《麥肯錫：2025破局之道：社會流動性助力歐洲經濟提振研究報告（英文版）（32頁）.pdf》由會員分享，可在線閱讀，更多相關《麥肯錫：2025破局之道：社會流動性助力歐洲經濟提振研究報告（英文版）（32頁）.pdf（32頁珍藏版）》請在三個皮匠報告上搜索。

1、March 2025Breaking the standstill:How social mobility can boost Europes economyEurope is a leader in social mobility,but progress has stalled.Businesses that act can gain significant performance benefits while helping close the skills gap and boost productivity.A just and inclusive society has long

2、been a strength of European countries.The continent is a world leader in advancing social imperatives such as gender equality and,historically,socioeconomic mobility.Yet progress on the latter has stalled in recent years,limiting the economic growth that is vital for Europes competitiveness.Research

3、 shows that social mobility can accelerate productivityincluding through greater workforce participation,better skills matching,higher consumer spending,fewer talent constraints on corporate growth,and lower healthcare costs.More than one-third of Europeans face significant barriers today,with lower

4、 employment,less-productive jobs,and slower career progress than people from higher socioeconomic backgrounds(SEBs).Ultimately,these individuals futures are constrained by their parents economic past.Both they and society suffer as a result.This is a challenge,and not just for governments.Businesses

5、 have a critical role to play in fostering a more inclusive,meritocratic,and productive workplaceand a great deal to gain from the more dynamic economy that results.As Europes population ages and businesses need new skills,the pools of available skilled employees are rapidly becoming insufficient.Co

6、mpanies that act now can capture significant advantages,our research suggests,including not only better access to talent but higher value creation per worker,stronger employee retention,and improved decision-making.By setting strategic objectives,leveraging data-driven insights,and implementing targ

7、eted initiatives related to recruitment,retention,and career progression,companies of all sizes and in all sectors can contribute to Europes social mobility.The societal impact could be profound:a boost to the continents GDP of as much as 9 percent.In addition,if Europe became more socially mobile,i

8、t has the theoretical potential to close the 2030 skills gap without any new training or reskilling.This could be the next frontier of European productivity growth.While social mobility has national and sector nuances that businesses should heed,particularly when choosing interventions,our research

9、shows that the underuse of talent from lower SEBs and those employees poorer workplace experiences are consistent across European countries and across businesses of different sizes and skill levels.Our report analyzes social mobility through the lenses of three stakeholder groups:society,employers,a

10、nd employees(see sidebar“Methodology”).We outline the challenges that exist today,demonstrate the potential economic benefits of improving social mobility,and suggest actions that different types of European businesses could take to boost productivity through social mobility.Europes progress on soci

11、al mobility has stalled in recent years,limiting the economic growth that is vital for the continents competitiveness.1Breaking the standstill:How social mobility can boost Europes economy MethodologyDefinitionsWe define social mobility as an individuals ability to move up the socioeconomic ladder o

12、ver their lifetime.Our research analyzes the degree to which a persons starting point in life shapes their socioeconomic future.While we acknowledge that social mobility is a multigenerational issue,we focus on the change within a single generation because of data availability.We define socioeconomi

13、c diversity in a business as the degree to which the companys workforce reflects the socioeconomic demographics of the countries in which it operates.We define low socioeconomic background(low SEB)as having grown up with parents or guardians from disadvantaged backgrounds.For example,the parents of

14、individuals categorized as low SEB often(but not always)lack university degrees,hold low-skill or low-income jobs,receive state benefits,or live in economically depressed areas(see“Treatment of data”below for more complete definitions of these cohorts).ScopeOur research considers social mobility fro

15、m the perspectives of three stakeholder groupssociety,employers,and employeesin the EU-27 plus the United Kingdom.To illustrate differences in country characteristics and contexts,we include comparisons between the United Kingdom,Germany,and Italy.SourcesWe gathered input from more than 50CEOs and s

16、enior executives,as well as leaders of not-for-profit and academic institutions,about their efforts to address social mobility.We also analyzed data(both 1 ISCED 2011 guidelines classify national education programs and related qualifications based on the complexity of the program content and time re

17、quired for completion.Levels 0 to 2 typically represent programs completed by ages 16 or earlier,levels 3 to 4 usually correspond to education completed by ages 18 to 19,and levels 5 to 8 typically cover education pursued at age 20 or older.2 Socioeconomic background data was unavailable for 13 perc

18、ent of Europes population,who either did not state or did not know their parents highest level of education.We did not include them in our analysis.publicly available and unpublished)from Eurostats EU Labour Force Survey to better understand Europeans socioeconomic backgrounds.In parallel,we surveye

19、d more than 3,000 British,German,and Italian workers from different SEBs.Our conclusions were further informed by a review of more than 50 publications on the effect of socioeconomic background on individuals workplace outcomes.Treatment of dataOur approach to data varied among the different stakeho

20、lder groups.Society and employers.For our societal and business perspective analyses,we created three SEB groups using level of parental education as a proxy for socioeconomic background,in line with broader research on this topic.We assessed parents education based on data sourced from Eurostats EU

21、 Labour Force Survey.If an individuals parent achieved International Standard Classification of Education(ISCED)level 0 to 2(that is,completed early childhood,primary,or lower secondary education),we included that individual in the low-SEB category.If the parent had ISCED level 3 to 4 education(that

22、 is,completed upper-secondary or postsecondary but not tertiary education1),we define the individual as being from a medium SEB.Individuals whose parents achieved ISCED level 5 to 8(that is,completed at least some tertiary education)fall into the high-SEB group.The result splits the European populat

23、ion into three cohorts:35 percent in the low-SEB category,42percent in medium SEB,and 23 percent in high SEB.2 When examining the work these individuals do now,we used the International Standard Classification of Occupations(ISCO-08)as the basis for defining occupational skill level.Low-skill jobs r

24、equire primary and secondary education accompanied by on-the-job training and include ISCO“elementary”occupational roles such as cleaners,laborers,and food preparation assistants.Workers in medium-skill occupations need vocational training and include nurses,lab technicians,paralegals,and social wor

25、kers.High-skill jobs require tertiary education and include managerial positions and professional and technical roles such as teachers,data scientists,and civil engineers.Employees.For our worker experience survey,we split respondents into two groups:lower and higher SEB,based on respondents own def

26、initions of their SEBs.We also used indicators to triangulate low-SEB classifications against other markers,such as having a parent who performed low-skill work,having a parent with a low level of education,or having received free school meals(United Kingdom only).We then assessed the respondents wh

27、o self-identified as coming from a lower SEB against the three indicators.We found that the more indicators an individual met,the more likely they were to self-identify as coming from a lower SEB.Illustratively,95 percent of respondents who fit three indicators self-identified as coming from a low S

28、EB.We ultimately opted to rely on self-identification in recognition that socioeconomic backgrounds have many facets that our quantitative indicators may not fully capture.We relied on ISCO-08 categories to classify our survey respondents skill levels and job qualifications as low,medium,or high,as

29、described above.2Breaking the standstill:How social mobility can boost Europes economy Impact of lower social mobility:SocietyEuropes GDP growth has long lagged behind that of the United States,and the gap is widening.Between 2012 and 2028,the differential between the GDP of Euro area 17 countries(m

30、embers of the European Union and the OECD)1 and the United States is projected to increase from 26 to 43 percent(Exhibit 1).In other words,the difference in GDP between this subset of European countries and the United States will increase by 17 percentage points over this period.Finding new levers t

31、hat can boost Europes growth has thus become an imperative.The primary reason for the growth gap,accounting for about 70 percent of the difference between the two economies,is Europes lower productivity.2 This divergence is largely due to factors such as the continents lower R&D spending and a small

32、er share of high-productivity industries such as technology.3 Enhancing social mobility could be a powerful lever for boosting Europes productivity.A large body of research supports the link between social-mobility and productivity-driven growth.The positive effects of social mobility include the fo

33、llowing:Increased workforce participation.More socially mobile countries provide better access to employment for people of all backgrounds with skills for different roles.With more individuals participating in the economy,average per capita productivity grows.4 1 Euro area 17 includes Austria,Belgiu

34、m,Estonia,Finland,France,Germany,Greece,Ireland,Italy,Latvia,Lithuania,Luxembourg,Netherlands,Portugal,Slovak Republic,Slovenia,and Spain.2 Mario Draghi,The future of European competitiveness:A competitiveness strategy for Europe,European Commission,September 2024.3 Fredrik Erixon,Oscar Guinea,and O

35、scar du Roy,“Keeping up with the US:Why Europes productivity is falling behind,”European Centre for International Political Economy(ECIPE),May 2024.4 Aline Blankertz et al.,“Social mobility and economic success:How social mobility boosts the economy,”Sutton Trust,July 2017.Exhibit 1Web Exhibit of Eu

36、ro area 171 and US real GDP,201228,$trillion1Euro area 17,whose members are part of both the European Union and the OECD,includes Austria,Belgium,Estonia,Finland,France,Germany,Greece,Ireland,Italy,Latvia,Lithuania,Luxembourg,Netherlands,Portugal,Slovak Republic,Slovenia,and Spain.Source:OECD,2024Eu

37、ropes lagging economic growth suggests an urgent need for new levers.McKinsey&Company0201220142016201820202022202420262028510152025+26%FORECASTUSEU17+43%The gap in the GDP growth of euro area 17 countries and the US is projected to expand by17 percentage points between 2012 and 20283Breaking the sta

38、ndstill:How social mobility can boost Europes economy Improved skills matching.In more socially mobile countries,people from low SEBs are more likely to find positions that fit their capabilities,which enables them to create more value than they could working in less value-creating roles for which t

39、hey were overqualified.5 Increased consumer spending.Higher workforce participation and better skills matching combine to produce a higher-earning workforce,which has spillover benefits for the wider economy.6 Reduced talent shortages.More socially mobile countries have larger and more fluid talent

40、pools for companies to tap,which can mitigate the potential of talent scarcity limiting corporate growth.7 Reduced disparities in health.Higher social mobility correlates with lower systemic health disparities,resulting in lower societal costs and higher worker productivity.8If European societies ma

41、de social mobility a priority,they would be building on a strong foundation.The continent has an impressive record of improving diversity,meritocracy,and inclusion.It is a leader in gender equality12 of the top 20 countries in the Global Gender Gap Index,a World Economic Forum(WEF)benchmark of gende

42、r parity,are based in Europe(the United States ranks a distant 43).9 Further,Europes 2020 Gini index score10 of 30 testifies to its more equitable distribution of income than in the United States,whose Gini score is 49.Europe also has historically demonstrated strong progress on social mobility.It i

43、s home to 16 of the top 20 countries in the WEFs Global Social Mobility Index(including all of the top ten)11 and has higher levels of intergenerational mobility than the United States.12 However,that momentum has stalled over the past decade(Exhibit 2).Social mobility is difficult to measure,and th

44、ere is no perfect metric.But metrics such as wealth distribution,13 educational progress,14 and indirect proxies show that Europe is making minimal progress.For example,the Social Progress Index15 reveals a decline of 0.9 percentage points in the United Kingdom during that time,while Germany has eke

45、d out a marginal increase of 0.2 percentage points.Italys score has risen 4.5 percentage points,but this is likely because the country had a lower starting point.These patterns imply significant room for improvement across the continent.5 Aline Blankertz et al.,“Social mobility and economic success:

46、How social mobility boosts the economy,”Sutton Trust,July 2017;Insights into skill shortages and skill mismatch,CEDEFOP,January 2018.6 Minimum wage policy guide,International Labour Organization(ILO),August 9,2016.7 Bridging talent shortages in tech,OECD,September 24,2024.8 Chris Clarke et al.,The e

47、conomic cost of childhood socio-economic disadvantage,OECD,November 25,2022;Jenny M.Cundiff et al.,“Moving up matters:Socioeconomic mobility prospectively predicts better physical health,”National Library of Medicine,Health Psychology,February 2017,Volume 26,Number 6.9 Global gender gap report 2023,

48、WEF,June 20,2023.10 The Gini index score is a statistical measure of how income,wealth,or consumption is distributed within a group or nation.The Gini score is calculated by comparing the cumulative distribution of income to a hypothetical line of perfect equality.11 The United States is ranked numb

49、er 27.12 The global social mobility report 2020:Equality,opportunity and a new economic imperative,WEF,2020.13 Global Wealth Report 2024:Crafted wealth intelligence,UBS,2024.14“Education statistics-all indicators,”DataBank,World Bank Group,accessed March 25,2025.15 The Social Progress Index(SPI),a c

50、omprehensive measure of a countrys social and environmental performance,can be considered an indirect proxy for social mobility.It provides a framework for evaluating the well-being of a society by looking at how effectively countries convert wealth into social progress.For more,see the website of t

51、he Social Progress Imperative.If European societies made social mobility a priority,they would be building on a strong foundation:The continent has an impressive record of improving diversity,meritocracy,and inclusion.4Breaking the standstill:How social mobility can boost Europes economy The result

52、of this social-mobility stagnation is that the socioeconomic circumstances into which Europeans are born heavily influence their economic outcomes in adulthood.The impact of that background manifests across at least four dimensions of educational and professional achievement.Access to education.16 E

53、urostat data shows that having a highly educated parent triples an individuals odds of receiving a similar level of education compared with those whose parents attended only primary or lower-secondary(or middle)schools(Exhibit 3).The former group is 16 Because this report focuses on business,we do n

54、ot analyze in detail the structure of educational systems.Exhibit 2Exhibit of Share of national income earned,by income bracket,2022,%Social Progress Index,201323Gini coefcient,20201Measures the extent to which the distribution of income within an economy deviates from perfectly equal,with 0 as perf

55、ect equality and 100 as perfect inequality.Social Progress Index is a comprehensive measure of a countrys social and environmental performance.It examines how efectively countries convert wealth into social progress.Source:CIA World Factbook;Social Progress Imperative;World Bank;World Inequality Dat

56、abaseEurope is a global leader in social mobility,but progress has stalled over the past decade.McKinsey&CompanyUSItalyUKGermanyEUEU184136204634204634164539104148Top 10%Middle 40%Bottom50%US49.0Italy35.2UK34.2Germany30.530.0InequalityEqualityMoreprogressLessprogress2013201420152016201720182019202020

57、2120222023DenmarkGermanyUKUSItaly7276808488925Breaking the standstill:How social mobility can boost Europes economy also 15times less likely to end their education at or before age 16 than individuals whose parents left school at or before age 16.17 This suggests that people from low SEBs have less

58、access to the education necessary to qualify for high-skill,high-income jobs.Academic achievement.Socioeconomic status also significantly correlates with academic performance.Students from low SEBs are on average six times more likely to have lower learning outcomes than their high-SEB peers(Exhibit

59、 4).While the average varies by countryin some EU nations,high-SEB students outperform their low-SEB counterparts by a factor of tenevery country shows a difference of at least three times.17 Some European countries(including Belgium and parts of Germany)have enacted new laws to make education compu

60、lsory until age 18.This will move individuals whose parents had low levels of education to the medium-education cohort but is not necessarily indicative of changes in the social mobility of the corresponding society.Exhibit 3Web Exhibit of Childs education level in Europe based on parents education

61、level,%A European parents level of education signifcantly infuences their childs.Note:Figures may not sum to 100%,because of rounding.1Covering 34 European countries,providing data from national labor force surveys.Childs education levels before year 16.High:tertiary.Medium:upper secondary.Low:prima

62、ry/lower secondary.Source:Eurostat Labour Force Survey(LFS)2021,EU-27(2020)countriesMcKinsey&CompanyHighlyeducatedparentParentChild35Low-educatedparentHighlyeducatedchildMedium-educatedchildLow-educatedchild2375(share within parental education bracket)40242325453042Medium-educatedparent566Breaking t

63、he standstill:How social mobility can boost Europes economy Employment access.Employment patterns reveal additional systemic challenges for low-SEB individuals.Their unemployment rate exceeds that of their high-SEB counterparts by approximately four percentage points(Exhibit 5).Moreover,their period

64、s of joblessness last,on average,at least five months longer than for those from high SEBs.The reasons for unemployment also differ significantly,with low-SEB workers more likely to experience dismissal and less likely to leave their jobs for education or training opportunities(typically associated

65、with career progression)than peers from high SEBs.18 18 McKinsey analysis of data from Eurostat Labour Force Survey,EU-27,2021.Exhibit 4Exhibit of Educational underachievement,by socioeconomic status,%score(PISA)Europeans socioeconomic status has a material impact on their academic achievement.01020

66、30405060EstoniaFinlandSloveniaPolandLatviaIrelandDenmarkCroatiaNetherlandsSwedenSpainItalyCzech Rep.AustriaEU averageGermanyLithuaniaFranceBelgiumGreeceCyprusMaltaLuxembourgHungarySlovakiaBulgariaRomaniaEstoniaFinlandSloveniaPolandLatviaIrelandDenmarkCroatiaNetherlandsSwedenSpainItalyCzech Rep.Austr

67、iaEU averageGermanyLithuaniaFranceBelgiumGreeceCyprusMaltaLuxembourgHungarySlovakiaBulgariaRomaniaLow SEB tohigh SEB,ratioLow socioeconomic background(SEB)High SEB4.63.55.15.16.03.95.44.83.05.04.24.94.17.24.95.67.65.0PortugalPortugal8.87.68.04.12.93.27.59.67.93.71Socioeconomic status is captured by

68、the OECDs index for economic,social,and cultural status,comparing its lowest and highest quartiles.Based on PISA scale.PISA is the OECDs Program for International Student Assessment and measures 15-year-olds ability to use their reading,mathematics,and science knowledge and skills to meet real-life

69、challenges.It looks at the share of students who underachieved in a country(ie,0%means that no students scored below a minimum in that country)and compares that with the proportion of students who underachieved in the lowest and highest quartiles of socioeconomic status.Source:Eurostat Labour Force

70、Survey(LFS)2021,EU-27(2020)countriesMcKinsey&CompanyHigherperformanceLowerperformance7Breaking the standstill:How social mobility can boost Europes economy Access to high-skill jobs.The connection between socioeconomic background and economic opportunity is also evident in job skill levels.Individua

71、ls from low SEBs are almost three times as likely to work in low-skill positions as similarly educated individuals from high SEBs(Exhibit 6).Similarly,low-SEB workers who lack university degrees are 3.4 times less likely to hold high-skill jobs than their equivalently educated high-SEB counterparts.

72、19 19 Our analysis may not capture some differences in education levels within tertiary and nontertiary-educated groups.For example,high-SEB individuals may be more likely to go to highly ranked universities,which in turn gives them an advantage in securing higher-skilled jobs over peers who attende

73、d other institutions.Exhibit 5Web Exhibit of 2021 unemployment rate of 2554-year-olds in EU-27,by socioeconomic background(SEB),%Time out of the workforce among unemployed 1554-year-olds in EU-27,by SEB level,%1EU-27,including the 17 euro area countries,which are members of the OECD:Austria,Belgium,

74、Estonia,Finland,France,Germany,Greece,Ireland,Italy,Latvia,Lithuania,Luxembourg,Netherlands,Portugal,Slovak Republic,Slovenia,and Spain.Calculated by parent education level,with low SEB defned as International Standard Classifcation of Education(ISCED)levels 02(primary school to lower secondary)and

75、high SEB defned as ISCED levels 58(short-cycle tertiary education to doctorate or equivalent).Calculation has been performed with the following assumptions:1.2years12years612monthsLess than6 monthsHigh SEBHigh SEB+4.1percentage pointsLow SEB5.39.425101112662016395 months longer unemployment periodon

76、 averageThe connection between socioeconomic background and economic opportunity is also evident in job skill levels.8Breaking the standstill:How social mobility can boost Europes economy Impact of lower social mobility:Employers European businesses face a skills shortage crisis that shows signs of

77、intensifying.In 2023,75percent of employers reported difficulties in filling rolesa 34 percentage point increase from 2018.20 Twenty-nine European countries report significant talent constraints,with job vacancy rates rising as much as 50 percent since 2020.21 These problems are particularly pronoun

78、ced in construction,accommodation and food services,and highly skilled professional,scientific,and technical fields.One study found that 43 percent of European employers face worker shortages in data analytics skills,while 26 percent report talent deficits in IT,web design,and management.22 In the U

79、nited Kingdom alone,a lack of digital and data skills is reducing annual revenues for affected organizations by an average of 8.5 percent.23 Business leaders expect further declines in the availability of workers with the skills they need.Forecasts indicate that the European workforce will shrink by

80、 two million individuals annually until 2040.24 The UN projects a 20 percent increase in Europeans aged 65 and above between 2020 and 2030,which will reduce the available workforce relative to the total population.25 A recent report from the McKinsey Global Institute(MGI)further found that the tradi

81、tional population-age structure is inverting from a pyramid to an obelisk,with the first wave of this demographic shift already hitting Europe.The authors conclude that relying solely on higher labor intensity or productivity growth will not offset the impact sufficiently to maintain GDP per capita

82、growth.26 Meanwhile,business leaders also expect a shift in the skills needed in the workplace(Exhibit 7).20 Servet Yanatma,“EU jobs crisis as employers say applicants dont have the right skills,”Euronews,April 8,2024.21 McKinsey analysis of Eurostat data.22“Beyond hiring:How companies are reskillin

83、g to address talent gaps,”McKinsey,February 12,2020.23 Making every data minute count,Multiverse and DataIQ,August 19,2021.24 Mario Draghi,The future of European competitiveness:A competitiveness strategy for Europe,European Commission,September 2024.25 Shekhar Aiyar,Christian Ebeke,and Xiaobo Shao,

84、The impact of workforce aging on European productivity,IMF working paper,2016;World population prospects 2024:Summary of results,UN Department of Economic and Social Affairs,2024;McKinsey analysis based on population projections.26“Dependency and depopulation?Confronting the consequences of a new de

85、mographic reality,”McKinsey Global Institute,January 15,2025.Exhibit 6Web Exhibit of Share of EU-27 people,by job skill level and socioeconomic background(SEB),%1EU-27,including the 17 euro area countries,which are members of the OECD:Austria,Belgium,Estonia,Finland,France,Germany,Greece,Ireland,Ita

86、ly,Latvia,Lithuania,Luxembourg,Netherlands,Portugal,Slovak Republic,Slovenia and Spain.Calculated by parent education level,with low SEB defned as International Standard Classifcation of Education(ISCED)levels 02(primary school to lower secondary)and high SEB defned as ISCED levels 58(short-cycle te

87、rtiary education to doctorate or equivalent).Source:Eurostat Labour Force Survey(LFS)2021,EU-27(2020)countriesEuropeans from disadvantaged backgrounds are less likely to be in high-skilled jobs than similarly educated individuals from more afuent backgrounds.McKinsey&CompanyLow SEBLow skillsHigh ski

88、llsLower-medium skillsHigher-medium skillsHigh SEBHigh SEBLow SEBNontertiary educatedTertiary educated14176823546172821495106817131.43.49Breaking the standstill:How social mobility can boost Europes economy AI and automation are spurring a shift in the skills that organizations need.Demand for high-

89、skill jobs(requiring technological,social,and emotional capabilities)is expected to increase by ten million positions by 2030.In parallel,by 2030,up to 27 percent of current hours worked in Europe could be automated.27 Our analysis projects that low-skill jobs will precipitously declineby up to six

90、million positions.28 These job losses will disproportionately hit low-SEB workers,who currently hold 63percent of those positions(Exhibit 8).Social-mobility initiatives can mitigate the impact of these converging trends.As noted above,highly skilled workers from low SEBs appear to have fewer opportu

91、nities to apply their skills than their higher-SEB peers.This is matched with other observations about skill utilization more broadly.In England,for instance,22 percent of surveyed workers in low-to mid-skill positions reported that their skills are significantly underused,compared with only 7 perce

92、nt of those in high-skill roles.29 27“A new future of work:The race to deploy AI and raise skills in Europe and beyond,”McKinsey Global Institute,May 21,2024.28“Help wanted:Charting the challenge of tight labor markets in advanced economies,”McKinsey Global Institute,June 26,2024;“A new future of wo

93、rk:The race to deploy AI and raise skills in Europe and beyond,”McKinsey Global Institute,May 21,2024.29“Rethinking skills gaps and solutions,”National Foundation for Educational Research,2024.Exhibit 7Basic data inputBasic ITAdvanced ITScientifcresearchCriticalthinkingAdaptabilityAdvanceddata analy

94、sisOptimizationand planningCreativityTeachingand trainingEquipmentrepairBasic literacyCraft andtechnicianAdvancedliteracyGrossmotorLow-skill jobsHigh-skill jobsWeb Exhibit of Skills of today vs tomorrow,%of respondents 1Question:What are the most widely used workforce skills in your organization tod

95、ay?Question:How do you anticipate the skill needs of your workforce will evolve driven by AI-related technologies adoption in your organization within the next 6 years?(Diference between%of survey respondents who expect to need a skill more and%of survey respondents who expect to need it less.)Sourc

96、e:“A new future of work:The race to deploy AI and raise skills in Europe and beyond,”McKinsey,May 21,2024;McKinsey Global Institute survey of 1,128 C-level executives(305 from US,213 from Germany,209 from UK,201 from Italy,and 200 from France),2024C-level executives already see far higher growth in

97、high-skill jobs compared with low-skill jobs by 2030.McKinsey&CompanyIncrease in skill demand,by 2030Most usedskills today0510152025303510152025303540PREVALENTYET STABLELIMITEDAND STABLEPREVALENTAND GROWINGLIMITEDBUT GROWINGBASICCOGNITIVETECHNOLOGICALHIGHERCOGNITIVESOCIAL ANDEMOTIONALPHYSICALAND MAN

98、UAL10Breaking the standstill:How social mobility can boost Europes economy European countries in general score low on a skills-matching index,30 with the three countries we studied in detail(the United Kingdom,Germany,and Italy)ranging between 30 and 60 out of 100.31 They also register high rates of

99、 worker overqualification,ranging from 36 to 70 out of 100.32 Underutilization is thus most notable in lower-skill jobs,where individuals from low SEBs are more likely to work.By enabling underemployed talent from low SEBs to access,and thrive in,higher-skill jobs,European companies can both ease th

100、eir skill shortages and improve the economic prospects of a large section of the European population.The value of enhancing socioeconomic diversity goes beyond addressing talent gaps.Research shows that diversity among senior leaders improves decision-making;highly diverse teams make 87 percent bett

101、er business decisions than individual decision-makers.33 Yet corporate leadership in Europe remains highly concentrated among people from affluent backgrounds.In France,half of the CEOs leading SBF 120 companies34 graduated from just four prestigious institutions.35 In addition,48 percent of CEOs le

102、ading FTSE 350 companies(of those educated in the United Kingdom)graduated from independent(tuition-charging)schools,whereas just 6 percent of UK schoolchildren experience this education.36 Boards of directors are similarly skewed toward high SEBs.In Germany,for example,children of managing director

103、s or board members are 17 times more likely to secure a board position at one of the top 400 companies than those without such connections.37 Another study found that while individuals from low SEBs represent 39 percent of the UK population,they occupy only 15 percent of board seats at FTSE 350 comp

104、anies.38 30“European skills index,”CEDEFOP,2024.The skills-matching metric represents the degree of successful utilization of skillsthe extent to which skills are effectively matched in the labor market.This can be observed in the form of jobs and mismatches including unemployment,shortages,surpluse

105、s,or underutilization of skills in the labor market.Ideal performance is 100.31 The United Kingdom had a score of 30.1,Germany had a score of 60.4,and Italy had a score of 33.5.32“European skills index,”CEDEFOP,2024.Indicator defined as employing those with higher education than a job requires.The U

106、nited Kingdom had a score of 35.7,Germany had a score of 69.6,and Italy had a score of 33.4.Ideal performance is 100.33 Hacking diversity with inclusive decision-making,Cloverpop,2018.34 The SBF 120 are the largest publicly traded companies in France.35 The institutions are HEC Paris,INSEAD,cole Nat

107、ionale dAdministration,and Polytechnique.36 Elitist Britain 2019:The educational backgrounds of Britains leading people,Sutton Trust,2019;“Research,”Independent Schools Council,accessed March 23,2025.37 Elitist Britain 2019:The educational backgrounds of Britains leading people,Sutton Trust,2019.38“

108、Uncovering social mobility in the boardroom,”KPMG,November 2022.Exhibit 8Web Exhibit of Share of skills mix in Europe,202230,%Socioeconomic background(SEB)mix,by declining skill level,%1High:social and emotional skills;higher medium:high cognitive and technological skills;lower medium:basic cognitiv

109、e skills;low:physical and manual skills.Data marked as unavailable or not stated were not included.Parent education level according to International Standard Classifcation of Education(ISCED)02(ie,below upper secondary)used as a proxy for low SEB.Parent education level ISCED 34(ie,upper secondary)us

110、ed as a proxy for medium SEB.Par-ent education level ISCED 58(ie,tertiary)used as a proxy for higher SEB.Covers 10 European countries:Sweden,Spain,Netherlands,Italy,Germany,France,Denmark,Czech Republic,Poland,and UK.Source:“A new future of work:The race to deploy AI and raise skills in Europe and b

111、eyond,”McKinsey,May 21,2024;EurostatEuropean workers from low socioeconomic backgrounds aredisproportionally represented in declining low-skill jobs.McKinsey&Company2030LowskillsHighskillsLower-mediumskillsHigher-mediumskills2022 LowSEB MediumSEB HighSEB3116351830133720Low skill levelLower-mediumski

112、ll level4312452986346 million workers+10 million workers+4percentage points11Breaking the standstill:How social mobility can boost Europes economy Despite these compelling reasons for advancing socioeconomic diversity,few businesses prioritize it today.For example,only one of the top ten SBF 120 com

113、panies in France and 12 of the top 100 FTSE companies in the United Kingdom communicate about socioeconomic diversity initiatives in their annual reports.39 In part,that may be because increasing socioeconomic opportunities can be more challenging than other aspects of diversity.Social and economic

114、status is highly relative,multifaceted,nationally nuanced,and often invisible.Understanding the socioeconomic profiles of the workforce also requires managers to delve into sensitive issues such as upbringing and social networks,with few best practices to guide them(see sidebar“The challenges around

115、 advancing socioeconomic diversity”).Ultimately,businesses are a powerful force for advancing social mobility.When companies practice meritocratic recruitment and advancement,they enable high-performing workers of all social backgrounds to maximize their economic value creation.40 Fair access to emp

116、loyment allows talented 39 Based on McKinsey analysis of annual reports from the top ten SBF firms by 2024 revenue.40 Massimo Giordano and Marie Christine Padberg,“Why Europes employers canand shoulddo more to improve social mobility,”McKinsey,March 26,2024.The challenges around advancing socioecono

117、mic diversityAdvancing social mobility in the workplace can be a delicate endeavor because of difficulties around definitions,data,and awareness.Leading challenges include the following:Definitions and data availabilityComplex definitions.Socioeconomic background(SEB)is defined by many measures(incl

118、uding education level,income,neighborhood in which one lives,and parental background),and those definitions vary significantly across Europe.The result is a lack of consensus about how to categorize employees based on SEB.1 Lack of visibility.Socioeconomic background lacks reliable visible markers,m

119、aking it difficult for employers to track.Lack of data.Employers rarely collect socioeconomic data on their workers,which limits their ability to assess individuals 1“Fixing the ladder:How UK businesses benefit from better social mobility,”McKinsey,January 25,2023;“Simplifying how employers measure

120、socio-economic background:An accompanying report to new guidance,”Social Mobility Commission,updated May 21,2021.2 Data for social mobility:Improving the collection and availability of data across government,Social Mobility Commission,December 2022;“Recap:Data what,why and how?,”Social Mobility Comm

121、ission,June 30,2022.3“Measuring socio-economic background in your workforce:Recommended measures for use by employers,”Civil Service,UK Government,May 2018.4 Socio-economic diversity and inclusion,Social Mobility Commission,updated July 2021.5“Equality,diversity and inclusion(EDI)in the workplace,”C

122、IPD,August 14,2024.6“Social mobility and its discounts:An interview with Lee Elliot Major,”Diversity Project,December 14,2021.backgrounds or target initiatives to specific groups.2 Sensitivity.Many individuals prefer to not disclose their socioeconomic status for fear of being perceived as less qual

123、ified,capable,or otherwise suited to a role or community.A survey of UK civil servants found that only 53percent of respondents felt fully comfortable disclosing their socioeconomic background.3 Intersectionality.Many employees embody multiple facets of diversity.Initiatives to advance racial divers

124、ity,for example,may need to account for socioeconomic background and other factors to serve as effective diversity and inclusion interventions.4 AwarenessFew legal precedents.Socioeconomic status is not a protected characteristic under most countries employment laws.For example,companies are not req

125、uired to report on a“class pay gap”as they are on the gender pay gap.The lack of legal mandates results in fewer corporate initiatives and policies addressing this aspect of diversity.5Unconscious bias.People from disadvantaged backgrounds may be overlooked for promotions if their more affluent coll

126、eagues prefer to work with individuals they can more easily relate to.While this is true for many aspects of diversity,particular nuances apply to socioeconomic diversity.For example,different social norms may make a less-affluent individual seem less polished even when their communication skills ar

127、e objectively comparable to those of their peers.Loss of relatability.Some leaders who personally experienced social mobility no longer feel connected to their original socioeconomic backgrounds,making them reluctant to serve as role models and advocate for socioeconomic diversity.6 12Breaking the s

128、tandstill:How social mobility can boost Europes economy employees from low SEBs to refine their skills and gain relevant experience,helping them build on past successes by seeking increasingly value-creative positions,thus forging fulfilling careers.41 As these workers accumulate wealth,their financ

129、ial security helps them transition to better jobs,invest in educational or vocational improvements,and potentially launch their own ventures.These compounding effects allow people to climb up the socioeconomic ladder.Impact of lower social mobility:EmployeesPeople from lower socioeconomic background

130、s consistently report poorer workplace experiences and outcomes than their counterparts from higher SEBs.This manifests both in quantitative metrics such as earnings and career progression and in qualitative studies of employees working lives.Earnings patterns show persistent differences between ind

131、ividuals from different SEBs performing equivalent work.In the United Kingdom,a student who qualifies for state-funded school meals with similar characteristics as a fee-paying student would still earn around 20 percent less on average.42 This disparity becomes more pronounced when the analysis fact

132、ors in other aspects of inequality,such as race or gender.For example,in the United Kingdom,working-class people earn on average 6,800 less annually than those from privileged backgrounds,but women and ethnic minorities experience a“double disadvantage”in earnings.43 Additionally,in a survey we cond

133、ucted with more than 3,000 European workers,respondents from lower SEBs44 reported lower satisfaction with their employment across a wide range of dimensions than peers from more affluent backgrounds(Exhibit 9).These challenges span the entire work life cycle,from recruitment to advancement to emplo

134、yment tenure.Recruitment.Individuals from lower SEBs across all skill levels report difficulties in securing suitable employment.Our survey reveals at least four issues:Lack of personal connections.Lower-SEB candidates were 1.5 times more likely than their higher-SEB counterparts to report that they

135、 lack the connections necessary to identify job opportunities(a challenge particularly acute for those seeking high-skill jobs).Lack of confidence.Lower-SEB individuals were 1.6 times more likely than their higher-SEB counterparts to report thinking that“someone like me”would have a low chance of se

136、curing a given position.Perceived bias.Thirty-four percent of lower-SEB respondents reported experiencing bias related to their socioeconomic background during the recruitment process.This is especially true for young(under 35)and high-skill individuals.For example,young people from lower SEBs were

137、twice as likely to say they experienced bias related to their background than the average for the lower SEB cohort.Overqualification.Likely because the above factors make it difficult for low-SEB individuals to secure well-matched employment,they are 1.4 times more likely to accept positions for whi

138、ch they are overqualified.Advancement.Individuals from lower SEBs progress more slowly along equivalent career paths than their higher-SEB counterparts.Our survey found this reflected in several metrics.People from lower SEBs are three times more likely than their higher-SEB peers to feel that they

139、have to work harder than others to advance,1.6 times more likely to report having been explicitly told to work longer hours to get a promotion,2.1 times more likely to indicate a lack of the connections within the company needed to get ahead,and 1.4 times more likely to report having discouraging co

140、nversations with direct supervisors.As in recruitment,lower-SEB workers under 35 were especially likely to report 41“Human capital at work:The value of experience,”McKinsey Global Institute,June 2,2022.42“Why free school meal recipients earn less than their peers,”Office of National Statistics,Augus

141、t 4,2022.The low-SEB cohort in the study was defined as those who qualified for free school meals during their education.43 Social mobility,the class pay gap and intergenerational worklessness:New insights from the Labour Force Survey,Social Mobility Commission,January 26,2017.44 For definitions of

142、the survey cohorts,see sidebar“Methodology.”13Breaking the standstill:How social mobility can boost Europes economy encountering bias related to promotions.UK research further indicates that low-SEB professionals take 15 to 25 percent longer to advance than peers from high SEBs in similar roles.45 W

143、orkplace experience and retention.Many lower-SEB employees say challenges they attribute to their socioeconomic backgrounds affect their work satisfaction.For example,57 percent of all surveyed employees reported seeing noninclusive behaviors explicitly linked to socioeconomic background(such as moc

144、king someones accent or commenting on their lifestyle)directed at lower-SEB colleagues over the previous three months(Exhibit 10).Not surprisingly,poor workplace experiences affect lower-SEB employees desire to stay in their jobs,with 52 percent saying they would consider leaving their current posit

145、ions for organizations demonstrating greater socioeconomic inclusivity,compared with 31 percent of employees from higher SEBs.45 Who gets ahead and how?,City of London and Bridge Group,May 2022;Social mobility progression report 2022:Mind the gap,KPMG,December 2022.Exhibit 9Web Exhibit of Common wor

146、kplace experiences for low-socioeconomic-background(SEB)workers in Europe,share of respondents 1Lower SEBs are respondents who had at least 1 of the following:a parent in low-skill work,a parent of low educational status,received free school meals,or identifed as lower SEB(excluding those who strong

147、ly disagreed with being lower SEB).Higher SEBs are the remaining respondents.Compared with high self-identifed SEB counterparts by subgroup(eg,comparing lower SEB men with higher SEB men).Share of lower-SEB respondents reporting diferent types of workplace experiences(compared with higher-SEB respon

148、dents or absolute numbers).Source:Survey of 3,011 workers(937 from UK,991 from Germany,and 1,083 from Italy)European individuals from disadvantaged backgrounds generally report more negative experiences in the workplace.McKinsey&CompanyLikelihood of lacking personal connections needed to fnd job opp

149、ortunities compared with higher-SEB counterparts Experienced bias during the recruitment processState that“my career advancement is important to me”Likelihood of leaving current workplace in the next year,compared with higher-SEB counterparts Consider leaving for a moresocioeconomically inclusive wo

150、rkplaceHave heard or seen noninclusive behaviors explicitly linked to socioeconomic background in the previous 3 monthsRecruitmentAdvancementWorkplace experienceMenAverageWomenHighskillsLowskillsWhiteBlackMixedraceAsian1.6x1.4x1.6x1.3x1.4x1.3x1.2x1.4x1.5x36%32%32%37%33%46%34%40%34%63%62%56%56%60%83%

151、68%70%63%2.0 x1.4x1.7x1.5x1.6x1.2x1.4x1.8x1.6x50%55%55%51%52%75%64%62%52%60%54%59%56%56%69%66%60%57%14Breaking the standstill:How social mobility can boost Europes economy These workers appear likely to follow through on their stated intentionsparticularly lower-SEB men,who were twice as likely to r

152、eport an intention of leaving their positions within a year compared with their higher-SEB counterparts.Nevertheless,economic reasons require many lower-SEB workers to stay in jobs in which they are unhappy.This is especially true for women and young people in our survey,who were 26 percent and 50 p

153、ercent more likely,respectively,than their higher-SEB counterparts to state that they cannot afford to leave their jobs.The benefits of corporate action on social mobility:Three stakeholder lenses Greater social mobility presents a transformative opportunity across Europe.Improving employment access

154、 and work experiences for people from lower socioeconomic backgrounds has the potential to significantly benefit not only workers but their employers and society at large.For society,improving social mobility could increase the GDP of European countries by between 3and 9 percent.The OECD estimates t

155、hat its 24 European member countries lose an average of 3.4percent in GDP because of childhood disadvantage.46 This estimate is based on a relatively narrow study that considered the monetary value of lost employment and earnings47 and higher healthcare 46 Chris Clarke et al.,The economic cost of ch

156、ildhood socio-economic disadvantage,OECD,November 25,2022.The figure is the unweighted average in 2019 across 24 European OECD countries,excluding Bulgaria,Croatia,and Romania.47 Lost employment refers to the additional time spent out of the workforce associated with childhood disadvantage,while los

157、t earnings refers to earning losses among the employed due to slowed career progression.Exhibit 10Web Exhibit of Level of reported experiences of noninclusive behaviors by respondents who self-identify as being from lower SEBReported experiences of noninclusive behaviors,by socioeconomic background(

158、SEB),%of respondents1Lower SEBs are respondents who had at least 1 of the following:a parent in low-skill work,a parent of low educational status,received free school meals,or identifed as lower SEB(excluding those who strongly disagreed with being lower SEB).Higher SEBs are the remaining respondent

159、s.Source:“A new future of work:The race to deploy AI and raise skills in Europe and beyond,”McKinsey,May 21,2024;EurostatEuropean employees of all backgrounds witness noninclusive behaviors,but individuals from lower socioeconomic groups report witnessing them more.McKinsey&CompanyHaving others comm

160、ent on aspects oflifestyleHearing or overhear-ing derogatory com-ments about people from your SEBBeing told to demonstratecharacteristics that might be associated with a higher SEBExperiencingnegative comments or being mocked for an accent22191715Heard or seen noninclusive behavior explicitly linked

161、 to SEB directed at employees from a lower SEBHeard or seen noninclusive behavior of any kind directed at employees from a lower SEB33575173Respondents fromhigher SEBsRespondents fromLower SEBsRespondents fromhigher SEBsRespondents fromLower SEBs15Breaking the standstill:How social mobility can boos

162、t Europes economy costs of 25-to 59-year-olds who grow up at an economic disadvantage.48 It does not,for example,consider the impact of unequal access to opportunities for people with equivalent education.We strove to create a more holistic estimate that takes those factors into account.Based on our

163、 calculations,social mobility could increase the combined GDP of EU-27 countries by 1.3 trillion,or 9 percent.49 This economic uplift derives from increased worker participation,more effective use of available talent across jobs at all skill levels,and faster progression up the ranks for low-SEB emp

164、loyees,resulting in their higher value creation.We estimated the potential impact as follows:1.Low-SEB workers have a higher unemployment rate than their high-SEB counterparts(9.4percent versus 5.3 percent).Raising their employment rate to match that of their high-SEB peers could add 2.1 million peo

165、ple to the workforce,according to our analysis.Assuming that each extra person employed results in 74,692 of added value(in average worker GDP),50 GDP would increase by approximately 160 billion.2.Low-SEB workers are less likely to be in high-skill jobs than similarly educated people from high SEBs.

166、Adjusting the skills mix of jobs that low-SEB graduates pursue to match that of high-SEB graduates(see Exhibit 7)with the same education level brings an additional 590 billion in GDP.3.Low-SEB workers tend to progress more slowly in their careers than their high-SEB peers in jobs of the same skill l

167、evel,despite a lack of statistical evidence linking this pattern to performance.51 If their pace of career progression were accelerated to match that of high-SEB workers,particularly in jobs requiring high-and higher-medium-level skills,52 the result would be a 44 percent uplift in value creation fo

168、r those in high-skill jobs and 13 percent for those in higher-medium-skill jobs.This third element adds 570 billion to the combined GDP.For employers,improved social mobility has the potential to close the EU skills gap while enhancing organizational productivity.Our analysis suggests that if low-SE

169、B workers held high-skill jobs in the same proportion as their similarly educated high-SEB peers,an additional 13 million employees would be available for high-skill roles in 2030(Exhibit 11),more than the anticipated need.53 Interestingly,80percent of this impact would come from the low-SEB populat

170、ion lacking university education,both due to their large total number and the wide difference in high-skill job participation among the three socioeconomic cohorts in this education bracket.54 48 Chris Clarke et al.,The economic cost of childhood socio-economic disadvantage,OECD,November 25,2022.49

171、Based on EU-27 GDP of 14.8 trillion in 2021,Eurostat.50 Based on EU-27 GDP of 14.8 trillion in 2021,Eurostat.51 We use five data sources to estimate the delay,which speak to a 15 to 25 percent slowdown:“Less than half of employees from lower socioeconomic backgrounds in the UK feel included at work,

172、Accenture report finds,”Accenture,May 23,2022;Reflecting the socio-economic diversity of the UK within the BBC workforce,BBC,October 2018;Shaping our economy:Senior roles in financial services and socio-economic diversity,Progress Together,September 2023;Social mobility progression report 2022:Mind

173、the gap,KPMG,December 2022;Who gets ahead and how?,City of London and Bridge Group,May 2022.52 High-skill jobs refer to ISCO-08 level 4 jobs and higher-medium-skill jobs are ISCO-08 level 3 jobs.53 Based on an analysis of ten European countries:Czechia,Denmark,France,Germany,Italy,Netherlands,Poland

174、,Spain,Sweden,and the United Kingdom.54 While we acknowledge that differences in quality of education may exist within both the nontertiary and tertiary education cohorts,we have not adjusted for this.For example,high-SEB individuals may be more likely to go to highly ranked universities,which in tu

175、rn helps them secure higher-skilled jobs than peers who attended other institutions.Our analysis assumes that low-SEB individuals with a tertiary education will hold high-skill jobs in the same proportion as their high-SEB peers with a tertiary education and uses the same logic for those individuals

176、 with nontertiary education.16Breaking the standstill:How social mobility can boost Europes economy Moreover,organizations pursuing social-mobility initiatives can benefit from stronger employee retention and higher employee value.Companies that lack inclusive promotion practices fail to capture the

177、 full potential of their low-SEB workers,particularly in high-skilled positions(Exhibit12).Because these employees experience 15 to 25 percent slower career progression than their high-SEB counterparts,55 our analysis indicates that they generate 25 to 35 percent less value for employers over the fi

178、rst 12 years of their careers than high-SEB workers.(The two sets of figures differ because employees create more value per unit time the higher they advance.)55 We use five data sources to estimate the delay,which speak to a 15 to 25 percent slowdown:“Less than half of employees from lower socioeco

179、nomic backgrounds in the UK feel included at work,Accenture report finds,”Accenture,May 23,2022;Reflecting the socio-economic diversity of the UK within the BBC workforce,BBC,October 2018;Shaping our economy:Senior roles in financial services and socio-economic diversity,Progress Together,September

180、2023;Social mobility progression report 2022:Mind the gap,KPMG,December 2022;Who gets ahead and how?,City of London and Bridge Group,May 2022.Exhibit 11Web Exhibit of Change in demand and supply for high-skill jobs across Europe,202230,millions1Looks at 10 European countries:Sweden,Spain,Netherlands

181、,Italy,Germany,France,Denmark,Czech Republic,Poland,UK.This covers 76%of the 2022 population of EU-27 countries and the UK.International Standard Classification of Occupations 2008(ISCO-08)levels 3 and 4.Individuals education level at International Standard Classifcation of Education(ISCED)58.Indivi

182、duals education level at ISCED 04.Low SEB taken to be parents education at ISCED level 02.High SEB taken to be parents education at ISCED level 58.Source:“A new future of work:The race to deploy AI and raise skills in Europe and beyond,”McKinsey,May 21,2024;Eurostat;UK Ofce of National StatisticsImp

183、roving social mobility could help bridge the skills gap in Europe.McKinsey&CompanyNet increase in demand for high-skill jobsProjected increase in demand for high-skill jobs due to automation and AITheoretical spare labor for high-skill jobs in 2030 Low socioeconomic background(SEB)individuals occupy

184、 high-skill roles at the same proportion as high SEBsHigh-skillworkforcegrowth Projected population growth aged 15,%of workforce in high-skill jobs(2021),%of population employed(2022)Projected population growth aged 65,%of workforce in high-skill jobs(2021),%of population employed(2022)Tertiaryeduca

185、tedNontertiaryeducatedFor each level of education,assume low SEBs will pursue high-skill jobs to the same proportion as high SEBsExcess supplyof labor aboveprojected demand if assumptions are met Agingworkforce9.85.02.011.3+4.73.817Breaking the standstill:How social mobility can boost Europes econom

186、y Employers can gain additional value by improving lower-SEB employees work experiences,thus boosting retention,and by tapping into their career aspirations.More than half of the lower-SEB respondents to our survey reported that they would consider leaving their jobs for workplaces that are more soc

187、ioeconomically inclusive.Additionally,based on our survey,employees from disadvantaged backgrounds are 20 percent more likely to aspire to leadership positions than their higher-SEB peers.Employees of all backgrounds are also seven times more likely to describe their companies as high performing whe

188、n the organizations demonstrate commitment to socioeconomic inclusivity,56 suggesting yet another benefit of advancing social mobility:a higher perception of organizational performance.Last,employees from low SEBs materially benefit when businesses embrace a social-mobility agenda.Our survey found t

189、hat policies that support lower-SEB workers at all stages of their tenure have a notable impact on moralelower-SEB employees whose organizations lack such programs were 2.8 times more likely to report that they are unhappy than those who have access to such support.This is especially true for women(

190、3.3 times more likely)and highly skilled employees(5.1times more likely).For example,lower-SEB workers with access to mentorship or sponsorship programs were 1.4 times more likely to report job satisfaction than those without this support and 1.5 times more likely to recommend their organizations to

191、 other lower-SEB candidates.Such career support affects the views of employees from all backgrounds,research suggests,because those who feel they have an equal opportunity for advancement within a fair promotion environment are more likely than others to recommend their company as an employer.57 How

192、 businesses can improve socioeconomic diversity and social mobilityCompanies that hope to gain the benefits of social mobilitynot only for themselves but their employees and society at largeneed to create a comprehensive agenda.Fulfilling this ambition typically entails five steps:developing a clear

193、 strategy and defining objectives,building a robust fact base to inform decisions and metrics,identifying and implementing initiatives,defining accountability,and tracking impact(see sidebar“Organizational strategy for social mobility”).56 People&Organization Blog,“How nonprofits can structure inclu

194、sion practices for greater impact,”blog entry by Mackenzie Crambit,Drew Goldstein,Maryellen Kwasie,and Pawel Poplawski,McKinsey,August 7,2023.57“Women in the workplace 2019,”McKinsey,October 2019.Exhibit 12Exhibit of Net value creation over 12 years,by employees on the same high-skill career path,by

195、 socioeconomic background(SEB),net value created per career level1Estimated loss represents the foregone net value added per month by a low-SEB individual in a high-skill job compared with high-SEB individual.Net value added per month is calculated by fully loaded cost(FLC)salary.Salary data taken f

196、rom a selection of high-skill roles(including solicitor,audit accountant,and consultant)in large companies based in major EU cities,gathered from a press search and Glassdoor.Data averages salaries across a range of industries with diferent delays(1525%in fnancial services,15%in law,and 19%in consul

197、tancy).Source:Shaping our economy:Senior roles in fnancial services and socio-economic diversity,Progress Together and Bridge Group,2023;Social Mobility Progression Report,KPMG,2022;Who gets ahead and how?:Socio-economic background and career progression in fnancial services:A study of eight organis

198、ations,Bridge Group and City of London,2023;McKinsey analysisSlower career progression for workers from disadvantaged backgrounds signifcantly reduces the value they create for employers.McKinsey&CompanyHigh SEBLevel 1Level 4Level 2Level 3Low SEBLevel 5+25 to 35%18Breaking the standstill:How social

199、mobility can boost Europes economy Organizations can implement initiatives across all three horizons of the employee life cycle:recruitment(for example,covering policies ensuring fair assessment of candidate capabilities),retention(including mentorship and sponsorship programs),and advancement(for e

200、xample,skill development courses).In addition,employers may consider engagement beyond the employment cyclefor example,outreach to low-SEB university students can provide early guidance and help set aspirations.Today,most organizations diversity efforts,including those focused specifically on social

201、 mobility,tend to focus on recruitment.Expanding that focus to cover advancement initiatives could deliver more impact.In the United Kingdom,for example,more than 80 percent of organizations have initiatives addressing recruitment,while only roughly one-third have such initiatives regarding employee

202、 retention.58 This disparity is even stronger in initiatives that focus specifically on social mobility.One indicator is that recruitment-focused programs appear three times more frequently than advancement initiatives among UK Social Mobility Awards entries.We have identified 21 initiatives that ca

203、n help companies advance social mobility at all three employment stages(see sidebar“Initiatives to foster socioeconomic diversity”).While our list is not exhaustive,it does cover programs most frequently mentioned in our literature review and our work with clients.Below,we explore seven types of ini

204、tiatives in more detail:paid internships,data-assisted programs to identify low-SEB talent,inclusive recruitment practices,mentorships and sponsorships,skill development journeys,inclusive promotion policies,and lifelong learning programs.58 Resource and talent planning report,CIPD,September 2022.Or

205、ganizational strategy for social mobilityCrafting a successful strategy for harnessing the potential of people from low socioeconomic backgrounds(SEBs)involves five steps,which we call the five As.1 Aspire to raise low-SEB employees outcomes.Set a bold but achievable socioeconomic diversity strategy

206、 aspiration with a clear,compelling,and actionable plan tailored to your organizations starting point and goals.Assess your organizations socioeconomic data.Build a fact base that allows you to understand the socioeconomic backgrounds of your workforce and each groups experiences.1 Jan Shelly Brown,

207、Diana Ellsworth,Alex Katen-Narvell,and Dana Maor,“Its(past)time to get strategic about DEI,”McKinsey,May 10,2023.Architect initiatives aimed at low-SEB workers.Identify the most crucial areas of intervention based on data-driven insights and then develop and prioritize initiatives to support recruit

208、ment,retention,and advancement of low-SEB workers.Act through accountability and role modeling.Mobilize capabilities and resources to implement initiatives and engage internally and externally(for example,working with third parties).Back the actions with a commitment from a diverse leadership group(

209、which should include individuals from low SEBs).Advance the impact of socioeconomic diversity.Track progress toward targets and sustain momentum by instituting processes,ownership,and incentives to ensure accountability,delivery,thoughtful iteration,and effectiveness of the planned initiatives.Organ

210、izations seeking to improve socioeconomic opportunities should tailor their approaches to their specific circumstances,including company size,geography,and organizational structure.Low-SEB workers face similar workplace challenges no matter where they are employed,our research shows.However,the solu

211、tions to those challenges arent one-size-fits-all.(We discuss the nuances of two of these elements at the end of this section.)19Breaking the standstill:How social mobility can boost Europes economy Paid internship programs.A recent survey found that more than 70 percent of young Europeans would be

212、unwilling to pursue unpaid internships.59 Among low-SEB respondents,86 percent indicated that they could not afford to accept unpaid internships,compared with 36 percent of those from higher SEBs(Exhibit 13).In the United Kingdom,however,one in five internships today provide no remuneration.60 Progr

213、ams offered by media and arts organizations have some of the highest rates of unpaid or underpaid placements(83 percent unpaid in media and 86 percent paid at below minimum wage in the arts).61 The education and research sectors,meanwhile,are dominated by internships that only cover expenses.The imp

214、lementation of paid internships would allow a significantly larger and more diverse pool of candidates to access such opportunities.Making internships more widely accessible can produce long-term rewards for employers.An EU survey found that 39 percent of intern respondents continued working for the

215、 same employer after the program ended,suggesting that a diverse pool of interns can help foster a diverse workforce.62 LVMHs Institute of Mtiers dExcellence,for example,offers fashion and business training to participants as part of paid apprenticeships and skill development programs.63 59 Dan Moxo

216、n,Cristina Bacalso,and Salome Dolidze,The costs of unpaid internships,European Youth Forum and People Dialogue and Change,January 2023.The survey explored the costs for young people who take on unpaid internships and which groups are most likely unable to do so.60 Carl Cullinane and Erica Holt-White

217、,Unpaid and underpaid internships,Sutton Trust,January 2025.61 Carl Cullinane and Rebecca Montacute,Pay as you go?Internship pay,quality and access in the graduate jobs market,Sutton Trust,November 2018.62“Integration of young people into the labour market with particular focus on traineeships,”Euro

218、pean Commission,April 2023.63 See the LVMH website.Initiatives to foster socioeconomic diversity Organizations can better harness the value of employees from low socioeconomic backgrounds(SEBs)across the full employment life cycle by pursuing a range of initiatives.Below are 21 programs and policies

219、 we see most often.Recruitment paid internships apprenticeships leveraging data to target high-potential candidates from low SEBs hiring based on skills and potential rather than solely on qualifications applying best practices to CV reviews(for example,attributing high value to relevant on-the-grou

220、nd experience including summer or part-time jobs)1 Peter Cooper,Alastair Hamilton,Colin Shaw,and Liberty York,“Fixing the ladder:How UK businesses benefit from better social mobility,”McKinsey,January 25,2023.The article found that remote working can support a more socioeconomically diverse workforc

221、e.striving to attract a balanced pool of candidates from a range of SEBs diverse hiring panels financial support(including advance pay)for relocation flexible or hybrid working models1 communicating and aligning recruitment efforts with other stakeholders in the social-mobility ecosystem(for example

222、,leading universities)pre-application mentoring Retention and advancement clear paths for management progression(especially for lower-skill workers)upskilling and reskilling opportunities(particularly through skills journeys)transparent,meritocratic,and inclusive promotion system mentorship and spon

223、sorship programs employee training on being effective allies to low-SEB colleagues inclusivity training(including raising awareness of noninclusive behaviors)employee resource groups backed by leadership support and appropriate budgets employee experience tracking(for example,through surveys)leaders

224、hip development programs for high-potential employees lifelong-learning opportunities,including alliances with high schools or universities to nurture developing talent 20Breaking the standstill:How social mobility can boost Europes economy Data-assisted recruitment.Candidates from low SEBs who dont

225、 attend top-ranked universities can be less visible to corporate recruiters.They may also lack connections in professions they aspire to enter.For example,state-school-educated individuals in the United Kingdom are two times less likely to know an accountant or a doctor and seven times less likely t

226、o know a banker or a politician than individuals who attended fee-paying schools.64 Data analytics tools can help address both issues by enabling universities and employers to identify and connect with high performers from low SEBs.The British organization Zero Gravity,for instance,uses a proprietar

227、y algorithm to identify the top 15 percent of talent(based on academic performance)from the bottom 40 percent of socioeconomic backgrounds,65 and then promotes these individuals to top universities and companies.The organization states that it has worked with HSBC,for example,to identify more than 1

228、30 high-potential low-SEB students and then mentor them before they applied to HSBCs Head Start program.Those who had received mentoring were twice as likely to be accepted as those who had not.Zero Gravity also helps low-SEB students prepare university applications,reporting that those who engage w

229、eekly almost double their chances of getting into top-ranked universities and are 2.3 times more likely to secure an internship with a Zero Gravity employer partner than comparable candidates.Inclusive recruitment practices.Using objective measures of candidate capabilities in the recruitment proces

230、s can help companies mitigate the potential for socioeconomic bias.For example,the Skills Builder Partnership,a UK not-for-profit,offers a framework of eight essential skills(such as creativity and problem-solving)that organizations can use to supplement criteria that can be affected by socioeconomi

231、c background,such as educational credentials or work experience.Using the Universal Framework for Essential Skills developed by Skills Builder Partnership,the Heathrow Employment and Skills Academy has helped thousands of young people in local schools and colleges and job seekers of all ages underst

232、and how skills are applied across a wide range of roles at the airport.As a result,Heathrow reports it has seen an increase in job applications translating into job offers,a critical outcome,particularly for people affected by unemployment.66 Other British organizations have removed 64“The Network A

233、dvantage,”Zero Gravity,November 11,2024.65 Zero Gravity assesses socioeconomic background based on access to higher education,socioeconomic status,extenuating circumstances(such as eligibility for free school meals),and quality of education.66“Heathrow Employment and Skills Academy,”Skills Builder P

234、artnership,accessed March 20,2025.Exhibit 13Web Exhibit of Willingness to undertake unpaid internship,by socioeconomic background(SEB),%of respondents1Uses a self-assessment of household economic standing as a proxy for SEB.Unlikely includes“extremely unlikely”and“unlikely”responses,and likely inclu

235、des“extremely likely”and“likely”responses.Source:The costs of unpaid internships,European Youth Forum,2023Unpaid internships can deter applicants,particularly those from low socioeconomic backgrounds.McKinsey&CompanyUnpaidUnlikelyI dont knowNeitherLikelyPaid Low SEBHigh SEB868814796364971520721221Qu

236、estion:If it suited your career goals,how likely would you be to undertake an internship at some point in the future?Question:Could you aford to undertake an unpaid internship in the next six months?21Breaking the standstill:How social mobility can boost Europes economy the 2:1 minimum grade require

237、ment67 to account for the potential impact of socioeconomic background on educational history.For example,the law firm Browne Jacobson removed this requirement after an internal survey revealed that some successful solicitors currently at the firm did not meet it.68 Mentorship and sponsorship progra

238、ms.Such programs serve distinct but complementary purposes,with mentorship providing guidance and support to colleagues while sponsorship focuses on opportunity creation.Both have shown to be highly effective in advancing social-mobility objectives.Our survey found that employees from lower SEBs who

239、 have access to mentorship or sponsorship programs are 1.4 times more likely to report increased job satisfaction and twice as likely to aspire to executive positions than those who do not.Companies are realizing the value of such programs.When BP established a social-mobility business resource grou

240、p in 2022,one of its first initiatives was the creation of a global mentoring program.69 However,the survey highlighted that higher-SEB employees may not fully appreciate the value of mentorship and sponsorship.While 43 percent of this cohort identify themselves as potential allies to lower-SEB coll

241、eagues,only 36 percent report actively providing support(Exhibit 14).Whats more,67 In the United Kingdom,2:1,or upper second-class honors,indicates strong university performance and is a candidate requirement for some employers.68 Tom Cox,“Why not me?the law firms leading the way in the Social Mobil

242、ity Employer Index,”Legal Business Magazine,October 22,2024.69 Diversity,equity and inclusion report 2023,BP,July 2024.Exhibit 14Exhibit of Activities most commonly practiced by higher-socioeconomic-background(SEB)allies vs activities viewed as most impactful by lower-SEB employeesNote:Lower SEBs ar

243、e respondents who had at least 1 of the following:a parent in low skill work,a parent of low educational status,received free school meals,or identifed as lower SEB(excluding those who strongly disagreed with being lower SEB).Higher SEBs are the remaining respondents.Source:Survey of 3,011 workers(9

244、37 from UK,991 from Germany,and 1,083 from Italy)Support for economically disadvantaged colleagues should focus on mentorship and sponsorship.McKinsey&CompanyMost impactful for employees from lower SEBs,ranked(19,with 9 being most important)Mostcommonly practiced by higher-SEB allies,%of those repor

245、tingundertaking each activity 00246810121416123456789A Actively addressing discrimination toward lower-SEB colleagues when witnessedB Listening to stories of employees from lower SEBs about bias and mistreatmentC Publicly acknowledging or giving credit to employees from lower SEBs for their ideas an

246、d workD Advocating for new opportunities for employees from lower SEBsE Mentoring or sponsoring 1 or more employees from lower SEBsF Calling out language or actions that may be noninclusiveG Taking a public stand to support socioeconomic equality within the organizationH Actively soliciting the pers

247、pectives of employees from lower SEBs when making decisionsI Educating themselves(eg,reading books,attending events)about the experience of employees from lower SEBsA BCDEFGHIAllies shoulddeprioritize Low priorityand lesscommon inpracticeHigh priorityand commonin practiceAllies shouldprioritize 22Br

248、eaking the standstill:How social mobility can boost Europes economy the actions allies take dont always align with lower-SEB colleagues priorities.For example,educating oneself about the experiences of employees from lower SEBs is the fourth-most-common action that allies report taking,but workers f

249、rom lower SEBs ranked this as the least effective activity.On the other hand,mentorship and sponsorshipwhich are highly valued by lower-SEB employees,especially those 35 years of age and youngerare practiced by the fewest allies in our survey.Skills development programs.Targeting training programs s

250、pecifically at employees from lower SEBs can have an outsize impact.Five out of ten employees in declining professions come from low SEBs,70 making skills-training initiatives critical to improving this populations lives.Training initiatives aimed at unemployed youth are particularly important to pr

251、omote economic empowerment.71 Businesses can help low-SEB employees build the skills they need by orchestrating“skills journeys,”in which workers in low-skill,declining jobs undertake a series of gradual moves to more value-creating roles,each time maintaining some overlap with their previous roles.

252、As employees acquire new skills,they take on higher-skill positions that upgrade their career prospects.In this way,employers can enable workers to improve their skills and make significant career shifts without fully pausing their productivity.MGI research on career pathways shows that,for example,

253、cashiers have skills that,with training,can put them on a path to sales manager positions,an occupation set to grow by 22 percent over the next decade and offering six times the median annual income of a cashier(Exhibit 15).72 70 McKinsey analysis of Eurostat LFS data.71“Economic empowerment made-to

254、-measure:How companies can benefit more people,”McKinsey Global Institute,January 8,2025.72 The future of work after COVID-19,McKinsey Global Institute,February 2021.Exhibit 15Web Exhibit of Sample skills development pathways,1%change in skills between roles1McKinsey Global Institute analysis of wor

255、k activities in each occupation and time spent in each work activity,then grouping work activities into 322 categories and calculating percent of time spent in overlapping categories for each pair of occupations.For example,automation and route optimization.Source:Netherlands advanced:Building a fut

256、ure labor market that works,McKinsey,June 18,2024;The economic case for reskilling in the UK:How employers can thrive by boosting workers skills,McKinsey,November 16,2020Skill development programs help employees move from low-tohigh-demand roles through a series of transitions.McKinsey&CompanyPathwa

257、y 1Pathway 2First-line supervisor ofofce support workersGeneral operations managerCustomer servicerepresentativeCustomer servicerepresentativeSales representativeSales managerLogisticianMarketing managerAnalytical skills to segment customerdataCoaching skills todevelop team membersStrategic thinking

258、 skills to createlong-term plansRelationship-building skills to create acollaborative workenvironmentTechnology skills toadapt to new toolsand processesLeadership skills to guide teams toward org-anizational goals andlong-term plans48573646393923Breaking the standstill:How social mobility can boost

259、Europes economy At each step of the journey,the employee should continue to use at least half the skills of their previous position to make the transition viable without substantive career breaks and retraining.According to Generation,a McKinsey not-for-profit organization that partners with employe

260、rs on this type of staged training,82 percent of employers find that program graduates perform their jobs better than peers who didnt receive the training.73 Inclusive promotion practices.In our survey,lower-SEB employees were twice as likely as their higher-SEB colleagues to report feeling that the

261、y missed promotional opportunities or raises because of their socioeconomic background.Additionally,as noted earlier,UK research demonstrates that low-SEB employees in high-skill positions advance considerably more slowly than their peers from more affluent backgrounds.74 Companies can mitigate this

262、 disparity by defining progression pathways for all rolesincluding the training and experience necessary for each stage of advancementand discussing these requirements early in an employees tenure.Technology consultancy Opencast,for example,has partnered with Skills Builder to increase clarity about

263、 role requirements and advancement paths.Now,two-thirds of the companys workers have professional development plans in place.75 Ensuring that performance reviews apply objective measures and fair processes further reinforces inclusivity in promotion.That includes being mindful of cultural and interp

264、ersonal barriers that low-SEB workers face.For example,research suggests they often lack experience in networking and commonly place lower value on what they bring to relationships with colleagues than those from affluent backgrounds.76 Low-SEB individuals are also more likely to attribute their suc

265、cess to luck and to suffer from imposter syndrome than their more affluent coworkerswho,conversely,tend to attribute their achievements to their own talent and hard work.Additionally,at times of stress or uncertainty,people from disadvantaged backgrounds tend to lean on a few trusted individuals,whe

266、reas high-SEB workers are more likely to widen their networks in seeking support.Those networks,in turn,tend to be more willing to help high-SEB individuals than those with lower socioeconomic status.77 As a result,high-SEB employees develop relationshipswhich frequently take the form of sponsorship

267、that can give them an advantage at promotion time.To even the playing field,employers could consider providing bias awareness training for senior managers and networking and interpersonal or communication skills training for low-SEB employees.Lifelong-learning partnerships with educational instituti

268、ons.Access to educational and training opportunities can help advance anyones career,but it is particularly valuable to low-SEB individuals,roughly half of whom report receiving no job-related training since leaving school.78 Companies can partner with numerous universities that offer programs aimed

269、 at adult students.For example,Masaryk University in the Czech Republic offers micro-certificate programs that teach skills across numerous domains,from economics to law.(The credits are recognized under the European Credit Transfer and Accumulation System).79 Meanwhile,the United Kingdoms Open Univ

270、ersity partners with employersincluding 72 of the FTSE 100 companiesto provide courses for workers throughout their careers.73“What is talent scarcity&how employers can overcome it?,”Generation,accessed March 19,2025.74 Who gets ahead and how?,City of London and Bridge Group,May 2022;Shaping our eco

271、nomy:Senior roles in financial services and socio-economic diversity,Progress Together and Bridge Group,September 2023;Social mobility progression report 2022:Mind the gap,KPMG,December 2022.75“Opencast,”Skills Builder Partnership,accessed March 20,2025.76“How social networks can keep the poor down

272、and the rich up,”Forbes,January 21,2015.77“How social networks can keep the poor down and the rich up,”Forbes,January 21,2015.78 The adult skills gap:Is falling investment in UK adults stalling social mobility?,Social Mobility Commission,January 2019.79 European Credit Transfer and Accumulation Syst

273、em(ECTS)helps higher-education students move between countries by having their academic qualifications and study periods recognized abroad.24Breaking the standstill:How social mobility can boost Europes economy Some companies go further by collaborating with colleges and universities on shaping adul

274、t education programs to ensure that they teach skills that are relevant to current and future roles.For example,renewable-energy company Drax worked with the United Kingdoms Selby College on qualifications and coursework related to bioenergy with carbon capture and storage to train workers for jobs

275、in the green economy.80 Siemens,meanwhile,has partnered with the University of St.Gallen in Switzerland to provide courses for its employees in areas such as digitalization.81 In addition to initiatives aimed at job candidates and employees,businesses can help shape future talent from low SEBs throu

276、gh outreach to secondary-level students as a part of community engagement.Company representatives can visit schools to discuss potential career paths,study options,and in-demand skills with low-SEB students,and they can help schools develop curriculums that equip students with employable skills.The

277、Siemens School Partnership program,for example,works with German secondary schools to prepare students for the workplace by teaching them about technology and innovation.82 In the United Kingdom,the BBC collaborated with the Sutton Trust on a program aimed at leveling the playing field for 16-to 18-

278、year-olds from less privileged backgrounds.The 18-month program prepared participants to apply for BBC apprenticeships and provided training in skills such as interview techniques.83 Some companies seek to develop talent at an even earlier stage.Rolls-Royce,for one,has“STEM ambassadors”who regularly

279、 visit primary schools to lead workshops and projects in which older students can learn about Rolls-Royce careers.84 Aside from helping young people from disadvantaged backgrounds set high ambitions and launch their careers,such outreach allows companies to bolster the pipeline of future skilled tal

280、ent by spreading awareness of the support their industries offer to low-SEB youth.In a study of more than 340 English businesses that work closely with schools,75 percent of respondents reported a resulting boost in apprenticeship applicants and 78 percent registered an increase in job applications.

281、Those that engaged parents in their outreach saw even better resultsthey were 30 percent more likely to report progress on finding qualified candidates for job openings than those that didnt.85 Social-mobility strategies by business archetypeWhen we analyzed the impact of company size and typical em

282、ployee skill level on our survey results,we found little high-level difference:Employees from lower SEBs are universally more likely to report lower job satisfaction than their higher-SEB colleagues regardless of corporate context,and they are up to three times more likely to agree that their backgr

283、ound has negatively affected their work experience(Exhibit 16).The opportunities discussed above thus apply to companies of all sizes and sectors.80“Selby College and Drax secure funding to support the green workforce of the future,”Drax,December 7,2021.81 Ulrich Bretschneider et al.,“Digital re-&up

284、skilling for people-centric manufacturing learning from the Siemens way,”Siemens,July 24,2024.82“Siemens School Partnership:Reaching out to local businesses,”Franconian International School,2025.83“BBC launches new apprenticeship opportunities,”Sutton Trust,March 7,2018.84“STEM:School workshops,”Rol

285、ls-Royce,accessed March 19,2025.85“Businesses say working with schools is helping close skills gaps and cut recruitment costs,”The Careers&Enterprise Company,November 8,2023.25Breaking the standstill:How social mobility can boost Europes economy While the broad findings are largely consistent across

286、 company types,the best way to address them varies based on organization size and context.A small business with primarily low-skilled employees,for example,should take a different path than a multinational corporation staffed by highly skilled professionals.To get the most value out of interventions

287、for employees,society,and their own organizationscompanies should tailor their approaches to their contexts,which we have grouped into four archetypes.Small organizations with workforces of all skill levels.Start-ups and small businesses may benefit most from putting fundamental interventions in pla

288、ce.These organizations typically operate under significant resource constraints,86 which may limit their ability to invest in comprehensive sets of social-mobility initiatives.The result is reduced support for career progress,with lower-SEB employees in these organizations reporting 1.2 to 1.8 times

289、 lower likelihood of receiving help in advancing to managerial positions than counterparts in larger organizations.87 However,small organizations greater operational flexibility can also offer workers more opportunities for rapid progression,giving them the potential to be more powerful enablers of

290、social mobility.88 To capitalize on this advantage,small companies could pursue partnerships with organizations such as IntoUniversity,a UK organization that helps young people from disadvantaged neighborhoods attain education,employment,and work-based training with the ultimate goal of helping them

291、 reach their full potential.IntoUniversitys paid internship program,Big City Bright Future(BCBF),offers highly sought-after work placements at big firms in UK cities.As a part of the program,BCBF hosts rsum and application preparation sessions for candidates.In this way,they can access specialized e

292、xpertise or training without making substantial resource commitments that may be challenging at their scale.86“How small businesses can better leverage HR,”Society for Human Resource Management,January 18,2024.87 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Ita

293、ly).88 Cheryl Robinson,“Why choosing a small company might be your best career pivot,”Forbes,August 18,2024.Exhibit 16Web Exhibit of Share of survey respondents who agreed that their socioeconomic background(SEB)has negatively afected their work experience,by company archetype,%of respondents1Lower

294、SEBs are respondents who had at least 1 of the following:a parent in low skill work,a parent of low educational status,received free school meals,or identifed as lower SEB(excluding those who strongly disagreed with being lower SEB).Higher SEBs are the remaining respondents.Source:Survey of 3,011 wo

295、rkers(937 from UK,991 from Germany,and 1,083 from Italy)Employees from lower socioeconomic backgrounds at diferent company archetypes share similar experiences.McKinsey&CompanyHigh SEBLow SEBHigh SEBLow SEBHigh SEBLow SEBHigh SEBLow SEBCompany ASmall-company employeesCompany BLow-skill employeesComp

296、any CMedium-skill employeesCompany DHigh-skill employees2833343818111318282.12.61.63.026Breaking the standstill:How social mobility can boost Europes economy Medium-size to large organizations with low-skilled workforces.Organizations in this category,such as fast-food chains and hospitality compani

297、es,may be best served by prioritizing the creation of clear progression pathways.Companies in this group typically employ higher proportions of low-SEB employees than those in the other archetypes but often lack structured advancement pathways(through which,for example,employees on the shop floor ca

298、n rise to management)and other mechanisms to support the workforce.89 Our survey suggests that employees in these environments are almost twice as likely as those in high-skill organizations of similar size to report an absence of policies that support socioeconomic diversity.Lower-SEB workers are a

299、lso 1.3 to 1.7 times less likely than employees from other company archetypes to report that a senior colleague committed to helping them get a promotion.90 Mentorship programs and inclusive promotion practices would further empower low-SEB workers to capitalize on advancement pathways.Medium-size t

300、o large organizations with medium-skilled workforces.Organizations in this category,such as construction companies and industrial manufacturers,are 1.6 times less likely to have policies to support socioeconomic diversity than high-skill organizations of similar size.91 Members of this archetype can

301、 best promote social mobility by helping their employees improve their skills.Many of their workers need to meet certification requirements and face pressure from increasing automation and AI implementation.By instituting training programs that align with emerging technological requirements while pr

302、oviding clear pathways for career advancement,these companies can improve worker retention and ensure they have skilled talent available to meet their future needs.Medium-size to large organizations with high-skilled workforces.Companies in this archetype may be best served by both increasing the di

303、versity of their recruits and improving low-SEB workers opportunities to advance through initiatives such as mentorships.Organizations in this grouptechnology firms,financial institutions,and professional-services providers,among otherstend to have lower socioeconomic workforce diversity than those

304、in other archetypes,with some industries showing pronounced disparities.In the UK technology sector,for example,only 9 percent of employees are from low SEBs.92 While these types of organizations usually have socioeconomic diversity policies and well-defined career paths,advancement often depends he

305、avily on social capital and interpersonal dynamics.In our survey,employees in such organizations are up to 2.7times more likely than others to report that they had support from a professional network to get their current role than employees in other archetypes.93 It is likely that such effects conti

306、nue on to workplace progression.By using open recruitment practices and providing mentorship programs that help employees navigate informal organizational structures and build professional networks,corporations can get the most value from all employees.Geographic considerations in social-mobility ac

307、tionOur survey suggests that the level of socioeconomic inclusiveness in the workplace is broadly similar across large Western European countries.Approximately 30 percent of employees in the United Kingdom,Italy,and Germany reported a lack of workplace policies that support socioeconomic diversity,a

308、nd roughly half of lower-SEB employees said they would consider leaving their jobs for a workplace that is more socioeconomically inclusive.Additionally,between 30 and 40 percent of lower-SEB workers in all three countries agreed that their socioeconomic background has negatively affected their work

309、 experiences.Yet,as with organizational context,each countrys distinct characteristics and social and class systems may influence the best interventions(Exhibit 17).We compared the United Kingdom,Germany,and Italy to highlight how national characteristics could affect the social-mobility actions tha

310、t businesses may consider.89 Race in the workplace:The frontline experience,McKinsey,July 30,2022.90 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Italy).91 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Italy).92 Diversity i

311、n tech,Tech Talent Charter,2024.93 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Italy).27Breaking the standstill:How social mobility can boost Europes economy United Kingdom.While the United Kingdom ranks 21stbelow Germanyon the WEFs Global Social Mobility Inde

312、x(GSMI),British organizations appear to have more talent development resources than their counterparts in continental Europe:37 percent of UK workers in our survey reported having access to relevant skills training for lower-SEB employees(such as leadership development)compared with 22 percent in It

313、aly and 24 percent in Germany.Enhanced access to support correlates with greater intergenerational occupational mobility,94 particularly among younger workers:Individuals aged 18 to 34 whose parents had a low level of education are 2.6 times more likely to secure medium-skill positions than their co

314、unterparts aged 50 and above.Consequently,UK businesses may gain outsize benefit from training initiatives targeted to workers over age 35.The United Kingdom also shows less variation than Germany and Italy in employee retention between different socioeconomic groups.Lower-SEB UK employees are only

315、slightly more likely to leave their positions within a year than their higher-SEB colleaguesa significantly lower ratio than in Italy and Germany,where lower-SEB workers are 1.4 and 2.1 more likely,respectively,to leave.95 94 Occupational mobility refers to having a job that has a higher occupationa

316、l skill level than the level of education obtained by an individuals parents.95 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Italy).Exhibit 17Social mobility rankingWealth inequality,%Top 10%share of country wealthYouth unemployment rate,%Access to training at

317、work,%Generational occupational mobility,%likelihood of children of low-skilledparents being in low-skilled jobs%increase in likelihood of children of low-skilled parents being in low-skilled jobs ifthey are 50+years old vs 1834 years oldEducational attainment,%increase in likelihood that individual

318、s from high socioeconomic backgrounds(SEBs)receive a higher score on standardizedPISA math tests than peers from low SEBsCharacteristics of social mobility1World Economic Forums Global Social Mobility Index ranks 82 countries,with 1 being the country with the highest social mobility and 82 being the

319、 country with the least social mobility.Global Wealth Databook,2023.State of the nation,Social Mobility Commission,2024.Eurostat Labour Force Survey unemployment data.Labour market information:Italy,European Employment Service,2023.Survey of 3,011 workers(937 from UK,991 from Germany,and 1,083 from

320、Italy).Respon-dents who indicated that their company had the following policy in place to support low SEBs:access to trainings to develop relevant skills(eg,leadership training).Survey of 3,011 workers(937 from UK,991 from Germany,and 1,083 from Italy).Intergenerational occupational mobility(ie,work

321、ing in a job that has a higher occu-pational skill level than that of an individuals parents).PISA 2022 results:The state of learning and equity in education,OECD,2023,indicates that high SEBs are students in the top quartile of SEB,and low SEBs are in the bottom quartile.PISA is the OECDs Program f

322、or International Student Assessment.Diferences between European countries that afect social mobility require companies to tailor their initiatives accordingly.McKinsey&Company182010001000100010001000100010001000100182182215311373821192621202168226024225434116362.61.21.3UKGermanyItaly28Breaking the s

323、tandstill:How social mobility can boost Europes economy However,significant challenges remain in the United Kingdom,particularly in disparity of educational access.Only 16 percent of lower-SEB students96 enter university,in sharp contrast to 75 percent of private school attendees.97 Organizations co

324、mmitted to social mobility may therefore wish to prioritize skills rather than educational qualifications in employee recruitment.Germany.The country presents a complex social-mobility landscape characterized by significant regional variation.Germany ranks 11th on the GSMI(compared with the United K

325、ingdom at 21)and has the European Unions lowest youth unemployment rate,at 6 percent.98 However,pronounced east-west disparities persist,with western regions demonstrating stronger social-mobility patterns.Also,the most affluent 10 percent of the German population hold 63 percent of the countrys wea

326、lth.While this figure is higher than for the United Kingdom and Italy(both at 53 percent),it remains below the European average(67 percent).99 German organizations appear to have fewer social-mobility programs than their UK counterparts.Only 24 percent of German employees we surveyed reported that t

327、heir companies offer training programs for colleagues from lower SEBs13 percentage points below the UK figure.Children of low-skilled workers also show 1.6 times higher likelihood of remaining in low-skill occupations than their UK counterparts.100 This implies that businesses in Germany wishing to

328、improve social and occupational mobility may want to prioritize hiring individuals from low SEBs with the intent of training them to qualify for higher-skill roles.Italy.Italy has a GSMI ranking of 34,suggesting that it has the most significant social-mobility challenges of the three economies.Italy

329、 has notable north-south variation in social-mobility patterns,with northern regions demonstrating better outcomes.Youth unemployment presents a singular challengeat 22 percent,Italys rate is among the EUs highest.101 In addition,economic obstacles and social prejudices appear to pose barriers for l

330、ow-SEB individuals in accessing top secondary schools and universities.An Italian study found that the type of high school a person attends can influence whetherand wherethey go to university.Students who attend scientific schools,for example,are more likely to progress to higher education than thos

331、e who attend vocational schools;only 16 percent of students from vocational schools go on to attend university.102 Given how early in life students make these decisions,those whose parents are significantly involved in charting an educational path have an advantage.96 Defined as those eligible for f

332、ree school meals.97 Universities and social mobility:Summary report,Sutton Trust,November 2021.98 Based on labor force survey unemployment data from Eurostat;“Unemployment by sex and age-monthly data,”Eurostat,March 20,2025.99 Global wealth databook 2023:Leading perspectives to navigate the future,U

333、BS,March 2024.100 Survey of 3,011 workers(937 from the United Kingdom,991 from Germany,and 1,083 from Italy).101“Labour market information:Italy,”European Employment Service,February 14,2025.102 Andrea Celauro,“Social mobility starts at school.And then goes to college,”Bocconi University,May 2,2024.While governments should continue their efforts to promote social mobility,it is time for businesses