Social Mobility Commission: ‘Retail can stop people getting left behind’

Given the impact of Covid-19 on those from lower socio-economic backgrounds in recent months, it is now more important than ever that we focus our efforts to ensure they aren’t left behind. 

Nearly 126,000 job losses, hundreds of store closures and the shift towards online shopping are already reshaping the retail workforce. 

Meanwhile, a culture of part-time working, temporary contracts and below-average wages make retail workers particularly vulnerable to tough economic conditions.

Almost half (48.5%) of people employed in the sector work part-time, according to the think-tank Work Foundation. 

It also estimates that around 900,000 retail workers wouldn’t qualify for redundancy pay if they lost their jobs and 400,000 would not be eligible for Statutory Sick Pay if a local lockdown was imposed. 

The instability of the workforce was a reality before Covid, but there are certain groups that have been particularly hard-hit by the lack of employment protection.

Retail is dominated by jobs on the shop floor – at that level, our upcoming research shows that the sector is socio-economically diverse, with almost half of staff coming from a working-class background. 

However, that pattern shifts through the ranks. Of those in higher managerial and professional occupations, around 40% come from a higher professional background, which suggests there is still a sticking point in terms of progression.

A lack of middle-management jobs

Part of the struggle is that there are relatively few middle-management jobs – the industry has an hourglass structure. 

So social mobility in the sector needs to focus on progression from the shop floor, but also progression into and at managerial level.

“Learners from disadvantaged backgrounds who complete an apprenticeship enjoy the biggest boost to earnings”

One way the sector could look to fix this is by offering more qualifications-driven training opportunities to frontline workers – the kind of training that would translate into different jobs and build skills. 

Our research shows that learners from disadvantaged backgrounds who complete an apprenticeship enjoy the biggest boost to earnings, particularly at intermediate level. 

And this has a knock-on effect for business: 92% of companies who run an apprenticeship scheme believe it leads to a more motivated and satisfied workforce, while 80% report higher retention rates.

The most successful businesses recognise that to thrive they need to adopt a progressive employment strategy – one that mines for talent, promotes creative problem-solving and strives to represent its consumer base and community. 

As John Collins, chief legal and regulatory officer at Santander UK, says, opening up recruitment pathways “gives us maximum access to talent”.

Ultimately, striving for change will not only benefit individuals – it’s also smart business. We know, for instance, that:

• Employees from lower socio-economic backgrounds perform at least as well as their more advantaged peers.
• Diversity leads to innovation – an ‘innovation mindset’ is six times higher in the most-equal cultures.
• Inclusive teams make better business decisions 87% of the time – and twice as fast, delivering 60% better results. 

Next year is understandably still going to be tough for many businesses and individuals alike. 

Despite the end of the current lockdown now in sight on December 2, the Golden Quarter around Christmas is unlikely to be the boom time retailers have come to expect, even if sales shift online. 

The UK unemployment rate rose to 4.8% in the three months to September (up from 4.1% in the previous quarter). And hard-hit sectors like retail, where fewer jobs can be done from home and there is a disproportionately young workforce, is already bearing the brunt of the pandemic ‘fallout’.

If the sector is to recover post-Covid, it will need a resilient workforce that can deliver results and drive innovation. And if someone has had to struggle to get where they are now, they may have the kind of resilience that a customer-facing role requires. It is important these skills are recognised. 

Ashley Hever, talent acquisition director at Enterprise Rent-A-Car, says: “There’s going to be times when you’re dealing with tough customer service situations. We’ve found that when hiring employees who are from a lower socio-economic background, they’re really able to demonstrate that resilience.”

We want to hear from you

As part of our commitment to drive change, we launched the employers’ toolkit in February of this year. It provides insights and advice for employers on how they can improve the diversity of their workforce. 

The toolkit is packed with ideas on the data employers can use to measure progress and guidance on how to build a strong outreach programme, create a more inclusive culture or advocate for change within their sector.

And our newly launched series of videos provides top tips on the key themes of data, outreach, hiring, progression and culture, and leadership.

We are now creating a dedicated toolkit for the retail sector, working with partners like the British Retail Consortium and individual retailers.

Despite the harsh impact of the financial crisis, there is still a great deal employers can do to offer opportunities for recruitment and progression. Our toolkit will include a rich body of guidance to help senior leaders, HR directors, D&I leads and line managers at every stage of their journey.

We recognise that there are crucial differences across sectors, so to ensure that the advice reflects individual requirements we want to hear from you – the retail sector.

This is the perfect opportunity to get involved at the creation stage, helping to shape the advice so that it reflects your specific needs and drives real change. Change that will benefit individuals, your business, your brand, the communities in which you operate and the wider economy. 

Please take advantage of this opportunity and help us drive impactful change across your sector. We look forward to hearing your ideas.

To contact us, please email contact@socialmobilitycommission.gov.uk or visit socialmobilityworks.org to view our research and toolkit.

Alexandra Sufit is head of employer communications at the Social Mobility Commission