In today’s competitive job market, it is crucial for companies to tap into the broadest talent pool available. However, many organizations in the UK still neglect working-class candidates. Approximately 50% of large employers actively pursue applicants from disadvantaged socioeconomic backgrounds, and even fewer are successful in hiring and retaining working-class employees.

With around 48% of UK adults identifying as working class, businesses are missing out on a vast number of qualified candidates. The Social Mobility Commission reported that individuals from lower working-class families are three times more likely to work in similar roles compared to those with higher professional parents.

Employing business strategies that promote social mobility could yield significant economic benefits. According to the Sutton Trust charity, improving social mobility within UK companies to align with the average in Western Europe might result in a 9% increase in GDP, which, based on 2016 figures, translates to roughly £2,620 per individual, or a total of £170 billion added to the UK economy each year.

There are signs of improvement in this area. Data from the Department for Education shows that young people from higher professional backgrounds are now only 2.2 times more likely to pursue a degree than those from lower working-class backgrounds, a drop from the 3.9 times ratio recorded in 2014.

Alun Francis, chairman of the Social Mobility Commission, remarked, “It’s not accurate to say that social mobility is deteriorating universally; our country also compares favorably to others. The reality is multifaceted. However, we should recognize the need for better opportunities without the existence of a crisis.”

The commission has pinpointed four key challenges to enhancing social mobility: a lack of public trust, a younger generation facing stagnation in earnings and career advancement compared to their parents, insufficient focus on regional inequalities, and the necessity for more effective and cost-efficient interventions.

So, how can businesses in the UK foster change? The annual Somo Awards, known as the UK’s social mobility “Oscars”, celebrate organizations making strides to support working-class talent.

Founded by Tunde Banjoko, who leads the social mobility charity Making the Leap, these awards recognize businesses and individuals who excel in creating pathways for social mobility.

He stated, “By implementing social mobility initiatives, organizations affirm their commitment to fostering an inclusive workplace where everyone is enabled to thrive, irrespective of their background, and in doing so, unlock the full potential of diverse talents in society.”

This year, participating organizations represent nearly 1.3 million employees across 20 sectors. Although sectors such as finance, law, and professional services contribute to almost half of the entries, submissions from creative fields, media, local councils, and government are on the rise.

Companies such as Sky, Linklaters, Nationwide, KPMG, and PwC are demonstrating varied approaches, from specialized internships to mentorship and skills development programs.

KPMG’s UK chief executive Jon Holt has prioritized social mobility, achieving a 75% declaration rate of employee socioeconomic backgrounds, allowing them to leverage data to enhance diversity, equity, and inclusion efforts.

Nationwide echoes this commitment, serving communities in economically challenged areas. A representative commented, “At Nationwide, we believe that one’s background should not dictate one’s life outcomes. We are committed to equitable advancement.”

A Major Advancement

Integrating social mobility initiatives benefits not just employees and employers, but also the organization’s financial performance. Here are essential strategies from Making the Leap for companies aspiring to be socially mobile.

Data collection: Gather employee socioeconomic information to evaluate workforce diversity. This will highlight where improvements can be made and allow organizations to assess their social impact.

Focus on specific areas: Initiatives should span from broadening access to job opportunities to enhancing retention and career progression. A defined purpose and strategy will facilitate monitoring and reporting on the effectiveness of these initiatives.

Collaborate and seek knowledge: Partnering with outside organizations and charities can extend the reach of initiatives. Learning from those who have successfully advised other businesses can create collective momentum towards advancing social mobility.

Incorporate into ESG frameworks: Embed social mobility within broader environmental, social, and governance policies, along with corporate social responsibility and diversity policies, including concrete and measurable objectives.

Establish social mobility networks: Promote discussion by collaborating with individuals within the organization who have experienced social mobility challenges.

Engage senior leadership: Active involvement from senior leaders is crucial at all stages to set commitments, allocate budgets, and establish targets.

Fostering Opportunities and Workforce Pride

Jennie Colville, head of ESG and sustainability at Landsec, last year’s recipient of the Somo Organization of the Year award, stated, “Our social mobility programs not only create opportunities; they also foster pride among our employees, affirming that our efforts make a tangible difference.”

She elaborated, “We provide internships at Landsec, offering six-month placements for youth from underrepresented socioeconomic backgrounds annually. Since launching the program last year, we have welcomed 15 interns with profound impacts on our organization.”

“Our interactions with the interns taught us valuable lessons about cultivating a more inclusive atmosphere—such as organizing events featuring diverse activities, food, and drink. This initiative has also unveiled new pathways for recruitment. So far, four interns have secured permanent roles with us, leading to career opportunities in our field.”

Workplace Insights

Employee Productivity

A recent survey reveals that UK employees do not start adding value until 11:33 AM on average, with a study by Docusign indicating that staff waste about 12.6 hours per week on tasks that could easily be automated. Consequently, 41% of workers in repetitive roles are contemplating leaving their jobs. Julia Hobsbawm, a future work expert, noted, “An increasing number of employers and employees desire efficiencies that save time while ensuring productive work.”

Leaders and AI Readiness

A growing “AI maturity gap” poses risks to company performance as leaders tend to overrate their organizations’ readiness to integrate artificial intelligence. A report from Multiverse showed that while 61% of executives believe AI is fully implemented within their firms, only 36% of employees agree. Anna Wang, Multiverse’s head of AI, stated, “Due to the rapid technological evolution, many businesses are struggling to gauge their real progress. It’s challenging to comprehend what knowledge is lacking.”

Jobseeker Mindsets

Job candidates exhibiting a “fixed mindset” regarding their skills are less likely to confront job-search obstacles. Conversely, those with a “growth mindset” are more flexible about how their age and experience contribute to their job hunt and often highlight the adaptability of their abilities. Professor Lauren Keating from Emlyon Business School remarked, “It’s not solely your current skills that determine your potential; the belief in your ability to develop them is equally significant.”

Salary Transparency in Media

The media and entertainment industry ranks as the least transparent in terms of salary disclosure, with 84% of job postings failing to list salary information. Overall, about 53% of job advertisements omit salary details, and other frequently opaque sectors include finance at 73% and healthcare at 78%. David Rice from People Managing People emphasizes, “By openly stating the worth of a position, businesses convey their valuation of the role occupant.”

Upcoming Leadership Opportunities

The Cambridge Arts Theatre is in search of a new chair and trustees.

This independent theatrical charity operates nationally to unite audiences in celebrating the power of live performance.

Following a £16 million donation from Lord David and Dame Susie Sainsbury through the Gatsby Foundation, CAT is embarking on a major redevelopment initiative to restore and enhance the theater’s physical premises and develop a new studio space.

The new chair and trustees will provide strategic guidance and governance oversight to ensure effective management of the charity, collaborating closely with the executive team and board to realize its mission while fostering relationships with stakeholders and donors.

Candidates should possess demonstrated experience in leadership roles, a history of successfully raising substantial charitable funds, expertise in governance principles, and prior service on boards or in leadership capacities. Moreover, an enthusiasm for the performing arts and experience in executing capital projects are preferred.

Applications close on Monday, October 21st.