The role of socioeconomic backgrounds in workplace inclusion

In conversations about diversity, equity, inclusion, and belonging (DEIB), topics like race, gender, sexual orientation and (dis)ability may dominate the discourse. Yet, an equally vital aspect of diversity is one’s socioeconomic background. Despite being one of the most significant influences on an individual’s worldview, behaviour, and opportunities, class and economic status are not always discussed explicitly in workplace DEIB strategies. I would argue that addressing this dimension of diversity is essential for creating genuinely inclusive organisations.

Understanding socioeconomic diversity

Socioeconomic background is about more than income; it’s the foundation laid during one’s upbringing—things like household income, parents’ education, access to resources, and the surrounding community. These factors influence how we communicate, solve problems, and even dream about our future.

Consider this: research from the Brookings Institution (2022) shows that employees from lower-income backgrounds are significantly underrepresented in managerial and executive roles, even when their skills and qualifications are equal to those from higher socioeconomic statuses. Why? Because systemic barriers -like the reliance on exclusive professional networks or biases that favour elite educational institutions- create invisible walls. Industries such as the luxury fashion illustrate this clearly, as it has shown that success could often be tied to access to wealthier social circles.

Socioeconomic background and personal development

Our socioeconomic background plays a significant role in shaping both our education and personal development. Children from lower-income families often face limited access to high-quality educational resources, such as tutoring, extracurricular activities, and advanced coursework. These limitations can lead to gaps in academic achievement or underperformance, as students may struggle with the financial burden of educational materials and lack of home support or access to technology. Furthermore, socioeconomic status can influence psychological factors such as stress levels, self-esteem, and mental health, which directly impact learning and personal growth. They may also be confronted with reduced expectations and negative bias. These factors can all lead to underdeveloped or even unrecognised talent.

In contrast, studies show that individuals from higher socioeconomic backgrounds typically have greater exposure to stimulating environments and experience less chronic stress, which can enhance cognitive development and foster social connections. Additionally, these individuals often have more opportunities for mentorship, sponsorship and career networking, which can further accelerate their personal and professional development. Thus, socioeconomic background is a powerful determinant of educational outcomes and long-term personal development.

But what happened to Merit? A study from the Journal of Career Development found that graduates from lower socioeconomic backgrounds face greater difficulty at securing meaningful employment and often have to settle for jobs with fewer prospects for growth, perpetuating cycles of inequality.

The organisational cost of ignoring socioeconomic backgrounds

Chances are, most if not all of us have observed how recruitment practices favour individuals from privileged backgrounds. Think about a person who was recruited because a C-level employee, a company owner or a major stockholder pushed them forward. But we also see this dynamic through job postings that emphasise unpaid internships, low starting salaries or elite university degrees and thus inherently disadvantage those who lack the resources to access such opportunities. This practice perpetuates homogeneity in the workforce.

Ignoring socioeconomic diversity perpetuates inequality and stifles innovation. Studies by the World Economic Forum (2021) demonstrate that teams with diverse socioeconomic perspectives are more innovative, as they bring varied approaches to problem-solving. Yet, when organisations overlook socioeconomic backgrounds and current socioeconomic positions, they risk creating cultures where subtle biases—such as judging colleagues based on accents, clothing, or hobbies—perpetuate exclusion.

Existing employees who feel unsupported due to unaddressed socioeconomic challenges may experience lower engagement and productivity levels, as they struggle with stressors like financial instability or inaccessible development opportunities. By ignoring these factors, businesses inadvertently narrow their talent pipelines and underutilise talent, thus missing out on skilled individuals from a wide range of backgrounds who could further enhance organisational success and competitiveness.

The psychological impact of bias based on socioeconomic background or position

From a psychological perspective, socioeconomic bias affects employee self-perception and confidence. Research from the American Psychological Association (2020) shows that employees from lower-income backgrounds often experience what is called “impostor syndrome” due to environments where they feel out of place. Additionally, the constant need to “code-switch” to fit into workplace norms exacerbates stress and burnout.

Psychological safety, a cornerstone of inclusion, is often compromised when employees fear being judged for not conforming to unwritten class norms. For instance, an employee hesitant to join a team dinner at an expensive restaurant may feel excluded, even if unintentionally.

Sustainable strategies for inclusion of people from less privileged socioeconomic backgrounds

Implement equity-focused AI in hiring: Organisations can adopt AI tools designed to neutralise socioeconomic bias in hiring. Tools that prioritise skills and competencies over credentials can help identify high-potential candidates from diverse backgrounds. Even asking for GPAs or extracurricular activities can unintentionally perpetuate biases, as these are strongly correlated to economic positionality.

Design living wage policies: Offering a living wage with comprehensive benefits ensures that employees can focus on their work without the stress of financial insecurity. Research from MIT’s Living Wage Calculator highlights the positive impact of fair wages on productivity and morale.

Develop socioeconomic ERGs (Employee Resource Groups): Create ERGs focused on supporting employees from lower-income backgrounds. These groups can serve as a platform for advocacy, mentorship, and networking while fostering a sense of belonging.

Utilise gamified learning for DEIB Training: Gamified DEIB training modules can simulate real-life workplace scenarios involving socioeconomic biases. Employees can better understand the impact of their actions and learn to make equitable decisions engagingly.

Train recruiters and managers that hold interviews on addressing personal biases: We all have biases and both creating a structured interview process and teaching recruiters and managers to address their own biases, is a crucial element in a recruitment process. This way, interviewers learn to recognise it when they are tempted to make an unfair assessment. For instance, because the interviewee has worn out shoes, or clothes, ?uses another language code or shows up with poor dental hygiene. ?

Build a “reciprocal mentorship” culture: Pair executives and leaders with employees from lower-income backgrounds to exchange perspectives. This helps decision-makers understand systemic barriers and design more inclusive policies and helps employees from underrepresented and underserved groups with improved social capital.

Set up support programmes for employees: A study published in BMC Public Health reports that individuals from lower SES backgrounds experience higher levels of work-life conflict, which adversely affects their mental well-being.

Luckily, there are many ways in which you can offer support to employees who have financial challenges or fall under the lower-income categories. For example, offering subsidised transportation, healthy takeaway meals, or childcare support can significantly reduce daily living costs for lower-income employees. Providing financial literacy workshops, budgeting tools, or access to financial advisors can equip employees with skills to manage their finances more effectively (as long as they receive fair pay).

Additionally, establishing emergency funds or low-interest loan programmes can offer a safety net for employees facing unexpected financial hardships. For example, companies like Walmart and Starbucks have introduced employee assistance funds to help workers during emergencies. Flexible work policies, such as remote work or adjustable schedules, can also support employees by reducing commuting costs and enabling them to balance personal responsibilities more effectively.

Educational support, such as tuition reimbursement or scholarships for employees, is another impactful initiative. For instance, set up a programme that pre-pays tuition for employees pursuing certificates or degrees in high-demand fields. These programmes not only address immediate financial concerns but also create pathways for long-term career growth, contributing to employees’ financial independence and satisfaction.

Create a foundation: Some organisations already have a foundation. But if not, create a foundation and donate part of the annual profits or offer dividends from the company. A foundation can be used to support local communities, for instance by offering support programmes and grants to youth from lower-income families. You could even offer your ERGs the opportunity to select charities, and specific programmes or set them up themselves with the support of the organisation. Let them donate some of their expertise and time to these causes if possible and desired. By giving back to these communities, you will increase both your talent pool and internal engagement.

In short

By investing in such support systems, organisations demonstrate a commitment to their employees' well-being, fostering loyalty, productivity, and a more inclusive workplace culture.

By recognising and addressing the influence of socioeconomic background in the current workplace and the future workplace organisations can create environments that not only celebrate diversity but also unlock untapped potential.

Don’t forget, that the path to inclusion must go beyond visibility—it requires listening to and understanding both the visible and the invisible dimensions of employees’ identities.