KPMG study links socio-economic background to faster career progression

Socio-economic background has the strongest effect on career progression compared to any other diversity characteristics, according to a study published by KPMG UK that analysed 16,500 of the firm’s current employees’ careers.  

It is reported that experts from the Bridge Group analysed these partners and employees at KPMG over a five-year period, examining the average time it took for them to be promoted, looking at their gender, ethnicity, disability, sexual orientation, as well as socio-economic background. 

The data showed that socio-economic background, measured by parental occupation, had the “strongest” effect on how quickly an individual progressed through the firm. Individuals from lower socio-economic backgrounds took on average 19% longer to progress to the next grade, when compared to those from higher socio-economic backgrounds. 

The study is said to be the latest advancement by KPMG to “deepen understanding” of social inequalities in the workplace, as in 2021 it became the first organisation to report socio-economic background pay gaps. It also pledged to increase the number of its leaders from low socio-economic backgrounds to 29% by 2030. 

Nik Miller, chief executive of the Bridge Group, said: “Driving greater social equality is the defining societal and economic challenge of our time. There remains a proven link between someone’s social background and their educational and employment outcomes, and social inequality is estimated to cost the UK £39bn per year. 

“Progression is one of the truest indicators of inclusion in an organisation, across all and any diversity characteristics. KPMG’s research is pioneering, and we commend the firm for its leading-edge approach. The more we can highlight and understand the impacts of socio-economic background, including how it affects progression, the more we can create more equal outcomes for all.”

Jon Holt, chief executive of KPMG UK, said: “This study is pioneering in its scope, and I hope adds value and rigour to the debate around social mobility. As a firm these insights are enabling us to take targeted action and we are publishing our findings so other organisations can draw insights from them and use it as a blueprint to measure and address barriers in their own businesses.

“Socio-economic background is complex and emotive. It requires us to confront how our upbringing shapes the opportunities we have access to later in life. But as businesses we need to lean into this discomfort if we are to make progress. Career advancement should be about realising potential, and not someone’s background or ‘polish’.” 

He added: “The research has enabled the firm to pinpoint the bottlenecks employees face at different points in their career and take additional action. It found that its senior and junior colleagues are its most socio-economically diverse cohorts, but middle management grades are comparatively less diverse, suggesting colleagues from a low socio-economic background face a bottleneck as they try to progress to middle-management roles.”