The Co-op has published its first ever socio-economic pay gap report – the first UK retailer to do so.
It forms part of the company’s wider social mobility strategy and its commitment to supporting employees from lower socio-economic backgrounds.
It collected voluntary data from 57,000 employees across the UK between April 2023 and April 2024, using a framework recommended by the Social Mobility Commission. This categorises individuals’ backgrounds depending on what the occupation of the main household earner was when they were 14.
There are three classifications: professional backgrounds (including traditional professions such as law and accountancy and managers); intermediate backgrounds (clerical and small business owners); and working class (technical and craft occupations).
Socio-economic pay gap
Almost three-quarters of staff (72%) are sharing their socio-economic data, and the business has set a target of increasing this to 80% over the next 12 months. The 2023 report was based on 48% of the workforce.
The report showed that there is a mean pay gap of 5.2% between colleagues from a lower and higher socio-economic background (SEB). Those from lower SEBs are also less likely to progress into senior positions compared to those from professional or higher SEBs.
Almost 40% of staff at Co-op come from professional backgrounds, 13.6% from intermediate and 46.6% from lower SEBs.
It said that having more colleagues from a professional SEB in senior positions was impacting its mean pay gap, and is looking to address this.
The business has committed to increasing visibility of those from lower SEBs in leadership positions so employees can see where their career might progress.
It will also launch a new career development programme specifically for lower SEB employees, targeting business areas where data shows there are additional barriers to progression.
As part of its Social Mobility Plan, the Co-op is campaigning for the government to make socio-economic background the 10th protected characteristic under the Equality Act.
Shirine Khoury-Haq, CEO of the Co-op Group, said: “This is a truthful report of our business and even though there is work to be done, I am proud that we are the first retailer to have carried out this research.
“It 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.
“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.”
Sarah Atkinson, CEO of the Social Mobility Foundation, added: “This report is a brave step, because too few employers are willing to hold themselves accountable – and it’s also a smart one. The Co-op has recognised that improving social mobility is both core to its purpose and makes good business sense.
“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.
“We know that what gets measured gets addressed. Meaningful change can then follow to ensure that those from all backgrounds can get in, get on and belong in the workplace.”
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