Social mobility- a common, almost trendy phrase at the moment. But what exactly is it, what does it mean, and how are businesses and the economy impacted by it? All of these are great questions, and the following article will do its best to address them, and provide helpful suggestions for how companies can promote social mobility within their own organisations.
What is social mobility?
The SMC defines it as “the link between a person’s occupation and the occupation or income of their parents. When there is a strong link, there is a lower level of social mobility. Where there is a weak link, there is a higher level of social mobility.” Put simply, social mobility is measured by how different your job is from your parent’s.
Social mobility is often linked in our minds to people from lower socio-economic backgrounds and stories of success from humble beginnings. However, this is not in line with the definition we previously provided, and nor do people from low socio-economic backgrounds necessarily feel trapped by their beginnings. External factors such as friends, family, community, work-life balance, interests and passions are instrumental in determining career paths, and some people may simply choose the same or similar profession as their parents. From this, we can see social mobility is a complex thing to measure and define.
Whilst it would be wrong to assume that all people from lower socio-economic backgrounds have had no choice in where their careers have taken them, it is also important to acknowledge that there are real barriers which prevent there from being a representative workforce. Studies have found that those from these backgrounds are far less likely to work in occupations of higher social status, and perhaps more importantly, earn good incomes.
This is a reason for concern in many ways. Firstly, it is unfair. No one has any control over their birth situation, and for this to be a factor that influences the rest of our lives is wrong. But beyond it being wrong on an individual level, it impacts national economic growth rates, and businesses productivity levels- meaning the effect of low social mobility stretches far and wide. In fact, according to the report done by Demos and the Co-Op, the economic impact of businesses investing in the promotion of social mobility would be up to £19 billion to GDP, generating £6.8 billion in tax revenue and boosting profits by £1.8 billion a year.
So, why should businesses promote social mobility?
Not only is promoting social mobility the right thing to do, it also has enormous impacts on businesses and society as a whole. So what exactly would promoting social mobility do?
- Widen the talent pool
In the current job market, skills shortages are so prevalent, with 62% of businesses claiming there is a skills shortage within their company. Skills shortages also account for over a third of job vacancies. On top of these two practical reasons, businesses will also be able to access untapped talent, allowing them to increase diversity within their organisations.
This diverse talent in the business will see an increase in innovation and productivity as diverse teams bring about a vast array of perspectives and experiences. Don’t just take it from us- when interviewed, 76% of senior business leaders say that promoting social mobility will help attract and retain staff, and 71% say it will help achieve business results.
- The social mobility ‘premium’
Social mobility doesn’t just make sense from a productivity and fairness perspective- it also has a tangible impact on the brand reputation of your business. Not only do employees feel more loyal to businesses which supportive socially mobile initiatives, but customers and clients are also more inclined to consider your product or service. In a recent survey, 29% of respondents said they would be more likely to purchase a product or service from an organisation promoting social mobility, and this figure was even higher for young people at 41%.
It is clear to see that promoting social mobility would have a positive impact not only on the talent a business could recruit, but also on the revenue it could generate. At this point in time, companies are not doing enough in focussing on this vital issue. 29% of employers provide support and focus on mental health, 23% on race and ethnicity and 21% on gender, but only 9% focus on social mobility,
How can businesses promote social mobility?
As we can see from the previous section, promoting social mobility has a real impact on business operations, both internal and external. But how exactly can businesses promote social mobility within their organisations?
- Take a data driven approach
It is only with a clear understanding of the composition of a company’s workforce, that things are able to change. If companies are aware of how many employees are from lower socio-economic backgrounds, they can make a difference in the future.
- Conduct outreach to hire people from less privileged backgrounds.
When promoting social mobility, it makes sense to remove barriers to entry. Outreach programs like reaching out to schools, FE colleges and universities in less privileged areas can help create opportunities for those who might usually be excluded.
- Create accessible routes into the company
Often, people from lower socio-economic backgrounds are not in the financial position to continue their education at university. Apprenticeships at Levels 2 & 3 could open doors to talent at a younger age, and give them routes into careers they may not have been able to pursue. It is also important that apprentices are paid fairly to make sure that they are valued and treated in a fair and equitable way.
- Create an equitable and inclusive hiring process
It actually shouldn’t matter where candidates have come from, as long as they are capable of doing the job at hand. Practices such as removing personal information from CVs and applications, or using contextual requirements for roles all play an important role in promoting social mobility. Focusing on skills and adopting a skills based hiring approach is also a highly effective strategy.
- Nurture and support talent
Once talent from lower socio-economic backgrounds have been hired, the job is not done. Businesses must support these individuals throughout their career, providing regular training and opportunities to enhance skills and knowledge. Only 60% of employers currently provide training for their staff, and this figure must be greatly improved so that all employees have the opportunity to improve their skills and progress in their careers.
Conclusion
These are only a few of the ways businesses can make a real difference in promoting social mobility within their organisations. As we have already stated, the impact of creating a diverse workforce is huge. Not only are businesses more representative of society as a whole, but are also improving their own company culture and even revenue! Promoting social mobility isn’t just the right thing to do, it’s a fundamental step in creating fair and equitable access for people, regardless of their background, experience or social connections.
To find out more about how you can hire better, visit dayonework.com for more information.
All statistics are taken from ‘The Opportunity Effect Report’ from Demos and the Co-Op.
