Just last year, the IFS found social mobility in the UK to be at its worst level in over 50 years. While the roots of this challenge begin as early as pre-school age, inequality of opportunity based on socio-economic background is also a problem in the world of work and one, as business leaders, we must do more to address.
Embracing socio-economic diversity is not just the “right” thing to do; it is also a strategic opportunity for businesses. Our new study with the Centre for Economics and Business Research (Cebr) has found that if just over 15% of unemployed adults (or 232,000 more people) were to be employed through improved work-related social mobility, it could add £16.5 billion to the UK’s annual GDP.
There is a clear need for businesses to be the drivers of change in this space. Improving approaches to social mobility within your organisation – and unlocking the raft of associated benefits, most notably wider talent pools and enhanced employee engagement and retention - will first require some self-reflection to assess possible shortcomings.
Ensuring equitable opportunities are available to all will be a journey for most businesses, but the first step must be a commitment. Once that is in place, there are a raft of tools available to help businesses evolve in a way that aligns with their business priorities. For example, Michael Page’s Social Mobility in the Workplace guide offers advice to help firms plot a course of action for the short, medium and long term.
To enact and sustain a long-term social mobility programme, business leaders should look to:
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Develop impactful Employee Resource Groups (ERGs)
- Establish ERGs that focus on social mobility and other diversity characteristics, providing a platform for employees to share experiences and insights, encouraging a sense of belonging and empowerment.
- Use ERGs as a resource for understanding the unique challenges faced by individuals from different backgrounds and how to form supportive practices within the workplace.
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Adopt a contextual recruitment approach
- Consider the circumstances in which an applicant’s academic achievements or work experience were gained and recognise that conventional metrics may not fully reflect the individual’s talent and ability, given potential barriers they may have faced.
- Embracing contextual recruitment enables employers to identify and access talented individuals who might be overlooked through traditional assessments.
- Instead of relying solely on academic qualifications or previous work experience to show a candidate’s merit, consider task-based interviews that focus on evaluating candidates’ performance and skills relevant to the job role.
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Be transparent
- Clearly outline salary ranges for positions to promote fair compensation processes, regularly reviewing and adjusting salary structures to address pay gaps.
- Communicate promotion opportunities in a clear and fair manner, ensuring that all employees understand the criteria and steps needed for their career progression.
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Offer application support
- Application support that is particularly aimed towards younger people can be valuable for both employer and candidate. This can include advice on what you are looking for from an interviewee, along with guidance on the application process and potential interview questions.
- Consider including contact details of an employee involved in the recruitment process that applicants can get in touch with to ask questions.
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Create education and training initiatives
- Provide inclusive leadership training for hiring managers and employees to promote awareness and reduce unconscious biases. Create leadership development programmes that focus on identifying and nurturing talent from diverse backgrounds for leadership roles.
- Implement programmes that specifically focus on learning and development opportunities for employees from lower socio-economic backgrounds.
A person's socioeconomic background significantly shapes the opportunities available to them throughout their lifetime. Employment can play a key role in empowering people and provide the resources to build better futures for themselves and their families.
While businesses may not be able to solve every societal challenge, they can have a significant influence on driving change. By addressing social mobility in their own workplaces, businesses can help break down barriers to employment and ensure that more people have equal opportunities to succeed in their careers.
In an ever evolving, competitive talent landscape, it is time for businesses to collectively recognise the role they can take in changing the status quo, increasing opportunity and limiting the lack of social mobility that risks stifling burgeoning talent.
