Zurich UK has released its social mobility pay data alongside a set of initiatives aimed at addressing barriers to career progression for employees from lower socio-economic backgrounds.
The company highlighted that Zurich UK is the first insurer to publish this data and is among a small number of UK businesses to do so.
An analysis covering 73% of Zurich UK’s 5,000 employees found a median socio-economic pay gap of -4.2% between employees from professional and lower socio-economic backgrounds. The mean average pay gap between these groups stands at 10.5%.
Zurich's workforce consists of 28% from professional backgrounds, 10% from intermediate backgrounds, and 23% from lower socio-economic backgrounds.
According to the Social Mobility Commission, the financial services sector overall is composed of 45% from professional backgrounds, 21% from intermediate backgrounds, and 34% from lower socio-economic backgrounds.
Outside of the socio-economic gap, other insurance companies have been showing progress in closing the other pay gaps. The latest research into the gender and ethnicity pay gap from QBE UK showed continued progress in reducing disparities within the organisation.
The mean gender pay gap for 2024 stands at 20.4%, down from 21.9% in 2023 and significantly reduced from the 32.8% reported in 2017. This figure compares favourably to the insurance industry average of 34% and the financial services average of 29.8%.
The Social Mobility Foundation has been advocating for businesses to report their class pay gaps, following research indicating that employees from working-class backgrounds earn an average of £6,287, or 12% less, than those from professional backgrounds despite holding similar professional roles.
Studies suggest that while socio-economic diversity is present at junior levels in financial services, progression to senior roles is limited, creating a ‘class ceiling.’
Zurich UK has encouraged employees to voluntarily disclose their socio-economic backgrounds, and current data indicates that one in five senior leaders at the company are from lower socio-economic backgrounds.
Industry-wide, almost 90% of senior roles in financial services are held by individuals from higher socio-economic backgrounds, compared to one-third of the UK working population. Research suggests that socio-economic background has a greater impact on career progression in financial services than gender or ethnicity.
However, the proportion of senior positions held by individuals from lower socio-economic backgrounds has increased from 26% to 28% year-on-year.
Zurich UK has introduced several initiatives aimed at supporting career development for employees from lower socio-economic backgrounds. These include a social mobility ambassadors' group to raise awareness, skills-based hiring to remove barriers related to limited work experience, and the removal of unnecessary qualifications such as university degrees from job descriptions.
The company is also participating in a mentoring programme that pairs new employees without corporate experience with senior leaders to support career development.
Additionally, Zurich UK contributes internal data to the Bridge Group/Progress Together report, which is compiling the largest-ever study on socio-economic diversity and career progression in financial services.
Other initiatives include awareness training for managers, internal mobility and up-skilling programmes, and a partnership with Suited & Booted London to provide interview clothing and career advice for unemployed and low-income individuals.
Steve Collinson (pictured above), chief HR officer at Zurich UK, said the publication of the company’s social mobility pay data and the introduction of these initiatives reflect a commitment to advancing social equity within the organisation.
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