A new report by Demos, in partnership with Co-op, highlights a stark reality: the UK economy loses out on £19bn annually due to insufficient social mobility in the workplace.
The report, The Opportunity Effect, outlines the economic advantages of supporting social mobility initiatives, with findings suggesting that increased workplace diversity could generate £6.8bn in tax revenue annually.
Go deeper with GlobalData
“Breaking down barriers to opportunity can be a much-needed boost for the UK’s economy and for business performance,” said Shirine Khoury-Haq, CEO of Co-op.
The report equates the projected benefits to creating 540,000 new jobs, a contribution equivalent to adding a city the size of Glasgow to the economy.
The business case for social mobility
The research surveyed 500 senior business leaders, revealing that 76% believe promoting social mobility could attract and retain staff, while 71% feel it could enhance overall business outcomes.
Co-op’s Khoury-Haq notes, “At Co-op, we’ve made social mobility a core part of our strategy,” explaining that this approach helps retain talent and improve productivity.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataKhoury-Haq emphasises that a collaborative effort between businesses, government, and the public sector is essential: “We ask that businesses, the public sector, and government work collaboratively to embed support for greater social mobility within our working cultures.”
The report proposes several recommendations to promote workplace social mobility, such as expanding Skills England’s remit to include social mobility and introducing reduced business rates for social enterprises that actively support it.
These strategies could lead to a £1.8bn increase in private sector profits, according to Demos.
Public backing and policy calls
Public support for socially responsible businesses is growing, particularly among younger consumers.
According to a recent Co-op survey, 29% of consumers are more inclined to buy from businesses that promote social mobility, with this number rising to over 40% among those aged 18-34. Rt Hon.
Alan Milburn, Chair of the Social Mobility Foundation, argues that businesses should act on this public sentiment, stating, “Improving opportunity in Britain’s workplaces is not only a social imperative but an economic one too.”
In addition to these findings, Co-op is urging the Government to recognise socioeconomic background as a protected characteristic under the 2010 Equality Act.
