Employees from socioeconomically disadvantaged backgrounds experience a low level of workplace inclusion, even as their career advances and they rise through the ranks to senior leadership. This holds true across industries, job types, and regions. There are powerful business incentives to address it, however. When an inclusion gap persists, companies leave untapped potential on the table: people whose resilience, motivation, and loyalty can translate into stronger performance and retention.
These are among the findings from a new article by Boston Consulting Group (BCG), “Socioeconomic Status Affects the Workplace, Too: Here’s How to Make Sure Everyone Succeeds.“
A survey of 27 800 employees across 16 countries and 19 industries reveals that employees from financially disadvantaged backgrounds report workplace inclusion scores 13 points lower than those of their peers from financially advantaged upbringings. This gap holds true across the demographic groups in the survey and for both desk-based and nondesk-based employees.
South Africa was one of the 16 countries included in the survey, and its results reflect the broader global trend. The report notes that the inclusion gap between employees from low socioeconomic and high socioeconomic backgrounds ranges from 8 to 16 points across all surveyed nations. Local employees who come from low socioeconomic backgrounds have an 11-point lower inclusion score on average than their peers from high socioeconomic backgrounds.
The report also highlights how intersections between socioeconomic status and race or ethnicity can compound exclusion. It emphasises that in South Africa, where these intersections are deeply entrenched, the impact is especially acute. Employees from low-income backgrounds often face structural barriers to professional growth, limited access to networks, and fewer opportunities to develop soft skills or take career risks.
Among the key factors contributing to lower levels of inclusion, employees from low socioeconomic backgrounds also report significantly fewer opportunities for professional growth. In comparison with their peers, the survey shows that employees from financially disadvantaged backgrounds are 38% less likely to feel they benefited from personal and professional networks, 30% less likely to develop soft skills, and 24% less likely to feel comfortable taking risks. Further, only 20% of those who grew up very financially disadvantaged said that they can be their authentic self at work, compared with more than twice as many respondents (43%) from financially advantaged backgrounds.
“Socioeconomic background shapes the experience of inclusion profoundly,” says Stephen Hosie, a BCG managing director and partner, and lead author of the article. “Companies stand to benefit by expanding their inclusion strategies to recognise and address the experiences of current and prospective employees from financially disadvantaged backgrounds.”
While a sense of inclusion for most employees tends to improve with seniority, as people from low socioeconomic backgrounds rise through the ranks, the inclusion gap persists and even increases at the senior manager level. In every role, individuals from low socioeconomic backgrounds have inclusion scores that are 10 to 14 points lower than their peers who grew up very financially advantaged. This widening leaves them at a continuing disadvantage that career advancement alone doesn’t close.
A financially disadvantaged upbringing can instil powerful strengths, and companies have much to gain by enabling employees from low socioeconomic backgrounds to succeed and show up as their authentic selves. The research shows that employees who feel free to be their authentic selves at work are happier, more engaged, more likely to feel heard, and nearly 2.4 times less likely to leave.
However, low levels of workplace inclusion often prevent these employees from reaching their full potential. Across every dimension of the inclusion experience, employees from low socioeconomic backgrounds report satisfaction levels that are 7 to 12% lower than their more affluent peers.
BCG outlines a practical roadmap for embedding socioeconomic status (SES) inclusion throughout the employee life cycle. This begins with demonstrating commitment to SES inclusion, ensuring that senior leaders actively champion the cause and integrate it into broader diversity strategies. Organisations are also encouraged to rethink hiring practices to attract and fairly assess high-potential candidates from low socioeconomic backgrounds, moving beyond traditional indicators of privilege such as elite education or internships.
Additionally, companies should focus on removing systemic barriers and establishing robust support structures such as mentorship programmes, inclusive onboarding, and employee resource groups, to foster a workplace environment where individuals from disadvantaged backgrounds can thrive and feel a genuine sense of belonging.
“When companies overlook the impact of socioeconomic backgrounds, they’re also overlooking opportunities for their workforces to reach their full potential,” says Sebastian Ullrich, a BCG managing director and partner, and coauthor. “Organisations that widen their lenses to recognize and nurture this untapped talent will unlock new levels of engagement and performance and stand to gain a true competitive edge.”
As South African companies strive to build more inclusive workplaces, addressing socioeconomic disparities must become a strategic priority. This aligns to the report by the 2025 G20 Extraordinary Committee of Independent Experts on Global Inequality launched on 4 November. It highlights that 83% of world economies, representing 90% of the global population, meet the World Bank’s criteria for high inequality, and further emphasises that 1 in 4 people globally now regularly skip meals, while billionaire wealth has reached record highs.
Like the BCG findings, the G20 report highlights limited upward mobility for employees from low socioeconomic backgrounds. It stresses poverty traps, where individuals born into low-income families face limited chances to move up the income ladder. These traps are reinforced by inadequate access to education, healthcare, nutrition, and social capital, which are essential for career advancement.
BCG stresses that inclusion is not just a moral imperative but a business decision. By recognising the unique challenges faced by employees from disadvantaged backgrounds, organisations can unlock a wealth of untapped talent. Empowering these individuals to thrive and contribute authentically is not only key to fostering equity, but also to driving innovation, engagement, and long-term performance in South Africa’s evolving workforce.
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