A NEW STUDY by accountancy and consulting firm KPMG has found that those from lower socio-economic backgrounds on average take 19 per cent longer to advance their counterparts from less disadvantaged groups.
The consultancy firm examined the career trajectories of more than 16,500 partners and employees at the company over a five-year period and issued “progression gap” research report.
KPMG with the social mobility specialist, The Bridge Group, examined the average time it takes someone to get promoted considering their gender, ethnicity, disability, sexual orientation, and socio-economic status.
Last year, KPMG became the first major company in the UK to establish a target for the proportion of workers from low socio-economic origins, which aimed to have 29 per cent of its partners and directors originate from working-class backgrounds by 2030 (up from 23 per cent and 20 per cent, respectively), as of that date.
It also looked at the lack of socio-economic diversity on UK boards and too few consider it as part of board recruitment and succession planning.
The results are based on a survey of 64 FTSE 350 board members conducted by KPMG UK’s Board Leadership Centre in order to develop an accurate picture of socio-economic representation on UK boards and to identify the difficulties inn promoting greater cultural and socio-economic representation at the highest levels.
Findings include:
*Over 70 per cent of respondents come from high socio-economic (professional) backgrounds, while only 15 per cent came from low socio-economic backgrounds – suggesting a lack of socio-economic diversity in boardrooms.
*Twenty eight per cent of respondents attended a private school, suggesting an over-representation of privately educated board members when private schools account for just 7 per cent of the UK’s pupil population today.
*Respondents also highlighted the importance of networks and mentors in reaching the highest levels of business, with 67 per cent stating they benefited from access to both.
Commenting on the findings, Bina Mehta, Chair of KPMG UK, said: “Over the past decade there has quite rightly been a focus on ethnicity and gender representation in business, and progress had been made in recruiting from a broader base. However, socio-economic diversity has not been a focus, particularly in the make-up of boards, with few businesses reporting on their work to improve social class diversity or factoring it into board recruitment or succession planning.
“Research continues to show that where you come from and what your parents do for a living has an impact on the opportunities that are available to you in life, from work experience and career aspirations, through to hobbies and interests. A focus on social mobility is vital to create a fairer, more equitable society.”
According to KPMG’s study, only a small percentage of FTSE companies track board members’ socio-economic backgrounds (84 per cent said their boards do not do so), and more than two-thirds (69 per cent) said their nomination committees did not take it into account when succession planning. This suggests a lack of prioritisation relative to other diversity metrics.
Combining money, employment, and social background to form socio-economic background is a crucial factor in determining access to opportunities, success, and subsequent life changes.
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