friends within their industry or
occupation of interest) compared with BBP women
aged 26 and older, and this support helps them
better navigate the labor market.
In addition, our survey of nearly 3,000 UK workers
found that although all age groups considered
having a network one of the most important factors
in securing a job, the youngest generations were
more likely to have this network available to them
(19 percent of BBP women aged 16 to 25) than other
generations (14 percent for ages 26 to 55 and 5
percent for ages 56 to 65).
Another contributing factor—and one more difficult
to quantify—could be the increase in graduate-
recruiting programs aimed at ethnic minorities. For
example, in the 10,000 Black Interns program, more
than 700 British employers have pledged to offer
paid summer internships for talented Black students
and graduates in 2023.5 (To see how BBP men fare,

5
“Participating organisations,” 10,000 Black Interns, accessed May 15, 2023.

8 Race in the UK workplace: The intersectional experience

‘After working for a company for three years and receiving positive reviews of my performance,
I found out I was earning half as much as a White male colleague in the same position as me. I
approached my supervisors and gave the company one year to increase my salary. They did
not, and I left.’
–Pakistani woman, first-level manager, global software firm
see sidebar “The experience of Black, Bangladeshi,
and Pakistani men aged 16 to 25.”)
These gains have often been made in the face of
significant adversity. For instance, BBP women are
more likely to navigate a job search process that is
both opaque and arduous. Analysis of our survey
of UK workers found that, on average, BBP female
job candidates have to send more applications than
White British men to get a job. In fact, 60 percent of
White candidates (both male and female) get hired
after applying to ten jobs versus only 45 percent of
BBP female workers. When BBP women have an
unsuccessful application, they are twice as likely
to be told it was because they were not “a strong
cultural or values fit” with the company compared
with White British men. So even though BBP women
may have the required qualifications and experience,
the differences in their personal attributes—ranging
from religious hair coverings to preferences for
working from home—may trigger instances of bias
and may be synonymous with incompatible working
or leadership styles.
Despite these barriers, BBP women aged 16 to 25
have built early career momentum. The challenge:
how to ensure BBP women can translate these
initial wins into sustained progress.
BBP women aged 26 to 55 grapple with low-
paying occupations and the ‘frozen middle’ effect
Our analysis found that the gains made by
BBP women aged 16 to 25 are not matched by
generations of workers who have been in the labor
force longer. The pay gap starts to grow significantly
for Bangladeshi and Pakistani women aged 26 to
35, a trend that continues for BBP women aged 36
to 55, who face the widest pay gaps of all groups.
Compared with White men, Bangladeshi and
Pakistani women in the 26-to-35 age range earn
27 percent less per hour, and Black women of this
age range fare even worse, earning 36 percent less
per hour. The disparity narrows relative to White and
other minority women (on average, 21 percent for
Black women and 11 percent for Bangladeshi and
Pakistani women).
Multiple factors contribute to the large pay gap for
BBP women aged 26 to 55. Our analysis found that
three factors contribute to the growing disparity
in pay as BBP women continue their careers. First,
unlike the 16 to 25 cohort, BBP women aged 26 to
55 have seen little growth in the concentration of
BBP women in higher-paying jobs. Similarly, there
has been barely any decline in their concentration in
lower-paying jobs (Exhibit 6).
Further, even the 23 percent of BBP women who are
in higher-paying occupations still typically earn less
than their White colleagues. For example, among
health professionals, Black women earn 23 percent
less per hour than White men, and Bangladeshi and
Pakistani women earn 14 percent less.
Last, BBP women are also more likely to
be concentrated in the lower levels of their
organizations, and ethnic-minority women are
underrepresented in managerial roles. In January
2022, the National Health Service (NHS) published
a report on its equality metrics. The data shows
that even though women make up the majority of
NHS staff (69 percent), they are less represented in
Race in the UK workplace: The intersectional experience 9
The experience of Black, Bangladeshi, and Pakistani men aged 16 to 25

Our analysis found that the prospects
for Black, Bangladeshi, and Pakistani
(BBP) men just beginning their careers
are less bright than those of their female
counterparts. A look at two metrics
reinforces their challenges.
Labor market participation for
Bangladeshi and Pakistani men increased
by five percentage points over the
past decade, slightly trailing the seven
percentage points for Bangladeshi and
Pakistani women. Black men improved
by just two percentage points during this
period compared with 16 percentage
points for Black women.1 In addition, young
Black men are struggling with the highest
rate of unemployment: in London, for
instance, they endure an unemployment
rate of 33 percent, compared with 15
percent for young White men.
Regarding pay, BBP men have made
notable progress. Over the past ten years,
young Bangladeshi and Pakistani men
went from trailing the pay of White workers
by 7 percent to earning 5 percent more.
Our research found Black men’s pay gap
with White men narrowed slightly, from 8
percent in 2012 to 5 percent in 2022.
1
This figure is based on McKinsey analysis. For more,
see Voices of the underrepresented, Mayor of London,
October 2020.

Exhibit 6

Black, Bangladeshi, and Pakistani women aged 26 to 55 have seen little

progress in their participation in higher- and lower-paying occupations.

Change in participation of Black, Bangladeshi, and Pakistani (BBP) women aged 26–55 in
highest- and lowest-paying occupations,1 proportion of BBP female workers, 2012–22, %

Three highest-paying occupations¹ Three lowest-paying occupations²

22 23

18
16

2012 2022 2012 2022

Key takeaway Participation of BBP women in the Similarly, BBP women’s participation
highest-paying occupations has in the lowest-paying occupations has
been relatively stagnant. barely shifted.

1
The three highest-paying occupations are managers, educators and workforce-training professionals, and health professionals.
2
The three lowest-paying occupations are food services, customer service, and agriculture.
Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

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10 Race in the UK workplace: The intersectional experience

 senior manager roles (56 percent). Comparatively,
while men make up only 31 percent of all staff,
they make up 44 percent of senior managers,
demonstrating men’s overrepresentation at the
senior manager level.6 This finding exemplifies the
“frozen middle” effect on career progression, or the
inability of some segments of workers to advance
beyond the middle of an organization to its upper
levels. This pattern is similar to our findings for
Black workers in the United States, who encounter
a broken rung from entry-level jobs to managerial
jobs.7
Many obstacles inhibit equitable promotion for BBP
women aged 26 to 55. Our survey points to multiple
factors that combine to slow the advancement of BBP
women. Career development benefits from a strong
support network, but BBP women too often find
themselves without champions in the organization.
For example, mentorship and sponsorship play a
crucial role in accelerating career growth, but less
than 40 percent of newly promoted BBP women
cited receiving support from their direct manager as
a key contributor to their success (compared with 55
percent of White men).
When BBP women seek promotions, they are much
less likely to get feedback on their most recent
unsuccessful application—a gap of 17 percentage
points compared with White men. This may be
why BBP women in our survey are 14 percentage
points less likely than White men to report that their
company’s promotion process is transparent, fair,
and easy.
Ingrained issues drive higher attrition and poor
representation in leadership roles. The lack of career
progression and poorer experiences within a company
increase the likelihood that BBP women, especially
middle managers, will leave their company. A publicly
available internal diversity audit performed by the
Bank of England in 2021 found that ethnic minorities,
including BBP women with the same performance
rating as White women, were 25 percent more likely to
quit their job than their White colleagues.8
While leaving the company may offer BBP women a
short-term benefit or increase in pay, spending less
time in one organization could hinder their chances
of progressing to the C-suite. Our research found
that when selecting executives, UK companies
tend to favor employees who have been with the
organization for an extended tenure. Our analysis of
senior leadership career paths at 100 of the United
Kingdom’s largest employers found that 82 percent
of senior leaders were homegrown talent.9 Because
female BBP workers are leaving their company at the
highest rate of all employees, the odds of BBP women
moving into senior leadership are not favorable.
The lack of career mobility for middle managers and
higher-than-average attrition rates ultimately result
in significant underrepresentation of BBP women in
the C-suite. They make up just 0.3 percent of CEO,
CFO, and COO roles at the UK FTSE 100, compared
with 1 percent for BBP men and 12 percent for White,
Chinese, and Indian women, according to Green
Park data.10

6
Equality objectives and information as at 30 March 2021, National Health Service, January 28, 2022.
7
“Race in the workplace: The Black experience in the US private sector,” McKinsey, February 21, 2021.
8
“Court review of ethnic diversity and inclusion,” Bank of England, July 21, 2021.
9
Based on McKinsey analysis of 200,000 LinkedIn profiles. Homegrown talent is defined as workers who had spent more than the average time
at their company before being promoted to a senior role.
10
Business Leader Index Interactive Data Generator, Green Park, accessed February 2023.

‘I applied to a new company for a role as team manager. I was told that I met the
qualifications, but they were looking for someone who had experience within the company
to be able to manage the team. A few months after joining, they then hired a White woman
from outside the company—with less credentials than me and less experience than me in
the company—as manager and asked me to train her and get her up to speed.’

–Black African woman, junior-level clinician, healthcare professional

Race in the UK workplace: The intersectional experience 11

 Exhibit 7
Black women nearing the end of their careers are more likely to rent than
own their home.
Likelihood of homeownership vs renting, % of women aged 56–65
Rent Own with debt Own without debt
Black women 56
Bangladeshi and
26
Pakistani women
White women 24
Note: Figures may not sum to 100%, because of rounding.
Source: “Household wealth by ethnicity, Great Britain: April 2016 to March 2018,” UK Office for National Statistics, Nov 23, 2020
McKinsey & Company
Persistent disparities lead to unequal
experiences for BBP women aged 56 to 65
These challenges converge to limit the prospects of
BBP women later in their careers, in part because
of lower levels of wealth. Black households have
the lowest accumulated wealth compared with
Bangladeshi, Pakistani, and White households, and
Black workers aged 56 to 65 are the most likely to
be renters rather than homeowners (Exhibit 7). In
addition, pension participation is lowest for workers
in the Bangladeshi and Pakistani (48 percent) and
Black African (59 percent) segments, significantly
trailing White British workers (82 percent).11
At the same time, Black women remain in the
workforce longer. Their labor participation trails
that of White women until midcareer, when
employment rates essentially become even (Exhibit
8). In the 56-to-65 age group, Black women are
overrepresented compared with White women,
who are more likely to have the financial means to
retire earlier. Over the past decade, more White,
Bangladeshi, and Pakistani women of this age group
chose to leave employment for family care (31 and 27
11
Private pension wealth is the value of pension accrued in addition to the state pension. It is an important determinant of the quality of life at
retirement. For more, see “Household wealth by ethnicity, Great Britain: April 2016 to March 2018,” UK Office for National Statistics, November
23, 2020.
12 Race in the UK workplace: The intersectional experience
Median
household
wealth
30 13 £60,000
40 33 £145,500
29 47 £314,000
percent, respectively), while more Black women had
to stay in their jobs longer (an additional 9 percent).
Meanwhile, participation for Bangladeshi and
Pakistani women remains consistently below that of
their Black and White female colleagues, dropping to
around 23 percent in the 56-to-65 age group.
This disparity is also reflected in the pay gaps
observed for the 56 to 65 age group. As Bangladeshi
and Pakistani women retire, their participation drops
to about 20 percent and their pay gap grows to a 32
percent disparity, the highest of all age groups. In
contrast, 59 percent of Black women remain in the
workforce at this age, and their pay gap falls to just
7 percent compared with White men. This pattern
could indicate that the Bangladeshi, Pakistani, and
White groups who can afford to retire or have the
necessary support network exit the labor market.
While the pay gap between Black women and White
men lessens, this is not because Black women are
earning more but rather because the median pay of
White men aged 56 to 65 drops 21 percent from the
highest median pay.
 Exhibit 8

White women retire earlier than Black, Bangladeshi, and Pakistani women
overall, while Black women keep working the longest.

Female employment mid- to end-career, 2022, %

White women Black women Bangladeshi and Pakistani (BP) women

77 78
74
70 72

59

45 47

23

Aged 36–45 Aged 46–55 Aged 56–65

Bangladeshi and Pakistani Employment rates for Black As White women
(BP) women have a lower and White women are similar. start retiring, Black
employment rate than Economic necessity since before women’s employment
White women, while Black the pandemic sent BP women rate becomes the highest
women trail closely behind back into the workforce, though of the groups (59%). BP
White women. their participation has women’s employment rate
traditionally been much lower. drops to 23%.

Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

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Improving outcomes for BBP
workers could be beneficial for
business and society
Previous McKinsey research found the business
case for diversity in executive teams is stronger than
ever. The analysis showed that companies in the
top quartile for gender diversity on executive teams,
and those in the top quartile for ethnic diversity
on executive teams, were 25 and 36 percent,
respectively, more likely to have above-average
profitability than companies in the fourth quartile.
Moreover, we found the greater the representation,
the higher the likelihood of outperformance.12
Uplifting BBP women in the labor market could
therefore have a business and economic impact. A
more equal distribution of all employees across the
economy could help close the two main pay gaps
faced by BBP women: underrepresentation across
occupations (the representational pay gap) and
being paid less for the same roles as White men (the
within-occupation pay gap).13

12
“ Diversity wins: How inclusion matters,” May 19, 2020.
13
This is an illustrative scenario because it would not be practical or possible to redistribute all workers in the UK economy in an immediate way.
We use this scenario to size the “value lost” from lack of fair representation. Our modeling methodology and estimates are drawn from those
in “The economic state of Black America: What is and what could be,” McKinsey Global Institute, June 17, 2021. The scenario calculates the
additional wages generated if BBP workers in the UK economy could reach parity in representation across occupations and in wages earned
within those occupations.

Race in the UK workplace: The intersectional experience 13

 Exhibit 9

Achieving pay and representation parity for Black, Bangladeshi, and Pakistani
women could increase their average annual salary by nearly 30 percent.

Average annual wage of Black, Bangladeshi, and Pakistani (BBP) women, 2022, £ thousand¹

2.0 29.4
4.8

22.7 +30%
Representation
gap3
Within-occupation
gap2 Increase in
women’s wages
+9% at parity

+21%

Current wages Illustrative new

average wages

1
Figures may not sum, because of rounding.
2
Difference between wages going to BBP and White workers within each occupational category. Also includes differences in roles.
3
Potential wages if BBP female representation in this occupation equaled their percentage of the labor force.
Source: McKinsey analysis based on UK Office for National Statistics, Annual Population Survey raw data, 2012–22

McKinsey & Company

The results show that closing both pay gaps
could translate to a 30 percent increase in the
average BBP woman’s annual income (Exhibit 9).14
Of this amount, roughly a third comes from having
equal BBP representation in occupations where
they are currently underrepresented—in particular,
high-paying business professionals and managerial
occupations. Two-thirds derives from BBP women
advancing to higher-paying roles in their existing
occupations or from those in higher-paying roles
being paid the same as White male workers. Beyond
the direct impact of higher income on BBP women’s
purchasing power, there would be other positive
quantifiable effects. Improving the prospects
for women often raises the quality of life in their
communities: women’s spending decisions are more
likely to translate into better household nutrition and
children’s education, for example.15 Further, the Social
Mobility Commission (SMC) noted that reducing child
poverty is one of the influential levers for improving
social mobility, and raising incomes of mothers is an
important step in this direction.16
How UK companies can make progress
on racial equity in the workplace
Addressing racial equality at work is a complex
undertaking that requires the participation of
public and private organizations, policy makers, and
communities. Below, we share four practical actions
executives can take to directly improve the unequal
experiences of BBP women in their organizations.

14
The impact on BBP women’s wages is 20 percent when we change the assumption from being paid the same as White men to being paid the
same as White women.
15
Ayesha Ijaz et al., “Determinants of household’s education and nutrition spending: A gender-based empirical analysis,” Humanomics,
September 2017, Volume 33, Number 4.
16
Nicole Winchester, “Report of the Social Mobility Commission: ‘Social Mobility and the Pandemic,’” House of Lords, November 9, 2021.

14 Race in the UK workplace: The intersectional experience

 ‘Change is about accountability culture. Our CEO installed a committee of senior business
leaders, independent of HR, that is accountable for creating plans and implementing and
tracking progress on diversity and inclusion KPIs. This move has ensured sustainable and
targeted energy behind all of our inclusion initiatives.’
–Global financial-services firm executive
1. Articulate and role model the importance
of intersectionality and diversity, equity, and
inclusion from the top down, and mobilize the
entire organization to advance it
Our experience in diversity, equity, and inclusion
(DEI) strategies suggests that CEOs who continue
to communicate the importance of different forms
of inclusion and diversity and define specific,
quantifiable aspirations for specific segments—for
example, hiring, attrition, and promotion rates for
BBP women—achieve more-significant culture
shifts. As our data demonstrates, it is critical to set
targets within the context of specific populations
(for example, a London-based company should
use demographics for the city’s BBP working-age
population) and incorporate BBP feedback on
the company’s internal DEI goals. The strategy
and progress toward these aspirations should be
communicated and cascaded regularly throughout
the organization.
Further, employees from frontline managers to
senior executives should be enlisted as allies for
inclusion efforts and assessed on their ability to
create inclusive work cultures. Everyone should
be responsible, not just those who are typically
excluded.
2. Strengthen insights through an intersectional
lens to understand the baseline and where the
pain points lie
The specific needs of diverse workers, including
BBP women, can get obscured by those of broader
categories, such as BAME17 or women. Many
organizations will have to adjust their approaches
to data and analysis, collecting ethnicity- and age-
specific data (where regulations permit) to enable
17
Britain’s Black, Asian, and minority ethnic groups.
companies to set targets and develop strategies
at a granular level for each group. Data sources
should include qualitative surveys that examine the
sentiment of workers as well as quantitative data
sets. Analyzing responses with an intersectional
lens—such as Bangladeshi women in managerial
roles—can provide much greater clarity into the
specific challenges for that group.
3. Prioritize initiatives that specifically meet the
unique needs of BBP women
The more targeted the actions, the more effective
they will be in making progress. We recommend
actions against each key barrier from our analysis.
Redesign recruiting efforts to ensure a more
diverse candidate pool, and provide support to
BBP women. BBP women have to apply for more
jobs than White men and are more likely to be told
they are not a strong cultural or values fit. To improve
the BBP talent pipeline, companies can follow two
parallel approaches. First, they can engage an
external recruiting organization that supports BBP
women in job attainment. Second, they can conduct
an overhaul of their current recruitment processes
to identify where the most BBP female candidates
are lost and restructure their processes and
practices. Companies could focus on diversifying
their interview board, reimagining their campus
recruitment strategy, establishing paid internship or
apprenticeship programs that cover transport costs,
and creating upskilling programs, particularly for
women returning to the workforce.
Help BBP women expand their professional
networks. BBP women are less likely to know
someone personally within a company when
Race in the UK workplace: The intersectional experience 15
 ‘Data has been a key enabler for change. It creates transparency throughout the
organization so we can all have a central point of reference, set a high ambition from that
baseline, and track our progress or lack thereof consistently.’
–Global telecom executive
applying for a job. Companies could take a couple
of actions. First, introduce networking events for
potential BBP female candidates, particularly those
who are midcareer, to connect applicants to current
employees who can provide support throughout
the application process. Second, create referral
reward programs, through which existing employees
receive rewards for helping recruit BBP women.
Implement a more transparent, equitable
promotion process. As in the recruitment process,
companies would need to conduct a diagnostic
of when BBP women start to fall behind in the
promotion process. If fewer BBP women are
applying for roles, companies could seek to
improve the transparency of career opportunities
and the criteria to apply for a promotion. If more
BBP women are unsuccessful in their application,
companies could consider diversifying the
composition of review boards and offering training
programs to reviewers to increase the likelihood
of objective appraisals and minimize unconscious
biases. It should also become more routine to
provide actionable feedback to candidates,
capture it within the organization, and better
detect patterns over time.
Enhance the employee experience for BBP
women by elevating inclusion. Creating a sense
of belonging in companies is an art rather than a
science. Companies could hold listening sessions
or conduct regular pulse surveys to understand
what it would take for BBP women to feel they
belong in the organization. Solutions could include
creating different types of employee events so no
one is excluded (for example, evening events are
typically harder for workers with children to attend) or
rethinking the company dress code to accommodate
16 Race in the UK workplace: The intersectional experience
and welcome those who may wear religious clothing.
Workers will look to senior leadership for role models;
if executives dress, speak, act, and celebrate in only
one way, it is harder for workers to feel they have a
future in that company.
Belonging also means having trust in a company
to take strong action—for example, when
discrimination has occurred or pay discrepancies
are detected between BBP women and other
groups. Beyond antiracism statements and
unconscious-bias trainings, companies could focus
on creating channels and forums that allow BBP
women to freely speak about their experiences
and get the right support. These efforts could
include clearly articulating the company’s
values, communicating them throughout the
organization to build confidence in the reporting
system, disciplining workers who don’t uphold
them, and sharing implications for individuals
(on an anonymous basis) who don’t uphold the
organization’s values.
Further, to engender trust in compensation
processes, companies need to create transparency.
Actions could include publishing gender and
ethnicity pay gaps for each group to equip workers
with knowledge and changemakers with a fact base
to pursue change.
4. Enforce rigorous tracking and course
correction while celebrating success
With these elements in place, companies can
focus on regularly tracking KPIs against targets
and publishing progress for accountability and
transparency. KPI data segmented by intersectional
groups can enable companies to analyze how
different groups are progressing as well as the
‘We found when women were trying to advance, they were getting feedback and training
that was too prescriptive of how we wanted our managers to lead. After conducting a
program to identify how different people may choose to show up as a leader, we coached
our promotions committee and senior leaders on how to celebrate variances in leadership
rather than outline strict criteria.’

–E xecutive of a global energy company

effectiveness of initiatives for specific groups. Over
time, companies can use initial results to recalibrate
their programs and interventions, inviting the
affected communities to reflect on these metrics
and help shape the next set of actions.
Amplifying impact through
external interventions
While implementing these four actions, companies
can look to extend their values beyond their
organization to their partners, supply chains, and
communities. For example, a company could
commit to diversifying its supplier base to be more
inclusive of underrepresented business owners or to
partnering with diverse businesses to promote their
products and services.
Executives could also consider providing direct
financial support—in the form of corporate
donations and foundation programs, grants, and
scholarships—to organizations that make a tangible
impact on racial equity. Further, companies could
provide free public goods and services to support
BBP businesses and communities. This strategy
works particularly well when an initiative is a natural
extension of a company’s core business. For
instance, a financial-services company could create
a free program for improving credit scores for loans.
Employers can also play a vital role in improving
the pipeline of BBP women into higher-paying
jobs through industry coalitions. McKinsey’s July
2022 Race in the workplace report found that some
US companies are forming coalitions with other
businesses, local nonprofits, and organizations
in the workforce development sector to better
connect workers to training and sustainable career
pathways.18 By providing a path to employment in
high-potential, high-growth careers, employers can
improve the prospects of BBP women beyond just
their four walls.

18
“Race in the workplace: The frontline experience,” McKinsey, July 30, 2022.

Race in the UK workplace: The intersectional experience 17

 These actions can help unlock further progress for
Find more content like this on the
BBP women, intersectional groups, and, even more
McKinsey Insights App
broadly, every employee. As organizations become
more inclusive, the benefits will spill over into the full
workforce as well as the broader community.
country. Intersectionality, as we have demonstrated,
is not just an academic word: it requires we all do
the work to identify the issues and solutions that
actually move the needle for each group. We are
encouraged by the steps many organizations are
already taking. Now it’s time for companies and
other stakeholders to take it to the next level.

Progress on racial equity in the workplace doesn’t

come easily. It requires deliberate and coordinated
Scan • Download • Personalize
action by stakeholders over a sustained period of
time. Crafting effective interventions for the groups
facing the greatest disparities in UK labor force
participation, pay, and promotion—particularly BBP
women—could have a far-reaching impact on racial
equity in the workplace and communities across the

Sundiatu Dixon-Fyle is a senior expert in McKinsey’s London office, where Klaudia Gegotek and Nyasha Tsimba are
consultants, Tania Holt and Tunde Olanrewaju are senior partners, and Dara Olufon is a partner; Ammanuel Zegeye is a
partner in the San Francisco office.

The authors wish to thank the dedicated team of Moniem Abdu, Efosa Ayanru, Torgyn Erland, Alina Salahuddin, and Eugene
Uhomoibhi for their contributions to this article, as well as Tera Allas, Marc Canal, Veronika Kamplade, Ali Korotana, Kate
Millward, Duwain Pinder, and Alok Singh for their continued commitment to racial equity.
Copyright © 2023 McKinsey & Company. All rights reserved.

18 Race in the UK workplace: The intersectional experience