The Social Mobility Foundation recently released its index for 2023 (the Index), a tool used for the annual assessment and benchmarking of employers. The Index measures the performance of employers across seven areas related to social mobility, specifically: staff attraction; recruitment; data collection; staff progression; advocacy (including work to influence suppliers etc.); their work with young people; and routes into the employer. These areas are significant as they are driven by the initiatives and actions of the employers themselves. The Index further provides recommendations for best practices and practical measures that an employer can take to enhance social mobility within their organisation. 

The Foundation emphasises the importance of a "holistic" approach to ensure recruitment mechanisms are inclusive and fair, particularly for individuals from low socio-economic backgrounds. The Index surveyed 143 organisations and found an increasing number of companies taking significant steps to reduce barriers to opportunity for young people, regardless of their socio-economic background. Many employers have lowered minimum grade requirements for graduates, apprentices and school leavers, making some career paths more accessible. The study indicates that more than half (56.8%) of the companies surveyed are implementing contextual recruitment, meaning they consider an applicant's unique background and personal challenges to ensure a fair assessment of their capabilities. This method acknowledges that not all achievements are made on an equal footing and aims to identify talent that might otherwise be overlooked. Furthermore, 32.6% of the companies are disregarding academic grades entirely in their hiring process, signalling a shift towards valuing practical skills and experiences over formal educational outcomes.

Barriers identified by the Index

The Index is also critical of certain recruitment practices that may favour candidates from more privileged backgrounds. By focusing on elite institutions, such as those in the Russell Group of universities, companies might limit their talent pool to graduates who had the means to attend such universities. Additionally, the practice of offering unpaid internships tends to exclude those from disadvantaged backgrounds, as they are unable to afford to work without pay, even for short periods. Instead, the Index suggests employers use contextual recruitment, remove minimum grade requirements and provide financial support. The Index also underscores the importance of employers collecting and analysing relevant data advocating social mobility in the workplace.

The Index reveals that individuals from privileged backgrounds are five times more likely to attend Russell Group universities and also indicates that individuals from working-class backgrounds often get paid less than their peers in the same role. The Index discusses barriers to opportunity, such as geography and the "digital divide", and provides recommendations for employers to improve social mobility.

Other issues highlighted by the Index include:

• workplace culture;
• pay gap; and
• lack of sponsorship and mentorship opportunities for those from low socio-economic backgrounds.

To address these barriers, the Index recommends that employers analyse their pay data and assess their internal culture. Specifically, they should evaluate whether the culture of their organisation is welcoming to those from low socio-economic backgrounds, establish a social mobility network that employees can join and initiate sponsorship or mentoring programmes specifically for staff from low socio-economic backgrounds.

Key takeaways for employers

The Index provides several recommendations for employers who would like to improve social mobility within their organisation. It encourages the removal of financial pressures that often accompany work experience for early career individuals. Employers are also encouraged to review the socio-economic background of each apprenticeship intake to ensure this route is improving diversity.

Employers are further advised to invest in school leaver programmes that offer equal progression with graduate and apprenticeship schemes. The Index recommends that all internships should be paid, with 85.1% of employers named within the Index already doing so. Employers are also encouraged to set social mobility targets, monitor these at board level and include social mobility commitments in corporate ESG reporting.

The Index details the efforts of various organisations in enhancing social mobility and diversity through their recruitment and selection processes. It highlights partnerships that offer work experience, skills sessions, virtual elements and mentoring relationships. However, it also notes that individuals from low socio-economic backgrounds are underrepresented, particularly in apprenticeships and graduate schemes. It recommends varying attraction strategies and ensuring information about apprenticeships is widely available. It also emphasises the importance of diversity at all levels, particularly in senior positions, and recommends collecting board socio-economic data.

Overall, the Index provides a detailed overview of social mobility within the workplace and offers valuable insights and recommendations for employers looking to improve equality and diversity within their organisations. The key takeaway for employers is the importance of transparency and a visible commitment to progressing social mobility in the workplace.