FUTURE TALENT February / May 2020 | Page 17

Our regular round up of the latest findings across talent, diversity and technology in business SOCIAL MOBILITY IN CRISIS? Most economies are failing to provide the conditions in which their citizens can thrive, according to the World Economic Forum’s global social mobility index. #15 #45 As a result, an individual’s opportunities in life remain tethered to their socio-economic status at birth, entrenching historical inequalities. This is a major problem not only for the individual, but also society and the economy. With human capital as the driving force of economic growth, anything that undermines the best allocation of talent and impedes the accumulation of human capital may significantly hamper growth. Poor social mobility, coupled with inequality of opportunity, underpin these frictions, suggesting that if the level of social mobility were increased, it could act as a lever to economic growth. Most economies need to bridge their social mobility gap. Overall however, the Nordic countries are the best performers. Denmark tops the rankings with a social mobility score of 85.2, closely followed by Finland (83.6), Norway (83.6), Sweden (83.5) and Iceland (82.7). These nations combine access, quality and equity in education, while also providing work opportunities and good working conditions, alongside quality social protection and inclusive institutions. Among the G7 economies, Germany is the most socially mobile, ranking 11th with 78 points, followed by France in 12th position. Canada ranks 14th followed by Japan (15th), the UK (21st), the US (27th) and Italy (34th). Among the world’s large emerging economies, the Russian Federation is the most socially mobile of the BRICS grouping, ranking 39th with a score of 64 points. Next is China, which ranks 45th, followed by Brazil (60th), India (76th) and South Africa (77th). Evidence suggests that companies that place purpose over profits perform better in the long term. Looking purely at a business case, companies increasingly realise that they face equal risks from system challenges, including inequality. By helping to make societies more equitable, consumer bases grow, operating environments become more stable and there is greater trust between customers and stakeholders. Paying fair wages and eliminating the gender pay gap will also be crucial to boost social mobility. The report suggests that business: Takes the lead: by promoting a culture of meritocracy in hiring, providing vocational education, reskilling and upskilling as well as by paying fair wages. Creates action plans specific to each industry: required to address shifts in inequality taking into account each industry’s circumstances. WOMEN STILL SCARCE IN THE BOARDROOM 16.9 % Women hold just 16.9% of board seats globally, and just 4.4% of CEO positions, according to Deloitte Global’s latest Women In The Boardroom report February – May 2020 // 17