For decades, America has been known as the land of opportunity, a place where anyone who wanted to work hard could make a living. Yet according to the newly updated American Opportunity Index, opportunities might be growing scanter.
The index, now in its third year, ranks U.S. companies according to how well they advance people’s careers and contribute to the growth of the middle class. It is a collaboration between the Burning Glass Institute, the Schultz Family Foundation, and Harvard Business School’s Managing the Future of Work Project.
How the index works
To rank the companies, the report’s authors gathered millions of data points about worker salaries and career growth from 395 of America’s largest companies. They used these data points to measure five different metrics: hiring, pay, promotion, parity (how well people are able to advance regardless of race or gender), and culture (how well companies retain people and build their careers).
“We’re not looking at where people with higher degrees such as lawyers and medical directors work,” said Rajiv Chandrasekaran, managing director at the Schultz Family Foundation. “We’re looking at the best places to find opportunity for the vast majority of Americans.”
What researchers found for 2024
In general, companies in the top 100 paid an average of 130% more than the bottom 100 firms for the same job. They were 180% more likely to hire employees without a college degree, focusing more on skills than pedigree, and they were 150% more likely to promote employees internally.
However, only 80 of the 395 companies studied (20%) increased their internal promotion opportunities compared to last year. Only nine of these firms were in the top 100.
Meanwhile, 174 companies decreased hiring employees without college degrees or who lacked meaningful work experience compared to last year. Only two firms in the top hundred saw increased scores for hiring compared to last year.
Which companies came out on top?
According to the report, the top companies were:
- W.W. Grainger
- Costco Wholesale
- Capital One Financial
- Meta Platforms
- Service Now
- J.B. Hunt Transport Services
- Coca-Cola
- PepsiCo
- MetLife
- Bank of America
“Our research demonstrates that management practices unlock opportunity for workers . . . Opportunity doesn’t rest in specific industries or locations. It’s a function of companies making choices that advance the interest of their workers and implementing them,” Joe Fuller, a professor at Harvard Business School and co-head of the Managing the Future of Work project, said in a statement.