FTSE 100 public reporting. Employee engagement and wellbeing

Transcription

1 FTSE 100 public reporting Employee engagement and wellbeing

2 FTSE 100 public reporting Employee engagement and wellbeing Contents Introduction from Bupa 3 Section 1: BITC Workwell public reporting 4 steering group Section 2: Public reporting benchmarking 7 research Assessment methodology Section 3: Research findings 9 Appendix A: FTSE 100 companies 25 Appendix B: Best practice key criteria 26 Further information For further information, please contact your Towers Watson consultant or: Nick Tatchell, Director, Towers Watson nick.tatchell@towerswatson.com Louise Aston, Workwell Director, BITC louise.aston@bitc.org.uk Business in the Community 137 Shepherdess Walk, London N1 7RQ T: F: twitter.com/bitc1 Business in the Community stands for responsible business

3 Introduction Employee health and wellbeing is the foundation of responsible business and an issue that goes to the very heart of performance, productivity, efficiency, talent retention and profitability. As the business case for employers strengthens, practice suggests that it remains challenging for many companies to articulate the case for engagement and wellbeing and position this as a strategic boardroom issue. Public reporting plays a crucial role in broadening defi nitions of employee wellbeing and infl uencing business attitudes and practice. The fi ndings in this report show that what gets measured gets managed, highlighting that we continue to make progress in raising awareness as well as sharing and embedding best practice through the principles of public reporting. It is encouraging that we are beginning to see an upwards trend in organisations recognising the power of the information that they have in their grasp, reporting not just on engagement processes but on the use of that data in more detail. It is compelling that the benchmark once again highlights a lack of reporting on psychological health and sporadic reporting on mental health support. It emphasises the importance of continuing to focus on access to specialist support services and suggests that there is much to be gained from encouraging greater disclosure of mental health in the workplace. It is our pleasure to support the 2014 Workwell Public Reporting Benchmark. Our purpose is longer, healthier, happier lives. This is at the heart of everything we do and an ambition that takes us well beyond those we serve as customers, with a clear mission to create a positive health impact in society. We are delighted to add our voice to the collaborative business-led movement which is making the case for health and wellbeing to be treated as an integral part of business practice. Patrick Watt Corporate Director, Bupa UK FTSE 100 public reporting Employee engagement and wellbeing 3

4 Section 1 BITC Workwell public reporting steering group Business in the Community (BITC) Workwell has been developed by international business leaders with the core purpose of creating happier and healthier workforces. As well as benefiting individuals, improved employee engagement and wellbeing builds business resilience, performance and productivity. The Workwell steering group was convened by BITC. All of the companies represented are members of BITC and have provided thought leadership and overall direction for BITC s Public Reporting. Workwell s human capital indicators will help business and investors alike understand the drivers of sustainable organisational performance. Peter Cheese, CEO, CIPD As we enter a new era of reporting on responsible business that moves away from an isolated CSR Report, the Business in the Community Workwell Benchmark enables organisations to demonstrate their responsible people management and its impact on improved business performance. Stephen Howard, Chief Executive of Business in the Community Guidelines and BITC s Workwell benchmark initiative: public-reporting Public Reporting Benchmark Support Programme: reporting-workwell/public-reporting-benchmarkingsupport-programme 4 towerswatson.com

5 High-level findings Whilst progress is slow for many, it is encouraging to see progress being made, and with a few signifi cant advances by those that have really recognised the importance of public reporting of engagement and wellbeing. All companies report something, with 86% touching on four or fi ve themes, however, few report in depth. The number reporting on fi ve themes has increased from 53 to 63. The strongest segments are Better work, Better physical and psychological health and Working well. All show increases from Particular strength in risk-based/compliance issues, that is: Health and safety (H&S) reporting (companies with detailed reporting increasing from 29 to 60). Diversity and inclusion (companies with detailed reporting increasing from 25 to 45). The weakest segment continues to be Specialist support. Employee assistance programmes (EAP) although reference to their existence has increased, there are almost no statistics for usage. Other specialist services. Management information of specialist support. Although psychological health is in some cases referenced as being important, there is almost no reporting of it being measured or addressed in any way. Very little benchmarking data is used or any metric. A handful of companies reported benchmarks for engagement survey data, but usually this was just for the headline engagement score and/or response rates. There has been an encouraging increase in the reporting of employee feedback/engagement data. This has been both in the number of organisations reporting any data but also the extent of the reporting. Although it is still not common for organisations to set targets (for example, on scorecards) for elements of the Workwell model, there has been an increase in the occurrence of organisations reporting on their targets. An investor perspective on public reporting of engagement and wellbeing Introduction UK companies have come a long way over the past decade in providing greater clarity and disclosure on how they manage various aspects of the business, from environmental impacts through to socio-economic benefi ts that they may provide. At Standard Life Investments, we believe that what is measured, is managed. Corporate reporting on these issues is a good indicator of how well a company is being managed. While corporate disclosure has improved, disclosure around how companies are managing their human capital remains fairly basic. Given the value that many companies state they place on their employees, this lack of disclosure is disappointing. Benchmarking companies is helpful for investors in that it provides us with a greater ability to assess where companies are in comparison with their peers. As such, we are delighted that Business in the Community has completed its second year of benchmarking companies on their corporate wellness and employee management programmes. PRI coordinated Steering Group on Employee Relations Signifi cant interest from signatories in the topic, and poor disclosure on human capital management, led the UN supported Principles for Responsible Investment (PRI) to establish a Steering Committee to examine employee relations in more detail. The PRI brings together international investors to put into practice the six Principles on Responsible Investment. These voluntary and aspirational Principles aim to help investors incorporate sustainability issues into their investment decision-making and ownership practices. There are over 1,200 signatories to these Principles, and with combined assets under management of over $US 34 trillion, PRI signatories represent a signifi cant proportion of the world s invested capital. FTSE 100 public reporting Employee engagement and wellbeing 5

6 Investors are provided with little in the way of quantifiable and useful information to help them assess how employee matters are addressed at operational level. The PRI coordinated Steering Group on Employee Relations comprises 13 global investors who commissioned research to identify and assess existing company practice on managing their employees. A UK-based management consultancy, Carnstone, helped conduct the analysis to assess the link between human capital management indicators and fi nancial performance. A review of 30 academic and industry research papers was undertaken to identify the strongest link between specifi c employee management practices and improved business performance. From this literature, a number of specifi c indicators, arranged in seven clusters, were identifi ed as having the greatest impact on the bottom line. Given the consumer facing nature of the retail sector and its reliance on its employees to delivery customer services and store effi ciencies, this sector was chosen for the subsequent engagement project. Eighty companies in the apparel retail, food retail, department stores, hypermarkets and super centres were assessed against these clusters and indicators. From this a number of companies have been identifi ed for engagement. This engagement has been opened up to signatories of the PRI and is currently underway. One of the aims is to increase corporate reporting around material employee relations and employee engagement matters. This group of investors believes that the way in which companies manage their human capital may have a direct bearing on their ability to grow and deliver shareholder returns. Companies with happy and healthy workforces should ensure productivity, minimise the risk of employee action, motivate their staff, improve margins, protect their intellectual property, innovate and protect their reputations. Demand for greater transparency Investors are seeking greater public disclosure from the companies they are engaging with. From the Workwell benchmarking exercise and the research conducted on behalf of the PRI coordinated Steering Group on Employee Relations, it is evident that even the better performers only provided the basic minimum on employee relations. Despite companies often proclaiming in their public disclosures that employees are their most valuable asset, most companies are failing to provide effective reporting on how employee relations are addressed. Setting targets and reporting against relevant key performance indicators is still in its infancy. Investors are provided with little in the way of quantifi able and useful information to help them assess how employee matters are addressed at operational level. PRI coordinated Steering Group on Employee Relations has been working alongside BITC s Workwell Programme to ensure that this fi rst benchmarking programme on employee relations is fed into the thinking and engagement of those involved in this engagement initiative. Conclusion Investors continue to seek clear and concise reporting from companies on all aspects of their business operations. This should include clear key performance indicators on areas that are material to their business. In particular, greater focus is needed on the matter of how employee relations are managed. Alongside these indicators, investors would welcome quality narrative reporting in order to contextualise these metrics and understand how they are used in practice. Quality reporting provides evidence that these issues are being managed by the business, as well as data for analysts to use in their assessment of the company s performance in these areas. Amanda Young, Head of Responsible Investment, Standard Life Investments Member of the PRI coordinated Steering Group on Employee Relations 6 towerswatson.com

7 Section 2 Public reporting benchmarking research Assessment methodology BITC Workwell s guidelines for the public reporting of employee engagement and wellbeing can be found at report/bitc-public-reporting-guidelines-employeewellness-and-engagement Assessing public reporting question areas Working with the steering group, Towers Watson developed a questionnaire which covered all fi ve elements of the Workwell model. In total, 25 questions were used to gather information on companies public reporting. These are shown in Figure 01 and refl ect the metrics suggested in the guidelines. Figure 01. Assessing public reporting against BITC Workwell model Better physical and psychological health Health and wellbeing promotions and campaigns Workforce demographics marking health status Health and safety training and management systems Health and safety reporting Better specialist support Attendance management/absence Occupational health Employee assistance programmes (EAP) Other specialist services Management information of specialist support Working well Diversity and inclusion Voluntary staff turnover Linking engagement, wellbeing and business performance Engagement and wellbeing strategy and programmes Management scorecard Governance of engagement and wellbeing External awards Better work Organisational values and value alignment Training and skill development Employee feedback Leadership and management Better relationships Flexible working Family-friendly policies and facilities Employee volunteering Grievances and organisational justice Coaching and mentoring FTSE 100 public reporting Employee engagement and wellbeing 7

8 Benchmarking criteria assessment of survey answers For each of the 25 questions, an organisation could be awarded four points, as shown in Figure 02. The fi rst point would be awarded for a basic description of what the organisation does in that area. This would be likely to include a statement of policy and/or a description of what the organisation offers to employees. The second point would be for the reporting of one or more spot metrics (for the most current year) that measure that topic. A third point is earned when trends are reported in the metric, and ideally benchmarks are referred to. However, it is recognised that for many of these metrics there are no readily available benchmarks. The last point is awarded for an expanded and structured narrative that links to the metrics for example, by explaining the reasons for the trends and which provides more information about processes, actions being taken, goals and objectives. Questions can therefore achieve a maximum of four points with two exceptions (governance of engagement and wellbeing and external awards), which could possibly earn two points each, as they can only be assessed in terms of their narrative reporting. The maximum possible score is 96 points. Considerations made in assessing public reporting From the perspective of investors and for this benchmarking research it is better to have fewer metrics reported thoroughly with trend data and benchmarks accompanied by a compelling narrative. This is preferable to having a large number of metrics (some of which may not be particularly relevant) which have no associated description or, alternatively, a long descriptive narrative with few metrics and little in the way of compelling content. The hard metrics should be linked into a broader narrative which should articulate the journey of improvement. For the metrics reported, the ideal narrative should, where possible, articulate what actions have been taken and their impact; the trends in the data; comparisons to external benchmarks (for example, industry sector); what the plans are to improve that measure, as well as any goals that have been set. It is worth noting that organisations were not assessed on the actual values identifi ed for the hard metrics, just the existence of the metrics and the quality of the metrics. An organisation might have a highly-engaged workforce, but if it does not report this metric effectively, then it was scored lower than an organisation with a disengaged workforce, but which clearly articulated its progress and the steps it is taking to improve engagement. Figure 02. Benchmarking criteria Positive reponse identifying narrative reporting One point Baseline score for each question Identification of reporting metrics One point Identification of measurement criteria The hard metrics should be linked into a broader narrative which should articulate the journey of improvement. 4 points per question Scoring as per framework by quadrant and working well central segment Expanded and structured narrative One bonus point Narrative reporting which provides process details and linkage with metrics Expanded metric reporting One bonus point Additional detailed reporting identifying trends and benchmarking 8 towerswatson.com

9 Section 3 Research findings The sample: FTSE 100 companies by number of employees At the time of the research, the FTSE 100 companies employed approximately 6.3 million employees worldwide. They ranged in size from about 200 employees to over 650,000. (A full list of the companies included in the study is shown at Appendix A, page 25.) Figure 03. FTSE 100 companies by number of employees Number of FTSE 100 companies by employee headcount Over 200,000 employees 4 75,000 to 199, ,000 to 74, ,000 to 24, ,000 to 9, Under 1,000 4 FTSE 100 public reporting Employee engagement and wellbeing 9

10 Issues around quality of reporting Inconsistent reporting within a company s website (for example, between the corporate social responsibility (CSR) reports, annual reports, web pages [such as Our people ] and the careers section), reflects business structures and the lack of coordination of activity with regard to engagement and wellbeing: Ownership of what is reported on the website is typically split between several different functions H&S, Occupational Health, HR, CSR, Communication. Some companies have long narratives (for example, about policies and approach) but with little data. Spot metrics are much more common than reporting of trends. The most successful approach that is, quick to find and clearly presented is a structured and considered CSR report (or a CSR/sustainability section in the annual report) that contains a lot of the information required with trends, scorecards and so on. It is unfortunate that there has been a reduction in the number of FTSE 100 companies that self completed this year (17 companies in 2013/14 compared to 28 companies in 2012/13). Those that self-report have learnt a lot from this process and have used this experience to improve. Whilst there have been some significant improvements in the quality of responses, we noted the following issues prevail, which indicates a poor understanding of their mechanism for public reporting: Poor completion of evidence of publicly-reported information, either: Poor understanding of requirements. Trying to input anything that might get points. Information input that is not publicly reported, including indication of practices which exist, but are not reported publicly. Questions continue to be answered with no or are not answered at all when relevant information exists on the website. Inconsistent completion reflects the fragmented ownership and approach to what is put on the website. The person filling in the survey may not be aware of what is available. 10 towerswatson.com

11 How many companies are reporting, and how many segments do they cover? All companies in the FTSE 100 continue to report at least some information on their employee engagement and wellbeing, although some surprisingly little (Figure 04). Better work is the best reported segment (all companies report something), with better specialist support remaining the least reported segment (72% of companies say anything here) although this has increased from 2013 (where 68% of companies commented here). Figure 04. Engagement and wellbeing reporting Any reporting on wellbeing and engagement Better work Better relationships Percentage of FTSE 100 companies Better specialist support Better physical and psychological health Working well (central segment) However reporting is still rarely comprehensive. Although 63% of companies have some reporting against all fi ve themes (up from 53% in 2013), and another 22% touch on four themes, each theme is rarely covered in detail. The data clearly indicating a shift from reporting on four themes to fi ve as shown in Figure 05. Figure 05. Engagement and wellbeing theme reporting All five Four Number of engagement and wellbeing themes Three Two 2 3 One % of FTSE 100 companies report on four or fi ve segments FTSE 100 public reporting Employee engagement and wellbeing 11

12 Better work Although all companies report this segment, few demonstrate detailed reporting. However, it is the highest scoring segment overall, with an average score of 44% (up from 38% in 2013). It is also clear that the number of organisations reporting more comprehensively is increasing, see Figure companies (down from 97 in 2013) had a clear statement of values and expected behaviours: These included their corporate values statement and/or their policies regarding ethical business and codes of conduct. However, only 18 went into any detail for example, with a narrative or metrics. The metric usually given for alignment with these values was typically headline engagement. There is opportunity to draw more relevant data from engagement surveys to show alignment with the values. For example, perceptions of whether employees think that senior leader behaviour is consistent with the values could be reported here. Although 87 companies reported their policies for leadership and management development, and 96 reported more broadly on training and skill development, these elements of Better work were almost devoid of: Detailed narrative linking them back to the strategy for engagement and wellbeing. Meaningful metrics with trend data. If any metrics were reported, they were most likely to be simple spot inputs (for example, number of managers on a development programme), rather than more complex outcome metrics (for example, perceived or actual improvements in the quality of line management). 82 companies reported on employee feedback, usually by describing their mechanisms and policies in this area. We have, however, seen an encouraging increase in the use of engagement data in 2014, with an increase from 27 to 39 companies reporting more comprehensively on employee feedback. However, metrics reported in this area still perhaps fail to refl ect the diversity of employee feedback mechanisms. The most commonly reported metric is data from the organisation s employee survey. Typically, this only consists of the headline score for employee engagement, as well as the response rate for the employee survey. Although as noted, we are seeing more use of data, there is still little to demonstrate trend analysis with mechanisms and targets for improvement. Organisations are still not yet reporting additional metrics from their employee surveys that would support this theme. For example, employee perception of feedback mechanisms, whether they have suffi cient opportunity to air their views and interact with senior leaders. Figure 06. Better work reporting Employee feedback Leadership and management development 2013 Any mention (at least 1 point) 2014 Any mention (at least 1 point) 2013 Detailed narrative and/or metrics (3 or 4 points) 2014 Detailed narrative and/or metrics (3 or 4 points) Number of FTSE 100 companies Your organisation's values and measuring alignment with those values Your organisation's approach to training and skill development companies reported their policies for leadership and management development, and 96 reported more broadly on training and skill development towerswatson.com

13 Better physical and psychological health This is the second best reported segment with an average score of 31% (up from 25% in 2013). Health & safety (H&S) is one of the best reported aspects of the Workwell model, refl ecting the requirement to comply with legislation in this area, see Figure companies provided a description of their H&S training and management systems. However, few metrics are provided around the training and effectiveness of these systems. H&S reporting is the best reported individual element of the model, with 79 companies giving at least a brief description or spot metric. Still, a number of these gave little in the way of narrative, but did give good trend data on H&S measures. There has been a signifi cant increase from 29 (2013) to 60 (2014) organisations that report detailed, trend data on H&S metrics, typically covering two or more metrics, as well as descriptive narrative. Although 64 companies reported on health and wellbeing promotions and campaigns (up from 47 in 2013), this mainly consisted of descriptions of activity. Figure 07. Better physical and psychological health reporting Number of FTSE 100 companies Health and safety training and management systems Health and safety reporting Health and wellbeing promotions and campaigns 1 5 Workforce demographics marking health status Any mention (at least 1 point) 2014 Any mention (at least 1 point) 2013 Detailed narrative and/or metrics (3 or 4 points) 2014 Detailed narrative and/or metrics (3 or 4 points) Detailed metrics were almost entirely absent, with a minority of companies only reporting spot rates for workforce participation. Only 14 companies had any reference to workforce demographics, marking health status consisting of a brief description and/or spot metrics. Only two companies gave detailed metrics and narrative. These were mining companies reporting on the incidence or work-related diseases. FTSE 100 public reporting Employee engagement and wellbeing 13

14 Better relationships This is the second lowest scoring area with an average score of only 18% (15% in 2013). Employee volunteering continues to be the most commonly mentioned (typically in the CSR report), with 65 companies stating they have a policy, and many of these giving a spot metric for number of employee hours/days volunteered (which in a few cases has also been calculated as a value in monetary terms using the cost of employee time). See Figure 08. This measure reflects the importance attributed to volunteering within companies CSR agendas and the efforts put into CSR in recent years. This is the only element of the Workwell model which directly supports the Community element of CSR. However, only 21 companies were able to give any detail, such as reporting on trends in volunteering metrics and/or narrative linking the volunteering back. Although this is up from 11 in 2013, this is perhaps still rather low considering the apparent profile given to volunteering. Some companies only chose to report case studies on volunteering suggesting that these are local initiatives, rather than an a corporatewide initiative. Approximately one-third of companies reported on each of the other aspects of Better relationships in We have however seen an increase in 2014 with respect to reporting on Flexible working (44) and Coaching and mentoring (48). However, more comprehensive reporting in these areas is still very low. This information typically comes in the Our people and/or Careers sections of their websites: Figure 08. Better relationships reporting Number of FTSE 100 companies Flexible working (including job sharing) 5 7 Family-friendly policies and facilities 2 1 Employee volunteering Grievances and organisational justice 3 5 Coaching and mentoring Any mention (at least 1 point) 2014 Any mention (at least 1 point) 2013 Detailed narrative and/or metrics (3 or 4 points) 2014 Detailed narrative and/or metrics (3 or 4 points) These are predominantly descriptions of policies with a brief explanation of how the policy supports the organisation s intention to be an employer of choice. Spot metrics are occasionally reported, but trends are almost entirely unreported. This element of the Workwell model would particularly benefit from additional metrics drawn from companies employee surveys, such as perceptions of organisational justice, flexibility and family friendliness, and perceptions of whether employees feel their managers are effective coaches. 14 towerswatson.com

15 Leading practice case study: better relationships Barclays Aim: To enable employees to support charitable causes through volunteering, matched fundraising and regular giving opportunities. Activity: As part of Barclays 5 Million Young Futures ambition, the company works alongside leading charity and NGO partners to help disadvantaged young people develop the enterprise, employability and fi nancial skills they need to fulfi l their potential. Barclays has committed to invest 250m by 2015 and encourages employees to volunteer their time and skills. Since 2012, 2.34m young people have benefi tted from these programmes and Barclays has invested 136.5m to support its local communities. The direct efforts of Barclays employees ensure that the positive impact of its community investment goes beyond its fi nancial contribution. In 2013, more than 70,000 employees around the world invested their time and skills to help Barclays communities. Barclays actively supports employees to make a positive contribution to its communities through the following employee community programmes: Volunteering: A team of fi ve or more employees can apply for small grants to support their volunteering activity. Grants can be accessed all year round and are available to help them organise and enable their volunteering to take place. Matched Fundraising: Barclays will match what employees raise for a charity/community organisation up to 1,000 (or local equivalent) for one fundraising activity each year. Payroll Giving: This programme is a tax-effi cient way for UK employees to make monthly donations to the charities of their choice. Barclays matches employee donations up to 750 each year. Thousands of employees also unite every year during Barclays annual volunteering campaign Make a Difference Day. In 2013, employees at all levels from around the world took part in many ways, sharing their skills and knowledge. Activities included reviewing CVs, running mock interviews and advising young entrepreneurs. Figure 09. Case study: Barclays Key impacts In 2013, 1.22 million year olds were helped to improve their enterprise, employability and fi nancial skills. 72m was invested in local communities. 49% of employees were supported by Barclays to volunteer, fundraise and donate to the causes they care about. 447,000 hours were volunteered by employees in community programmes. 35m has been raised or donated for charities through Barclays matched fundraising and giving programmes (this includes both funds raised and donated by employees, as well as Barclays matching contribution). An employee survey gave the following results: 98% of respondents said that Barclays support for Make a Difference Day made them feel proud to work for Barclays. 95% said that support for Make a Difference Day made them feel like Barclays is a company they want to work for. 95% said the company s involvement helps to improve the perception about the banking profession. 95% said that Barclays involvement in Make a Difference Day makes a real and lasting difference to the community in which they work/live. Respondents experienced positive effects on their professional skills: 77% increased their team working skills, an increase of 4% from % saw a positive impact on their communication skills, an increase of 4% from % said their leadership skills improved, an increase of 4% from % increased their decision making skills, an increase of 5% from % increased their networking skills, an increase of 2% from % increased their problem solving skills, an increase of 5% from % saw an improvement in their time management skills, an increase of 5% from Summary Barclays Community Investment programmes help disadvantaged young people develop the skills they need to fulfi l their potential. Employees are encouraged to volunteer to support Barclays Community Investment strategy, but are also able to support the causes they personally care about. Barclays enables employees to support charitable causes through volunteering, matched fundraising and payroll giving opportunities. Volunteering has helped to improve employees confi dence and motivation levels by demonstrating the value of their skills outside of a traditional work environment. Successful initiatives included Make a Difference Day, which encourages employees to use their time and skills to help support local communities. FTSE 100 public reporting Employee engagement and wellbeing 15

16 Better specialist support This continues to be the most poorly reported segment with an average score of only 11%, (up from 9% in 2013). Although some companies mention policies, very few go into detail. For example, whilst 59 companies describe their occupational health provision, only five give any detailed metrics and/or narrative. Attendance management/absence is presented in a similar way, with a focus on describing policies and procedures, as well as possibly a spot measure. Interestingly, there has been a drop in reporting on this from 38 companies in 2013 to 30 in Only six companies described trends in this area and/or gave a detailed narrative about what they are doing to manage sickness absence more effectively. EAPs were poorly reported on in 2013, mentioned by only 20 companies. It is good to see this has increased to 31: However, this hugely under-represents the true situation, given that Towers Watson data shows 85% of UK companies offer EAPs. (Source: Towers Watson Benefits Data Source 2012). These companies usually reported EAPs as something that is available to employees, but did not give any narrative about EAP use and how the programme fitted into the bigger picture of support for employees. No company chose to report any metrics around EAP use, presumably because of perceived sensitivities in this area and uncertainties in what and how to report. (Is a low number here good? Or is a low number bad, because employees are not aware of it and are not using it?) Are companies obtaining management information about EAP use from their EAP providers? Although one organisation provided more detailed information, there is little to indicate such information is being actively utilised. Figure 10. Better specialist support reporting Attendance management/absence 4 6 Occupational health Employee assistance programmes (EAP) Other specialist services Management information of specialist support Any mention (at least 1 point) 2014 Any mention (at least 1 point) 2013 Detailed narrative and/or metrics (3 or 4 points) 2014 Detailed narrative and/or metrics (3 or 4 points) Number of FTSE 100 companies companies describe their occupational health provision, but only four give any detailed metrics and/or narrative towerswatson.com

17 Leading practice case study: specialist support GSK Aim: To enable employees to be healthy and high performing at work and at home. Activity undertaken: Consultations, workshops and cultural support on energy and resilience, including the fl agship Energy for Performance programme. Key impacts 90% of employees who completed the Energy for Performance programme reported increases in energy 12 months afterwards. 80% said their performance at work had improved up to three years after completing the training. Participants are more likely to make improvements in their lifestyle, especially diet, and report they are in excellent health. GSK believes that levels of energy are a good indicator of how people feel and perform. By supporting employees to manage and increase their energy levels, the company aims to help them cope better with workloads and stress both within and outside the workplace. The GSK Energy and Resilience portfolio provides a set of tools to enhance individual and collective effectiveness. It supports a business strategy that recognises that an organisation comprehensively creates the conditions for healthy high performance through building energy and resilience at individual, team and organisational level. Leaders choose whether to start with an individual focus or a collective focus, according to prevailing business conditions and priorities, and, in consultation with the Environment, Health and Safety department. The GSK Energy and Resilience portfolio includes personal and team-based workshops and training courses that help employees remain focused, energised and productive. Participants learn techniques to manage energy in stressful conditions in both their personal and professional life. These techniques help them become more productive and effective under the pressure of a constantly changing environment. New programmes have been developed that support the embedding and growth of energy and resilience across the global organisation, these include: Time for a Moment an online course that teaches employees skills to take short breaks in their working day to increase energy, concentration and focus. Energising You! an initiative that provides advice on how to boost energy by eating regular, healthy meals, as well as moving and exercising more. Managing for Resilience a one-day workshop that teaches leaders how to recognise early signs and symptoms of stress in their employees, and to take appropriate action themselves. In order to support ongoing behavioural change energy coaching a resource to help graduate employees achieve their personal missions, is offered. GSK has also scaled up its Employee Assistance Programme (EAP) enabling employees worldwide to access practical advice, information and counselling through a confidential helpline and website. By the end of 2013, a total of 44,500 GSK employees in 55 countries had participated in company-led energy and resilience training since it was introduced in Future plans include consultations with leaders across the business in support of GSK s newly introduced Leadership Expectation of Releasing Energy. This involves leaders creating a healthy, engaged and inclusive working environment that is sustainable. Summary GSK s Energy and Resilience portfolio encompasses personal and team-based workshops and training courses to enhance individual and collective effectiveness. The fl agship programme within the portfolio, Energy for Performance, is a 2.5-day course that aims to develop healthy, high-performing teams and individuals and has achieved great results. GSK has also scaled up its Employee Assistance Programme (EAP) enabling employees worldwide to access practical advice, information and counselling through a confi dential helpline and website. By the end of 2013, a total of 44,500 GSK employees in 55 countries had participated in company-led energy and resilience training since it was introduced in % of employees who completed the Energy for Performance programme reported increases in energy 12 months afterwards. 80% said their performance at work had improved up to three years after completing the training. Having an energised and resilient workforce is critical to the future success of our organisation. Through our consultative approach, we have an objective to engage 50% of our global workforce by 2018 with tools and training to help improve energy and resilience and therefore be more successful in both their personal and professional life. We are really proud of the range of tools that our people have access to, and which continue to deliver great results. We continue to invest in this type of training because it s good for our people and good for our business. Jeannie Jones, Director, Energy and Resilience Centre of Excellence, GSK FTSE 100 public reporting Employee engagement and wellbeing 17

18 Working well This relates to the Working well box in the centre of Figure 01, page 7. Reporting in this segment is dominated by Diversity and inclusion, which is reported by almost all companies. However, few go beyond spot metrics on gender with a comprehensive set of metrics covering other elements of diversity and an accompanying narrative, see Figure 11. Gender is by far the most common diversity metric, with some companies reporting this at different levels in the organisation. There has been a significant increase in broader reporting, with 45 organisations demonstrating this in Observed weakness in diversity reporting include: A description of the diversity policies, but with only a spot metric. Trend data, but with no narrative, although we observe that a number of organisations have achieved this. A number of companies only reported on gender diversity at Board level (scoring zero), which is not sufficient to demonstrate this as general business practice. The voluntary staff turnover rate is mentioned by 30 companies usually as a spot rate or trend, but with little if any accompanying narrative. Companies could provide more detailed metrics, such as turnover by level, gender, role and so on. Narrative reporting of this measure is almost completely absent. Companies could describe what they feel is the appropriate rate for their business, as well as the strategies employed to retain skilled staff. A growing number of organisations (44 in 2014 compared with a third in 2013) explicitly stated that they recognised a link between engagement, wellbeing and business performance. Metrics to support this were present in only three cases. Some sectors are better able to demonstrate these linkages than others and could be more explicit about what they know. For example, many retailers have demonstrated the relationship between engagement survey scores and outcomes such as store performance on financial measures and customer satisfaction scores. These retailers could make a high level statement that identifies observed correlation between engagement and performance and follow this with a paragraph briefly explaining what they are doing to improve matters in low-engagement stores. Scorecards, although used by the majority of companies in the FTSE 100, often only have financial measures: Only one-third of companies have a scorecard that includes non-financial measures of employee engagement and wellbeing. These measures are most commonly 1) headline engagement score (and possibly survey response rate), 2) safety metrics, and 3) diversity metric for gender. Only 12 companies had expanded scorecards that include a wider range of measures with adequate trend data. Governance of engagement and wellbeing is usually not explicit on websites, with only 27 companies confirming who has overall responsibility. In some cases, external awards are often not even mentioned on a company s own website. When they are described, there is typically no accompanying narrative to show how this supports achievement of engagement and wellbeing. Figure 11. Working well reporting Diversity and inclusion Voluntary staff turnover 2 4 Linking engagement, wellness and business performance 1 3 Engagement and wellness strategy and programmes 4 3 Management scorecard Governance of engagement and wellbeing External awards Any mention (at least 1 point) 2014 Any mention (at least 1 point) 2013 Detailed narrative and/or metrics (3 or 4 points) 2014 Detailed narrative and/or metrics (3 or 4 points) Number of FTSE 100 companies towerswatson.com

19 Leading practice case study: working well BT Aim: To create an interdependence mindset amongst employees where they take personal responsibility for their wellbeing and that of those around them. Activity: Specialist employee support services. Key impacts as a result of BT s wellbeing activity include: Faster access to appropriate services for employees enabling them to remain in work or return to work. Re-referral rate for employee specialist services remains stable at around 13.7%. 91.7% of people return to their own role on full duties after company-funded rehabilitation. Signifi cant improvements made in all key health, safety and wellbeing metrics over the last 12 months, moving towards BT s best performance in fi ve years. BT s wellbeing activities are focused around their overall aim to create an interdependence mindset amongst their employees, where they take personal responsibility for their wellbeing and that of those around them. That means driving a culture of self-help among the company s workforce and managers with support available from experts when needed, but primarily provided through easily accessible information. To shift their employees mindsets around wellbeing, BT has instigated discussion through a number of forums and a community of health, safety and wellbeing champions and business leads. Each line of business has a tailored action plan, aligned with an overall strategic approach, and ownership of the plans is vested in individual leadership teams and developed in close association with the Group Health Adviser, a clinical psychologist. As well as promoting good health and reducing risks to wellbeing at source through workplace and job design, BT also has measures in place to help identify early signs of ill health and support individuals to address any life pressures, as well as helping people with existing ill health to cope and recover. BT continues to focus on providing access to the right specialist support service, first time. It is taking an integrated approach, driving collaboration between its Specialist Support services by bringing them together in forums and knowledge calls. Always innovating in this area, two lines of business are running pilots on early intervention. One pilot involves contacting managers of employees who complete an employee stress assessment questionnaire graded as needing attention. Another is making proactive contact with managers of people absent due to musculoskeletal disorders. In both cases, the managers are offered support and guidance on how to support the individual prior to the involvement of case management. It also gives wider awareness of the support services available. Key impacts As a result of shifting interventions, upstream and taking a proactive approach, BT found fewer cases where managers were trying to access the incorrect service. There is faster access to the appropriate support services for employees, enabling them to remain in work or return to work, and the employee specialist services re-referral rate remains improved at around 13.7%. Figures show that almost 92% of people return to their own role on full duties after company-funded rehabilitation. Summary BT s wellbeing activities are focused around their overall aim to create an interdependence mindset amongst their employees, where they take personal responsibility for their wellbeing and that of those around them. BT s Specialist Support services for employees includes an Occupational Health Service, a musculoskeletal disorders service, an employee assistance service providing counselling and specialist advice and a mental health service focusing on the delivery of Cognitive Behavioural Therapy for common mental health problems. Figure 12. Case study: BT BT has trained over 6000 people managers in improving their understanding of mental health issues and enhancing their ability to support people facing such issues. This has been supplemented with standalone resilience training, delivered to over 200 people managers so far. In addition, BT continues to develop a wealth of reference and support materials on its intranet and improve the ease with which people can access it. BT s Specialist Support services for employees includes an Occupational Health Service (OHS); a musculoskeletal disorders service; an employee assistance service providing counselling and specialist advice; a mental health service focusing on the delivery of Cognitive Behavioural Therapy for common mental health problems, and a vocational rehabilitation and reasonable adjustments advisory service. FTSE 100 public reporting Employee engagement and wellbeing 19

20 Leading practice case study: working well The British Land Company Aim: To engage with staff, and encourage better employee wellbeing, development, and increased diversity to help drive business success and growth. Activity: Annual staff feedback reviews, social events, training courses and healthcare benefi ts. British Land s results showed: One Star accreditation in The Sunday Times Best Companies to Work For, for the third year running, based on staff feedback. 87% staff retention rate, refl ecting employee commitment to stay with British Land (2012/13 results). 7% of staff work fl exibly, balancing their careers with personal commitments (2012/13 results). 76% of staff took part in community activities during work time (2012/13 results), up from 31% in As part of the company s fi rst Community Week, 180 volunteers worked together on community projects close to key British Land sites. 21% of staff signed up to British Land s re-launched payroll giving scheme, a tenfold increase on 2% in This result was recognised with a National Payroll Giving Excellence Award In 2013, students from state schools and colleges across the UK had the chance to explore a career in property and gain experience through Pathways to Property, an initiative backed by British Land. This programme was set up by Reading University s Real Estate Foundation to encourage young people from more diverse backgrounds to enter a career in property. The first summer-school gave students a taste of university life, and a sense of what studying real estate would be like, with a range of academic lectures, workshops and case studies, including a site visit. Health, wellbeing and other staff initiatives at British Land include: A new awards programme, which saw more than half of all staff nominating colleagues for going above and beyond. The fi ve winners gained a coveted place on the Leadership on the Edge programme in Antarctica, joining Robert Swan OBE, polar explorer and environmental leader. A full programme of formal and informal staff communications, including monthly all-staff meetings, annual company conferences and ad-hoc events with smaller groups. Inspiring guest speakers at recent sessions included Robert Swan OBE. An annual staff survey through The Sunday Times Best Companies to Work For scheme, using the results to deliver improvements in staff engagement through an employee action plan. Benefi ts to support staff wellbeing include fl exible working opportunities, private healthcare insurance, enhanced parental leave packages for all employees with over two years service, a 24/7 Employee Assistance Programme and a company doctor offering voluntary annual medicals and fl u vaccinations. An active social committee, which organises quiz nights, broomball leagues, visits to the theatre, dining experiences, urban golf and more. New initiatives include fruit in breakout areas and flowers or chocolates for staff on their birthday. A wide range of team-building initiatives, including British Land s first Community Week, building on the success of its Community Day in % of participating staff said volunteering activities were effective for team building. A new Talent Review process from 2014 to help identify the core capabilities needed to develop from a corporate perspective, as well as ensuring each employee in the business has highly-tailored developmental feedback to drive more effective personal development. Coaching, mentoring, career management and gender specifi c development work have been identifi ed as priority areas for HR in A successful internship programme, which brings new enthusiasm and ideas into the business, and helps British Land attract a wider pool of talent to the sector. Over the last three years, 14 exceptional individuals have joined the company as interns, pursuing opportunities in strategy, sustainability and records management. Supporting fundraising and payroll giving by staff for causes that matter to them, which includes providing 50% match funding for all staff payroll giving contributions, up to 5,000 per person per year, and matching money raised for charity by staff up to 750 per person per year. Staff scored British Land more highly for giving something back in The Sunday Times Best Companies Survey in 2013 versus 2012, across every department, tenure and seniority level. This placed British Land in the top quartile of all businesses for this attribute and contributed to its One Star accreditation. Summary British Land delivers a range of programmes to engage with staff, support wellbeing and boost diversity. Initiatives include fl exible working options for company employees; social events; team building activities; volunteering opportunities; matched funding schemes to support staff fundraising and charitable giving via payroll; private medical insurance and enhanced parental leave schemes for long-term employees. The company also participates in annual staff surveys and delivers improvements through an employee action plan. The latest set of annual results showed an 87% staff retention rate. The company has been awarded a One Star accreditation in The Sunday Times Best Companies to Work For, for a third year running. For further information on British Land employee engagement initiatives, visit: Figure 13. Case study: The British Land Company 20 towerswatson.com