Social mobility is the way in which an individual or group of individuals can move up or down through the social and economic ladder. It’s a vital way to gauge opportunities for equality and fairness. Focusing on social mobility is the right thing to do from a moral standpoint - according to figures released by the Co-op, those from less privileged backgrounds are twice as likely to end up in lower paying jobs. This needs to be addressed. In addition, a new report by the Co-op and Demos has found that the UK economy is missing out on £19bn in GDP growth every year, due to the failure of organisations to push the agenda for greater social mobility in the workplace.  Social mobility should therefore be a key area of equity, diversity and inclusion (EDI) for organisations within Hospitality, Travel, Leisure and Retail to focus on from a business perspective. Here’s WiHTL & Diversity in Retail’s guide to why that is the case.

Building talented teams

Social mobility matters for HTL and Retail because it ensures that the widest range of talent is brought into the industry. Prioritising social mobility ensures that organisations can bring in untapped potential that might otherwise be overlooked. Following on from this, having a wider range of perspectives and experiences within organisations means that a wider range of potential solutions to the challenges facing HTL and Retail can be found. Furthermore, employees from different socio-economic backgrounds can bring unique ideas, innovation and approaches to problem-solving, bringing a further competitive advantage. 

Compass Group, a Member of WiHTL & DiR’s Collaboration Community, shows how this can play out in reality, having set ambitious social mobility targets. By 2030, they are aiming for 40% of their management and leadership population to have come from a lower socio-economic background.  

Meanwhile, programmes and initiatives targeting particular groups can help organisations to build these talented teams. For example, through its Pret Foundation, Pret A Manger runs the ‘Rising Stars’ programme, which helps break the cycle for people experiencing homelessness, providing them with training and employment. 

Social mobility schemes also allow organisations to hire talented and hardworking individuals who many employers might overlook. Through their work with the Timpson Foundation, 10% of Timpson’s workforce is now made up of ex-offenders. This gives prison leavers, or individuals with criminal convictions, a second chance and means that Timpson’s are able to recruit hardworking and talented individuals many employers might ignore. With a retention rate of 75%, it’s clear that Timpson’s recruitment is successful, with the vast majority of employees who are ex-offenders not re-offending. Similarly, Greene King’s Releasing Potential scheme recently reached the landmark of hiring its 250th prison leaver. The scheme helps prisoner to build skills in hospitality, with the aim of offering them employment when they leave prison.

Both Greene King and Timpson’s serve as excellent examples of the way in which committing to social mobility brings immense benefits not just to individuals targeted by schemes and initiatives, but to the organisations running them too.

Connecting with employees and customers

Whether it’s from an employee or customer perspective, the HTL & Retail sectors are composed of a wide range of individuals with a huge variety of life experiences and perspectives. As a result, it is key for organisations to be able to support all employees, and to connect with their customer base. Social mobility is a clear way to bring these priorities together. For example, Sodexo, recently named in the top 75 of the Social Mobility Foundation’s 2024 Social Mobility Employer Index, runs a wide range of initiatives supporting groups including prison leavers, students with learning disabilities and autism spectrum conditions and in 2023 joined the 10,000 black interns programme aimed at championing underrepresented talent.

By ensuring that individuals from a diverse range of backgrounds can progress all the way through an organisation, employees will feel supported to succeed to their full potential, whilst decisions that affect customers can be made by individuals who reflect that wide customer base. In turn, this can open up new market opportunities and enhance customer loyalty.

Enhancing Corporate Reputation

Organisations which put social mobility at the forefront of their EDI efforts, and so demonstrate a clear commitment to fairness and equality, can demonstrably build their corporate reputation. This can come in a financial sense - for example, Compass Group’s commitment to social mobility has seen them generate £2.148 billion of Social and Local Economic value, between 2021-2023. It can also come through the attraction of socially conscious talent and investors, while an organisation’s standing with customers, clients and partners can be improved.

Committing to improving social mobility allows companies to acknowledge areas where they need to improve, and to take bold action as a result. That is exactly the case with the Co-op, who recently became the first retailer to publish a socio-economic pay gap report. It allowed them to identify where improvement is needed, and in doing so understand the actions required to close this pay gap, alongside wider development of their social mobility strategy.

It’s clear that prioritising social mobility brings a whole host of benefits, especially to those individuals and groups who, as it stands, are often missing out on opportunities. However, it is also evident that prioritising social mobility is also important for business, allowing them to tap into underrepresented talent, build more innovative teams, and better connect with employees and customers. Crucially, it also allows them to acknowledge where they can do better, and take decisive action in order for everybody - no matter their background - to achieve their potential.

References: 1,2,3,4,5,6,7

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