The Co-operative group has become the first retailer to publish a socioeconomic pay gap report.
The Group, which employs around 57,000 people in the UK, says data gathered will inform its social mobility strategy and the actions needed to close its pay gap.
The report shows that, amongst the 24,554 Group colleagues who shared their socioeconomic background (SEB), there is a mean pay gap of 5.2% between colleagues from lower and higher socioeconomic backgrounds.
“Although our representation of colleagues from a lower SEB remains largely consistent at all work levels, we have more colleagues from a professional background in our most senior leadership roles (which pay more),” says the report.
The report also found that female colleagues from lower socioeconomic backgrounds face the biggest pay gap.
In response to these findings, the Group says it has “doubled down” on its Social Mobility Plan, which includes inclusive hiring partnerships, career development programmes, and campaigning for the government to make socioeconomic background the 10th protected characteristic under the 2010 Equality Act.
“Pay gap reporting in isolation is not a silver bullet, but making socioeconomic inequality visible means that we can understand the issues and see where multiple barriers overlap, such as those faced by women from working-class backgrounds, said Sarah Atkinson, CEO of Social Mobility Foundation. “We know that what gets measured gets addressed. Meaningful change ca then follow to ensure that those from all backgrounds can get in, get on and belong in the workplace,” she added.
Shirine Khoury-Haq, CEO of the Co-op Group, said the report “shows clearly that socioeconomic background, as a factor, can have a significant impact on progression and performance, but its influence on a person’s career is often overlooked by employers.
“For Co-op, establishing this annual reporting process forms a crucial part of our commitment to making a difference to issues that our own member owners care about. By holding ourselves accountable and outlining the steps we will take to address inequality within our business we hope to inspire long-lasting change at a societal level, so that everyone can thrive no matter their background.”
