Generation Z has only experienced a world that lurches from crisis to crisis. No sooner did students emerge from an education disrupted by the pandemic; they face a cost-of-living crunch as they start their careers. Fears about personal finances may redefine how young people enter important life stages, and what career choices they might make. Will the cost-of-living crisis therefore affect important progress on inclusion in the workplace?
Let me first set some context. We already know that social background has a profound impact on careers in the UK. People from lower socioeconomic backgrounds are 60% less likely to be in a professional occupation and 28% less likely to hold a management role than those from more affluent backgrounds.
Accenture’s report, A fair chance to advance, tested these trends further. We found only two in five employees from lower socioeconomic backgrounds feel included in the workplace, and only half feel safe to be open about their background. In turn, these employees will also likely not progress as quickly as their peers.
The ‘Covid Generation’ confidence dive
Employers will need to smash the biggest barrier to career progression in the crisis: the impact on young people’s confidence. In fact, research from Totaljobs revealed that 50% of British 16–18-year-olds are not confident they will secure a job in their chosen field, because of the impact of COVID-19 and the rising cost of living. The most recent Youth Census, which surveys more than 4,000 young people in the UK on how they feel about their prospects, also found that young people’s self-belief is at an all-time low.
Combine this with the rising cost of living, recently brought into sharper focus by the end of the energy price cap, and the rental crisis in the UK’s major cities – those who do not live near a major jobs hub, and cannot bear the rising costs of relocation, may find it difficult to pursue their dream job.
Looking beyond degrees
Many school leavers and graduates will be motivated by a job that will help to pay the bills – and fast. A survey from the Open University found that 9% of young adults intend to postpone or delay their study plans due to current financial uncertainty. At the same time, employers are gasping for the right skills. Companies must therefore offer diverse routes to entry, and recruit people who demonstrate a broad base of skills – not just academic achievements.
More companies are offering apprenticeships to do just that. According to Totaljobs, most 16–18-year-olds think apprenticeships are a good route into a job. They also believe apprenticeships lead to earlier financial independence, yet only 17% would consider one. Despite being an attractive alternative to university, the painful adage continues. “Apprenticeships are great, but they’re not for me.” Will this change as young people consider the costs mounting in their futures?
Uncertainty can breed creativity
It’s not all doom and gloom. As businesses respond to shocks, they also embrace the opportunity to do things differently. As technology continues to reshape the economy, we will see new jobs, and new companies, where a pipeline of digital natives will be vital for the evolution of the British economy.
New ways of working can also help to relieve pressure on having to relocate to expensive cities for valuable work experience. Organisations can embrace technology and flexibility to offer remote opportunities to reach people from across the country still developing their skills and expanding their network.
The companies that get social mobility right
We studied a group of employees from a lower socioeconomic background who are thriving in the workplace and were advancing at their preferred pace. The common denominator? They work for inclusive organisations that value fairness. In fact, we found that inclusive organisations display the following five common practices:
- Trust and Responsibility: Individuals are trusted to take decisions and drive change
- Role models: Employees see strong, attainable role models
- Anti-discrimination policies: Employees are treated and compensated equally
- Flexibility: Employees are empowered to work when, where, and how they need
- Openness & transparency: Employees feel safe to bring their true selves to work.
Employers will need to recruit and upskill professionals from a wider pool of backgrounds and diverse educational disciplines – but above all, companies will need to really test how inclusive their working culture is. We already know there is value in a socially diverse talent pool. The profits of organisations focused on boosting social mobility are 1.4 times higher than those of their competitors.
There are talented young people out there who will find it harder than others to get the all-important first foot through the door. This year sees the tenth anniversary of Movement to Work, an employer-led charity co-founded by Accenture in 2013, which offers work experience to young people from lower socio-economic backgrounds. Hundreds of leading employers across the country have linked up with Movement to Work in the past decade, and in that time over 155,000 young people have participated in a placement. That’s 155,000 experiences that have made a difference to someone’s life chances and employability.
UK employers have already made progress in improving social mobility and will not want to derail their goals on building a diverse workforce. Organisations will be adapting their recruitment processes and working culture to deal with a cultural shift in personal finances head-on. It’s even more timely now that a crisis-hit Generation Z needs a career confidence boost. An inclusive working culture, where employees can be open and treated equally, is table stakes for a business – or risk important progress on social mobility falling through the cost-of-living cracks.
