Social class is one of the most powerful indicators of workplace inclusion yet it remains a persistent and often invisible barrier to workplace progression. How can organisations foster class inclusion in a meaningful way?

Many of our early experiences tend to prove formative to our career trajectory. Consider the  voluntary internship that turns into a graduate offer, or the connected family friend who offers to “put in a good word” during the recruitment process, or the exposure to networking situations that allow early career professionals to mingle with ease.  

These small headstarts are incredibly impactful, and they often begin long before people enter the workforce. 

Preliminary findings from Diversity Council Australia’s (DCA) Class Inclusion at Work report, based on a sample of 3000 employees and diversity and inclusion practitioners, revealed that only 44 per cent of class marginalised workers have been offered career development opportunities in the past year, compared to 76 per cent who are considered privileged by their social class. 

DCA uses the term ‘class marginalised’ for those within the lowest 20 per cent of household incomes, and ‘class privileged’ for those within the top 20 per cent. 

“In Australia, we like to think of ourselves as an egalitarian society, but our research shows that social class can have a profound impact on how people are treated at work,” says Catherine Hunter, CEO of Diversity Council Australia.

“This national belief in ‘a fair go’ can actually mask inequalities, making it harder to see class as a workplace issue. People also tend to feel uncomfortable talking about class, which further pushes it out of sight.”

The conversation is becoming more pronounced as Australia faces productivity headwinds, sluggish wage growth and ongoing affordable housing challenges. 

This is exacerbated by the invisibility of class within workplaces, which further stigmatises people disadvantaged by their socio-economic status, says Lisa Fowkes, Director of Employment at Social Ventures Australia, a social impact organisation that aims to improve education and employment outcomes for those excluded from traditional systems. 

“I’ve talked to many people who say they don’t talk about what suburb they grew up in, or about the fact they can’t afford to go out to the same restaurants as other people they work with, or that a monthly pay cycle is really challenging for them,” says Fowkes, who is speaking at AHRI’s DEI Week virtual event next week, exclusive to AHRI members. 

“Those biases are there and they’re more insidious because we don’t call them out. It’s not a named dynamic in the workforce.”

How does class show up?

The old adage ‘it’s not what you know, it’s who you know’ is a reality for many employees, particularly when it comes to the early career stages. 

“People who come from wealthier backgrounds are likely to have lots of connections with people working in different professions. If you come from a less privileged background, you may not know that variety of people,” says Fowkes.

“Your ability to understand what the options are, but also to get work experience at school, is very different.”

She says the same networks continue to play out in the workplace with a large bearing on who gets to succeed. 

“Informal mentoring structures tend to reinforce existing relationships. This person went to my school, they’re familiar to me; I’ll help them along.”

That’s why it’s crucial for HR to proactively facilitate formal mentoring systems such as buddy relationships and executive sponsorship.

This helps ensure that opportunities for advancement are distributed more equitably, recognising that employees may be equally deserving even if they begin from different starting points.

Fowkes notes that there can also be barriers to even asking for these opportunities.

“One of the things we see in our work is young people who’ve got incredible potential, but aren’t confident. They don’t necessarily feel equipped to put up their hand and run with it. 

“A proactive approach to connecting people from different backgrounds means you’re not just [uplifting] the ones who walk in feeling like they’ve already got the ticket.”

Hear more from Lisa Fowkes and other DEI experts on designing inclusive workplaces at AHRI’s DEI Week on 14-16 October. Register now.

The leadership recognition gap

On top of access to professional development opportunities, class is often tied to ideas around merit and “who is seen as ‘professional’ or ‘leadership material’”, says Hunter.

“When inequities appear, they’re too often framed as a matter of individual effort or ambition, rather than recognised as the outcome of very real systemic barriers.”

One of these key barriers is a lack of awareness. Leaders are less likely to recognise class bias. DCA found that just 24 per cent of leaders strongly disagreed that ‘Australia is a class-free society’, compared with 33 per cent of other employees.

Only four per cent of leaders are class marginalised, the report found, and 40 per cent are class privileged. 

“Recognising class as a workplace diversity and inclusion issue is the first step to addressing these inequities.”

HR not only plays a critical role in reflecting a socio-economic lens to its own practice, but also in shining a light for leaders.  

Image: Pexels

“A good place to start is by reflecting on your own networks and decision-making,” says Hunter. “Who in your organisation is more likely to have access to sponsors, mentorships and progression opportunities? Who is seen as ‘leadership material’, and who might be overlooked? 

“When leaders name class as part of diversity and inclusion, they open the door for others to talk about it, which is how change begins.”

To address potential discomfort around these conversations, facilitating safe spaces is crucial, says Fowkes. 

She recalls running an awareness workshop on class at work and one of the participants, a senior HR leader who formerly worked in the operations function of her business, spoke about her personal experiences.

“She described the first time that she went to the head office as the factory manager, and the level of discomfort [she felt]. She felt like she was someone who had a different experience, who dressed differently. 

“The first time she actually talked about this out loud was in an environment where we were talking about the subtle cues around who gets the corporate jobs versus the people who work in operations in the factories and make up the blue-collar workforce.”

How can HR help address class barriers?

The first step in making progress is to gain a broad view of how class manifests in your organisation.

Fowkes suggests HR start measuring socio-economic background (with the fully informed consent of employees) just as you would track gender and other diversity metrics, through channels such as an anonymous survey.

Measurement can also help HR practitioners embed the intersectional perspective, with experiences of class playing out uniquely for different groups of people. 

“At a broad level, every employer needs to think about the variety of people who are coming to their door and what might be going on for them, and enable people to have a voice in how work is structured,” says Fowkes.

To avoid affinity bias colouring leaders’ decisions, review whether your succession planning inadvertently favours those with certain types of networks or professional/educational backgrounds.

“If you’re fishing from a narrow pond, whatever the pond is – whether it’s based on race, gender, socio-economic background – you’re narrowing your point of view.” – Lisa Fowkes, Director, Employment, Social Ventures Australia

Early insights from DCA’s upcoming report, which will be released in mid-October with practical guidance on fostering class inclusion, suggests checking for privilege traits – educational credentials from elite institutions or certain mannerisms associated with conventional models of leadership – and ensuring they aren’t overvalued over the actual qualities required in the role and within your organisational culture.

Fowkes also suggests reviewing entry points into your organisation and asking whether recruitment practices favour those with certain backgrounds.

“Some jobs need a degree; I want my doctor to have a university qualification. But there are a lot of jobs where employers don’t actually need a degree.

“What they want is a whole lot of other things: problem-solving, resilience, interest in understanding the theory behind something, analytical skills. 

“If you’re fishing from a narrow pond, whatever the pond is – whether it’s based on race, gender, socio-economic background – you’re narrowing your point of view. You’re narrowing the perspectives that you have within your organisation and within leadership.”

Implementing inclusive practices more broadly is a powerful indicator of class inclusion, says Hunter. 

She cites DCA’s findings which highlighted class-marginalised employees who work in inclusive organisations (62 per cent) are more than twice as likely to have participated in career development opportunities than those in non-inclusive organisations (22 per cent). 

They’re also nearly 10 times more likely to be satisfied with their job and five times more likely to feel work positively impacts their mental health.

For instance, inclusive practices such as flexible working arrangements don’t just benefit employees from low socio-economic backgrounds, who tend to be more heavily reliant on public transport and located further from city centres, but have been demonstrated to have a positive impact for other segments of the workforce. 

“​​The evidence is clear: when workplaces are inclusive, everyone benefits,” says Hunter.