Data: Why do retailers rank so poorly for social mobility?

The 2020 ranking of the UK’s most inclusive employers for social mobility by the Social Mobility Foundation spans business ranging from big four accountancy firms to the BBC and the Ministry of Justice.

But one sector whose presence in the ranking is surprisingly small is retail.

Just two retailers were ranked in the top 75 with the Co-op coming in at 58 and Superdrug and its value stablemate Savers at 74. While this showing is better than the tech, gaming and pharmaceutical sectors, which were absent from the ranking altogether, it does not bode well for a sector that has prided itself on giving people from all walks of life a chance to succeed.

The annual ranking aims to highlight “employers doing the most to change the way they find, recruit and progress talented employees from different social class backgrounds”.

Social Mobility Employer Index top 20

Professional services, law, public services, financial services, and IT and telecommunications ranked as the five best sectors for social mobility overall. PwC was named as the UK’s number-one social mobility employer for the sector year in a row.

The perception of the retail sector as one that allows employees of varying backgrounds and qualifications to find work and ascend through the ranks on merit is not one that is being reflected in the sector’s workforces today – so what has gone wrong?

Social Mobility Foundation chief executive Sarah Atkinson said: “Retail historically had a great track record on social mobility, but rapid changes in business models and the economy and particularly the impact of the pandemic means we need retail to renew and reinvigorate its commitment to promoting social mobility.

“With an estimated 1 million young people unemployed, inaction will lead to a lost generation. All employers must step up to the plate and retail is no exception.”

Atkinson said retailers need to engage more proactively with monitoring social mobility and progress against goals across their organisations.

 “Historically there has been a lack of engagement from the retail sector, which may stem from the assumption that retail has nothing to prove when it comes to social mobility. Unfortunately, that’s definitely not the case. 

“When retailers do enter, the biggest challenge is a lack of data collection, and this can hold the sector back from high rankings.”

On the ranking this year, 36% of businesses are law firms and 22% are in financial services. What have companies like these done to improve social mobility across their businesses? 

Atkinson said the businesses that have seen the most success in climbing the ranking are those that have collected and tracked data from their existing workforce and new recruits, those that have targeted their outreach at young people and vulnerable communities, and those that have increased high-level apprenticeships and ensured those that use this route are given the same level of opportunity as graduate entrants