Strategic Approaches to Cultivating Socio-Economic Diversity: A Prerequisite for Organisational Excellence
In the landscape of Diversity, Equity, and Inclusion (DEI), organisations are increasingly recognizing the importance of diversity as a cornerstone of a vibrant and resilient workforce. However, despite the growing recognition of the significance of diversity, equity, and inclusion (DEI), the notion that economically disadvantaged individuals should be the recipients of DEI efforts has largely been overlooked. It is imperative to alter that thinking as an individual's socio- economic origins have a lifelong impact, persisting even if they acquire wealth or prominence in later life. The socioeconomic background of individuals thus undeniably influences their performance and dynamics within the professional environment.?
The American Psychological Association defines “socioeconomic status as the social standing or class of an individual or group. It is often measured as a combination of education, income and occupation.” A person’s socioeconomic status is tied to a number of quality of life considerations and opportunities to get ahead. It also includes the ability to access power and important services related to health, stability and housing. Socio-economic diversity thus encompasses a spectrum of economic backgrounds, from various income levels to diverse educational experiences.
Socio-economic diversity thus can be defined as the inclusion of individuals from different economic strata within an organisation. It goes beyond traditional diversity markers, acknowledging and embracing differences in income, education, and financial circumstances. This multifaceted approach to diversity aims to create a workplace that reflects the broader societal tapestry.
While the prevailing myth is that anyone, regardless of their beginnings, can rise to great heights, the truth is that one’s background continues to determine their access to education and job opportunities. Statistics show that “workers from lower social-class origins are 32% less likely to become managers than are people from higher origins.
How does One Measure Socio Economic Background :
Measuring socio-economic diversity is a complex yet crucial undertaking for organisations committed to fostering an inclusive workplace. Effective measurement enables organisations to identify gaps, track progress, and implement targeted interventions.?
According to The United Kingdom Government’s National Statistics Socio-economic Classification (NS-SEC) an individual’s socio-economic background can be defined by their highest earning parent’s occupation. High socio-economic or professional backgrounds include CEOs, senior police officers, doctors, journalists, barristers, solicitors, teachers and nurses. Intermediate backgrounds include shopkeepers, paramedics, small business owners and police officers. Low socio-economic or working class backgrounds include receptionists, electricians, plumbers, butchers and van drivers.
An Accenture research defined respondents as “lower SEB (Socio-Economic Background)” if, at age 14, their parents/guardians were in technical and craft occupations, routine, semi-routine manual, and service occupations or long-term unemployed and they were eligible for free school meals. If respondents met only one of the criteria above, they were included as “lower SEB” if, at age 14, their parents/guardians did not have a university degree and they did not attend private school.
Similarly the Socio Economic Diversity Taskforce by The City of London identified four measures to examine the socio-economic diversity of their workforce:
Thus, these four measures identified above can be commonly used by employers.These are measures of parental qualifications; parental occupation; type of school attended and eligibility for free school meals. However there is an additional need to contextualise these with respect to locations and other dynamics. Therefore some employers may well wish to use other measures in addition to the ones which are enumerated above.
Benefits of Socio-Economic Diversity :
The benefits of socio-economic diversity extend beyond meeting DEI goals; they positively impact organisational performance, innovation, and employee satisfaction.?
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How Employers Can Ensure Greater Socio- Economic Diversity :?
How Employers Can Ensure Greater Socio- Economic Diversity:?
Ensuring greater socio-economic diversity requires intentional strategies that address systemic barriers and promote inclusivity. Organisations can implement the following practices to foster a more economically diverse workforce
Allocate Responsibility to Leaders for advancing progress:?
Employers could begin by assigning explicit accountability and responsibility for socioeconomic diversity to high-ranking executives and designating an Executive Sponsor who will be responsible for ensuring progress, monitoring, and reporting on the enhancement of socio-economic diversity. In order to ensure adherence, businesses might incorporate the assessment of socio-economic diversity and inclusion into leadership duties and performance evaluations.
Evaluate and gather information:?
Organisations should gather socio-economic background information on their workforce, preferably during the recruitment process, but also on an annual basis. This data should be consistently collected at various stages, such as during recruitment, and stored within an enterprise HR system. In addition, it is imperative for businesses to consistently monitor socio-economic demographic information in relation to different levels of seniority (junior, mid-level, and senior) in order to assess and address any disparities in career advancement.
Facilitate Internal Inclusion Activities:?
Employers should establish mentoring and reverse mentoring initiatives specifically designed for individuals with non-professional backgrounds. In addition, they can foster the practice of storytelling and promote an inclusive internal culture by facilitating conversations among individuals from diverse socio-economic backgrounds, where they can share their personal histories and experiences. Organisations should actively promote the presence of exemplary individuals at all levels of the business, who can share their professional journeys and consistently advocate for the significance of socio-economic diversity.
Addressing Progression Obstacles:?
Individuals hailing from socio-economically disadvantaged backgrounds may encounter more significant impediments to career growth. Organisations must recognise obstacles impeding the advancement of personnel who come from nonprofessional backgrounds. They can analyse processes for promotion, executive search, work allocation, access to senior sponsors; ensure processes are transparent and open by ensuring employees from working class or intermediate backgrounds are provided with the career capital to succeed.
Setting Socio-Economic Diversity specific goals:
Once data has been collected and an organisation has taken action to increase socioeconomic diversity, equity and inclusion, they should set targets to incentivise action to increase socio-economic diversity at senior levels. Organisations can set targets each year for improvement on socioeconomic diversity at senior levels. They can also aim for parity between socio-economic diversity across all employees (at junior, mid and senior level).
In conclusion, socio-economic diversity is not just a checkbox in the DEI agenda; it is a strategic imperative for organisations aiming to thrive in a dynamic and interconnected world. By understanding the nuances of socio-economic diversity, implementing effective measurement strategies, and adopting intentional practices, organisations can unlock the multitude of benefits that come with a more economically diverse workforce. The data-driven insights presented in this article underscore the potential for socio-economic diversity to drive innovation, enhance employee engagement, and position organisations as leaders in their industries. As we navigate the complexities of the modern workplace, socio-economic diversity emerges not only as a moral imperative but as a key driver of organisational success in the 21st century.