You’ve heard of the glass ceiling. But the class ceiling is the invisible barrier holding back everyone, not just the people growing up in low-socioeconomic homes.
When we work hard to get ahead in life, we don’t always reflect on the help we get along the way. But we need to recognise it’s easier to get to the peak when we’re born closer to the top. A kid growing up with a single parent and working to help look after their siblings will almost certainly be carrying more baggage up the mountain than a child from a wealthy background whose family, tutoring or access to extracurricular programs help them up.
Illustration by Simon LetchCredit:
While diversity in gender, culture and sexuality have become more prioritised in workplaces and leadership positions, socioeconomic disadvantage remains a hidden anchor.
Character-building? Maybe, but when you hire for a job, do you give that resilience weight, or do you prioritise someone based on their school and membership of the debating team – both of which can be harder to access for households who are time or income-poor. Right now, we’re too comfortable with the processes we’ve built to pick out talent.
There’s a shocking lack of easily accessible, up-to-date data on socioeconomic composition in workplaces and boardrooms. But we know fields such as medicine and law tend to be dominated by people who have grown up more comfortably.
That’s because indicators of success employers tend to look for skew towards experiences and achievements which are harder to access for those who grow up in lower-income households: extracurricular activities, a degree from a prestigious university, seemingly objective measures such as high grades, and even self-confidence in interviews – all of which can be boosted by knowing the right people or having greater access to resources.
Companies need to start accounting for the barriers and challenges faced by those from disadvantaged backgrounds: working multiple jobs while studying, or growing up within a difficult home environment.
Professions like law tend to be dominated by those from well-heeled backgrounds.Credit: Peter Rae
These things often fail to come across on paper, but they are experiences which are important – and even valuable – for business. People who come from lower social class backgrounds are more likely than their higher social class peers to value community and teamwork, while CEOs from lower social backgrounds have been shown to be more entrepreneurial and willing to engage in social responsibility initiatives.
That’s not to pit one group against another. It simply suggests there are unique perspectives and approaches which are perhaps overlooked, but which many people from lower socioeconomic backgrounds can bring to the table if given a chance. We know that widening the talent pool and increasing diversity of teams increases productivity, creativity and innovation. That diversity should include socioeconomic status.
It’s also important given more than one fifth of Australian households were low-income in 2021. Businesses looking for a broad understanding of all the customers they serve need employees and leaders who know what it’s like for these households.
We don’t have to throw out entire recruitment processes, but it’s not enough to be “blind” to socioeconomic status. The reality is there are biases built into traditional selection criteria.
Businesses can encourage candidates to flag personal challenges they’ve faced, set aside job openings for people from disadvantaged backgrounds, or actively search for signs of disadvantage – whether postcode-based or otherwise – and give some of those candidates a chance to progress in the recruitment process, even if they don’t fit the traditional mould.
It could be a lucky break, not just for the candidate, but also the company. And being able to work with a diverse team is a mark of a healthy organisation with good leaders who are not afraid to have their perspectives challenged.
Actively changing the way we hire at a business level – especially in professions such as law, media and finance – is a great starting point for tackling disadvantage.
That’s because the wider systemic changes we need, such as more equitable funding of schools, have proven painfully slow. Hiring practices at an individual firm level can be quicker to pivot, and one foot in the door can be the key to someone breaking the cycle of socioeconomic disadvantage and becoming a visible role model for others growing up in challenging circumstances.
Companies should also connect employees and leaders to students from disadvantaged backgrounds who often lack the personal connections and networks to facilitate introductions and interactions which can lead to job opportunities and personal development.
It takes a concerted effort to change. Humans are loss-averse, meaning we tend to be more sensitive to potential losses than gains, and cling onto what we know rather than trying something new. But the evidence is there, and it’s time we changed.
If we want a truly efficient economy and higher living standards for all, we need to improve social mobility.
Some of the happiest countries in the world, which also happen to be among the top 10 in terms of economic output per person, are the ones with the highest social mobility: Denmark, Norway and Finland to name a few.
Part of that is linked to strong investment in education and healthcare, which guarantees a decent living standard for everyone while also breaking down some of the key barriers to social mobility. Denmark, Norway and Finland were the top three countries for social mobility in 2018.
It’s not just about fairness and equal opportunity. Overlooking those from less privileged backgrounds, whether we want to admit it or not, is stifling innovation and putting a ceiling on our growth. Next time you’re in the hiring chair, look at the gaps in people’s resumes, and the gaps in your own workplace. What’s missing could be more important than you realise.
Millie Muroi is a business reporter and a regular columnist.
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.
login
who are we?
contact us
qosheapp
Toi Staff
Gideon Levy
Belen Fernandez
Andrew Mitrovica
Mort Laitner
Nikkei Editorial
Rami G Khouri
Ali Fathollah-Nejad
visit website
