The Undeniable Economic Advantages of Enhancing Social Mobility

For a robust economy, diverse perspectives and creative solutions are essential, yet the UK appears to be stagnating in creating opportunities for the most talented working-class individuals.

As artificial intelligence continues to replace numerous traditional entry-level jobs, the Institute for Fiscal Studies indicated last year that social mobility in the UK has reached the lowest point in over five decades.

A recent collaborative study by Demos and the Co-op revealed that the UK economy forfeits approximately £19 billion in GDP growth annually due to a persistent lack of social mobility in professional environments.

Tackling social mobility could potentially enhance UK business profits by £1.8 billion each year and yield an extra £6.8 billion in tax revenue, a phenomenon termed the “opportunity effect” by the Co-op.

Shirine Khoury-Haq, the Co-op’s chief executive, emphasized the importance of this issue, stating, “The benefits are too significant an economic prospect to overlook. This is a pivotal moment in the UK’s productivity discussions, placing social mobility at the forefront of that dialogue.”

According to McKinsey, organizations with higher socio-economic diversity can outperform less diverse peers by as much as 36 percent. However, the UK currently ranks 21st in the Global Social Mobility Index.

Tania Holt, who leads McKinsey.org, the consultancy’s nonprofit skill-building program, points out that the roots of this challenge often begin before school age. She believes it is crucial for businesses to tackle the inequality of opportunity based on socio-economic background in the workplace.

“Addressing this challenge doesn’t need to burden businesses. When executed effectively, it can yield authentic growth opportunities. As leaders in business, we must enhance our efforts to confront this issue,” she stated.

Enhancing career progression alone could create a 35 percent increase in value during the first 12 years of work for high-skilled individuals from low-income backgrounds. While 76 percent of business leaders affirm that promoting social mobility aids in attracting and retaining talent, only 64 percent claim their organizations are dedicated to enhancing social mobility.

Tunde Banjoko, from the charity Making The Leap and organizer of the annual Social Mobility Day on June 12, champions shifting the narrative about social mobility from a mere buzzword to a genuine strategy for building successful and progressive teams.

Banjoko stated, “Social mobility is about investing in a diversity of perspectives and skills, granting organizations a competitive advantage, and empowering individuals from less privileged backgrounds to overcome feelings of inadequacy.”

Prominent companies dedicated to fostering social mobility include Sky, BP, Norton Rose Fulbright, BNP Paribas, Linklaters, and PwC. These organizations report not only gains in profits and performance but also increasing client expectations for diverse teams.

On the Social Mobility Podcast, Peter Scott, global co-managing partner at Norton Rose Fulbright, emphasized the significance of social mobility initiatives, asserting, “Quality for me equates to employing the best talent, which is intrinsically linked to maintaining a diverse talent pool. Our clients expect to see teams that are diverse enough to tackle their most intricate challenges with varied perspectives.”

Strategies for Enhancing Social Mobility in the Workplace

Improving hiring practices to bolster social mobility is cost-effective and can lead to a substantial return on investment. Here are some recommendations from Making The Leap.

• Gain senior leadership support: Engaging influential figures within organizations is crucial to strategically developing commitments and goals.

• Be deliberate: Ensure that initiatives target specific outcomes. Allocate resources to engage with schools and universities serving underprivileged groups.

• Promote advancement from within: While seeking external talent is vital, also focus on internal progression. Implement inclusive programs such as mentorship and internal support for individuals from lower socio-economic backgrounds.

• Establish a Social Mobility Network: Create an internal network that advises peers and leaders on best practices while cultivating a sense of community for individuals from underprivileged backgrounds.

• Collaborate with social mobility organizations: Partner with charities and community groups to expand reach and knowledge.

• Meet young people on social platforms: Engage with younger audiences through social media channels like TikTok and Instagram, where they seek most of their information.

Your Experiences Are Valuable

Nikita Vaghela, an aspiring solicitor who started as a retail sales assistant, has transitioned to a paralegal role in criminal law at BNP Paribas with support from Making The Leap.

The 24-year-old from Wembley, northwest London, remarked, “Many entry paths into professional fields still depend on unpaid internships or networking. This must be rectified. Education, accessibility, and sustained support systems are vital to leveling the field. We also require more practical mentoring and paid entry-level positions.”

“Every professional’s journey starts somewhere, and your lived experiences can become one of your greatest strengths. Do not disqualify yourself just because the path isn’t clearly defined. Cultivate your network, seek guidance from mobility organizations, and ask questions without hesitation,” she encouraged.

“Making The Leap helped me recognize my potential and opened doors to opportunities that I might have otherwise found inaccessible.”

The Impact of Volunteering on Productivity

This week coincides with National Volunteering Week, and although 62 percent of companies offer volunteering days, a report by the Centre for Economics and Business Research highlights that over 140 million volunteered hours went unutilized last year. Fully utilizing these workplace volunteering days could result in a £32.5 billion increase in annual productivity for the UK, equating to around £5,239 per employee. Catherine Johnstone, chief executive of the Royal Voluntary Service, noted, “Employee volunteering initiatives are becoming one of the most astute investments a business can undertake.”

Narcissistic Leaders Can Drive Performance

While narcissistic leaders may be challenging to work with, a study from the BI Norwegian Business School in Oslo discovered that their political skills, which include alliance-building and authentic communication, can transform their toxic characteristics into effective leadership practices. Professor Lars Glaso observed, “When employees view their leaders’ confidence and ambitious vision positively, it can enhance motivation and performance, especially in dynamic or high-pressure settings.”

Long-term Work Experience Opportunities

JP Morgan Chase is investing £3.3 million into a work experience program for underprivileged youth, partnering with The Careers & Enterprise Company to offer ten days of immersive experiences to 700 students across 250 schools. Support will extend from Year 8 through Year 10, fostering long-term employer engagement. Anna Dunn, chief executive of JP Morgan Chase UK, stated, “Our investments will bolster the UK’s growing emphasis on enhancing skills and creating pathways to quality careers.”

Surge in Interest for Graduate Programs

The challenging employment landscape has resulted in a 5,000 percent increase in interest for graduate schemes over the past month, according to RateMyPlacement, a job platform for students. Although most positions do not open until autumn, students are preparing sooner than ever. Co-founder Oliver Sidwell remarked, “Many schemes reopen in September and are available to graduates from the past two to three years. It’s wise to use this time to enhance your experience through internships, volunteering, or travel.”

Leadership Position Available

National Church Institutions are in search of an executive chair for the newly established Safeguarding Structures Programme Board.

The chosen candidate will lead strategically to ensure successful implementation of the Safeguarding Structures program, as mandated by the General Synod and guided by the appointed bishop for safeguarding structures and their team.

This individual will possess senior leadership experience within a public sector organization focused on safeguarding, along with a successful track record in planning and executing large-scale organizational changes and leading governance bodies. Strong communication and interpersonal skills are essential to build effective relationships with diverse stakeholders and manage intense media scrutiny. A commitment to transparency and accountability, as well as alignment with the ethos, mission, and work of the Church of England, is expected from the successful applicant.

The deadline for applications is midday on June 13, 2025.