What are the business benefits of a socio-economically diverse workforce and a culture of inclusivity and belonging?
What are the business benefits of a socio-economically diverse workforce and a culture of inclusivity and belonging?
On Social Mobility Day 2025, the Bridge Group looks at the need to #ShiftMindsets to appreciate that a socio-economically diverse and inclusive workforce is good for business.
Social mobility aligns with principles of social justice and fairness. It reflects a society where individuals are not confined to their socio-economic background (SEB) but can determine their own destinies. However, social mobility is poor in the UK compared to many other developed nations, impacting on our economy, health, and the cultural makeup of our society (see social mobility rankings by country, undertaken by the World Economic Forum and Goldman Sachs).
At the organisational level, a socio-economically diverse workforce aids social mobility by creating opportunities for individuals from less advantaged backgrounds to advance within the workplace, improving their sense of belonging and overall economic well-being.
However, as well as aiding the social mobility of the individual, a socio-economically diverse workforce is also good for business as it opens the door to previously untapped talent, bringing different ways of thinking which can help to foster corporate innovation and change.
Here, the Bridge Group summarises some of the key business benefits of a socio-economically diverse and inclusive workforce.
#1 Building a diverse workforce attracts new talent
When publishing their targets for socio-economic diversity in its workforce, UK law firm, Slaughter and May, pledged to increase the number of individuals from a lower SEB recruited into the firm, recognising the need to increase targeted recruitment activity to meet new students not coming via traditional routes. This was after recognising the business case for greater diversity in the workplace – higher performing teams, better decision making and increased profitability.
Organisations that focus on narrowly defined talent, which is often closely aligned with a predominance of people from higher SEBs, miss large pools of talent. This can be problematic in certain geographical areas. For example, people whose parents held professional jobs are much more likely to move from one region to another to secure a professional job themselves. This leaves social mobility ‘cold spots’, where movement is less common. Larger employers are increasingly recognising the benefits of shifting this pattern, and are targeting these cold spots to benefit from the untapped talent that exists there.
Finding an employer with a diverse workforce has become a priority for many job seekers. Therefore, increasing employee socio-economic diversity could transform a business into a ‘destination employer’ for high-performing individuals.
At this juncture it is important to note that whilst Social Mobility Day 2025 is all about shining a light on the business benefits of a socio-economically diverse workforce, people are not just drawn to a diverse mix of talent; they also seek workplaces with a culture of inclusion, belonging, and psychological safety. Employees want to feel accepted, valued, and supported, and to have the freedom to express themselves without any fear of negative outcomes.
#2 Retaining talent; an antidote to a widening skills gap
Employers focussed on diversity and inclusion often benefit from higher employee satisfaction and engagement, and lower staff turnover. Conversely, talented employees who experience working environments that are exclusionary, are more likely to leave, increasing staff turnover and costs. Bridge Group research backs up these findings, demonstrating that employees from lower SEBs, at both senior and junior levels within an organisation, are more likely to leave than their more privileged peers.
Better attraction and retention of top talent is particularly relevant where there is a lack of skilled workers. In many industries, employers are finding it increasingly difficult to find workers with the correct skillset to undertake the job. ManpowerGroup’s Talent Shortage survey from 2024 revealed a widening skills gap in the UK, with cross-sector shortfalls reaching an 18-year high of 80%. A 2025 report by McKinsey goes on to argue that if Europe became more socially mobile, it has the theoretical potential to close the 2030 skills gap without the need for any new training or reskilling.
#3 Gaining competitive edge; improved performance in the workplace
Employees from a lower SEB perform at least as well as their more advantaged peers and often outperform them. The Social Mobility Commission reports that in professional service firms, for example, trainees from lower SEBs are more likely to achieve the highest performance.
Bridge Group research has also demonstrated that employees from lower SEBs perform at least as well as their more advantaged colleagues. In fact, in our work with eight leading law firms, we found a higher performance on average amongst those who were state school educated: 14% of state school trainees received the highest performance ratings, compared to 8% of independently educated trainees. This differential occurred despite unequal progression rates in favour of those from higher SEBs and a lack of diversity by SEB. This ‘performance paradox’ is further demonstrated in some of these legal firms, where employees from lower SEBs are 75% more likely to rank in the top 10% of performers.
Therefore, organisations which prioritise diversity and inclusion broaden their talent pool, which in turn increases engagement and productivity. A report (PDF) by Accenture quantified this phenomenon, finding that the profits of organisations focused on improving social mobility are 1.4x higher than their competitors that are less focused on the issue.
In their report Breaking the Class Barrier, the Socio-Economic Diversity Taskforce said that failing to retain and promote top talent from socially diverse backgrounds will leave the UK’s financial and professional services trailing ever further behind sectors that present a more attractive, inclusive offer.
#4 Enhanced reputation; increased diversity gets client and consumer approval
Having diverse talent brings fresh perspectives, and diverse viewpoints enhance creativity, problem-solving, and decision-making processes.
In the Bridge Group’s guide for closing socio-economic pay gaps, produced in collaboration with the Social Mobility Foundation, KPMG commented that greater diversity “improves business performance as it brings fresh thinking and different perspectives to decision-making, delivering better outcomes for our clients.” When a workplace culture of inclusion and diversity is taken seriously, an organisation transcends social responsibility or the notion of it ‘being the right thing to do’ and instead supports business performance and resilience, resulting in a reputational reward for clients. Conversely, the absence of socio-economic diversity in an organisation might lead to decisions that fail to consider the realities of the less privileged members of the workforce, potential clients or customers.
As well as gaining client recognition, a socio-economically diverse employer may also attract the attention of consumers. The 2024 report The Opportunity Effect (Demos and the Co-op) found in a poll of 2,000 UK adults that 29% said they would be more likely to purchase a product or service from an organisation promoting social mobility.
#5 Focusing on SEB can impact positively on other areas of diversity
Many of the research findings at the Bridge Group demonstrate that SEB has a stronger effect on accessing professions, pay and progression, than gender or ethnicity. Therefore, strategies that find and retain the best talent that don’t consider SEB are missing a vital piece of the jigsaw.
However, rather than to suggest that SEB is more important than other diversity characteristics, it is important to recognise that people's identities are multifaceted and that these different aspects overlap and interact with one another. For example, in our report Shaping our economy: Senior roles in financial services and socio-economic diversity, undertaken for Progress Together in 2024, we found that women from working class backgrounds experience a significant ‘double disadvantage’, progressing 21% more slowly into senior roles than women from more advantaged families.
By showing how SEB often overlaps with other areas like race or gender, organisations will be making the case that tackling SEB helps everyone - not just the lower SEB cohort.
#6 The economics of diversity; macroeconomic growth and productivity
Social mobility is closely tied to economic growth and productivity. When opportunities are levelled to more young people, we can see an increase in participation in the workforce, an increase in consumer spending, a reduction in health disparities, better matching of skills (leading to a higher economic output per person), and increased innovation and economic development. Macroeconomic growth and productivity have a significant impact on individual organisations.
Several sources have attempted to quantify the potential gains. A report from Demos and the Co-op (2024) found that inadequate social mobility in the workplace meant the UK economy is missing out on £19 billion in GDP growth every year and £6.8 billion in yearly tax revenues for the Government from additional economic activity.
The OECD estimated that improving social mobility could increase the GDP of European countries by between 3 and 9 percent. McKinsey calculated that social mobility could increase the combined GDP of EU-27 countries by €1.3 trillion, or 9 percent, whereby this economic uplift derives from increased worker participation, more effective use of available talent across jobs at all skill levels, and faster progression up the ranks for lower SEB employees, resulting in their higher value creation.
#7 Fairness and social equality
Raising socio-economic diversity in the workplace is also important because fairness and equality of opportunity are at the heart of any democracy, and every single person should have the chance to succeed.
At the individual level, when somebody can access a good quality education and secure work, it enhances their quality of life; social mobility can provide a sense of personal fulfilment and dignity and offer opportunities for personal and professional growth.
However:
In 2024, professionals from working-class backgrounds in the UK were paid an average of £6,287 less per year than those from their more privileged peers in the same job (Social Mobility Foundation, 2024).
And, young adults aged 25 to 29 years from a higher professional class background in the UK are more than four times more likely to be in a higher professional occupation (32%) than those from a lower working-class background (7%) (Social Mobility Commission, 2024).
And finally, across European OECD countries, children with the greatest socio-economic disadvantage grow up to earn 20% less as adults than those with more ‘average’ childhoods (OECD, 2022).
Let’s #ShiftMindsets and work to change these outcomes now.
In June 2015, the Bridge Group registered as a charity dedicated to using independent research as a catalyst for evidence-based social change. We are celebrating our tenth anniversary over the next few months. Find out more.
The Bridge Group
12/05/25
6 minute read