The importance of social mobility for economic prosperity in the UK

Although often overshadowed by discussions surrounding infrastructure and investment, social mobility represents a transformative lever capable of invigorating both businesses and broader communities. Recent insights from HRreview have highlighted that bolstering social mobility is not merely a moral obligation but also an economic necessity.

The UK government recently released its Autumn Budget, which served as a clarion call for regional growth. The effectiveness of this initiative hinges on addressing the barriers to social mobility, making it a focal point of business strategy. 

Empowering individuals through skill development aligns with evolving business needs and is crucial for a prosperous economy. According to research from Demos and Co-op, greater social mobility has the potential to inject £19bn annually into the UK economy, enhance business profits by £1.8bn per year, and generate significant tax revenues of £6.8bn.

Understanding the intertwining nature of opportunity and economic success is vital. 

Businesses that span diverse teams often outperform those that are homogenous. The evidence suggests that investing in training and development not only aids individuals in reaching their potential but also unlocks a broader spectrum of talent. This was exemplified by Sodexo’s initiative, providing apprenticeship programmes that resulted in substantial cost savings, estimated at £122,000 in the UK and £386,000 in North America.

Despite these initiatives, challenges remain. Systemic biases and limited access to development opportunities continue to restrict many individuals from fulfilling their potential.

Promoting Equity, Diversity, and Inclusion (EDI) is essential in combating these barriers, ensuring equal opportunities for all employees to succeed. An example of an effective EDI-led initiative can be seen on the Stakehill Industrial Estate in Greater Manchester, where a fully-funded leadership programme was offered onsite, facilitating broad participation from local businesses.

This democratisation of training fosters diverse talent pipelines, as organisations actively seek to recruit and develop individuals from underrepresented backgrounds. One such organisation was able to attract nearly 100 learners over three years by focusing on tailored apprenticeship programmes, resulting in all graduates securing permanent roles.

The current economic landscape underscores the importance of a resilient workforce, particularly in the wake of challenges posed by the Covid-19 pandemic.

Tailored training initiatives, rather than generic programmes, emerged as vital in empowering businesses to adapt effectively and thrive. By harnessing insights gleaned from EDI-focused training, organisations have achieved impressive results, such as a £400,000 annual savings project that exemplifies the business impact of skills development.

With a significant portion of the UK workforce experiencing burnout, investing in employee development serves as a remedy for disengagement. As evidenced in the HRreview report, organisations that prioritise targeted workforce development not only benefit from improved retention rates but also contribute to the establishment of sustainable talent pipelines.

Crucially, skills development must encompass an inclusive approach, actively engaging underrepresented groups—including women, ethnic minorities, and older workers. By doing so, businesses can tap into a broader talent pool, thereby enhancing organisational performance and reinforcing the economic fabric of communities.

In summary, the ongoing initiatives to promote EDI and social mobility within the credit and broader business sectors reflect a collective desire to create a fairer, more prosperous society. By ensuring that all individuals have the opportunity to thrive, the UK can bolster its economic strength and resilience, creating an inclusive workforce that mirrors the diverse society it aims to serve.