FRESH TAKES ON BIG IDEAS

From the earliest moments of my consulting career, I experienced firsthand the significant role that subtle class markers and unspoken cultural codes can play in determining professional success. At one of my first work dinners, a senior member of the team asked me about my tastes in wine and poetry. As the working-class son of two hairdressers—and the first in my family to attend college—my knowledge of fine vintages and literature was sparse, to say the least. My best attempts to deflect the unwanted attention with humor by citing a Dutch nursery rhyme went over well enough. But there was no denying that I stood out: I came from an entirely different social and economic background than most of my new colleagues.

With the help of many mentors and peers, I was able to overcome such hurdles (which are often invisible to those who don’t face them). But millions more aren’t nearly as fortunate. This is increasingly the case in Europe, where long-standing progress in expanding socioeconomic mobility has stalled in recent years. Our research shows that more than a third of the continent’s population now fares significantly worse on academic achievement, employment, and career progress than their counterparts from higher socioeconomic backgrounds (SEBs). The differences in outcomes are stark: Individuals from low SEBs are almost three times as likely to work in low-skill positions as similarly educated individuals from high SEBs.

As damaging as it is for individuals on the losing end of the socioeconomic lottery, this lack of social mobility is an equally critical challenge for Europe’s future. Economic growth is lagging, the population is aging, and industries can’t find sufficiently skilled talent. Turning the tide on social mobility could fuel much-needed productivity growth, helping to boost consumer spending, improve skills matching and workforce participation, and lower healthcare costs and disparities. In the process, we estimate it could increase Europe’s GDP by as much as 9 percent. 

Our research suggests that “first-generation professionals” from lower SEBs make great employees. They tend to be very motivated and loyal, they’ve frequently been underutilized, and they’re often ambitious. Our survey shows that employees from disadvantaged backgrounds are 20 percent more likely to aspire to leadership positions than their higher-SEB peers.

“Turning the tide on social mobility could fuel much-needed productivity growth.”

Previous research has also shown that diversity helps senior leadership teams make better decisions. But socioeconomic diversity has been lacking in parts of corporate Europe. In France, half of the CEOs atop the 120 largest public companies are alumni of just four exclusive educational institutions. In the United Kingdom, a similar share of FTSE 350 CEOs attended prestigious “independent” schools. 

If fixing this issue could improve outcomes on three fronts—for individuals, society, and employers—why hasn’t more progress been made on it?
 
For starters, social mobility is difficult to measure. There is no single, perfect metric, and employers rarely collect varied socioeconomic data about their workers. Socioeconomic status can also be highly relative, at times invisible, and often a delicate or even taboo subject that most managers would rather not explore. 

Most companies’ current efforts to address social mobility tend to focus more on recruitment than on retention and advancement. Expanding the use of paid internship programs and data analytics tools can help businesses connect with the vast reservoir of untapped, lower-SEB talent. And initiatives such as carefully crafted mentorship, sponsorship, and training programs, as well as inclusive, targeted career progression, can make an even greater difference in seizing the social mobility opportunity.
 
Roughly half of lower-SEB employees say they would consider leaving their jobs for a workplace that is more socioeconomically inclusive. Organizations could benefit from bringing in employees with varied, valuable perspectives borne of their more challenging backgrounds. Given my upbringing, for instance, I feel that I do have a slightly greater appreciation and empathy for those that encounter obstacles, and a heightened ability to connect with outsiders or those from groups with lower representation. What’s more, I have a sense of the on-the-ground realities of businesses and employees—instilled in me from an early age by my blue-collar parents—that can augment the view from the top that many executives are more accustomed to. Those kinds of skills, regardless of upbringing or education, can be hugely valuable additions to any workplace.

—Edited by Daniel Eisenberg, editor, New York

ABOUT THIS AUTHOR

Ferry Grijpink is a partner in McKinsey’s Amsterdam office.