Aerial of township and wealthy houses in divided South Africa
One’s socioeconomic status has the ability to make life easier or harder and it is no different in the workplace.
Findings by Boston Consulting Group (BCG) revealed that employees from socioeconomically disadvantaged backgrounds experience a lower level of workplace inclusion, even as their career advances and they rise through the ranks to senior leadership.
The report Socioeconomic Status Affects the Workplace, Too showed that the inclusion gap between employees from low socioeconomic and high socioeconomic backgrounds ranges from 8 to 16 points across all surveyed nations.
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Financially disadvantaged employees in a workplace
Stephen Hosie, BCG managing director and partner said it surveyed 27 800 employees across 19 industries and 16 countries, including South Africa.
BCG is a global management consulting firm that helps leaders in business and society solve their most important challenges and seize opportunities.
The report found that financially disadvantaged backgrounds report workplace inclusion scores 13 points lower than those of their peers from financially advantaged upbringings. “This gap holds true across the demographic groups in the survey and for both desk-based and nondesk-based employees,” said Hosie.
Inclusion gap in a workplace
He added that employees who come from low socioeconomic backgrounds have an 11-point lower inclusion score on average than their peers from high socioeconomic backgrounds.
The report also highlights how intersections between socioeconomic status and race or ethnicity can compound exclusion.
“It emphasises that in South Africa, where these intersections are deeply entrenched, the impact is especially acute,” said Hosie.
“Employees from low-income backgrounds often face structural barriers to professional growth, limited access to networks and fewer opportunities to develop soft skills or take career risks.”
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Key factors
Among the key factors contributing to lower levels of inclusion, employees from low socioeconomic backgrounds also report significantly fewer opportunities for professional growth.
“In comparison with their peers, the survey shows that employees from financially disadvantaged backgrounds are 38% less likely to feel they benefited from personal and professional networks, 30% less likely to develop soft skills and 24% less likely to feel comfortable taking risks,” reads the report.
“Further, only 20% of those who grew up very financially disadvantaged said that they can be their authentic self at work, compared with more than twice as many respondents (43%) from financially advantaged backgrounds.”
What sense of inclusion does for people
Hosie highlights that a sense of inclusion for most employees tends to improve with seniority, but as people from low socioeconomic backgrounds rise through the ranks, the inclusion gap persists and even increases at the senior manager level.
“In every role, individuals from low socioeconomic backgrounds have inclusion scores that are 10 to 14 points lower than their peers who grew up very financially advantaged. This widening leaves them at a continuing disadvantage that career advancement alone doesn’t close.”
He notes that a financially disadvantaged upbringing can instill powerful strengths and companies have much to gain by enabling employees from low socioeconomic backgrounds to succeed and show up as their authentic selves.
“The research shows that employees who feel free to be their authentic selves at work are happier, more engaged, more likely to feel heard and nearly 2.4 times less likely to leave.”
However, low levels of workplace inclusion often prevent these employees from reaching their full potential. Across every dimension of the inclusion experience, employees from low socioeconomic backgrounds report satisfaction levels that are 7 to 12% lower than their more affluent peers.