The Good Economy Job Ratings

The Good Economy Job Ratings is a methodology and set of social ratings for assessing the inclusive job growth performance of companies, sectors and places.

What is it?

If we seriously want to build an ‘inclusive economy’ – an economy that works for everyone – we need to be able to measure the most important dimension of inclusion: a good quality job for everyone that wants one.

The Good Economy Job Ratings are designed to meet this fundamental need for measurement and accountability. Businesses, investors, governments and other stakeholders can use the Ratings to understand and improve good job performance across the UK. 

Why does it matter?

Good jobs are fundamental to all aspects of personal, social and economic well-being. Poor job quality is linked to underemployment, ‘working poverty’ and low productivity.

The Good Economy Job Ratings help organisations work towards inclusive job growth by providing them with the information they need to assess business decisions, allocate capital and influence and make policies.

We want to accelerate progress towards inclusive growth that is built on “sustainable job creation that leads to a more equitable distribution of good job opportunities, both socially and geographically.” (OECD)

Who is it for?

Policy makers, companies, investors, advisers and advocacy groups can use the Ratings in a variety of practical and valuable ways. 

Companies – Articulate your social value to the UK as an employer, benchmark performance, and develop stakeholder communities to increase your contribution to inclusive job growth

Investors – Screen and select portfolio companies that create good employment opportunities. Monitor and report on this aspect of social performance and fill gaps in ESG reporting. 

Policy makers and advocacy groups – Understand and analyse business and sector contributions to inclusive job growth in regional and local economies. Inform strategies and business partnerships to drive better job creation in local areas.

All organisations targeting Sustainable Development Goals – Report on your alignment with:

  • SDG 8: ‘Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all’
  • SDG 10: ‘Reducing Inequalities Within and Between Countries’

Investors currently use numerous social ratings to tailor investments and investment products to socially responsible criteria, but they currently fit poorly with SDG8 in particular. The Good Economy Job Ratings are partly designed to fill that gap.

The Good Economy Job Ratings measure indicators related to job creation and job quality as well as the contribution of those jobs to sustainable development. 

Importantly, we capture two factors that are largely overlooked by other social ratings: industrial sector (i.e. the industries in which the employment resides, and the nature of those sectors’ contributions to development); and place (i.e. the locations in which the employment resides, and the relative need for development in those places).   

How it works?

The Good Economy Job Ratings is a holistic methodology for assessing the inclusive job growth performance of companies, sectors and places.

  • Company Ratings - We measure the direct performance of individual companies by 17 indicators. Growth indicators include size and workforce growth (benchmarked) in the UK; global turnover and employment growth (sustainability); employment and head office concentration in the UK; local and regional distribution of employment; and Living Wage Employer status.

  • Sector Ratings - We measure sector growth performance by output and workforce growth, as well as SME dynamism and employment effect (multipliers). Inclusion indicators include earnings quality, job security and skill level. We also measure the representation of ‘vulnerable’ or marginalised groups in the workforce, including young people (both with degrees and with school leaver qualifications) and women in low-paid, part-time occupations.
  • Place Ratings - We map places by Local Enterprise Partnership areas and NUTS 2 regions in Scotland and Wales. Boundaries are adjustable and data can be aggregated. Growth indicators include private sector employment growth, GVA growth, SME dynamism and working age population growth. Inclusion indicators include median earnings, percentage of workforce below Voluntary Living Wage, skills, and young people participation.

Products

Companies, investors and advisers can apply the Ratings to their analysis and reporting via several products that we offer:

REPORTS

  • Standard Company Reports – an analysis of a company's inclusive job growth performance relative to its sector peers, based on 50 indicators. These reports are currently available for 150 FTSE companies.
  • Sector Profiles – profiles of the inclusive job growth performance of sectors based on 19 indicators for job growth and inclusion.
  • Place Profiles – inclusive job growth analysis available at different geographical scales – regional, Local Enterprise Partnership and local authority. Identification of which FTSE companies have important employment effects by local area. 

DATA

  • License company data gathered by The Good Economy (available to portfolio managers willing to bring an inclusive job growth screen to their investments).

BESPOKE RESEARCH AND CONSULTING 

  • We also provide bespoke analysis and strategic advice that can combine The Good Economy Job Ratings data with internal data to provide useful analysis and insight and strategic advice on how to enhance your societal value. 

150

Company Reports

20

Company Level Indicators

36

Sector and Place Indicators

Get in touch

A Good Economy: an economy that works for everyone. 

The Good Economy Partnership is a social advisory firm dedicated to enabling business and finance to play a bigger role in building a Good Economy: an economy that works for everyone.

If you are interested in any of our products and services or partnering with us, please get in touch - info@thegoodeconomy.co.uk

This work by The Good Economy is hugely valuable to SSE and wider society. It allows us to understand the contribution we’re making to inclusive, long-term economic growth in the UK and defines how we can enhance our societal value further.

Rachel McEwen, Director of Sustainability, SSE

This agenda setting research helps open the debate about just who - and who isn’t - contributing to a more inclusive economy. It’s essential reading for policy makers everywhere.

Rt Hon Liam Byrne MP

Inclusive Job Growth is sustainable job creation that leads to a more equitable distribution of good job opportunities, both socially and geographically. Good Jobs are defined by earnings quality, job security and work fulfilment.

OECD

Good jobs bring earnings quality, job security and work fulfilment. They are central to social and economic well-being. Measuring inclusive job growth is the right place to start when looking for solutions to the challenges of building an inclusive economy.

The Good Economy