Vital opportunities identified for retail industry and logistics to advance UK social mobility – and to build greater regional equalities

17/10/23

A pioneering new report from the Bridge Group, supported by Amazon UK, demonstrates how logistics and retail employers play a pivotal role in shaping the economy and championing social mobility.

Because of their size, role types, geographical distribution and growth, logistics and retail are ideally placed to promote people’s movement within society – without the need to be geographically displaced.

Despite this, there has been very little focus on the strategic steps these employers can take to support social mobility in the UK.

The report reveals that:

• Overall, those working in retail and logistics are representative of the UK workforce by socio-economic background (SEB) – but much less so at more senior levels.

• Those from a higher SEB are 1.6 times more likely to be in a professional role in retail compared with someone from a lower SEB. People from lower SEBs that are working in the sector are more likely to undertake frontline roles, while positions in corporate headquarters are dominated by those from higher SEBs.

• There has been a persistent misjudgement that 'long range' mobility is the goal: that spring-boarding those from the lowest socio-economic groups to the highest socio-economic status occupations is the sole purpose of social mobility. This goal does not reflect the aspirations of all groups in society.

• There is much work already in place, but retail and logistics now have the unique opportunity to re-shape the social mobility debate. Success will rely on using a wider definition of social mobility that advocates for smaller career shifts, better job quality and pay, skill building, and accessible careers regardless of geographic location.

• This agenda will require collective responsibility and collaborative action between firms, pursuing the recommendations in the report.

Recommendations for employers to help improve socio-economic diversity at senior levels include:

• The collection of employee socio-economic data which should be published externally. Regulators should also strongly advocate for this.

• Setting targets for SEB diversity.

• Detailed exploration of progression routes for the workforce and the introduction of clearer pathways to support mid-career transition from technical/operational roles to middle- or senior-level management roles for those from lower SEBs.

• Increasing investment in apprenticeship opportunities, with close monitoring of who is accessing these opportunities, and the extent to which they offer parity with graduate degree routes.

• The establishment of a consortium of organisations to enable cross-sector collaboration and accountability.

• Strategies to advance socio-economic diversity should connect with efforts to support greater diversity in other areas, including gender and ethnicity.

John Boumphrey, UK Country Manager for Amazon said:

“The stark inequalities which exist across our society make social mobility one of the most important issues, and opportunities, we face today. If we improve social mobility, the benefits are myriad. More opportunities for more people of all backgrounds; improved productivity; greater equity across all regions of the UK. But to grasp this opportunity we need more businesses to lean in, and we need greater partnership across businesses from all industries, government and the third sector.

“We know the logistics sector and retail industry provide employment and upskilling opportunities for many people who may not otherwise be in work. More than half of the new hires in our operations division come to Amazon from unemployment, or straight from education. We’re a gateway employer for thousands starting or re-starting their careers, which is both a privilege and a responsibility. The recommendations made in this report will now provide the basis of our social mobility strategy for Amazon in the UK. I encourage our partners and other organisations in the logistics sector and retail industry to consider how they can also create opportunities which make our society fairer, more equal, and ultimately more prosperous for everyone.”

Nik Miller, CEO of the Bridge Group added:

“Employers exert significant power in either alleviating or perpetuating these inequalities. The evidence is clear – with deliberate action and the gathering of more robust data, retail and logistics can contribute significantly to alleviating inequalities across the UK. Action will require collective responsibility, but it will also require leadership among those employers who are most influential.”

Background

Amazon commissioned the Bridge Group to research how the retail and logistics sectors can contribute most positively to social mobility in the UK – and the actions that will have greatest effect.

About Amazon

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