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Is your pay bracket based on your class?

Adverse ActionDecember 4, 2015

Is your pay bracket based on your class? (Last Updated On: December 4, 2015)

Ever heard the saying ‘it is not what you know but who you know’, or what about ‘the rich just get richer and the poor poorer’?

To have prestige, in general terms, means you have a higher income. We live in a meritocratic society where most people believe that if they put time, effort and money into something they will achieve. In today’s world, how much of this do you believe to be true?

A study made by several academics at the London School of Economics, found that ‘people from working class families are not only less likely to secure jobs in high-status occupations, but will earn thousands of pounds a year less when they get there’.

The research suggests that a class ceiling is established over a lifetime of experiencing parent’s occupational success or failures and their place in society. The UK Labour Force Survey, `analysed people’s earnings based on the occupation of the main breadwinner in their home when they were a teenager’.

What resulted was interesting. It was found that people of lower socioeconomic backgrounds, at a young age, earn 16% less, on average, than those from privileged backgrounds, ‘this class-origin pay gap translates to up to £7,350 lower annual earnings’.

David Cameron the prime minister of the United Kingdom said it was “unacceptable” that people’s wages in Britain are “more linked to what your father got paid than in any other major country”.

In another study conducted by Macquarie University, researchers discovered entry statistics continued to show that the number of students from low socioeconomic backgrounds participating in higher education was low in comparison to students from other backgrounds.

In Australia, our workplaces are mirrored to other developed countries and have similar hierarchical class structures. The question is, when hiring, have your employees acquired the poise, politeness, power and prestige or were they born into it?

It seems that in some cases, and as research supports, less privileged employees can sometimes experience subtle discrimination. It is an interesting fact and if anything, this may make you all a little more aware. Acts of discrimination, even in the slightest form, can cause issues for your business, so we ask you to be aware.

Employsure advises all employers have clear measures of qualifications and educational pathways for all roles being offered. If you would like advice on concerns such as this, or anything else in regards to employee management or work health and safety, call Employsure today on 1300 651 415.

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