The UK government has commissioned research into what steps employers have taken to remove barriers to workplace progression for ethnic minorities. The results of this research will be used to assess progress made by employers on recommendations in the McGregor-Smith review into black, Asian and minority ethnic (BAME) participation and progression in the workplace.

The review, which was published in March 2017, found that found that employment rates for people from BME backgrounds are 12% lower than their white counterparts at 62.8%, with just 6% reaching top-level management positions. It was estimated that this was costing the UK economy the equivalent of 1.3% in GDP a year while giving BAME people the same opportunities as their white colleagues would benefit the economy by £24 billion-a-year. The review also called on companies with more than 50 employees to publish a breakdown of their workforce by race and pay band.

The findings of the research, to be carried out by the charity Business in the Community (BITC), will show what action employers are taking to prevent bullying and harassment of BAME people in the workplace and whether companies report their ethnicity pay gap. The government said this would help to establish whether any further action is needed to ensure workplaces are inclusive.

The government said the one-year-on review is part of its industrial strategy’s ambition to help businesses create better, higher-paying jobs and ensure people from all backgrounds can be successful in the workplace.

Business Minister Andrew Griffiths said: "It is unacceptable that people are being held back in the workplace because of their ethnic background – we want to make sure that the economy works for everyone, so people have the same opportunities to progress and can achieve their true potential.

"This new research will establish what steps employers have taken to haul down workplace barriers and harness the talent of a diverse workforce, helping us to assess if further action is needed. I would like to thank both Business in the Community and Baroness McGregor-Smith for helping to shine a light on this important issue."

Meanwhile, Lloyds Banking Group has announced it will set a public target to increase the representation of BAME colleagues in senior management positions. The bank said this target was the first of its kind to be set by a FTSE 100 company.

Currently, LLoyds said 10% of its customers are from a BAME background and it is the company's long-term ambition to accurately reflect the customer base it serves. With the BAME population currently under-represented across UK companies, Lloyds said it is working to remove barriers for talented BAME colleagues to help create a truly inclusive workforce.

Lloyds aims to increase representation of BAME staff to 8% of senior management and, additionally, to 10% of the total workforce by 2020. Currently, 8.3% of all colleagues and 5.6% of senior management are from a BAME background. This compares to 12% of the UK labour force and 14% of the UK population. The new target has been incorporated into the Lloyds 2018 Helping Britain Prosper Plan.

Fiona Cannon, Lloyds director of responsible business and inclusion said: “What gets measured gets done and we are confident we can meet our diversity goals with the right focus and determination. We recognise that companies with diverse management teams perform better and have made a public commitment to create a truly inclusive workforce. It is our ambition to better reflect the customers and communities which we serve."