New Delhi, Oct 30 (PTI) By addressing barriers to work-related social mobility, businesses can access a more diverse range of perspectives as there is significant potential to boost workforce participation, which in turn positively impacts economic growth (GDP), according to a Michael Page India & Cebr study.
According to the research from Michael Page India, if India improves social mobility by just two points on the World Economic Forum's Social Mobility Index, the workforce could expand by over 5.2 million people, potentially adding Rs 2.7 trillion to the nation's GDP.
On the World Economic Forum's Social Mobility Index, India is ranked 76th out of 82 countries.
By ensuring fairer access to job opportunities, there is significant potential to boost workforce participation, which in turn positively impacts economic growth (GDP).
The study, which was conducted by leading global recruitment company Michael Page India in partnership with the Centre for Economics and Business Research (Cebr), underscores the positive impact improved work-related social mobility can have on both businesses and society as a whole.
Work-related social mobility refers to the opportunities available to people from lower socioeconomic backgrounds to progress in their careers and access better job opportunities.
"A growing concern in India is the bias toward candidates from Tier 1 MBA institutions, which overlooks the rich talent pool in other MBA programmes. By focusing on skills rather than institutional pedigree, businesses can access a more diverse range of perspectives and solutions," said Nilay Khandelwal, Senior Managing Director of India and Singapore at Michael Page.
In addition, businesses often miss out on talent from Tier 2 towns due to biases related to communication skills or geographic location. By adopting hybrid or remote work models and offering language support, companies can tap into this often-ignored talent pool, contributing to greater workforce diversity and innovation, Khandelwal added.
Citing Cebr's statistical analysis across a sample of 82 countries, Owen Good, Head of Economic Advisory at Cebr, said there is a significant and positive link between social mobility and labour market participation.
One of the most impactful ways businesses can promote social mobility is by hiring for skills, not prestige. Many highly capable candidates from Tier 2 towns face barriers such as limited access to education or language challenges, but these should not exclude them from career opportunities.
By offering remote work options, language training, and mentorship programmes, companies can unlock this untapped talent pool, bringing fresh perspectives and skills into their workforce, Owen Good said.