What is Social Mobility? An Employer’s Guide

According to the Institute for Fiscal Studies, it’s now harder than ever for children from low-income backgrounds to move up the social ladder. As a result, it’s more important than ever for businesses to fulfil their social mobility responsibility. At FDM, this is something ingrained into our core, ensuring that all individuals, regardless of their background, have the opportunity to realise their potential and contribute to society.

Importantly, improving social mobility is both an ethical obligation and a way to significantly boost the UK economy. For example, The Sutton Trust  says boosting UK mobility to Western Europe’s average could grow the economy by £170 billion.

In this article, we’ll explore workplace social mobility and give actionable tips to build a more inclusive business.

What’s in this article?

What is social mobility?

Social mobility in the workplace?

What influences social mobility in the workplace?

10 Ways businesses can improve social mobility in the workplace

5 benefits of hiring from diverse backgrounds and facilitating social mobility

Social mobility at FDM

What is social mobility?

It’s how someone or their family moves up or down the social and economic ladder. In essence, it shows how people’s status compares to that of their parents or previous generations.

Types of social mobility

There are different types of social mobility, including:

1. Vertical: moving up or down the social hierarchy. For example, if someone born into a lower-income family attains a higher income it’s considered upward vertical mobility.
2. Horizontal: a change in occupation or lifestyle without a significant change in social or economic status. For instance, if someone changes careers or moves to a different location without a substantial change in their income or social standing.
3. Intergenerational economic advancement: the capacity to advance economically from one generation to another, moving up the socioeconomic ladder.
4. Intragenerational economic progress: enhancing one’s income during one’s lifetime, typically within a single generation.
5. Personal economic advancement: elevating one’s social standing by acquiring additional education and skills, leading to economic growth and improved prospects.

Social mobility in the workplace

In the workplace, social mobility means moving up or down within a company’s structure or career ladder. It’s about advancing in job roles, income, and career within the workplace. Here are some key ways this can take shape:

1. Promotions: An entry-level employee advances to roles with increased responsibility and higher compensation.
2. Training opportunities: Someone starting with basic skills can access higher-paying roles by investing in further education or training.
3. Job changes: An employee changes jobs or companies to move into a different role or industry that offers better career prospects and financial rewards.
4. Entrepreneurship: Someone starts their own business or becomes a self-employed entrepreneur, which can lead to financial success and independence.
5. Mentorship: A junior employee develops skills and advances with support from a mentor.
6. Networking: Building a strong professional network allows an individual to access job opportunities, referrals, and valuable connections that can lead to career growth.
7. Diversity and inclusion initiatives: Organisations implement inclusion programmes to ensure equal career opportunities for diverse individuals.

8. Performance recognition: Employees who consistently excel in their roles are recognised and rewarded with promotions or salary increases.

10 Factors impacting social mobility in the workplace

1. Education: The level and quality of education an individual receives can significantly impact their career prospects.
2. Access to opportunities: The availability of job openings, training programmes, and advancement opportunities within an organisation or industry can affect social mobility.
3. Workplace culture: An inclusive and meritocratic workplace culture can support social mobility, while a culture of favouritism or discrimination can hinder it.
4. Economic conditions: Broader economic factors, such as recessions or economic growth, can influence job availability and salary levels.
5. Discrimination and bias: Discrimination based on factors like race, gender, age, or ethnicity can create barriers to advancement and limit social mobility.
6. Networking and social capital: Access to professional networks and social connections can play a significant role in job opportunities and career progression.
7. Family background: Socioeconomic status and family support can either provide a foundation for or pose challenges to social mobility.
8. Government policies: Policies related to labour markets, education, taxation, and social welfare can either support or impede social mobility.
9. Tech advances: Create new jobs but make some skills outdated, limiting progress for those without access.
10.  Geographic location: Where an individual lives can impact their access to job markets, educational institutions, and economic opportunities.

Are employers responsible for social mobility?

Employers have a significant role to play, but they are not solely responsible for it. It’s influenced by a complex interplay of factors, including education, government policies, economic conditions, and individual efforts. However, employers can contribute by creating inclusive workplaces with equal opportunities for career advancement, implementing fair hiring and promotion practices, and providing resources and support for skill development.

10 Ways businesses can improve social mobility in the workplace

1. Implement inclusive hiring practices: Use blind recruitment and diverse interview panels to judge candidates solely on skills, increasing opportunities for individuals from diverse backgrounds.

2. Provide equal access to training: Education is key to accessing higher-paying roles. Offer all employees opportunities to develop skills and progress.

3. Promote a culture of inclusion: An inclusive culture helps everyone feel they belong and creates space to thrive and move upward.

4. Offer flexible work arrangements: Flexible roles, like remote or part-time work, help employees balance careers with caregiving or other responsibilities.

5. Ensure transparency in pay and benefits: Clear compensation structures help address pay inequities and create a level playing field for all employees.

6. Encourage diversity in leadership: Diverse leaders provide role models and demonstrate that advancement is possible for all backgrounds.

7. Run mentoring programmes: Mentors guide employees, expand networks, and help develop skills needed for career progression.

8. Collect and analyse diversity data: Sharing workforce diversity data transparently helps identify and address inequalities.

9. Support employee resource groups (ERGs): ERGs give underrepresented groups a voice to advocate for their needs and influence policies.

10.  Engage with community initiatives: Supporting education and skill development benefits society and connects businesses positively to their communities.

For more information on how to improve social mobility in the workplace, read the government’s official advice.

5 benefits of hiring from diverse backgrounds and facilitating social mobility

The business case for diversity is clear. Here are five benefits of hiring from diverse backgrounds:

1. Enhanced creativity: Diverse teams bring together individuals with different perspectives, experiences, and problem-solving approaches.

2. Improved decision-making: Diverse teams tend to make better decisions. They are more likely to consider a wider range of perspectives and potential outcomes, leading to more informed and balanced choices.

3. Increased adaptability: Employees from diverse backgrounds often have a broader range of skills and adaptability, making them better equipped to handle change and navigate complex situations.

4. Broader marketing understanding: A diverse workforce can help organisations better understand and connect with a wide range of customers and markets. It enables the company to tailor products, services, and marketing strategies more effectively.

5. Enhanced employee engagement and retention: A diverse and inclusive workplace fosters a sense of belonging among employees leading to higher job satisfaction, and reduced turnover. Employees are more likely to stay with organisations that value and respect their unique contributions.

Learn more about increasing diversity in recruitment and upskilling successful candidates to close the digital skills gap, and improve business outcomes.

Social mobility at FDM

At FDM, we’re dedicated to improving social mobility in tech by offering training and career opportunities. As evidence of our commitment, FDM has been ranked in 41st position within the top 75 UK organisations dedicated to social mobility. We connect clients with diverse talent—people with unique skills, backgrounds, and ideas that strengthen your teams.

Join us on a mission to improve the lives of many in the UK. Check out our consultant services or get in touch for more information.