A study of the effect of academic factors on the position promotion of employees in state-owned enterprises

Abstract

State-owned enterprises (SOEs) are vital to China's economy, yet the influence of educational background on employee promotions within these entities remains underexplored. This study examines how academic qualifications impact career advancement in Chinese SOEs using quantitative surveys and qualitative interviews with 1457 employees and 60 in-depth interviews across hierarchical levels in a state-owned bank. The research, grounded in human capital and social status attainment theories, employs logistic regression to analyse educational attainment's impact on promotion likelihood, while qualitative data reveal employees' experiences concerning academic qualifications and career progression. Results indicate that higher educational attainment significantly enhances promotion prospects in SOEs, especially for employees from prestigious universities, who enjoy a competitive advantage. The study also highlights that educational background positively influences female promotions, enabling women to overcome gender biases and workplace barriers. Additionally, shared educational backgrounds between employees and supervisors were linked to accelerated promotions, emphasising the role of educational networks. This research deepens understanding of education's role in social mobility within SOEs, offering insights for fairer promotion practices. Policy recommendations include supporting continuous education, recognising diverse academic backgrounds, and ensuring transparent promotion criteria, thus advancing discourse on career development in Chinese SOEs.