Levelling the playing field: New practical guide for closing your socio-economic pay gap
Levelling the playing field: New practical guide for closing your socio-economic pay gap
17 November 2023
In collaboration with the Social Mobility Foundation, the Bridge Group has produced a free, practical guide to help organisations calculate their socio-economic pay gap, set meaningful targets for socio-economic diversity and drive change.
Today, 17 November, is Class Pay Gap Day. In 2023, professional workers from working-class backgrounds are paid an average of £6,291 less per year than those from professional-managerial backgrounds. The Social Mobility Foundation, who conducted this research, said that this 12% class pay gap means that today is the day when those from working-class backgrounds in professional occupations effectively stop getting paid. To mark the day, the ‘Levelling the playing field’ guide has been published with the support of Co-op, KPMG UK, PwC UK, Teach First and Clifford Chance.
While it is already a statutory requirement for employees with at least 250 employees to measure and report on the gender pay gap, and many organisations are also voluntarily reporting on ethnicity pay gaps, reporting on socio-economic pay gaps is not yet commonplace. In addition, the Bridge Group has already undertaken research which demonstrates that socio-economic background has an impact on an individual’s earning potential, which is often greater than the impact of other protected characteristics. This body of evidence, combined with an appreciation that greater diversity improves business performance, has meant that certain organisations have proactively taken the decision to measure, report and close their class pay gap.
The advice in the guide is designed to help other organisations who would like to take this step. It follows the established best practices in reporting gender pay gaps, but with recommendations tailored to socio-economic background. The guide includes examples of best practice from organisations that measure their class pay gap, and precisely describes the steps that need to be taken to calculate a class pay gap.
Nik Miller, CEO of the Bridge Group said:
"Class pay gaps increase our understanding about inequalities in the workplace - informing where to focus efforts and to evaluate impact. Without the data, we're in the dark."
Rt Hon. Alan Milburn, Chair of the Social Mobility Foundation said:
“It’s well established that what gets measured gets done. With the practical help this guide offers, employers have an opportunity to address the class pay gap. Some are already doing so. I hope many others will do the same and, in the process, contribute to creating a fairer, more socially mobile Britain.”