It's clear that socioeconomic background (SEB) is an influential factor on work outcomes. But the story is more complex, meaning any initiative to address social mobility requires careful consideration, research and understanding. SEB is not currently a UK protected characteristic and there is no one clear way to measure it (the Office for National Statistics and UK Government has four official measures – parental occupation, parental education, type of school attended and free school meals recipient – and recommends employers use all of them when collecting data).
The CIPD has been working with leading researchers in the field (including Professor Mark Williams at Queen Mary University of London, Professor Marco Guerci at University of Milan and Professor Sven Hauff at Helmut Schmidt University, Hamburg) to explore the interplay between SEB and job quality and outcomes. We also brought together practitioners from a range of organisations to discuss the practical implications of the research and hear what they’ve been doing to move the dial on social mobility and the challenges they’ve had.
Socioeconomic background has direct influence on job outcomes
Professor Mark Williams analysed data from the CIPD Good Work Index to answer the question of how socioeconomic background plays out in job outcomes and what aspects of job quality does it predict most strongly. His analysis showed that SEB has a direct influence on job security, benefits, development opportunities, job control and autonomy and relations with colleagues, with those from a higher SEB enjoying higher rewards from all of these. The biggest influence remains on pay.
Professors Guerci and Hauff’s research used the same CIPD data to explore whether traditional HRM practices could boost social mobility, or work to its detriment by disproportionately helping those from more privileged backgrounds. They found some differences, including that for workers from lower SEBs, training is less beneficial and high workload more problematic. The data also suggests those workers from lower SEBs are likely to find job insecurity more detrimental to their mental wellbeing and would benefit more from indirect voice mechanisms like employee representation.
Lutfur Ali, Senior Policy and Practice Adviser for the CIPD, stressed that “people professionals need to ensure HRM practices are debiased and positively enable people from lower socioeconomic backgrounds to secure equality of outcomes throughout the employee lifecycle. It is vital that SEB is an integral part of EDI and people strategies and in turn business priorities”.
One area to consider in more detail is training – people from a lower SEB may benefit from additional or different training opportunities, or guidance and coaching in how to make the most of these opportunities. Given the research suggests employee representation supports social mobility, employers should also make sure they have robust processes to allow this, such as through trade union recognition.
Employer perspective: social mobility in action
The CIPD also convened a range of employers to discuss social mobility over two roundtables where they shared practical tips on how this can be improved in the workplace:
Look beyond entry-level. Social mobility efforts can often focus on improving young people’s access to work. But it’s equally important not to neglect other stages of people’s working lives. As the research shows, SEB can impact outcomes throughout the employee lifecycle and employers should broaden their focus to consider and address equality of outcomes at every stage.
Think about progression routes. Linked to the above, offering employees a clear map and pathways to progression can demystify opportunities within the organisation. Collect data so you know the SEBs of people at every level. Professional services firms PwC and KPMG both shared that they have higher levels of SEB diversity at partner level than a few levels below. This may suggest that people don’t feel comfortable declaring their background until they are in a more senior position. Or it may suggest the routes to seniority without formal qualifications have reduced in the recent past.
Embrace the power of storytelling. “You can’t be what you can’t see” is a common maxim in EDI circles, which is as true for those from different socioeconomic groups as for those with protected characteristics. “Use stories to raise the profile of social mobility,” advised one participant, and encourage people from diverse backgrounds who have senior and visible jobs to act as role models and mentors. This can be a powerful way to encourage others and make them feel seen.
Reduce barriers to entry. Think about how people can access roles within the organisation at any stage of their career journey. PwC shared how it had significantly reduced academic barriers to entry for a newly opened office in Bradford, which led to positive SEB diversity outcomes. Within the Ministry of Justice, requirements for GCSE qualifications have been removed and there is a focus on interviewing to uncover passion rather than skills. At the Met Office, work experience policies changed to introduce virtual week-long placements accessible to anyone aged 13-18 and shortening in-person placements to between two and three days. Doing this helps the organisation host more people and reduces the cost and travel burden (or time away from caring responsibilities) for those doing the placement.
Use the data. Different organisations are at different points on their social mobility journey, with some having collected and disclosed SEB data for years and others only just getting started. Challenges around collecting data include not knowing which metrics to use (employers, charities and education establishments often use different ones, adding an additional layer of confusion), explaining why you are asking the question to employees, and the ability to ask multiple questions in demographic surveys (employers may be limited to just one). But collecting data is critical and should be used to inform any organisational decision-making, for example, how a restructure or downsizing will affect your SEB statistics.
Don’t neglect qualitative data. Numbers matter but so does more qualitative data, such as survey, focus group or interview data that could provide unexpected insight into culture and why people from different SEBs may choose to join or leave your organisation. For example, qualitative data provided PwC with insight into conversations that might have unintentionally made some feel excluded, and led to it introducing optional advances on first-month salary for new joiners to help plug financial gaps.
Use mentors and networks. Mentoring is a powerful tool, as are employee networks. But providing clear structure around such interventions is required to ensure people from all backgrounds feel comfortable and know how to engage with them. Providing space for intergenerational conversations and networks can also help provide psychological safety and the opportunity for people to connect, learn and share from each other.
Everyone has the right to equality of opportunity and outcomes. Social mobility can be complex to put into effect, but by carefully considering how SEB can affect different points in the employee lifecycle, employers and people professionals can address this critical area of EDI.
By Katie Jacobs