Social Mobility Foundation: Government must make big firms report on employees’ class background
· Collecting employee class data is key to unlocking productivity
· Reporting on class data is “logical next step” after reporting on gender
· Demand for Government to legislate comes as annual Employer Index is released
16th October 2024, London – The Social Mobility Foundation is calling on the Government to force firms of more than 250 employees to collect and report data on the socioeconomic background of their staff.
Charity chief Sarah Atkinson said that the mandatory tracking of class data would help businesses better understand their workforce, break down barriers to entry and supercharge the economy.
Speaking as the charity’s eighth annual Employer Index launched, she said: “We’ve got a productivity problem in this country. We need to make the most of all the UK’s talents – it’s the key to unlocking growth. But too many people from working-class backgrounds are being shut out of our workplaces and held back from reaching their potential.
“Large employers are now expected to track gender pay gaps and they will need to do the same for ethnicity and disability very soon.
“There’s no good reason why they can’t report on class differences within their organisations. The Social Mobility Commission has shown how to measure this data. Our Employer Index shows it’s the norm for dozens of great companies to do this. It’s business as usual.
“This new Labour Government is committed to enacting the socioeconomic duty in the Equality Act, meaning that public sector bodies have to reduce inequalities resulting from socioeconomic background. The next step is to extend that to the private sector.”
Employer Index data revealed that the tech and creative sectors are boosting their social mobility efforts - increasing their entries to the Index by 60% and 43% respectively.
Businesses from those industries including the BBC, Auto Trader, dentsu, Phonographic Performance Limited and Citypress finished in the top 75 positions.
The rise signals the start of a turnaround in two industries that have had poor records on socioeconomic diversity – and heralds a “new normal” in offering opportunities for all.
Leading social mobility employers Browne Jacobson (law) and PwC (professional services) jointly topped the rankings, followed by Grant Thornton (law) in third place.
Research by the Social Mobility Foundation has revealed that professionals from working-class backgrounds earn an average of £6,291 less a year than their more privileged counterparts doing the same job.
And businesses that prioritise social mobility perform 1.4 times better than their competitors thanks to wider talent pools and more innovative cultures, according to research by Accenture.
Richard Medd, Managing Partner at Browne Jacobson, said:
"Securing the top spot in the Social Mobility Employer Index is a landmark achievement that reflects our unwavering commitment to creating a truly inclusive legal sector and being at the forefront of society’s biggest issues. We've long believed that talent can come from anywhere – it should never be defined by background or postcode, and this recognition validates our innovative approach to breaking down barriers and widening access into the profession.
“Businesses need to lead from the front on issues such as social mobility and a big budget is not necessary to enact change. Our process is ongoing and one of continuous improvement, which we are wholly committed to."
Marco Amitrano, Senior Partner of PwC UK, said:
“Being at the top of the Social Mobility Employer Index for the fourth time is a huge honour, and it's fantastic to see so many businesses focused on reducing barriers to opportunity. Stronger UK economic growth depends on supporting talent from all backgrounds, regions and communities to succeed. At PwC inclusion, and inclusive growth, is part of our everyday conversation and aspiration.
“There’s no quick fix and we have plenty more to do at PwC, but data helps us see where we should focus interventions, and helps hold us to account.”
Daniel Dipper, 22, SMF student alumnus and Graduate Delivery Manager at FINBOURNE said:
"Social mobility is the lifeblood of innovation through bringing different experiences and perspectives to the table, essential in a fast moving sector like fintech.
“Being open-minded and focusing on the skills and experiences young people can offer – rather than connections or internships they have – is a core part of how I ended up working where I do today, and I am grateful for that opportunity.
“The Employer Index is driving conversations and encouraging companies to put social mobility at the heart of how they do business, and is playing an important role in a fast moving world to put such significant topics under the spotlight."
For more information, or interview requests for Sarah Atkinson, CEO of the Social Mobility Foundation or any of the employers or case studies listed, contact eva@harpswood.com. Copies of The Social Mobility Foundation’s Employer Index Report are available on request.
Notes to editors
Top 75 employers in the 2024 Social Mobility Employer Index:
About the Social Mobility Foundation
The Social Mobility Foundation (SMF) is a national charity that aims to make practical improvements in social mobility for young people from lower socioeconomic backgrounds through its Aspiring Professionals Programme, its Social Mobility Employer Index, and its advocacy and campaigning arm, the Department for Opportunities.
About the Social Mobility Employer Index
The Social Mobility Employer Index was launched in 2017 and has become the leading authority on employer-led social mobility. It assesses and ranks UK employers on the actions they take to ensure they are open to talent from all social backgrounds, and provides them with feedback to improve.
The Social Mobility Employer Index evaluates employers across eight areas: work with young people, attraction of staff and university outreach, recruitment and selection, routes into the employer, data collection, pay, progression and retention, culture and internal advocacy, and external advocacy. Employers are then benchmarked. The data and insights from this process are published in an annual Employer Index Report which features a ranking of the 75 top-performing employers on social mobility that year.
Submissions for the 2025 Index will open in March next year.
The sub-sectors included in the ‘creative sector’ are as follows:
Advertising and marketing, media/PR/comms, fashion, publishing, broadcasting, music, acting, gaming, architecture, visual and performing arts, crafts, and design.
Those in the tech sector self-identified as fitting into the category: technology, software and computer services.
Tom Bell (He/him) | Campaigns Officer
The Social Mobility Foundation
The Timber Yard, 17 Drysdale Street, London N1 6ND
01618 502 809 (ext. 329) | Press Office: 07841 577 627
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