Despite the increased focus and investment from businesses in programmes aimed at improving social mobility, recent research presents some worrying trends for under-resourced young people in the UK:
Data from the Education Policy Institute highlights that the gap between disadvantaged young people and their peers leaving school is the widest it has been since 2012.
According to the ONS, in April to June 2024, an estimated 872,000 young people in the UK were not in education, employment, or training (NEET), which is 12.2% of all 16-24 year olds. This is an increase from 798,000 in the same period in 2023.
Participating in work experience reduces the probability of young people becoming NEET from 11% to 7%, having controlled for socio-economic status. However, only a third of teenagers aged 16-18 have completed work experience, and half of 14–16-year-olds.
Research by the Sutton Trust identified top barriers to succeeding in life included a lack of job opportunities where they live (30%), access to good education (29%) and lack of self-belief (26%).
With inequalities in education and early careers, and a reported skills crisis across almost all industries in the UK, unfortunately for employers the skills required for the future are just not there. While some of these challenges are systemic and will take time to address, meaningful change can only occur through concerted and integrated efforts from businesses, government, and the third sector.
In this edition of the AMS Social Mobility Series, we explore ways to empower and inspire today’s young adults, showcasing AMS Talent Lab’s partnership with the King’s Trust, as well as some recent collaborations with leading organisations such as GoodWork, BelEve and Your Game Plan.
Creating opportunities through AMS Talent Lab and The King’s Trust
AMS shot up this year’s Social Mobility Foundation Employer Index, moving up 27 positions from 39th to 12th. Instrumental to this was the work of AMS Talent Lab, every element of which is designed to impact Social Value and provide opportunity to untapped and under-resourced talent. Talent Lab recently won the Highly Commended & Gold Award, for Recruitment Programme of the Year at the UK Social Mobility Awards (SOMOs).
This year AMS Talent Lab was part of the Million Makers scheme, which aims to raise £1 million for the King’s Trust. Each team is challenged with creating a fundraising initiative and to pitch to a panel of Dragons, who decide if and how much seed funding they will secure. Talent Lab wanted to do something sustainable that would have a lasting effect for young adults to improve social mobility. Their idea is to create a series of fully sponsored virtual client events across a network of clients in 5 key regions across the UK, targeting the most deprived towns and those who need the opportunity most. Initially they will be running one for 16-19 year olds and a smaller event for year 6 students, which will come under the banner Limitless Horizons. Through sponsorship and fundraising events, we are aiming to generate in excess of £15,000 for the Million Makers scheme to support the King’s Trust enterprise.
Through the work they have with Skills for Life, our team have an extensive network of clients, of all sizes, across these regions already, which gives us a great starting position and so we are very confident that this will make a difference. If you’d like to learn more or collaborate on this initiative, reach out to our Talent Lab team.
Creating a blueprint for meaningful work experience
Currently, work experience isn’t compulsory for schools to offer – only half of state schools offer to students, and in many cases this is not meaningful work. This coupled with a lack of career guidance means that those from poorest regions don’t have access to opportunities, or don’t know what career options are out there.
In Summer 2024, Melanie Barnett (PSR Managing Director), Anna Crowe (PSR Client Relationship Director and Social Value Lead) and Michael Caley-Cook (AMS Senior DEB Manager) joined a collaborative CSR session led by Your Game Plan with participation from leading public and private organisations. The purpose was to develop a blueprint for a comprehensive work experience programme that would impact young people from lower socioeconomic and under-resourced communities.
Your Game Plan works with state schools across the country, many in underprivileged areas, where pupils don’t have the necessary role models, mentors, or parental connections to provide support in the next stages of their life. The blueprint content captured from the day will be pulled into a proposal that will be taken forwards by APSCo Outsource’s Managing Director, Melanie Forbes and Your Game Plan Founder, Danny Heath.
We also look forward participating in National Interview Month in February 2025, helping school and sixth form leavers prepare for their first real interviews. 16,000 young people will benefit from the opportunity to engage directly with professionals in various industries, which is expected to generate over £1 million in Social Value for state-educated students.
Career Insight Days with GoodWork and BelEve
In autumn 2024, AMS collaborated with two fantastic organisations to inspire the next generation of future leaders through meaningful Career Insight Days.
GoodWork is a non-profit supporting young people facing systemic barriers to access the training and opportunities they need to transition successfully into work. We were proud to host a diverse cohort of talented young people at our new London office for a Career Insights Day. We discussed the importance of understanding each other’s social styles, influencing & negotiating and business writing, with members of our ExCo joining a panel to bring to life their career stories and the power of mentorship.
BelEveis an incredible charity that aims to equip girls and young women aged 8-22 with the skills, support and confidence to find their voice and make informed choices about their future – challenging gender, race and class stereotypes. This October we hosted a Career Insight Day in our London Office where we shared CV and interview tips, ran a panel to hear career stories from senior AMS women, delivered training on social and communication styles, and even challenged the girls to create a TikTok on life at AMS.
Conclusion
A recent report by Demos and The Co-operative Group estimates that the economic impact of all businesses investing significantly in social mobility could be up to £19 billion to GDP, generating around £6.8 billion in yearly tax revenues and boosting profits by over £1.8bn a year. As the research shows, we need to keep a continued focus to improve outcomes for young people and level the playing field, a collaborative effort between the commercial sector, government, and the third sector.
Please connect with us if you are passionate about driving change in this area and would like to learn more about how we can support your social mobility initiatives.
Supplier diversity programmes are proactive procurement strategies that encourage organisations to purchase goods or services from traditionally underrepresented communities and include minority-owned businesses in their supply chain.
Minority-owned (or ‘diverse-owned’) businesses are at least 51% owned and operated by an underrepresented group and can include ethnically diverse, women, disabled, neurodiverse and LGBTQ+ owned suppliers.
In 2023, we launched our own diversity supplier strategy to promote to promote inclusive practices across our supply chain, and creating more opportunity for minority-owned businesses, maximising spend with these where possible.
AMS focuses our efforts on creating diverse and SME supplier eco-systems specific to a client’s needs. Our current supply partners include a range of certified minority or women-owned businesses who deliver certain aspects of a client’s solution such as sourcing or tech enablement. We also have proactive programmes in place to drive DEIB and Social Value through our partners and suppliers, such as our DEI Alliance.
In this article we explore our learnings and some best practices we have learnt along the way to optimise societal, environmental and economic impacts.
The business case
The UK’s Social Value Act encourages public sector bodies to consider Social Value alongside cost and quality in any tender process, one of its five key themes includes Tackling Economic Inequality with increasing supply chain resilience as a policy outcome.
Outside this, and current US regulation on minority-owned suppliers, there is little legislation which stipulates that organisations must implement a supplier diversity strategy. So what’s the value in making it a strategic business priority?
Growth and Market Expansion – Improved diversity in the supply chain allows an organisation to easily tap into new markets and customer bases with diverse demographics, driving growth, expanding reach and encouraging new entrepreneurs. It also aligns with the growing consumer and employee demand for ethical business practices, and can enhance brand loyalty.
Economic Contributions and Community Impact – Through diversity supplier programmes, organisations can significantly boost local economies, create jobs, and enhance purchasing power in underrepresented communities. According to the National Minority Supplier Development Council (NMSDC), certified minority-owned businesses generate more than $400 billion in annual revenue and economic output that leads to the creation and preservation of 2.2 million jobs. In the UK, ethnic minority businesses (EMBs) contribute more than £25 billion annually to the economy, which could rise to £100 billion with the right support according to the Natwest Business Growth Report. This economic empowerment translates into a stronger, more resilient market for everyone.
Innovation and Competitive Advantage – Engaging diverse suppliers fosters innovation and enhances competition, bringing in different perspectives and leading to better products and services. Additionally, a diverse supplier base can reduce dependency on a limited number of suppliers, increasing business resilience and agility, and decreasing supply costs via supplier competition.
Promoting Equity and Fairness of Opportunity – In redirecting supplier spend to minority-owned businesses, supplier diversity programmes are a powerful tool to combat systemic racism and promote social justice. Adopting a fair and inclusive procurement process and including often overlooked suppliers who may have exceptional capability ensures that all businesses – regardless of size, location, background – have the same opportunities to compete for the supply of goods and services.
Suppler diversity isn’t about positive discrimination – but providing greater opportunities through our procurement processes, underpinned by the need to acquire goods and services that meet an organisation’s service, quality, cost, innovation, risk, sustainability and compliance standards.
From a supplier perspective, a report by Aston University found that improving practices in procurement could help tackle the multiple barriers faced by ethnically diverse owned businesses, particularly in accessing finance, markets and quality business support, increasing their Gross Valued Added (GVA) contribution from the current £25 billion a year to an estimated £100 billion. Top barriers for small business growth include access to skilled employees (15%), cash flow challenges (15%) and lack of confidence (14%).
Five steps to creating an impactful strategy
As AMS continue to develop our own strategy in this space, below are some steps we have learnt to create, embed and measure a successful diversity supplier strategy.
1 – Clearly define your objectives
According to Business In The Community (BITC), 52% of employees working in procurement in large businesses have objectives to increase diversity and inclusion in the supply chain, and 32% do not. We firstly established a Supplier Working Group formed with representatives from Supplier Management & Procurement, Compliance and the Diversity, Equity, Inclusion & Belonging (DEIB) Centre of Excellence to drive activity, securing senior level buy-in. We established clear objectives and policy statements regarding our supplier diversity approach, agreed a governance framework and roles and responsibilities as a team to embed our strategy and continuously evolve.
2 – Track diverse suppliers and spend
Only 30% of large businesses track spend with diverse suppliers. Another key step early on is getting visibility of current supplier data. Technology makes this easier – Cloud-based spend analysis solutions offer ways to identify and categorise diverse suppliers. AMS tracks Supplier Diversity spend across the UK and the US, leveraging our partnership with Supplier.io. It’s then important to monitor and track spend in each diverse supplier category on an ongoing basis, with a clear reporting mechanism; many of our clients have contractual requirements on diverse supplier spend reporting.
Taking this a step further, our Public Sector Resourcing (PSR) business have invested in Thrive Social Value software, which coverts Social Value activity into indicative financial proxy values. PSR are proud to have built a diverse and resilient supply chain of approximately 350 suppliers, and over FY23-24 generated £57.1 million worth of Social Value through their diversity supplier strategy.
3 – Expand your network
You won’t reach new suppliers by communicating with the same or existing networks. Not only can intermediaries help you tackle the barriers mentioned above, but they can give you access to suppliers who might otherwise not come into contact with your organisation. We keep abreast of diverse suppliers leveraging our internal and external networks – engaging our colleagues, clients and professional contacts to build a comprehensive knowledge of supplier landscapes.
4 – Strategise with diverse suppliers
52% of large business procurement employees don’t actively make diverse suppliers aware of opportunities. It’s important to proactively involve your diverse suppliers in the procurement process, creating collaborative forums to strategise and co-create products and solutions. An innovative example of this is our AMS DEI Alliance (see case study below). Some organisations also offer mentoring programmes to help minority-owned business owners navigate the supplier qualification or procurement process.
This year, PSR launched the Social Value Supplier Connect, designed to maximise social impact by fostering collaboration between PSR and our suppliers. Led by the PSR Social Value and Supplier Management teams, the Connect forum brings together our key suppliers three times a year to discuss best practice, share success stories and identify partnership opportunities. The group comprises a mix of both large and small organisations, ensuring diverse experiences and perspectives that can be shared. Suppliers in the forum also benefit from a ‘resource catalogue’ developed by PSR providing additional materials such as Accessibility Training delivered by the AMS DEIB COE and our Disability Employee Resource Group (ERG).
5 – Share guidance for your colleagues
The next step on our journey is to provide practical and relevant guidance for our business on responsible, fair and inclusive procurement processes. This includes Bias & Conscious Inclusion training for colleagues with a focus on supplier outreach and selection to help maximise opportunities for diverse businesses, as well as an education programme on proactive supplier engagement and collaboration.
Case Study: AMS DEI Alliance
In 2022 AMS formed a Diversity & Inclusion Alliance, a market-leading collaboration hub of DEIB focused partners to improve diverse representation across our clients’ total workforces and bring market leading DEIB expertise and insight to inform talent strategies.
Many of our partners are voluntary, community and social enterprises (VCSEs) or minority-owned businesses, and include 55/ Redefined (female founded), Evenbreak (disabled owned and operated) BYP Network (Black owned and operated), Recruit for Spouses (female founded), myGwork (LGBTQ+ owned) and auticon (largest majority autistic company in the world).
We firstly developed a robust strategy for identifying diverse suppliers – continuously engaging our colleagues, clients and external contacts to build a deep knowledge of the DEIB supplier landscape – both suppliers currently partnered with AMS, or who we were not currently signed. The DEIB COE and Procurement teams developed an RFI process to onboard new Alliance partners against consistent criteria.
We’re proud to have developed a collaborative forum to share client opportunities, co-develop inclusive strategies, share learnings and best practices. We advocate for our Alliance partners with our clients; to introduce our partners to our clients across the UK, we held an ‘Alliance roadshow’ in autumn 2024, taking our Alliance on an in-person tour across the UK holding networking events across key locations of London, Birmingham, Manchester and Edinburgh with a total of nearly 150 attendees.
As a result, we have generated significant interest from public and private sector clients, facilitating introductions to customers such as the HM Land Registry who are working with myGwork to access LGBTQ+ talent.
Conclusion
Incorporating a diversity supplier programme into your business strategy is a win-win. It’s a meaningful strategy for sustainable procurement, driving innovation, enhancing competitiveness, and creating significant Social Value, while also increasing business resilience and agility.
By actively engaging with diverse suppliers, your organisation can build a resilient and agile supply chain, demonstrate commitment to Social Value to your stakeholders, and unlock new market opportunities.
If you’d like to learn more about maximising your work with diverse and minority-owned suppliers, do reach out.
This year’s Social Value Conference felt like being part of a growing movement, highlighting a powerful shift in how we understand and deliver social value that goes beyond policies or metrics. Sessions tackled everything from the role of leadership in embedding social value to the importance of partnerships for maximising community impact.
Across public and private sectors, a shared goal resonated: making social value a fundamental part of organisational fabric to build a true Social Value Economy, moving far beyond box-ticking exercises.
A major theme was the shift from traditional corporate social responsibility (CSR) models to a holistic, system-wide approach where social value becomes embedded in core business strategies.
Rather than focusing solely on compliance, social value should drive decisions that address community needs, environmental sustainability and growth.
At AMS, we have embedded a central function with the sole purpose of driving Diversity, Equity, Inclusion and Belonging (DEIB) across our own business and our client workforces. In addition to this we have a number of purpose-led groups from our award-winning Employee Resource Groups through to our Sustainability Working Group who’s mission is to drive purpose-led initiatives across our business.
On PSR (Public Sector Resourcing), we’ve embedded a dedicated social value team responsible for managing the PSR Social Value Strategy to ensure our initiatives produce lasting impact for public sector customers and communities.
Another prominent theme was the challenge of balancing large-scale goals with local needs.
Delivering social value on a national level often creates complexities when addressing specific community requirements as noted by speakers who advocated for stronger, locally rooted partnerships.
These partnerships enable organisations to harness local knowledge and deliver targeted initiatives that genuinely reflect the needs of the communities served. The AMS Diversity & Inclusion Alliance is a great example of crafting an effective partnership with a blend of organisations including those from the VCSE sector to create meaningful outcomes for under-represented individuals, each partner brings expertise across a wide range of DEI demographics and are making a difference in their respective fields.
Working closely with them on PSR has enabled us to develop effective initiatives like the PSR Guaranteed Interview Scheme which aims to remove the barriers to employment for disabled candidates, military veterans and military spouses/partners.
One of the biggest takeaways from the conference was the ongoing challenge of contract management and measurement of social value. Organisations often struggle to monitor and evaluate the impact of social value commitments made by suppliers, leading to a gap between promise and delivery.
The importance of evidence-based frameworks for to measure social value was recognised as important but there is a growing awareness that a “one-size-fits-all” approach may not be enough to ensure meaningful outcomes. To address this, we’ve implemented Thrive on PSR, a social value measurement tool that enables precise tracking and real-time reporting of social value outcomes. This robust technology, combined with qualitative insights, translates commitments into measurable, impactful results for our communities.
With a new government and the Procurement Act postponed, it’s clear that social value priorities may evolve, underscoring the need for agility and flexibility when it comes to Social Value.
In short, Social Value is here to stay. This movement is growing, with all sectors increasingly recognising the importance of generating added value through sustainable and socially responsible procurements.
Across public and private sectors, a shared goal resonated: making social value a fundamental part of organisational fabric to build a true Social Value Economy, moving far beyond box-ticking exercises.
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Many of you know that AMS has made significant strides in the Social Mobility Foundation Employers Index, moving up 27 positions from 39 to an impressive 12! This achievement is not just a number; it reflects our unwavering commitment to fostering social mobility—a cause that is both a business priority and deeply personal to me.
As someone who grew up in a working-class family in Caerphilly, South Wales, attended a state school, and was the first in my family to attend university, this journey resonates with me on a profound level. It also instilled in me the belief that everyone, regardless of their background, deserves the opportunity to succeed.
Our progress
Over the past four years, we have worked diligently to advance our social mobility strategy. Here are some key highlights from the last 12 months:
Publication of Our Social Class Pay Gap Report: Transparency is crucial. By openly addressing the pay gap, we’re taking actionable steps to ensure equity across our workforce.
Collecting Social Mobility Data: We have made continuous efforts to gather and analyse social mobility data among our employees, helping us identify areas for improvement and track our progress.
Internal and External Advocacy: Advocating for social mobility isn’t just a responsibility; it’s a mission. We have engaged with both internal teams and external partners to amplify our impact.
AMS Talent Lab:Our Talent Lab business has made social mobility a core focus, ensuring that our commitment translates into tangible outcomes.
The Road Ahead
While we are proud of our progress, we recognise that there is still much work to be done.
To facilitate broader discussions on this vital issue, I have established an external forum for DEIB Leaders. This forum is a platform for collaboration, where we can share insights, strategies, and best practices to collectively enhance social mobility efforts across various sectors.
If you’re passionate about driving change in this area and would like to learn more about how we can support your social mobility initiatives, I encourage you to reach out. Together, we can create a more equitable future for everyone.
Diversity, Equity, and Inclusion (DEI) initiatives have become a cornerstone of corporate strategies, aiming to create more equitable workplaces by promoting fair processes, leading to diverse representation, and fostering inclusive environments.
However, the term ‘DEI’ has accumulated significant cultural and political baggage.
New scrutiny has caused some organisations to cut back on DEI budgets, headcount and inclusive hiring efforts. Companies are walking on eggshells as the environment remains challenging, with many firms quietly transforming the way they refer to DEI, omitting mentions of ‘diversity goals’ in their annual reports, or dropping these goals altogether.
It’s a stark contrast to 2020, when the murder of George Floyd jolted organisations into vocal representation commitments and intentional positive action. Now, critics argue there has been an ‘overcorrection’ to historic underrepresentation, where organisations are dialling back their approaches at a time where powerful voices against DEI become louder (the title of this article ‘DEI = Didn’t Earn It’ has been used provocatively against the profession in internet memes, along with ‘DEI must DIE’).
As such we’re starting to see changes in the language used in the market; in July 2024, the world’s largest Society of Human Resource Management (SHRM) announced it would be dropping ‘Equity’ from the way it refers to ‘Inclusion, Equity and Diversity’, citing the need to lead with inclusion, but attracting criticism from HR professionals who feel this shifts the focus away from addressing systemic inequalities and individual barriers.
What’s driving the DEI backlash?
Political polarisation:In my last blog I talked about how DEI has become a politically charged topic, particularly in a key election year across the Western world. This in part stems from the Affirmative Action Supreme Court ruling in the US, outlawing race-conscious admissions in higher education. This has created a knock-on effect to the corporate world despite diverse outreach and EEO reporting continuing to be a requirement in the US.
Measurement and perceived effectiveness: Many organisations responded to George Floyd’s murder in 2020 with investing significantly into DEI efforts, either into a sustainable strategy closely aligned to business goals, or slap-dash with a short-term, transitory view leading to ‘diversity fatigue’ with the effects already wearing off. Without clear outcome metrics, it’s hard to assess the impact and return on investment, leading some to question the value of these efforts.
Tokenism: There is a concern that DEI efforts can sometimes lead to tokenism, where the focus is on meeting diversity metrics and performative representation rather than fostering genuine inclusion. This can undermine the credibility and effectiveness of these initiatives.
Perceived exclusion: Ironically, some argue that DEI initiatives, meant to include, can feel exclusive to particular groups. Almost 70% of white men feel ‘forgotten’ by DEI initiatives, despite holding more than 40% of leadership positions globally, and two in five Britons reportedly feel championing women’s equality discriminates against men. This has given rise to the notion of ‘Oppression Olympics’, which suggests competition between marginalised groups, where one is perceived as ‘taking away from’ another.
Evolving DEI
Ultimately, however, experts are confident efforts will continue – even if they’re labelled as something else. SHRM argue through their intentional ‘rebrand’ that the principles of ‘equity’, i.e. promoting fairness based on individual needs recognising that not everyone starts from the same place, remains embedded in their work through practices and policies. So, should we change how we talk about ‘DEI’ and have a better chance of achieving the same goals through different means?
ESG and Social Value – Given these challenges, some organisations are positioning DEI under the broader umbrellas of Environmental, Social, and Governance (ESG) or Social Value as a strategic move. Social Value refers to the meaningful impact an organisation has on society – beyond compliance and risk mitigation, to contribute to long-term development, impact and sustainability. The UK’s Social Value Act mandated Social Value as a procurement requirement for all government contracts to address the ‘Social’ pillar in ESG efforts. AMS’s Public Sector Resourcing (PSR) service, which provides more than 17,000 skilled, contingent workers across the UK government at any one time, has formed its own Social Value strategy; from a recruit, train deploy model to upskill trainees from underrepresented backgrounds, to embedding our D&I Alliance of DEIB partners including Bridge of Hope, auticon and Recruit for Spouses to improve representation in our clients’ workforces. By framing DEI within this context, organisations can present these efforts as part of a broader commitment to sustainable hiring and people strategies. Social Value can also be quantified in commercial impact; after implementing Thrive software, PSR generated over £57 million in Social Value impact in 2023-24 financial year.
Belonging – Between 2023 and 2024, mentions of ‘DEI’ and ‘diversity’ in reports from Fortune 100 companies fell 22%, while ‘belonging’ jumped 59%. Last year, we added the ‘B’ for Belonging into how we refer to DEI at AMS, bringing this into the core of how we operate and joining other industry leaders who use DEIB. A recent d&i Leaders webinar explored how belonging impacts wellbeing, reduces turnover and improves workplace productivity, while Forbes ranked belonging as a top 2024 strategy in an uncertain economic climate. Research in Harvard Business Review shows that when employees feel like they belong, they’re 3.5 times more likely to contribute to their fullest potential. And belonging is something most of us can relate to; according to the American Psychological Association 94% of workers feel it is very or somewhat important to them.
Business outcomes – It’s important not to lose sight of the ‘why’ in a DEI existential crisis. Beyond the moral imperative of promoting fairness of opportunity, practitioners often cite ‘the business case for DEI’, identifying correlations between a diverse workforce and innovation, as well as commercial success. Harvard Business Review found that diverse teams have been shown to be 70% more likely to capture new markets and 87% better at making decisions than homogenous teams. In June 2023, a study by the ratings agency Moody’s found that companies with higher ratings tended to have a greater racial diversity on their boards and in their executive ranks. Read more about harnessing DEI for business success here.
There’s a lot that DEI practitioners can learn from the backlash. Regardless of what we call it, this isn’t the time to abandon our principles; we now have a unique opportunity to refine how we approach DEI to bring everyone along the journey regardless of background, reduce unhelpful friction, and create more meaningful and lasting impact.
I am pleased to continue highlighting our D&I Alliance Partners by sharing a recent video conversation with James Fellowes and Chance Bleu-Montgomery from Bridge of Hope Careers.
As a founding member of our D&I Alliance, Bridge of Hope supports clients in accessing diverse talent pools from underrepresented groups and promotes inclusive hiring practices. Their passion for advancing social mobility in the UK aligns perfectly with our approach, and we are excited to collaborate in this important area.
Despite the increased focus and investment from businesses in programmes aimed at improving social mobility, recent research by the Sutton Trust indicates that social mobility in the UK has either remained stagnant or, more likely, deteriorated.
The research identified the following as the top six barriers to succeeding in life:
Lack of job opportunities where you live – 30%
Poor work ethic – 29%
Access to good education – 29%
The state of the UK economy – 28%
Lack of self-belief – 26%
Bad parenting – 24%
While some of these challenges are systemic and will take time to address, meaningful change can only occur through concerted efforts from businesses, government, and charities. We are excited about our partnership with Bridge of Hope Careers and are committed to driving change together.
Please reach out if you would like to learn more about our D&I Alliance or discuss social mobility further.
According to the UK Government’s 2023 State of the Nation report, adults with lower working-class parents are about 3 times as likely – 30% against 11% – to be in a working-class occupation compared to adults with higher professional parents. In education, people whose parents had degrees are far more likely – 64% against 18% – to get a degree than those whose parents had no qualifications.
Social mobility, officially recognized as an area of diversity, equity & inclusion (DEI) thanks to the UK Government’s Social Mobility Commission, is linked to equality of opportunity: the extent to which people have the same chances to do well in life regardless of the socio-economic background of their parents, their gender, age, sexual orientation, race, ethnicity, birthplace, or other circumstances beyond their control.
According to a report by the Institute for Fiscal Studies, UK social mobility is at its worst in over 50 years. Now is the time for businesses to fulfill their social and ethical obligations by promoting social mobility in the workplace.
According to the Sutton Trust, enhancing social mobility within UK businesses to align with the average level seen in Western Europe could potentially lead to a 9% boost in GDP. This increase is equivalent to £2,620 per person, or a total of £170 billion added to the UK economy annually.
What is Social Mobility?
Social mobility is the movement of individuals, families, or other social units between positions of varying advantage in the system of social stratification of a society. (International Encyclopedia of the Social & Behavioral Sciences, 2001).
Many sociologists have traditionally concentrated on examining mobility between occupational classes, specifically the types of jobs individuals hold. In contrast, economists have more recently shifted their focus toward analysing income mobility.
Social mobility and equality of opportunity can be measured in terms of occupation, income, or ‘social class’, but can also encompass other measurements of social well-being such as health and education.
When an individual experiences a shift in their position, particularly in their occupation, without a change in social class, it is referred to as “horizontal mobility.” On the other hand, if the transition results in a change in social class, it is known as “vertical mobility,” which can manifest as either “upward mobility” or “downward mobility.”
The key markers of social mobility are health, education, housing, income, race, and gender.
In the workplace, social mobility pertains to an individual’s capacity to ascend or descend within the hierarchy or structure of a company or organization. It encompasses the progression a person’s career and enhancement of their job role, salary, and overall professional standing within their current workplace.
“This class pay gap is not just an indictment of professional employers. It is morally unjust and economically illiterate.” Alan Milburn, Social Mobility Foundation chair
Why is social mobility important?
People from disadvantaged backgrounds have fewer opportunities to climb the socio-economic ladder. The current economic situation in the UK is likely to exacerbate the UK’s social divides, limiting the career prospects of young people from disadvantaged backgrounds.
Social mobility plays a crucial role in the health of the economy.
In 2021, services industries in the UK contributed £1.7bn in gross value to the economy, 80% of the total figure. A recent report by the Law Society highlighted the importance of social mobility in the professional services sector, stating that a lack of it poses a significant threat to Britain’s competitiveness and productivity.
According to the World Economic Forum, the Fourth Industrial Revolution, characterized by rapid globalization and technological advancements, has resulted in a rise in inequality. For instance, the Forum highlights that the top 1% of earners in the United States saw their income increase by 158% between 1979 and 2018, while the bottom 90% experienced only a 24% increase. This disparity underscores the widening gap between the wealthiest individuals and the majority of the population, highlighting the urgent need for policies that address income inequality and promote economic inclusivity.
“As the hiring demands for tech skills in the UK continues to rise, organisations are finding it challenging to access the talent they need to innovate and progress. The UK government recognises the importance of the tech sector and tech skills for improving the UK economy, but also acknowledges there is a significant shortage of available candidates in the market.” Mel Barnett, managing director, Public Sector Resourcing
PwC’s Future of Government research asked 4,000 people across the UK about their concerns around social mobility and the actions that they think government and businesses should take in response. The polling revealed that business has a vital role to play in improving the social mobility of younger generations, with calls from the public for better access to opportunities, work experience, and career pathways, and greater investment in apprenticeships and skills.
Implementing a social mobility strategy is not only an ethical decision, but it also plays a crucial role in shaping a more skilled and prepared workforce for the future. It not only expands the talent pool for an organization, but also enhances its appeal to potential recruits, especially the influential Generation Z, who will soon comprise the majority of the workforce. It not only fosters growth and improves local economies where an organisation operates, but it also contributes to the development of more equitable and cohesive communities.
Promoting socio-economic inclusivity is also a strategic business decision. Diverse workforces have been proven to be more innovative, productive, and better equipped to navigate the challenges of the future. By embracing inclusivity, organizations can unlock new perspectives, ideas, and talents that drive success and growth.
PwC’s global 2022 Hopes and Fears survey revealed that employees expect their employer to have strong ESG credentials; three-quarters say that they want to work for an organisation that makes a positive contribution to society, and 54% say that transparency around diversity in their employer is extremely or very important to them.
Prospective employees and clients are increasingly seeking out companies that prioritize purpose, not just profit. By championing the social mobility agenda, businesses can effectively balance their commercial interests with making a positive impact and preparing their workforce for the future.
Where compares with the UK?
The social mobility geographical patterns in the UK are striking. People of a working-class background who grew up in Outer London (West and North) had a 46% chance of becoming professionals, while those growing up in Northern Ireland had only a 28% chance.
The first round of the government’s Levelling Up funding saw £1.7bn distributed among 105 UK towns and cities, with further plans to invest in skills training, in some of the UK’s most deprived areas.
Research from the Institute of Fiscal Studies suggested that on a wide variety of measures, regional disparities in the UK are greater than in most comparable countries.
In a study conducted by Wilkinson and Pickett, the results of which were initially published in 2009, an in-depth analysis of social mobility in developed countries was carried out. Among the eight countries examined – Canada, Denmark, Finland, Sweden, Norway, Germany, the UK, and the US – it was found that the US exhibited the highest level of economic inequality and the lowest level of economic mobility. Further research has consistently shown that the US has notably low mobility for individuals at the bottom of the socioeconomic hierarchy, with mobility gradually improving as one ascends the ladder.
Research comparing social mobility across developed nations has shown that Denmark, Norway, Finland, and Canada have the lowest intergenerational income elasticity, indicating higher levels of social mobility. In these countries, less than 20% of the advantages of having a high-income parent are passed on to their children.
In countries like India, it is common for educated women not to use their education to move up the social ladder due to cultural and traditional customs.
Chile and Brazil, two countries characterized by high levels of inequality, also exhibit some of the lowest levels of social mobility.
Who are the key players?
The Social Mobility Commission (SMC)exists to create a United Kingdom where the circumstances of birth do not determine outcomes in life. The SMC’s State of the Nationreport, is an annual report on social mobility in the UK, which sets out their views on the progress made towards improving social mobility in United Kingdom.
The Social Mobility Index is a framework for measuring social mobility in the UK. It enables a systematic look at social mobility outcomes, as well as the drivers behind social mobility. It sets out a long-term vision for measuring and monitoring social mobility outcomes over the next 30 years across the UK.
The Social Mobility Foundation is a UK-based non-profit organisation dedicated to advancing the social mobility agenda, by directly supporting young people through their Aspiring Professionals Programme and influencing employers to support people with potential in their professional progression. The foundation’s Employer Indexis the leading national study analysing the efforts of employers to improve social mobility within the workplace.
The Sutton Trustchampions social mobility through programmes, research, and policy influence through key priority areas; early years, schools, higher education, access to the workplace, and apprenticeships. According to the Sutton Trust, enhancing social mobility within UK businesses to align with the average level seen in Western Europe could potentially lead to a 9% boost in GDP. This increase is equivalent to £2,620 per person, or a total of £170 billion added to the UK economy on an annual basis.
The Global Social Mobility Index was created by the World Economic Forum in 2020 in response to the impact of globalization and technological advancements on social mobility worldwide. 82 countries were measured on five key metrics: education, access to technology, healthcare, social protection, and employment opportunities. The top 10 countries with the highest social mobility index scores are located in Europe, with the majority of those being Nordic Countries. Nordic countries lead the index for several reasons, including excellent job opportunities, social safety nets and high-quality education programmes.
The highest possible score a country could receive was 100.
(Source: World Population Review)
“When it comes to social mobility and sustainability, if we can support our customers’ goals in these areas, it’s a win/win. In the public sector, social value is a crucial factor, so being able to demonstrate our work in this area is incredibly important and we have a real responsibility to do the right thing.” Anna Crowe, client operations director, AMS
How can we promote social mobility?
How businesses address social mobility will play a pivotal role in fostering a thriving and prosperous UK. Developing an effective social mobility strategy is not a straightforward task. It necessitates a shift in mindset, wherein the entire organization re-evaluates its approach to talent acquisition and recruitment. Both public and private sector organisations have a role to play in advancing the social mobility agenda.
Our recommendations for organisations looking to advance social mobility:
Start with the data. Historically, organizations have neglected to collect socio-economic data on their workforce, resulting in significant gaps in knowledge regarding key challenges, effective solution targeting, and potential areas of impact. This oversight has also contributed to a lack of insight into the extent of socio-economic diversity within the workforce and the identification of potential barriers. For instance, it remains unclear whether these barriers manifest at various stages of the employee lifecycle (from recruitment to advancement), within specific business locations or functions, or in conjunction with other demographic factors like ethnicity and gender. Addressing these gaps in data collection and analysis is crucial for fostering a more inclusive and equitable workplace environment.
Increase upskilling and reskilling. Access to upskilling and reskilling opportunities is not evenly distributed. Leaders must establish inclusive opportunities by providing training and work experience to their employees as well as the broader community. This can be achieved through partnerships with educational institutions and charitable organizations.
Broaden your talent pool. Many businesses continue to view universities as their main source of talent, whether consciously or unconsciously, limiting their talent pool. PwC’s research indicates that 83% of the general public views access to local employment opportunities as a significant obstacle to achieving social mobility. Businesses have the opportunity to leverage virtual work arrangements to offer valuable work experience opportunities and expand their talent pool through targeted recruitment campaigns.
Review end-to-end recruitment process. Organizations should thoroughly review and analyze each step in the hiring process. This includes assessing job posting language to ensure it is inclusive and free from biases, expanding outreach efforts to reach a more diverse pool of candidates, implementing blind resume screening practices to remove any unconscious biases, providing equal opportunities for all applicants regardless of their background or education level, and setting clear diversity goals for hiring managers to follow. By taking a comprehensive approach to enhancing social mobility in recruitment, organizations can create a more equitable and diverse workforce that reflects the values of inclusivity and equal opportunity.
Reassess procurement. This entails considering how vendor selection criteria can be adjusted to provide opportunities for historically marginalized groups, such as minority-owned businesses or those led by women or individuals with disabilities. By deliberately seeking out suppliers who prioritize social responsibility and promote workforce diversity, companies can not only make a positive impact on society but also benefit from a wider range of perspectives and expertise. Additionally, implementing measures such as supplier diversity programs or mentorship initiatives can help level the playing field and create pathways for underrepresented businesses to thrive in the marketplace. Through conscious efforts to reevaluate procurement practices, organizations can contribute to creating a more equitable and inclusive business environment while driving innovation and success.
Develop a strategy in line with your business and ESG objectives. Integrating social mobility efforts into ESG objectives demonstrates a commitment to addressing systemic inequalities and promoting sustainable practices. As businesses continue to prioritize diversity, equity, and inclusion in their operations, developing a tailored social mobility strategy is crucial in driving positive social impact while also achieving long-term business success. This may involve implementing initiatives such as mentorship programs, skills training opportunities, or flexible work arrangements to support employees from all backgrounds in advancing within the company.
“Social mobility is a key strategic enabler for AMS. Our business is all about talent and having a fair and level playing field which is open to all, including those of us who may be from lower socio-economic backgrounds.” Matthew Rodger, Chief Growth & Commercial Officer and ExCo sponsor for Social Mobility, AMS
Top tips to enhance social mobility through recruitment:
Collaborate with schools and community organizations to provide internship opportunities and develop talent pipelines that can help bridge the gap for underprivileged individuals seeking employment opportunities.
When evaluating entry-level candidates, contextualise their academic achievements to create a more level playing field for all applicants.
Eliminate bias in the hiring process by implementing blind recruitment practices and ensuring that all candidates are evaluated solely based on their qualifications and merit.
Offer mentorship programs and professional development opportunities to help individuals from disadvantaged backgrounds navigate the corporate world more successfully and advance in their careers.
Transition away from competency-based models that solely focus on candidates demonstrating specific skills, which can be influenced by their access to extracurricular activities or job opportunities. Instead, consider adopting strength-based models that incorporate interviews and scenario testing to assess an individual’s abilities and potential more effectively. This shift will allow for a more comprehensive evaluation of candidates, leading to better hiring decisions and improved organizational outcomes.
Provide additional job opportunities in areas outside of major cities to reduce the burden on candidates who may be reluctant to relocate. Leveraging remote or hybrid working is key.
Creating employee resource groups around social mobility. Establishing employee resource groups focused on social mobility is essential for promoting socioeconomic inclusion and ensuring a diverse representation of the communities we serve. These groups aim to support the professional advancement of employees from various socioeconomic backgrounds.
Relax the requirements for bachelor’s degrees where possible. This could potentially open up more opportunities for individuals seeking to advance their education and career prospects. By re-evaluating the criteria for earning a bachelor’s degree, we can create a more inclusive and accessible educational system that benefits a wider range of individuals.
The Social Mobility agenda at AMS
We are honoured to be recognised as a top 75 employer in the Social Mobility Foundation’s Employer Index.
In September 2023, we officially launched its partnership with Movement to Work(MtW), a not-for-profit coalition of UK employers, youth-outreach organisations, training providers, and government – all aiming to level the playing field for young people, aged 16-30, who are not in employment, education, or training.
MtW works with employers, free of charge, to design and create vocational workplace opportunities and work experience placements either in-house or through its recommended training providers. MtW counts some of the biggest UK employers among its members including Accenture, BAE Systems, Tesco, BT, Barclays, M&S, Marriott, The Department of Work and Pensions and the British Army.
Measures taken by AMS in recent years include increasing partnerships and collaboration with key social enterprises, charities, and small businesses as well as a renewed focus on data collection allowing AMS to understand the socio-economic makeup of their colleagues based in the UK&I region.
AMSTalent Lab, provides expert training to help organisations turn people with the right potential and aptitude into people with the right skills. Whether it is upskilling or reskilling existing tech talent or developing a recruiter team from scratch. Every element of Talent Lab is designed to enhance social mobility, tapping into the potential that exists in all corners of our society, from attraction to assessment, training, and ongoing support. AMS Talent Lab enables organisations to gain a competitive edge and benefit from a diverse viewpoint.
AMS’s Public Sector Resourcing (PSR) service provides more than 19,000 skilled workers across the UK government at any one time, meeting contingent resourcing demands on large projects including Brexit and the pandemic. PSR formed its Social Value Model and strategy to align with the challenges facing the public sector and works collaboratively with clients.
The Social Value Model was built to address five key themes that include Equal Opportunity, Tackling Economic Inequality and Fighting Climate Change each with subsequent policy outcomes. On the PSR framework we have projects and programmes aligned to each of these areas to drive positive change, as well as repurposing initiatives already in place at AMS to make them applicable to our public sector customers.
We introduced a new service line in PSR, called ‘Recruit, Train, Deploy’, to bring in trainees from under-represented or those from lower socio-economic backgrounds, upskill them and then place them in a client organisation, providing both commercial and social value. Our partnerships with inclusive recruiters likeRecruit for Spouses, Auticon, and Bridge of Hope help to provide opportunities to individuals who might not think public sector roles are for them.
“Since its inception in 1996, social mobility has been part of AMS’s DNA. We believe that we can further help ourselves and our clients who wish to diversify their talent pipeline by creating opportunities for candidates from underrepresented talent groups and if needed training them with in-demand skills.” Matthew Rodger, Chief Growth & Commercial Officer and ExCo sponsor for Social Mobility , AMS
AMS is committed to driving the dial forward on social mobility and championing change to level the playing field for the world of work.
Interested in learning more about how your organisation can advance social mobility?
Contact Fionuala Goritsas, Head of Analyst Relations & Global Co-Chair for Social Mobility, or Marisa Baker, Client Services Manager and Social Mobility ERG Co-Lead.
Graduating with a degree was once considered key to kickstarting a prosperous career and many recruiters would typically filter shortlists by removing applicants who weren’t degree qualified without any discussion. This is a traditional and aged way of hiring, posing a barrier for employers who aim to build diverse and inclusive workforces for many reasons. Unfortunately, the practice still exists today and can be one of the methods that employers find the most difficult to ditch.
Interestingly, this article from the Harvard Business Reviewshares that the practice took off in the early 2000’s with a significant number of employers adding degree requirements to the descriptions of jobs that hadn’t previously required degrees, a trend that became particularly pronounced after the Great Recession of 08-09 and commonly referred to as ‘Degree inflation’.
The same article recognises that skills-based hiring is on the rise which will open opportunities to a large population of potential employees who in recent years have often been excluded from consideration because of degree inflation. More and more employers are recognising that the qualifications available don’t always fully match the needs of their businesses now or in the future with 45% of employers saying an applicant having a degree is ‘not important’ according to an article written by PeopleManagement.co.uk.
It’s also reported by the Mirrorthatin 2023 that less than half of graduates were working in a career that related to their degree. Even the universities minister, Michelle Donelan, acknowledges that “higher education is not necessarily the best route to get to where you want in life” and that that true social mobility is about improving outcomes rather than university placements as reported by the Guardian.
How does ‘Degree Inflation’ impact social mobility, you ask? It’s widely reported that individuals from a lower socio-economic background are less likely to attend or complete a university course but that doesn’t mean that this group of people are less competent or capable. The Social Mobility Commission shares thoughts from the former CEO of Personal Banking at Barclays, Steven Cooper, who left school at 16 and became a bank teller. Steven has faced many barriers over his 30-year career namely promotions hinging on a specific level of qualification or assumptions that he should be in a clerical role given his background however he’s managed to overcome this and enjoy a career that has taken him to the most senior levels.
It’s a fascinating story but unfortunately not the case for so many others.
Society is moving in the right direction but there is still more to be done. According to LinkedIn, there were only 30% of jobs posted that don’t require a degree in 2022. It would be interesting to know how many advertisements that required a degree qualified individual had actually stated which course or topic the individual should be qualified in as far too often the specialism isn’t declared leaving room for speculation if a degree level qualification is required at all.
To promote, enable and accelerate social mobility and create inclusive workplace and hiring practices, organisations should think harder and smarter about talent attraction and retention. Shifting focus from rigid degree requirements to a skills-based hiring approach levels the playing field and provides opportunity for individuals from all backgrounds to thrive.
Skills-based hiring will open opportunities to a large population of potential employees who in recent years have often been excluded from consideration because of degree inflation
Like many of my colleagues, I have recently been on a knowledge upskilling journey when it comes to green skills – a subject that has quickly become a critical agenda item in both the public and private sector, with the race for securing talent in this space already well underway.
The shift to a net zero economy will require a transformation of our workforce, inevitably changing the skills required and the tasks involved in many of the existing occupations as well as generating thousands of additional opportunities for green jobs. But there’s a problem: are we ready for this skills revolution?
The UK government has set an ambition of supporting 2 million jobs in the green economy and its supply chains by 2030 and later this year the UK Government’s Green Jobs Delivery Group will publish its action plan on green skills that will undoubtedly include a planned approach to skilling and hiring. What we know right now is that the demand for green skills is already on the rise, with green jobs now representing over 30% of UK job postings on LinkedIn and with a talent shortage already evident this is presenting a challenge.
But the green skills agenda also presents a huge opportunity.
In the article How the transition to net zero could unlock social mobilitypublished last year by the Institute of Student Employers (ISE), William Akerman at Connectr explains how the green skills gap could be the opportunity of a generation for social mobility. He highlights an important point when it comes to the challenge of green skills demand versus available talent in the market in that the “gap won’t be filled from reskilling companies’ existing workforces alone.” He draws attention to the opportunity for this gap to be filled by early careers, indicating this could be “a vital pathway to get the right skills into your organisation, to set your company up for success.”
When shaping the future of the green economy, harnessing the passion for sustainability amongst young people and a desire to work for an organisation that aligns with that will be key, and this needs to begin with creating tangible career pathways and access to these roles. ISE report 72% of students want to work for an employer that has a positive impact on sustainability.
The article does suggest that there’s a risk of diverse groups getting left behind. However “if rolled out considerately, once-in-a-generation workforce changes like the transition to net zero, also provide an opportunity to power up diverse talent groups, and give them the skills to stand out and get ahead.”
So what action is required?
Organisations need to invest in their future “green” workforce now to ensure they have the right skills to deliver a green industrial revolution and thrive in the jobs it will create.
Targeting young people from all backgrounds and demographics who are interested in securing a green job will be vital and this begins with education. There is a lack of knowledge and information about the requisite skills and qualifications needed and routes to entry when it comes to green skills.
When it comes to routes to entry, models like recruit, train, deploy could be a perfectly positioned and indeed highly effective route for green skills hiring, offering a comprehensive approach to address the increasing demand for workers with expertise in sustainable practices and environmental conservation. Such a model can Identify individuals from diverse backgrounds who have the potential and interest in acquiring green skills and design training programmes that are tailored to the specific needs of the green economy.
By implementing a recruit, train, deploy model tailored to green skills, organisations can contribute to the development of a skilled and diverse workforce that actively participates in the transition to a more sustainable and environmentally friendly economy. This approach not only addresses the demand for green skills but also promotes social and economic mobility for individuals seeking opportunities in this growing sector.
once-in-a-generation workforce changes like the transition to net zero also provide an opportunity to power up diverse talent groups, and give them the skills to stand out and get ahead.
The pace of change is leaving many organisations facing critical skills shortages. Growing your own talent through skilling is an effective solution and we’re delighted to see many forward-thinking organisations taking this one step further. They’re adopting a truly ethical approach to skilling, levelling the playing field for all talent and in doing so, filling their skills gaps, and increasing the diversity of their workforce at the same time.
At AMS Talent Lab our dedication to ethical skilling, positively promoting social impact and creating diverse and inclusive cohorts underpins the foundation of our proposition.
Every element of Talent Lab is designed to enable talented individuals to succeed. Whether this be through our attraction methods, our carefully curated assessment process, our world class training, or the ongoing support through our Talent Lab Care team.
It’s vitally important to us that we offer opportunity for our Associates based on potential and aptitude, not previous experience, or the educational institute that they went to. We pay all our cohorts from the very first day of training, and we don’t penalise them if they decide that this isn’t their chosen path during that journey.
Our world class training is carefully curated for each client, ensuring that the skill gap is not only filled initially but that talent will grow within their organisations to be the leaders of the future.
We recognise that ethical skilling is more than hitting a diversity target, we attract, assess and support in a way that makes each and every individual secure and free to reach their potential.
Are you looking to partner with a truly ethical skilling partner to fill your skills gaps? Please reach out to us at [email protected]! We look forward to hearing from you!
Don’t just take out word for it, listen to what this means to our Associates…
In 2022 AMS formed a Diversity & Inclusion Alliance, a market-leading collaboration hub of DEIB focused partners to improve diverse representation across our clients’ total workforces and bring market leading DEIB expertise and insight to inform talent strategies. 
