Levelling the Playing Field: Overcoming Socioeconomic Bias in Hiring

The business landscape is ever-evolving; driven by globalisation, technological advancements, and shifting consumer demands. In order to thrive, businesses must cultivate a workforce that reflects the diversity of the society they serve. While there has been significant progress in addressing diversity and inclusion (D&I) in terms of gender, race, and disability, the impact of socioeconomic background on career opportunities remains a largely overlooked area. Today we’ll explore the complex relationship between socioeconomic status (SES) and career progression, the benefits of a socially diverse workforce, and practical strategies for optimising talent acquisition processes to foster inclusivity.  

Socioeconomic Disparity in the Workplace
The reality is stark: individuals from lower socioeconomic backgrounds face significant hurdles throughout their careers. A report by Pinsent Masons highlights the financial penalty associated with one's background, stating that employees from non-professional backgrounds earn up to £17,500 less per year than their peers, regardless of professional performance.

Furthermore, research from the Centre for Economic Policy Research (CEPR) underlines the impact on career progression, revealing that workers from non-professional backgrounds progress 25% slower, with only 36% reaching senior or management positions.

Dig under the surface a little more and you’ll find that 7% of UK households do not have internet access at home, thus limiting their opportunities in a digital-first world. But the prevalence of digital exclusion varies greatly depending on socio-economic status. For example, 18% of households in socio-economic band DE say they don’t have internet access. These statistics paint a worrying picture of a system that perpetuates inequality and hinders upward mobility.

The Role of Government and Policy
Government policy plays a crucial role in promoting social mobility and creating a level playing field for individuals from all socioeconomic backgrounds. In the State of The Nation 2023 report, the authors acknowledge that conventional approaches to social mobility have been too narrow.

“The traditional approach focuses too much on the university route, pathways to professional careers, and long leaps in social mobility. But we need a wider focus. Thinking only about access to top professional jobs neglects far too many of those at the bottom.

There are many people who can’t, or simply don’t want to, take this route. Some don’t want to move to a big city to get a top professional job. Some aren’t in a position to achieve that kind of long-upwards mobility – they may have left school without basic levels of reading or maths. For people in these positions, offers of internships at a top London law firm may be missing the point. Good, accessible, local jobs must be part of our mobility picture.”

The report underscores the harsh reality of intergenerational inequality. Children from lower working-class backgrounds are three times more likely to end up in similar occupations as their parents compared to those from higher professional backgrounds. Educational attainment is similarly linked to parental background, with children of degree-holding parents significantly more likely to achieve a degree themselves.

However, the report also reveals nuanced disparities. Women, despite higher educational success, face greater barriers to occupational mobility. Ethnic disparities are also evident; Chinese-British individuals exhibit higher levels of education but this does not always translate to professional roles. Moreover, individuals with disabilities consistently experience worse outcomes across various measures of social mobility.

While challenges persist, the UK government has taken steps to address these issues. The establishment of the Social Mobility Commission is a significant development, with a focus on assessing progress and promoting social mobility. The Commission's work includes research, policy recommendations, and collaboration with businesses and other stakeholders to drive positive change.  

The government has also introduced initiatives such as the apprenticeship levy and increased investment in education and training to provide opportunities for individuals from disadvantaged backgrounds. However, there is still room for improvement, and ongoing efforts are needed to ensure that these policies have the desired impact.

A Look at the Numbers: Diversity Gaps and Missed Opportunities
Despite the benefits, progress in achieving socioeconomic diversity in the workplace remains sluggish. Consider the legal profession – one of the least diverse sectors. According to The Bridge Group, 67% of lawyers come from higher socioeconomic backgrounds compared to the national average of 37%. This underrepresentation has a significant impact on the legal system and the communities it serves.

However, there are positive examples to learn from. Slaughter and May, a prestigious law firm, has set ambitious social mobility targets: 25% low socioeconomic background representation in the total workforce, 15% in lawyers, and 40% in business services by 2033. Such initiatives demonstrate a commitment to addressing the issue and paving the way for a more inclusive legal profession.  

The Business Case for Social Diversity
Building a workforce that reflects the diversity of society is not merely a matter of social justice; it is a strategic imperative for business success. Here's why:

• Enhanced Innovation and Problem-Solving: A diverse workforce brings together individuals with different perspectives, experiences, and problem-solving approaches. This fosters a culture of innovation and creativity, leading to more effective solutions and a competitive edge.
• Improved Decision-Making: Socioeconomic diversity can lead to better decision-making. Teams with a wider range of backgrounds can consider issues from various angles and identify potential blind spots, ultimately leading to more informed choices.
• Stronger Employer Brand: Companies with a reputation for social diversity and inclusion are more attractive to top talent, regardless of their socioeconomic background. This can enhance recruitment efforts, reduce turnover, and attract a wider pool of qualified candidates.  
• Increased Profitability: Studies by McKinsey & Company have shown a clear correlation between socioeconomic diversity in the workplace and increased profitability. Companies with a more diverse workforce outperform their less diverse counterparts.

The evidence is clear: fostering social mobility and building a truly inclusive workforce is not just the right thing to do; it's good for business.

Practical Strategies for Building a Socially Diverse Workforce
To achieve true social mobility and unlock the full potential of a diverse workforce, organisations must take proactive steps. Here are some key strategies:

• Refine Sourcing Channels: Broaden your recruitment reach by partnering with organisations that support individuals from disadvantaged backgrounds. Utilise alternative recruitment channels such as social media platforms, job boards targeted at diverse audiences and recruitment fairs for those with limited internet access.
• Inclusive Job Descriptions: Develop job descriptions free from unconscious bias. Avoid overly specific criteria that might unintentionally exclude candidates from lower socioeconomic backgrounds. Focus on essential skills and qualifications, not educational pedigree. Most HR or recruitment software has a bias checker built-in.
• Blind Recruitment Processes: Consider implementing blind recruitment processes, where candidate names and educational backgrounds are removed from CVs during initial screening. This can help reduce unconscious bias and create a fairer playing field.  
• Mentorship and Sponsorship Programs: Establish mentorship and sponsorship programs to support employees from lower socioeconomic backgrounds. These programs can provide guidance, networking opportunities, and advocacy for career advancement.
• Data-Driven Approach: Track and analyse diversity data to identify areas for improvement and measure the impact of diversity initiatives. This data can inform decision-making and help allocate resources effectively.
• Employee Resource Groups (ERGs): Encourage the formation of employee resource groups focused on social mobility. These groups can provide support, networking opportunities, and a sense of community for employees from similar backgrounds.  
• Leadership Commitment: Secure buy-in from senior leadership for diversity and inclusion initiatives. This includes setting clear goals, allocating resources, and holding leaders accountable for progress.
• Education and Awareness: Provide training and education on unconscious bias, socioeconomic diversity, and the importance of inclusion. This can help create a more inclusive workplace culture and foster empathy among employees.

Addressing socioeconomic inequality is a complex challenge that requires a multifaceted approach. By recognising the impact of socioeconomic background on career opportunities and implementing targeted strategies, organisations can create a more equitable and inclusive workplace. Building a socially diverse workforce is not only a moral imperative but also a strategic advantage that can drive long-term success.  

While progress has been made, there is still significant work to be done. Though we’ve barely scratched the surface in this blog post, by embracing these strategies and fostering a culture of inclusivity, organisations can break down barriers, unlock human potential, and build a more equitable future for all.