Posted by: bluesyemre | December 20, 2022

The American Opportunity Index

We analyzed the 250 largest U.S. public companies to create the American Opportunity Index, measuring each firm based upon the level of opportunity they afford their workers within the firm and even beyond it. The Index is unprecedented among company rankings in that it is the only one we know of that is focused on assessing worker outcomes, not policies and practice.

The Index focuses on three core dimensions of a firm’s opportunity generation: the access they offer to opportunity, the pay they offer in low- and middle-skill roles, and the level of mobility experienced by their employees both within and beyond the firm. And unlike survey-based instruments, it uses massive data sets—big-data analysis of career histories, job postings, and salary sources—to describe the real-world experiences of millions of actual workers.

Using those measures, we rank the top 50 companies overall as well as all companies within a given sector. In addition to the overall ranking, we identify the top 50 companies across five models of opportunity creation. Each expresses a defined archetype by which companies drive the success and mobility of workers, accounting for the major differences in the business models and organizational structures across such a diverse group of companies in order to ensure the relevance of our findings.

Our goal is threefold: to empower workers to make better decisions as to what positions to seek and what firms to prioritize in their job searches; to recognize firms that are setting an example of how to create opportunity; and to arm executives and HR leaders alike with the data they need to take meaningful action to boost the competitiveness of their workforce.

The Opportunity Index aims to address the historical absence of high-quality benchmarks by which firms can objectively evaluate how well they are creating pathways of opportunity for their entry-level and front-line employees. Many claim to promote mobility, of course, but which companies are truly doing this well? What sorts of jobs offer the best chances for advancement? Within various sectors and overall, who is doing best—and worst? Which employees move up, and who stays stuck? The metrics that the Index considers are fundamental to retention, diversity, and the future readiness of the workforce. Surprisingly, few companies track such metrics today. Obviously, firms know whom they have promoted, but relatively few have done a detailed analysis of career development across their workforce. Moreover, even the firms that track such data seldom have access to detailed benchmarks by which to evaluate their performance. The capability to conduct this analysis simply hasn’t existed before.

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