In an era of increasing economic inequality and job insecurity, businesses play a pivotal role not just in creating profits but also in shaping the broader socio-economic landscape. While corporate philanthropy often garners attention for its efforts to alleviate poverty and support communities, businesses have a much greater opportunity to foster lasting change by directly helping workers ascend the economic ladder. Beyond simple charity, companies can invest in sustainable practices and policies that promote long-term economic mobility. In doing so, they not only contribute to the well-being of their employees but also to the overall health of the economy.
- Investing in Skills Development and Training
One of the most effective ways businesses can help workers move up the economic ladder is by investing in skills development and training. A growing body of research highlights that continuous skill-building is essential for workers to remain competitive in an evolving job market. According to a 2020 report by McKinsey & Company, nearly 90% of executives and managers agreed that the COVID-19 pandemic had accelerated the need for reskilling. Skills-based training helps workers gain the expertise needed to transition into higher-paying jobs and adapt to changing market demands. Companies that provide on-the-job training, mentorship programs, or partnerships with educational institutions enable their employees to build marketable skills and increase their chances of career advancement.
A noteworthy example is Walmart’s upskilling initiative. In 2018, the retail giant committed $1 billion to training its employees over a five-year period, with a focus on improving the skills of workers in areas like technology, leadership, and supply chain management. This investment enables workers to move up the ranks within the company or even transition into entirely new roles. As of 2021, more than 200,000 employees had participated in Walmart’s upskilling programs, many of whom reported receiving promotions or pay increases.
- Fostering Inclusive Workplaces
Economic mobility is not only about gaining skills but also about having access to opportunities within the workplace. Inclusive business practices are essential to creating a level playing field where employees from all backgrounds—whether defined by gender, race, or socioeconomic status—have an equal shot at advancement. Studies consistently show that diversity in the workplace leads to better decision-making, innovation, and overall productivity, which benefits the entire organization.
Companies that prioritize diversity and inclusion (D&I) have demonstrated the positive effects of such practices on worker mobility. For instance, Accenture has long been a proponent of D&I, with their focus on building an equitable workplace environment where individuals from underrepresented groups are empowered to take on leadership roles. Through their programs such as “Inclusion and Diversity Leadership,” they have helped many workers from marginalized backgrounds navigate their career paths more successfully, opening doors to higher-paying, higher-status roles.
Research from McKinsey & Company also supports the idea that diverse companies are more likely to perform well financially. Their 2020 report, “Diversity Wins: How Inclusion Matters,” showed that companies in the top quartile for racial and ethnic diversity were 36% more likely to have above-average profitability compared to their less diverse counterparts. This demonstrates that a commitment to inclusivity is not just morally sound but also a business strategy that can foster both worker advancement and economic prosperity.
- Offering Career Pathways and Clear Advancement Tracks
Beyond training and diversity initiatives, businesses can provide workers with clear career pathways that outline steps for advancement within the organization. When employees have a transparent understanding of the opportunities available to them and the criteria for progression, they are more likely to remain engaged and motivated to stay with the company long-term.
Target Corporation offers a compelling example of how clear advancement pathways can create significant opportunities for workers. The company has been known for offering entry-level employees a chance to move up within the organization. Through programs such as Target’s “Pathways” program, workers can see a clear trajectory from their current role into management positions, often with the added benefit of subsidized college tuition and leadership development resources. Target’s commitment to worker advancement has contributed to a low turnover rate, with many employees progressing to higher-paying managerial or executive positions.
- Pay Equity and Livable Wages
Ensuring that employees earn fair wages is essential to fostering economic mobility. Companies that pay competitive wages, provide benefits such as healthcare, and offer performance-based bonuses help workers build wealth over time. Livable wages empower employees to make long-term investments in their education, housing, and health, all of which are key factors in moving up the economic ladder.
A notable example of this approach is Costco, which has become well-known for paying its workers significantly higher wages compared to other retail employers. According to the company’s own reports, the average hourly wage for Costco employees was over $24 in 2020—far exceeding the industry standard. This commitment to paying workers well has resulted in lower turnover rates, higher employee satisfaction, and, in turn, stronger financial performance for the company. By providing a competitive wage, Costco offers employees the financial stability to invest in their futures, thereby creating lasting economic opportunities.
- Providing Health and Retirement Benefits
Economic mobility is also closely tied to access to essential benefits like healthcare and retirement savings plans. Businesses that offer comprehensive health insurance, retirement matching programs, and paid family leave not only support the well-being of their workers but also provide them with the tools to plan for a financially secure future. These benefits, when coupled with fair wages, can significantly improve workers’ quality of life and give them the security they need to focus on skill-building and career advancement.
Microsoft, for example, has implemented robust benefits programs that prioritize the holistic well-being of their workers. Their offerings include generous healthcare plans, paid parental leave, and retirement savings contributions. Such programs allow employees to focus on their professional development without the burden of financial instability, enabling them to progress in their careers with greater peace of mind.
- Partnerships with Educational Institutions
Some businesses have taken their commitment to worker advancement even further by forming partnerships with educational institutions to provide employees with access to formal education. By offering tuition reimbursement, scholarships, or partnerships with local universities, businesses can help workers earn degrees or certifications that open doors to new career opportunities.
For instance, Starbucks has long been committed to worker education through its partnership with Arizona State University (ASU). The company offers its U.S. employees the opportunity to pursue an online degree at ASU with full tuition coverage. This program has allowed thousands of Starbucks employees to earn college degrees, enabling them to access higher-paying and more stable employment opportunities within the company or in other sectors.
Conclusion: A Vision for the Future
Creating lasting economic opportunities for workers requires more than one-off charitable donations or surface-level initiatives. Companies have the power to reshape the economic landscape by investing in their workers’ long-term success through skills training, inclusive practices, fair wages, and clear career paths. By doing so, they not only uplift individual employees but contribute to the creation of a more equitable and prosperous society for all.
As more businesses recognize the value of these initiatives, we can expect to see a broader shift toward a more inclusive economic model—one that moves beyond philanthropy and fosters genuine upward mobility for workers, creating a more sustainable and robust economy for the future.
John Hoffmire is a Research Associate at the Oxford Centre for Mutual and Co-owned Business
