DEI

Is There A Pay Gap Correlated To Socioeconomic Background?

UPDATED ON
April 10, 2023
Mployer Advisor
Mployer Advisor
— Written By
Print Friendly and PDF

KPMG conducted an internal audit in order to better understand how pay-gaps between different types of workers relate to socio-economic background, as determined by the jobs held by employees' parents.

The data indicates, maybe unsurprisingly, that the pay gap was greatest between KPMG employees who come from a professional household and those have a working class background, which differed by a little under 9%. The next largest gap was between employees with middle tier backgrounds and employees who originated in the working class, which was a little over 6%. The pay of workers whose parents have a professional background and the pay of workers whose parents had middle tier backgrounds was most similar - separated by only a little over 2% at the median. 

KPMG has set a goal in the United Kingdom of having employees with working class backgrounds hold 29% of their partner and director-level positions by the end of this decade.

You can read more about these data analyses and conclusions here.

Want more insights on how your employee benefits compare to companies in your region, industry, and similar employer size?
Download Your Custom Benefits Report Now
See How Your Employee Benefits Compare

Next Up

Federal Court Ruling May Put Millions of US Companies In Breach of ERISA Fiduciary Duty
A Texas court ruled that American Airlines breached its ERISA duty of loyalty by failing to properly oversee BlackRock’s ESG-driven investment decisions. The decision could put millions of employers at legal risk if upheld. Are ESG investments in retirement plans now a liability?
The Employment Situation for February 2025
The latest economic release from the Bureau of Labor Statistics reports that the U.S. job market added just under 150 thousand jobs last month while unemployment ticked down one-tenth of a point to 4% to close out the last such economic report with data collected under the Biden administration.
Are Centers of Excellence On the Decline?
Centers of Excellence (COEs) may have peaked. While mid-sized employers increased adoption, the largest companies are scaling back. Is this a temporary dip or a shift in employer healthcare strategy?