Zurich UK publishes social mobility pay data

Zurich UK published data on social mobility pay, making it the first insurer and one of only a few companies in the UK that has done so.

The median pay gap for employees from lower socio-economic backgrounds and those with professional backgrounds at Zurich UK is -4.2%. Comparatively, the average mean pay gap between employees with professional backgrounds and those from lower socio-economic backgrounds is 10.5%.

Zurich’s UK staff is made up of 28% professionals, 10% intermediates and 23% lower socio-economic backgrounds. The Social Mobility Commission stated in 2021, that the financial services workforce was composed of 45% professionals, 21% intermediates and 34% lower backgrounds.

Steve Collinson said, Chief HR Officer at Zurich UK: “Today’s announcement represents our firm commitment to understand and implement social equality drivers within our organization.

Social mobility is a key factor in achieving diversity.

“While ‘chipping’ away at the class-ceiling is certainly a good step in the right directions, smashing it down is the ultimate objective.” Social mobility is a key step to a diverse workplace. I am proud to say that your social-economic background does not determine your career at Zurich.

Zurich UK, in addition to providing mentors, has also introduced a program to remove barriers for those with lower socio-economic backgrounds and to help them progress their careers. The social equity initiatives of the company include:

• Group of social mobility ambassadors: volunteers who raise awareness and develop new policies to help others advance in their careers.
• Hire based on skills: remove barriers for people with little work experience.
• Remove unnecessary qualifications from job descriptions.
• Training to help people leaders and hiring mangers understand the barriers to social mobility.
• Create and support apprenticeships, development programs and succession planning for progression.

Social Mobility Foundation has called on employers to report and measure their class pay gaps. This is in response to research which shows that people from working-class backgrounds are paid 12% less compared to those with professional backgrounds, despite having the same professions.

Sarah Atkinson is the CEO of Social Mobility Foundation. She said: “It is great to see companies such as Zurich UK take the lead and publish their socio-economic gap. They are also taking steps to make sure that your background does not determine your salary or career advancement. This will hopefully encourage employers to take action on social mobility.

No matter what your background is, we all want to be fairly compensated for our work. Our research shows that people with lower socio-economic backgrounds in professional occupations are paid less than those from higher socioeconomic backgrounds. This means they work one day for free. “This is holding back both brilliant people and Britain’s economy.”

The Equality (Race and Disability Bill) will make it mandatory for large employers to report on ethnicity and disabilities pay gaps. SMF calls on the government at the same time to introduce mandatory socioeconomic background reporting.

Bridge Group’s and Progress Together’s research last year revealed that the socio-economic diversity of senior financial service employees is not the same as that at junior level, creating a class ceiling where new employees enter the industry without the opportunity to advance.

Zurich’s employees are asked to share their socioeconomic background as part of the company’s efforts to break down class barriers. Data shows that 1 in 5 senior leaders of Zurich UK come from a low socio-economic background.

Nearly nine out of ten senior financial service roles are held by individuals from higher socioeconomic backgrounds. This compares to only a third in the UK’s working population. A person’s background is more likely to influence their career advancement in financial services, than gender or race.

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