Articles

Social Class: The Overlooked Dimension of Diversity

22d May 2024

Social class stands as a pervasive yet elusive facet of British society, its definition often igniting debate. My own life story and career serves as a testament to the complexity and intrigue it embodies. Growing up in Essex and attending a local grammar school ignited more curiosity in my early career years than my Fulbright scholarship or Harvard degree ever did! People tend to psychologically categorise others, and the perception of me as an “Essex boy done good” was more thrilling than exploring whether I was actually working-class - overlooking my parents being highly educated professionals - an aspect that currently dominates social class classification.

Having said that -  and this highlights the danger in narrow definitions -  I had many “working class” characteristics. Hardly surprising given my influences. These influences permeated my behaviours, my tastes, and my attitudes, setting me apart from peers and even some friends made post high school. I was acutely sensitive and aware of these differences. Strangely, I felt more self-conscious and defensive about my Essex origins and high schooling than my Indian heritage - perhaps because my ethnicity fostered a sense of belonging while my socioeconomic status engendered confusion and isolation.

Ironically, it is this very upbringing that, later in life, has been credited with instilling in me grit, resilience, and an ability to connect with individuals from all walks of life. As I mentioned, we all like to fit people into psychological boxes. But it's clear that social class matters. Despite strides in promoting diversity and inclusion, social class remains a hidden yet potent force shaping career trajectories and organisational dynamics.

I've come to not only embrace but be proud of my roots - both Essex and Indian. However, it's imperative to acknowledge the significance of social class. While strides have been made in addressing other dimensions of diversity - gender, race, sexual orientation, and  ethnicity  - neglecting social class only serves to perpetuate inequity and hinder genuine inclusion efforts.

The Influence of Social Class on Career Progression

Social class, defined by factors such as income, education, and occupational status, profoundly affects individuals' career trajectories (National Centre for Education Statistics, 2015). Organisations like Slaughter and May and PwC measure social class by categorising the profession of the highest-earning parent, a method that highlights the influence of family background on career opportunities (Clark, 2024). However, other factors such as accent, the level of education, the institution of education, the type of high school attended (state versus private), and even which part of the country you are from, also play crucial roles. For instance, upReach, a social mobility charity, notes that working-class students who achieve a first-class degree from a top university are still less likely to secure an elite job than more privileged students who achieve a 2:2.

Leadership and Organisational Psychology Perspectives

From a leadership perspective, the lack of emphasis on social class diversity can lead to homogeneity in leadership teams, which in turn affects organisational decision-making and innovation. Diverse teams, including those with varied socioeconomic backgrounds, bring a wealth of perspectives and problem-solving approaches that are crucial for navigating complex business environments. For example, PwC has implemented initiatives to recruit more employees from lower socioeconomic backgrounds, which has contributed to innovative solutions and broader perspectives in their project teams (PwC, 2020).

Organisational psychology provides further insights into the mechanisms through which social class impacts career progression. Implicit biases and stereotypes related to social class can influence how individuals are perceived and evaluated in the workplace. For example, employees from lower socioeconomic backgrounds may be unfairly judged as lacking the requisite skills or cultural fit for leadership roles, despite evidence to the contrary (Côté, 2011). These biases can manifest in subtle ways, such as differential access to high-visibility projects or professional development opportunities.

Real-life Examples: KPMG, Unilever, and Goldman Sachs

A notable example of addressing social class disparities in the workplace comes from KPMG. The firm conducted a ground-breaking analysis of the career paths of 16,500 of its partners and employees, revealing significant insights into social class barriers. KPMG’s data showed that people from working-class families took an average of 19 percent longer to shift up a grade, or as much as one year, compared to those from higher socioeconomic backgrounds. Progress was even slower for working-class employees who were either female or from ethnic minority backgrounds, illustrating the concept of intersectionality, which recognises how various dimensions of identity, such as race, gender, and socioeconomic status, intersect and compound to create unique experiences and challenges (Crenshaw, 1989). Notably, KPMG found that socio-economic background had the strongest effect on an individual's career progression compared to any other diversity characteristic (KPMG, 2022).

In a similar vein, Unilever’s Future Leaders Program focuses on recruiting and developing leaders from diverse socioeconomic backgrounds. This initiative identifies high-potential individuals early in their careers and provides them with extensive training, mentorship, and career development opportunities. By doing so, Unilever ensures a pipeline of leaders who bring varied perspectives and experiences to the table, fostering innovation and inclusivity within the company.

Goldman Sachs’ 10,000 Small Businesses Program aims to help small businesses, often led by individuals from lower socioeconomic backgrounds, to grow and create jobs. By providing education, support services, and access to capital, Goldman Sachs helps bridge the socioeconomic gap and promotes economic mobility. The success of this program highlights the potential benefits of supporting diverse socioeconomic backgrounds in driving business success.

Neuroscience and Social Class

Neuroscience offers compelling evidence on how social class shapes cognitive and emotional processes. Studies have shown that chronic stress associated with lower socioeconomic status can affect brain function, particularly in areas related to executive function and decision-making (Farah, 2017). This stress can impair cognitive flexibility, working memory, and emotional regulation, all of which are critical for effective leadership and career success. For instance, an employee from a lower socioeconomic background might struggle with stress-induced cognitive load during high-stakes presentations, affecting their performance and the perception of their capabilities.

Interestingly, individuals from lower socioeconomic backgrounds who reach senior positions often outperform their peers. In the same KPMG study described above, the class gap reversed at KPMG’s highest reaches, where working-class employees advanced faster. This might be because these individuals are exceptionally resilient and adaptable, allowing them to excel once they reach leadership positions (KPMG, 2021). This raises questions about whether their success is due to differences in self-confidence, self-belief, self-compassion, or attitudes towards risk. Studies suggest that individuals from lower socioeconomic backgrounds may develop a higher tolerance for risk and adversity, which can be advantageous in leadership roles (Kraus et al., 2012; Stephens, Markus, & Phillips, 2014).

Recent neuroscience research has further highlighted how socioeconomic status influences brain development and function. For example, children from lower socioeconomic backgrounds often show differences in brain structure, particularly in areas associated with language, memory, and executive function (Noble et al., 2015). These differences can persist into adulthood, potentially affecting workplace performance and career progression. However, neuroplasticity - the brain's ability to change and adapt - means that supportive interventions and environments can help mitigate these effects, underscoring the importance of organisational support and development programs.

Direct and Indirect Discrimination

Direct discrimination based on social class can be overt and intentional, such as discriminatory hiring practices or unequal pay for similar work. However, indirect discrimination is often more pervasive and insidious. Indirect discrimination occurs when organisational policies and practices inadvertently disadvantage individuals from lower socioeconomic backgrounds. For instance, reliance on employee referral programs can perpetuate class-based disparities, as individuals from higher socioeconomic backgrounds are more likely to have networks that can facilitate job referrals (Stephens, Markus, & Phillips, 2014).

Strategies for Addressing Social Class Disparities

To address the underemphasis on social class in diversity initiatives, organisations must adopt a multifaceted approach:

(i) First, leadership commitment is essential. Leaders should publicly acknowledge the importance of social class diversity and embed it into the    organisation's values and strategic priorities. This can include setting specific goals for recruiting and promoting individuals from diverse socioeconomic backgrounds

(ii) Second, organisations should implement training programs to raise awareness of social class biases and their impact on career progression. These programs can help employees recognize and challenge their own biases, fostering a more inclusive culture. For instance, Deloitte has launched a comprehensive training program on socioeconomic diversity, resulting in increased awareness and a subsequent rise in promotions for employees from lower socioeconomic backgrounds (Deloitte, 2019)

(iii) Third, reviewing and revising organisational policies and practices is crucial. This includes ensuring equitable access to professional development opportunities, re-evaluating performance evaluation criteria, and diversifying recruitment strategies. For example, expanding recruitment efforts to include schools and communities from lower socioeconomic backgrounds can help broaden the talent pool (Chetty et al., 2014)

(iv) Fourth, creating supportive work environments that address the specific needs of employees from diverse socioeconomic backgrounds is vital. This can include providing resources for mental health and well-being, offering flexible work arrangements, and fostering a culture of psychological safety where all employees feel valued and supported.

(v) Finally, while regulators currently do not make social class reporting mandatory, it is essential for organisations to voluntarily adopt these practices. By systematically collecting and analysing data on employees' socioeconomic backgrounds, companies can identify disparities and develop targeted interventions to promote equity and inclusion.

 Conclusion

Addressing the underemphasis on social class in diversity and career progression is a critical issue that organisations must tackle to truly achieve inclusivity. By integrating insights from leadership, organisational psychology, and neuroscience, organisations can develop strategies that not only recognise the importance of social class diversity but also actively work to eliminate barriers to career advancement. Addressing these barriers is not just a matter of fairness but also essential for enhancing organisational innovation, resilience, and overall performance. Companies like KPMG, PwC, Unilever, and Goldman Sachs are leading the way by demonstrating that understanding and mitigating social class disparities can unlock the full potential of all employees, making it a smart business strategy as well as a moral imperative.