The Social Mobility Foundation has called on the UK Government to introduce legislation requiring businesses with over 250 employees to collect and report on the socioeconomic backgrounds of their workforce. The charity believes that tracking class data would help firms better understand their staff, break down barriers to entry, and ultimately boost the country’s productivity.
Speaking at the launch of the foundation’s eighth annual Employer Index, Sarah Atkinson, the foundation’s chief executive, highlighted the importance of this initiative. She stressed that understanding the class backgrounds of employees would allow companies to tackle inequality and increase economic growth by utilising a broader range of talent.
“We’ve got a productivity problem in this country,” said Atkinson. “To unlock growth, we need to make the most of all the UK’s talents, but too many people from working-class backgrounds are being excluded from workplaces and held back from realising their potential.”
Atkinson pointed out that large employers are already required to report on gender pay gaps and will soon be expected to do the same for ethnicity and disability. “There’s no good reason why they can’t also report on class differences within their organisations,” she added, noting that the Social Mobility Commission has already provided a framework for measuring such data.
The Labour Government’s commitment to enacting the socioeconomic duty in the Equality Act was also highlighted by the foundation. Currently, public sector bodies are required to reduce inequalities related to socioeconomic background, and Atkinson argued that it is now time for the private sector to adopt similar measures.
The annual Employer Index ranks companies based on their efforts to promote social mobility. This year, the tech and creative industries saw significant increases in their entries, with the number of firms from these sectors rising by 60% and 43%, respectively. Organisations such as the BBC, Auto Trader, and advertising group dentsu were among those recognised for their improved performance.
Leading social mobility employers Browne Jacobson and PwC shared the top spot in this year’s rankings, followed by Grant Thornton in third place. Richard Medd, Managing Partner at Browne Jacobson, said that securing first place was a landmark achievement for the firm. He added, “Talent should never be defined by background or postcode, and this recognition validates our innovative approach to breaking down barriers and widening access to the legal profession.”
Marco Amitrano, Senior Partner at PwC UK, echoed this sentiment, saying that inclusion is essential to both the firm’s ethos and the broader economy. He emphasised that collecting data on class backgrounds helps guide interventions and holds businesses accountable.
The foundation’s research revealed that professionals from working-class backgrounds earn £6,291 less per year than their more privileged counterparts in the same roles. It also noted that companies prioritising social mobility perform 1.4 times better than their competitors, thanks to access to a broader talent pool and more innovative workplace cultures.
With social mobility seen as a key driver of innovation, Daniel Dipper, a 22-year-old graduate and Social Mobility Foundation alumnus, highlighted how diversity of experience and perspective benefits fast-moving sectors like fintech. He praised the Employer Index for driving vital conversations around social mobility and encouraging businesses to prioritise inclusion.
As the UK grapples with its productivity challenges, the call for mandatory class background reporting could mark a crucial step in addressing deep-seated inequalities in the workplace.