FTSE 100 PUBLIC REPORTING Employee ... - BITC ... - · PDF filerolled out from this summer, ... in the reporting of Training and development, Employee feedback ... FTSE 100 PUBLIC

FTSE 100 public reportingEmployee engagement and wellbeing

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FTSE 100 public reporting Employee engagement

Introduction 3

Towers Watson overview 4

High level findings 5

Section one Public reporting benchmarking 6

Section two Research findings 8

Better work 10

Better physical and psychological health 12

Better specialist support 14

Better relationships 15

Working well 16

Conclusions 19

Appendices 20

Contents

Further informationLouise Aston Wellbeing Campaign Director T +44 20 7566 6672E [email protected]

Thomas Colquhoun-Alberts Benchmarking and Knowledge ManagerT +44 20 7566 6621E [email protected]

Business in the Community 137 Shepherdess Walk, London N1 7RQT +44 (0)20 7566 8650 F +44 (0)20 7253 1877 E [email protected]

www.bitc.org.ukTwitter @BITC1

Business in the Community stands for responsible business

FTSE 100 PUBLIC REPORTING Employee engagement and wellbeing 03

Business in the Community’s Public Reporting Bench-mark is now in its third year. In capturing three years’ wide-ranging data, this report offers a unique insight into changing attitudes to wellbeing and engagement, and the impact of this on both businesses and employees.

The findings include some genuinely encouraging signs of progress. Congratulations go to those companies that self-completed the Benchmark and, in particular, to our lead companies – BT Group, Friends Life, RBS and Royal Mail Group. Their achievement in embedding engagement and wellbeing across all aspects of their business sets a standard to which all companies can aspire.

It is encouraging to see an increase in reporting against all five themes, pointing to a more integrated, holistic approach to reporting on human capital management. There has also been a significant increase in respondents that explicitly recognise the link between engagement, well-being and business performance; however, only one-third of respondents include non-financial measures of employee engagement and wellbeing in their scorecard.

Earlier this year, we launched a landmark campaign to encourage proactive, public support for mental wellbeing at work, and tackle the culture of silence that still surrounds the issue and causes so much unnecessary suffering to employees. Both the business case and the moral case are strong for treating mental health in the same way as physical health. It is therefore encouraging to see the number of companies reporting an employee assistance programme up by a fifth – although this is still an under-representation of the true situation.

But while there are some promising signs, overall progress has been more erratic and slower than we would have liked. It is disappointing to see, for example, that only nine companies self-completed the Benchmark in 2015. Clearly, bringing about a profound shift in attitudes and behaviour will take time. Over the coming year, we will therefore be shifting our focus away from public reporting and concentrating instead on supporting companies to accelerate the pace of change internally.

Our new Wellbeing Management Benchmark will be rolled out from this summer, and provide a set of robust wellbeing assessment tools designed to help companies gather confidential data and feedback, and generate tailored action plans. In doing so we are showing that we recognise and are responding to the challenges businesses face – and, we hope, laying strong foundations for future progress.

Louise Aston Wellbeing Campaign Director Business in the Community

How a business manages its employees impacts directly on engagement and performance. Better reporting on wellbeing and engagement promotes transparency, highlights best practice – and shows a sustainable approach to human capital management.

Introduction

However, the latest results and trends suggest that progress across the FTSE 100 has been slower this year than advocates of enhanced public reporting may have wanted. Perhaps only the most optimistic would have expected a sea change within this relatively short time-frame; however, the 2015 findings show only sporadic progress over the last year.

On the positive side, there has been a rise in the proportion of companies reporting across all five themes to 69%, compared with 63% last year. While reporting on Better work and Better physical and psychological health stayed the same, numbers rose for Better relationships (from 84% to 90%), Better specialist support (from 73% to 78%) and Working well (from 97% to 100%).

There is little change in the scores for the highest-ranked companies:

the top ten scores range from 67% to 43%, compared with 69% to 42% last year. Average scores by quartile remain the same, suggesting very little change in the overall extent and quality of reporting.

There are three new entrants to the top ranked companies. Of these, one is new to the FTSE 100, while another has focused on improving its reporting, setting specific targets to improve its Workwell Benchmark scores. This top level focus and a co-ordinated, defined responsibility for action is essential to driving greater openness and a commitment to public reporting.

The strongest reported areas remain Health and safety, and Diversity and inclusion. Improvements continue in the reporting of Training and development, Employee feedback and Employee volunteering. We

have seen a slight improvement in the reporting of Better specialist support, particularly where data is available on absence rates, occupational health support and employee assistance programme usage, and on wellness programmes and links to employee engagement and business productivity.

There are signs of improvement this year; but there is still clearly work to be done to share best practice across the FTSE 100 and create a stronger ‘flow of the tide’ towards enhanced public reporting. As well as providing enhanced reporting for investors, companies should be mindful of the potential impact of employee wellness and engagement on its public reputation and brand. Perhaps greater awareness of this will contribute to deliver stronger Workwell public reporting results in the future.

This is the third year of Towers Watson’s partnership with Business in the Community on the Workwell public reporting project. We have been impressed by the level of engagement shown by industry and investors alike.

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2015 findings An overview from Towers Watson

Quality assurance review and statement

Towers Watson was appointed to provide quality assurance services to ensure that the Benchmark process continues to be fair, independent and transparent.

This year the assessment to determine the respective FTSE 100 Company Benchmark scores was undertaken by Business in the Community (BITC). Towers Watson was asked to review the assessment process, documentation used and results to ensure a consistent and fair assessment, and the accuracy of scores.

Scope of review• Assurance of key documents, including the

document outlining the assessment process,

briefing documents for BITC assessors, checklists and scoring sheets

• Review of a sample of five self-reported and five non-self-reported results based on an interview with the assessor and review of the final spreadsheet of results

• Review of the final results and report on the Benchmark findings.

Our findings Our review of the key documents found that these were clear and comprehensive enough to ensure the assessor received adequate guidance on the process. The briefing documents detailed the Benchmark topics

FTSE 100 Public Reporting Employee engagement and wellbeing 00

100% of companies report something, with 92% reporting on four or five themes

69% of companies reported on all five themes, up from 63% in 2014

61 companies reported in some detail on the link between engagement and business performance, up from 44 in 2014

While progress is slow for many, it is encouraging to see progress being made, with a few significant advances by those companies that have really recognised the importance of public reporting of engagement and wellbeing.

The strongest segments are Better work and Working well, followed by Better relationships, Better physical and psycho-logical health and Better specialist support. All show increases compared with 2014.

The need to address employee mental health is increasingly recognised in boardrooms, but there remains a need for more widespread and consistent reporting. One of our leading companies, BT Group, sets a strong example, measuring and reporting mental health-related sickness absence, employee assistance programme uptake, data from occupational health service referrals and the reasons behind perceived stressors.


Quality assurance review and statement

and scoring criteria well. The sourcing of reporting was identified and the checklists helped to ensure the assessment was monitored. The scoring sheets detailed the justification for each score and the master scoring sheet clearly identified the scores per category and overall percentage score.

We agreed to carry out our own assessment of a sample of 10 companies, five self-reported and five non self-reported. These were identified at random and the material used to make the assessment shared with Towers Watson. We were happy that the correct information was sought.

Where discrepancies were identified between the BITC assessor’s scores and Towers Watson’s independent scores, these were documented and discussed, the evidence revisited and the scores agreed between both parties.

A review of the final scores was made to ensure consistency across the whole FTSE 100 results.

Our statement Towers Watson is satisfied that the assessment process and resulting scoring was carried out with consistency and fairness. A thorough review was undertaken and documented.

Better work Better relationships

Better specialist support

Better physical and psychological health

Working well

BT Group PLC ✓ ✓ ✓ ✓ ✓

Friends Life ✓ ✓ ✓ ✓ ✓

Royal Bank of Scotland ✓ ✓ ✓ ✓ ✓

Royal Mail Group ✓ ✓ ✓ ✓ ✓

Note: 1. Companies are listed in alphabetical order. 2. Only leading practice in public reporting is indicated. Companies may have reported against the other areas of the Workwell model, but not in sufficient detail to be considered leading practice.

Top four leading companies

High level findings

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Section 1

BITC Workwell’s guidelines for the public reporting of employee engagement and wellbeing can be found at www.bitc.org.uk/our-resources/report/bitc-public- reporting-guidelines-employee-wellness-and- engagement

Assessing public reporting – question areas Working with the steering group, Towers Watson devel-oped a questionnaire that covered all five 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 reflect the metrics suggested in the guidelines.

Figure 01. Assessing public reporting against the BITC Workwell model

Public reporting benchmarking research

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BET

TER

BR

AN

D IM

AGE H

IGHER PRODUCTIVITY BETTER ENGAG

EMEN

T

BE

TTER RETENTION & RECRUITMENT BETTER A

TTEN

DA

NC

E T

AK

E NO

TICE GIVE/VOLUNTEER

BE A

CTIV

E

KEEP LEARNING CONNECT WITH

OTH

ERS

BETTER RELATIONSHIPSPromote communicationsand social connections

BETTER WORK Create a happy & engaging workenvironment

BETTER SPECIALIST

SUPPORTProvide interventions

to manage health and wellbeing

BETTER PHYSICAL &

PSYCHOLOGICALHEALTH

Create an environment that promotes healthy behaviours

WORKING WELL

FTSE 100 Public Reporting Employee engagement and wellbeing 00

Benchmarking criteria – assessment of survey answers For each of the 25 questions, companies could be award-ed a maximum of four points, as shown in Figure 02. The first point is given for a basic description of what the com-pany does in that area, for example a statement of policy and/or description of what it offers to employees. The sec-ond point is 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, although we recognise that for many of the metrics there are no readily available benchmarks. The last point is awarded for an expanded and structured narrative that links to the metrics – for exam-ple, 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, except for governance of engagement and wellbeing, and external awards. These can earn a maximum of two points each, as they can only be assessed in terms of narrative reporting. The maximum possible score is 96 points. Considerations made in assessing public reporting From the perspective of investors – and for this benchmark-ing 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 (which may or 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 articulating the ‘journey of improvement’. For each metric, the ideal narrative should, where possible, set out what actions have been taken and their impact; the trends in the data; comparisons with external benchmarks (for example, industry sector); and plans 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 identified for the hard metrics, just the existence of the metrics and their quality. An organisation might have a highly engaged workforce, but if it does not report this metric effectively, it will score lower than an organisation that has a disengaged workforce, but which clearly articulates its progress and the steps it is taking to improve engagement.

Figure 02. Benchmarking criteriaPositive response

identifying narrative reporting

One point

Baseline score for each question

Identification of reporting metrics

One point

Identification of measurement

criteria

Expanded and structured narrative

One ‘bonus’ point

Narrative reporting that provides process details and linkage with metrics

Expanded metric reporting

One ‘bonus’ point

Additional detailed reporting identifying trends and

benchmarking


“It is better for investors – and for this benchmarking research – to have fewer metrics reported thoroughly, with trend data and benchmarks accompanied by a compelling narrative”

4 points per question

Scoring as per framework by quadrant

and Working well central segment

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The sample: FTSE 100 companies by number of employees At the time of the research, the FTSE 100 companies employed over 5.9 million employees worldwide. They ranged in size from about 200 employees to over 600,000. (A full list of the companies included in the study is shown at Appendix B, page 22.)

Issues relating to quality of reporting 1. Inconsistent reporting on company websites points to a lack of coordination, with ownership typically split between Health and safety, Occupational health, HR, CSR and Communication functions. 2. Some companies have long narratives but little data. 3. Spot metrics are much more common than reporting of trends. 4. Fewer companies have ‘self completed’ this year (nine, compared with 17 in 2013/14). 5. While there have been some significant improvements in the quality of responses, the following issues remain:

• Poor completion of evidence of publicly-reported information

• Including information that is not reported publicly

• Lack of response, or lack of detail, when relevant information is clearly available on the company’s website

• Inconsistent completion, where the person completing the survey is not fully aware of what the company is doing.

0 5 10 15 20 25 30

Figure 03. FTSE 100 companies by number of employees

Number of FTSE 100 companies

200,000 or more

75,000-199,999

25,000-74,999

10,000-24,999

1,000-9,999

Under 1,000

4

24

22

18

24

4

Section 2

Research findings

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0000

00

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00

00

0000

00

00

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Figure 04. Engagement and wellbeing reporting

Percentage of FTSE 100 companies

0 20 40 60 80 100 Any reporting on wellbeing and engagement

Better work

Better relationships

Better specialist support


Working well

2013 2014 2015

Number of engagement and wellbeing themes

0 10 20 30 40 50 60 70 All five

Four

Three

Two

One

2013 2014 2015

Figure 05. Engagement and wellbeing theme reporting


100

100

76

68 72

78

84 90 90

97 97 100

84 90

100

100

100

100

53

33

11

2

11

0

33

63

22

11

69

23

5 92% of FTSE 100 companies report on four or five segments

How many segments do they report on? The data clearly indicates a shift towards reporting on all five themes, as shown in Figure 05. Some 69% of companies have some reporting against all five themes (up from 63% in 2014), and another 29% touch on four themes. However, reporting is still far from comprehensive, and each theme is rarely covered in detail.

How many companies are reporting? All companies in the FTSE 100 continue to report at least some information on employee engagement and wellbeing (Figure 04), although some report surprisingly little. Better work is the best reported segment (all companies report something), with Better specialist support remaining the least reported segment (78% of companies report something here) although this has increased from 2014 (where 72% of companies commented on this segment).

0 20 40 60 80 100

Values and measuring alignment with values

Approach to training and skill development

Employee feedback

Leadership and management development

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Better work Although all companies report this segment, few demon-strate detailed reporting (Figure 06). However, it is the highest scoring segment overall, with an average score of 42% (down from 44% in 2014). It is also clear that the number of organisations reporting more comprehensively is increasing.

The number of companies with a clear statement of values and expected behaviours was 88 (down from 92 in 2014):

• These included their corporate values statement and/or their policies regarding ethical business and codes of conduct. However, only 14 went into any detail, for example by providing a narrative or metrics

• There is an opportunity to draw more relevant data from engagement surveys to show alignment with values. For example, perceptions of whether employees think that senior leader behaviour is consistent with the values could be reported here.

While 86 companies reported their policies for leadership and management development and 96 reported more broadly on training and skill development, there were some clear areas for improvement:

• Provide detailed narrative linking policies back to the strategy for engagement and wellbeing

• Provide meaningful metrics with trend data. Where 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).

Of the 77 companies reporting on employee feedback, most did so by describing their mechanisms and policies in this area. However, there has been a decline in the use of engagement data, with the number of companies reporting comprehensively on employee feedback falling from 39 to 35, although this still represents a significant increase on the 2013 figure of 27 companies. Metrics reported in this area still perhaps fail to reflect the diversity of employee feedback mechanisms.

Data from the organisation’s employee survey is commonly reported. Typically, this only consists of the headline score for employee engagement, as well as the response rate for the employee survey. There is still little to demonstrate trend analysis with mechanisms and targets for improvement. In general, organisations are still not yet reporting additional metrics from their employee surveys that would support this theme, such as whether employees themselves feel they have sufficient opportunity to air their views and interact with senior leaders.

Figure 06. Better work reportingNumber of FTSE 100 companies

9792

8814

1814

96 9696

222727

8289

7727

3935

7587

866

1010

2013 Any mention (at least 1 point)



2013 Detailed narrative and/or metrics (3 or 4 points)



Leading practice case study: Better work – Royal Mail Group By Shaun Davis, Royal Mail Group

Aim Employee focus at Royal Mail Group.

Activity Providing support for employee health and wellbeing boosts workplace morale and demonstrates the value we attach to our people. Besides attracting the best employees to work for Royal Mail Group, it ensures a healthy workforce that can deliver a better service for our customers, and reduces the cost of absence.

Our focus is on providing support that can help colleagues stay in work or return to work as soon as possible following absence. Our KPIs are divided into People, Customer and Financial segments, as represented in our business model and our Corporate Balanced Scorecard; therefore the focus on the safety, wellbeing and engagement of employees is firmly embedded in company strategy.

Our support for health and wellbeing includes:

• The Feeling First Class online portal, which provides access to check-ups, health and fitness advice and to discounts from health and wellbeing providers

• On-site gyms and external gym offers, with 35 gyms now open at Royal Mail Group sites

• Feeling First Class Support, the employee assistance programme, offers counselling, financial and legal advice

• Access to occupational health services for all employees • First Class Mental Health – the Mental Health

Foundation have put together five bespoke mental health awareness videos.

Key impacts• Employee engagement increased from a score

of 50 in 2012/13 to 54 in 2013/14, and job satisfaction increased from 61% to 67%

• 54% of employees feel Royal Mail Group cares about their wellbeing, an increase from 2012/13

• 75% of our UK employees say they would like to be with Royal Mail Group in two years’ time

• We increased the response rate to our annual employee survey from 75% in 2012/13 to 85% in 2013/14

• We were named as one of The Times Top 50 Employers for Women in 2014, in recognition of our commitment to gender equality

• We earned Two Ticks accreditation from Jobcentre Plus, recognising our commitment to supporting employees and candidates with disabilities

• The Feeling First Class website signed its 9000th member in 2014 and Royal Mail Group gyms have over 8,000 members

• Time to Change Pledge signed jointly by CEO Moya Greene and by CMA/Unite union.

• The first Mental Health Foundation video has been launched, with the next four set to be released in the coming months.

Summary • Strategy-led approach, with publicly reported KPIs

on the Corporate Balanced Scorecard• Engagement driven by the employee engagement

survey and departmental development plans• Centrally-driven wellbeing programme, Feeling First

Class, with structured communications campaign driven at multiple layers of the business

• Collaborative working across departments in Royal Mail Group to ensure a joined up approach to strategy and embedding of organisational values

• Commitment from senior stakeholders – the signing of the Time to Change Pledge by Moya Greene and public support for the Target the Impact of Depression in the Workplace initiative.


“Feeling First Class is more than a strapline – it is a vision that all of us in Royal Mail Group can commit to. The health and wellbeing of our people is right up there, regardless of role or level in the business” Shaun Davis, Group Director of Safety, Health, Wellbeing and Sustainability, Royal Mail Group

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This is the second best-reported segment, with an average score of 28% (down from 31% in 2014). Health and safety is one of the best reported aspects of the Workwell model, reflecting the requirement to comply with legislation in this area.

• 72 companies provided a description of their health and safety training and management systems. There is a need for much wider reporting of metrics around the training and effectiveness of these systems

• Health and safety reporting is one of the best reported individual elements of the model, with 76 companies giving at least a brief description or spot metric. Health and safety measures are commonly given with trend data, but there is significant scope to improve narrative reporting

• There has been a decrease from 60 (2014) to 51 (2015) organisations reporting detailed trend data on health and safety metrics, typically covering two or more metrics, as well as descriptive narrative.

Although 65 companies reported on health and wellbe-ing promotions and campaigns (up from 64 in 2014), this mainly consisted of descriptions of activity.

• Detailed metrics were almost entirely absent, with a minority of companies only reporting spot rates for workforce participation.

Only nine companies had any reference to workforce demographics, marking health status consisting of a brief description and/or spot metrics.


Figure 07. Better physical and psychological healthNumber of FTSE 100 companies

0 20 40 60 80 100

Health and safety training and management systems

Health and safety reporting

Health and wellbeing reporting and campaigns

Workforce demographics marking health status

8180

7210

156

7479

7629

6051

476465

155

1414

923

0







Leading practice case study: Better physical and psychological health – Friends Life By Roger Cotton, Corporate Responsibility Manager, Friends Life

Aim To create an open culture, where colleagues can talk about their mental health and not feel stigmatised or fear that their careers may be put at risk.

Activity Cultural change driven by overlapping diversity/disability and wellbeing agendas. Key aspects included:

• Securing a mental health champion at executive level• Advocacy for an open culture around mental health• A training programme for managers and colleagues• A practical guide on how to begin conversations

about mental health• Demonstrating authenticity through public leadership • Signing the Time to Change Pledge• Ongoing communication of our wellbeing programme,

including mental health.

We rolled out workshops for managers to enhance knowl-edge and understanding about mental health problems, the relationship between mental health and the workplace, and how to intervene and manage a staff member who may be experiencing a mental health problem.

To reach all UK colleagues, we ran repeat sessions of a webinar on stress management and resilience. A book-let, Listen Up – Let’s Talk Mental Health, was produced and distributed to all colleagues, aimed specifically at helping to ‘break the silence’ by showing colleagues how to go about having that first conversation.

Our CEO and CRO (mental health champion) hosted a forum, Mental Health – Leading from the Boardroom, for 50 business leaders, sharing new research on employee

concerns about ‘disclosure’, examining parallels between sport and business and looking at the impact of disclosure at grass-roots level.

Key impacts The internal advocacy by our CRO gave rise to a junior colleague coming forward, prepared to share her story with colleagues in our quarterly Friends Talk publication and in front of business leaders.

The business leaders’ forum and research gave rise to widespread media coverage, including by the BBC, equivalent to around £170,000-worth of advertising, reaching an audience of about 12 million.

The forum was roundly applauded by attendees: ‘An excellent event, not least when the narrative and learning included an honest and real example of how mental health in the workplace can affect an individual “at the coal face” and their colleagues. A positive grounding and reinforcement of the issues and challenges associated with mental health in a work environment.’ Genevieve Glover, Managing Director, Maudsley Learning

Another colleague has volunteered their ‘story’ for us to use, demonstrating that colleagues are trusting our approach as authentic. ‘Friends Life cares about my well-being’ and ‘I feel energised by my work’ were added to our April 2014 employee engagement survey, run again in November. Scores went from 64% to 71% and 53% to 60% respectively. Two colleagues shared a conversation with their line managers on mental health, on video, to help promote our involvement in Time to Talk Day and our CRO wrote an article in support of the day, which appeared on the CBI website.

Summary

• Key to the success of this journey for Friends Life is the public support of a board-level mental health champion and our CEO

• Training managers on mental health is essential if they are to feel comfortable having conversations with their team members

• The Time to Change Pledge action plan is a valuable public commitment to affect change

• A guide to how to start a conversation on mental health helps give colleagues confidence to do so

• It is a journey and will take at least three years of consistent messaging and commitment to see an open culture about mental health embedded.


“Creating an open culture is the right thing to do if mental health is to have parity with physical health and we are to create a Great Place to Work. Colleagues are volunteering their stories with us, demonstrating a trust in the authenticity of what we’re doing” Roger Cotton, Corporate Responsibility Manager and Wellbeing Champion, Friends Life

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Better specialist support This continues to be the most poorly reported segment with an average score of only 17% (up from 11% in 2014). Although some companies mention policies, very few go into detail. For example, while 63 companies describe their occupational health provision, only seven give any detailed metrics and/or narrative.

Attendance management/absence is presented in a sim-ilar way, with a focus on policies and procedures, as well as possibly a spot measure. Interestingly, there has been a drop in reporting on this from 30 in 2014 to 26 in 2015. Eleven companies described trends in this area and/or gave a detailed narrative about what they are doing to manage sickness absence more effectively.

It is good to see the number of companies reporting employee assistance programmes (EAPs) has increased to 37 in 2015:

• These companies usually did not give any narrative about EAP use or how the programme fitted into the bigger picture of employee support

• Only three companies reported metrics around EAP use, maybe because of sensitivities or uncertainties in what and how to report (are companies unclear as to whether a low number is good, suggesting that employ-ees don’t need the programme, or bad, suggesting that employees are not aware of the programme?)

• Are companies obtaining management information about EAP use from their EAP providers? Although one organisation provided more detailed information, there is little to suggest it is being actively utilised

• This hugely under-represents the true situation, given that 89% of UK companies offer EAPs (Towers Watson, Benefits Design Practices Report 2014).

Figure 08. Better specialist support reportingNumber of FTSE 100 companies

0 20 40 60 80 100Attendance management/absence

Occupational health

Employee assistance programmes (EAP)

Other specialist services

Management information specialist support

3830

264

611

4759

6345

7

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3701

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Better relationships This is the second lowest scoring area with an average score of only 20% (18% in 2014). Employee volunteering continues to be the most commonly mentioned element, with 64 companies stating that they have a policy, and many giving a spot metric for the number of employee hours/days volunteered (and in some cases, ascribing a monetary value to this).

• This reflects the importance given to volunteering on CSR agendas and the efforts put into CSR in recent years. This is the only element of the Workwell model to directly support the Community element of CSR

• However, only 24 companies were able to give any de-tail, such as reporting on trends in volunteering metrics and/or narrative. Although this is up from 21 in 2014, it still seems low given the high profile of volunteering

• Some companies only chose to report case studies on volunteering, suggesting that these are local initiatives.

The number of companies reporting on flexible working and family-friendly policies and facilities has decreased, both with respect to reporting spot metrics and to ex-panded narrative detail, trends data and actions taken. More positively, we have seen a significant increase in the number of companies reporting on grievances and organ-isational justice issues (33 in 2014 to 49 in 2015) as well as coaching and mentoring opportunities (48 in 2014 to 58 in 2015). However, this reporting is mainly spot metrics.

This element of the Workwell model would benefit from additional metrics drawn from employee surveys, such as perceptions of organisational justice, flexibility and family friendliness, and whether employees feel their managers are effective coaches.


Figure 09. Better relationships reporting

0 20 40 60 80 100Flexible working (including job sharing)

Family friendly policies and facilities

Employee volunteering

Grievances and organisational justice

Coaching and mentoring

3344

305

72

3132

252

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Leading practice case study: Working well – BT Group By Alister Scott, Head of Health and Deputy Chief Medical Officer, BT Group

Working well Reporting in this segment is dominated by Diversity and inclusion, with some companies reporting this at different levels in the organisation. There has been a significant increase in broader reporting, to 46 organisations in 2015. However, less than half go beyond spot metrics, usually on gender, to report a comprehensive set of metrics covering other elements of diversity along with an accompanying narrative. Observed weaknesses in diversity reporting include:

• A description of policies, but with only a spot metric • Trend data with no narrative (with a few exceptions)• A number of companies only reported on gender

diversity at board level, scoring zero as a result • The voluntary staff turnover rate is mentioned by

39 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.

A growing number of organisations (61 in 2015, com-pared with 44 in 2014) explicitly stated that they recog-nised a link between engagement, wellbeing and busi-ness performance. Metrics to support this were present in only seven cases. Some sectors are better able to demonstrate these linkages than others. For example, many retailers have demonstrated the relationship between engagement sur-vey scores and store performance on financial measures and customer satisfaction scores. They could make a high level statement identifying this correlation 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 engage-ment and wellbeing. The most common are 1) headline engagement score (and possibly survey response rate), 2) safety metrics, and 3) diversity metric for gender

• Only nine companies had expanded scorecards that include a wider range of measures with adequate trend data

• Governance of engagement and wellbeing is usually not explicit in corporate reports and websites, with 39 companies confirming who has overall responsibility.

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 10. Working well reporting

0 20 40 60 80 100

Diversity and inclusion

Voluntary staff turnover

Linking engagement, wellness and business performance

Engagement and wellness strategy and programmes

–

Management scorecard

Governance of engagement and wellbeing

External awards

9590

97

97

254546

2630

3924

15

3344

6123

7

4146

51

3 433

3527

3913

010

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321213

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6012

2427









G

Leading practice case study: Working well – BT Group By Alister Scott, Head of Health and Deputy Chief Medical Officer, BT Group

Aim Our employees are critical to our commercial success. So they can contribute positively to BT Group and society, we invest in employee wellbeing and engaging our people.

Activity A range of activities formulated through a number of forums and supported by a dedicated Health, Safety and Wellbeing team.Engagement using a range of face-to-face and digital communication channels:• Quarterly employee surveys• Quarterly health, safety and wellbeing forum chaired by

the Group People Director with LoB champions• Consultation with employees and their representatives• Encouraging participation and enabling conversations,

and sharing of common issues between BT Group networks (Able2 [disability], Carers, Christian, Ethnic Minority, Kaleidoscope LGBT, Muslim, Women’s).

Promotion:• Work Fit – our health promotion programme. This year’s

campaign, Fit for Life, focused on physical health and mental wellbeing and the relationship between them

• Volunteering – supported by our senior leaders, allowing everyone three days a year of work time to volunteer.

Prevention:• Identifying problems early, facilitating timely intervention • Training and informing, e.g. managing mental health

course and resilience training for people managers.Rehabilitation:• Active approach, ensuring speedy, effective recovery• Facilitating self-help with comprehensive online material.Provision of:• Temporary adjustments• Health and Wellbeing Passport

• Company-funded rehabilitation for musculoskeletal disorders and mental health problems

• Specialist support, e.g. occupational health and employee assistance services

• Mental health and resilience toolkits.

Key impacts• Improved engagement levels – up to 3.82 (out of

five). Our highest-ever level and on a par with the global telecoms operators benchmark. All aspects of employee experience have improved – how people feel about their job, their team, their manager, senior leaders, and the company. Our people believe things are changing for the better in BT Group, with a higher level of excitement about the company’s future

• Employee networks: 1,000 new or newly active members • 46,000+ days volunteered and more than £14m-worth of

in-kind support to charities and non-profit organisations• Lost Time Injury Frequency Rate reduced to 1.93

incidents per million working hours• Improved Wellbeing Index – Q3 score of 3.65, moving to

3.85 in Q4. Calculated from responses to three specific questions in a quarterly employee survey covering ‘a good work-life balance’, ‘being treated with dignity and respect’ and ‘feeling my manager cares about me’

• Improved Sickness Absence rate from 2.29% of calendar days lost (2012/13) to 2.10% (2013/14), meeting our KPI target by moving us towards best quartile performance in the CBI annual absence survey

• Surveys showed that 81% of BT Group employees ‘agreed’ or ‘strongly agreed’ that the opportunity to participate in health promotion campaigns made them feel that BT Group cared about their health. 58% said it made them feel valued as an employee and 64% said it made them feel proud to work for BT Group.

Summary • Strategic approach to health and wellbeing – in place

for 11 years• Employee and company aims and objectives aligned in

a way that generates a win-win for both• Established a simple evidence-based framework to

foster workplace wellbeing, underpinned with metrics to show the impact of the wellbeing programmes on business performance. Publicly report this data, demonstrating progress in creating a culture that facilitates growth even in times of austerity

• Invest in our people so they can thrive and contribute to our business and the communities in which we work and live, create better products and improve the way we serve our customers.


“Wellbeing is a fundamental driver of employee engagement and performance. Organisations need to adopt a holistic and integrated approach to it. To truly make a difference, it must be embedded in the organisational culture as ‘business as usual’” Dr Catherine Kilfedder, Head of Wellbeing, BT Group

“The nine companies that self-completed score twice as highly as other FTSE

100 companies”

Figure 11. Scores by quartile and self-completion

Mean score as a % of maximum score

Figure 12. Scores by number of employees

Mean score as a % of maximum score

Top quartile

Over 200,000 employees (n=4)

2nd quartile

75,000 to 199,999 (n=24)

3rd quartile

25,000 to 74,999 (n-22)

Bottom quartile

10,000 to 24,999 (n=18)

Self-completed (n=28)

1,000 to 9,999 (n=24)

Not completed (n=72)

Under 1,000 (n=8)

2013 2014 2015

2013 2014 2015

0 5 10 15 20 25 30 35

18 bitc.org.uk

0 10 20 30 40 50

374242

2726

15

17

9 11

10

3041

46

19

24

21

2117

23

1422

23

2532

31

22

25

182020

2023

27

1919

17

Scores by quartile and self-completion The nine companies that self-completed score twice as highly as other FTSE 100 companies, and are mainly in one of the top two quartiles. This indicates a greater awareness of the importance of public reporting and therefore the desire to self-complete.

Scores by number of employees The largest companies do not report as much, reflecting their sheer size and global reach.

“We recognise that organisations are still on a journey in terms

of their public reporting”

Conclusions• We recognise that

organisations are on a journey in terms of their public reporting and we can see that progress is being made, albeit slowly in some areas

• Areas of strength in public reporting continue to be in Health and safety, and Diversity and inclusion. Safety reporting reflects the effort that has been made over the past 20 years in this area, while many organisations have focused considerable resources on Diversity and inclusion in recent years

• Reporting against many other areas of the Workwell model is still in its infancy, although organisations are increasingly acknowledging the link between engagement and wellbeing and business performance

• The fragmented nature of much public reporting reflects the fact that, in many organisations, ownership of engagement and wellbeing is split between a number of functions, typically: Occupational health, Health and safety, HR, Communication and CSR

• This suggests that employee engagement and wellbeing is often still not positioned strategically in organisations

• However, the CSR agenda is ‘growing up’ and is slowly becoming more people- centric, as organisations recognise that healthy and engaged employees are critical to sustaining business success over the long term.

Figure 13. Scores by industry sector


0 5 10 15 20 25 30 35 40 45 50

Technology

Automobile and parts

Retail

Travel and leisure

Food and beverage

Construction and materials

Industrial goods and services

Basic resources

Real estate

Healthcare

Retail

Media

Financial – investment services

Chemicals

Manufacturing

Personal and household goods

Utilisers

Financial – insurance

Financial – banks and building societies

Oil and gas

Telecommunication

16

17

17

18

18

18

19

20

22

23

23

23

24

25

26

27

28

30

32

33

50

Mean score as % of maximum possible score

20 bitc.org.uk

Appendix A

Characteristics

Key indicators/metrics

Characteristics


Characteristics


A management style and organisational culture that promotes mutual trust and respect, including:• Employment security • Talent management • Job design: task and variety challenge• Autonomy, control and task discretion• Non-monotonous and non-repetitive work• Employee voice.

Promoting and enabling better communications and social cohesion to support good relationships in the workplace, particularly among:• Line managers• Team colleagues• Support networks.Relationships outside work (family and friends) are also supported through flexible working practices and involvement in social initiatives.

Support and interventions to manage health and wellbeing which may be provided by:• Occupational health• Human resources• Employee assistance/counselling • Training for line managers and employees.

• Your organisation’s values and measuring alignment with those values • Your organisation’s approach to training and skill development, for example, company- funded training time per person• Employee feedback, for example, results of annual job satisfaction or engagement survey• Leadership and management development, for example, proportion of senior positions filled by internal applicants.

Flexible working, for example, proportion of workforce with flexible working arrangements:• Family friendly policies and facilities, for example, proportion of women returning after maternity leave• Employee volunteering, for example, volunteering commitment and take-up trends • Grievances and organisational justice, for example, trend data for grievances upheld• Coaching and mentoring, for example, performance trend in external surveys of employee engagement.

• Attendance management/absence, for example, sickness absence rates• Occupational health, for example, take-up/utilisation rate for occupational health service• EAP, for example, take-up/utilisation rate for EAP and related services• Other specialist services, for example, rates of rehabilitation• Management information of specialist support, for example, utilisation/satisfaction with support services.

1. BETTER WORK

2. BETTER RELATIONSHIPS

3. BETTER SPECIALIST SUPPORT

Best practice key criteria


Characteristics


Characteristics


Create a safe and pleasant working environment by:• Promoting a physically safe working environment• Promoting healthy behaviours, such as emotional resilience which builds self-esteem, healthy eating, physical activity, smoking cessation, sensible drinking and avoidance of drug misuse.

• Employees feel trusted and that their work is valued and makes a difference• Employees believe their views are respected and considered• A proactive approach to employee physical, psychological and social wellbeing• Customers and business partners proactively want to work with the company and its employees• Employees’ and company’s aims and objectives are aligned in a way that generates win win for both parties.

• H&S training and management systems, for example, trend health and safety data• H&S reporting, for example, statutory health and safety reporting• Health and wellbeing promotions and campaigns, for example, trend health and safety data aligned to strategic commitments and measured through multiple channels• Workforce demographics marking health status, for example, trend in workplace demographics marking health.

• Diversity and inclusion, for example, the proportion of potentially disadvantaged groups employed by the company• Voluntary staff turnover• Linking engagement, wellbeing and business performance • Engagement and wellbeing strategy and programmes • Management scorecard• Governance of engagement and wellbeing.

4. BETTER PHYSICAL AND PSYCHOLOGICAL HEALTH

5. WORKING WELL

00 BITC.ORG.UK

• 3i Group PLC

• Aberdeen Asset Management PLC

• Admiral Group PLC

• Aggreko PLC

• Anglo American PLC

• Antofagasta PLC

• ARM Holdings PLC

• Ashtead Group PLC

• Associated British Foods PLC

• AstraZeneca PLC

• Aviva PLC

• Babcock International Group PLC

• BAE Systems PLC

• Barclays PLC

• Barratt Developments PLC

• BG Group PLC

• BHP Billiton PLC

• BP PLC

• British American Tobacco PLC

• British Land Co PLC

• British Sky Broadcasting Group PLC

• BT Group PLC

• Bunzl PLC

• Burberry Group PLC

• Capita PLC

• Carnival PLC

• Centrica PLC

• Coca-Cola HBC AG

• Compass Group PLC

• CRH PLC

• Diageo PLC

• easyJet PLC

• Experian PLC

• Fresnillo PLC

• Friends Life Group Ltd

• G4S PLC

• GKN PLC

• GlaxoSmithKline PLC

• Glencore PLC

• Hammerson PLC

• Hargreaves Lansdown PLC

• HSBC Holdings PLC

• IMI PLC

• Imperial Tobacco Group PLC

• InterContinental Hotels Group PLC

• International Consolidated PLC

• Intertek Group PLC

• Intu Properties PLC

• ITV PLC

• Johnson Matthey PLC

• Kingfisher PLC

• Land Securities Group PLC

• Legal & General Group PLC

• Lloyds Banking Group PLC

• London Stock Exchange Group PLC

• Marks & Spencer Group PLC

• Meggitt PLC

• Mondi PLC

• Morrison (Wm) Supermarkets PLC

• National Grid PLC

• Next PLC

• Old Mutual PLC

• Pearson PLC

• Persimmon PLC

• Petrofac Ltd

• Prudential PLC

• Randgold Resources Ltd

• Reckitt Benckiser Group PLC

• Reed Elsevier PLC

• REXAM PLC

• Rio Tinto PLC

• Rolls-Royce Holdings PLC

• Royal Bank of Scotland Group PLC

• Royal Dutch Shell PLC

• Royal Mail PLC

• RSA Insurance Group PLC

• SABMiller PLC

• Sage Group (The) PLC

• Sainsbury (J) PLC

• Schroders PLC

• Severn Trent PLC

• Shire PLC

• Smith & Nephew PLC

• Smiths Group PLC

• Sports Direct International PLC

• SSE PLC

• Standard Chartered PLC

• Standard Life PLC

• St James’s Place PLC

• Tesco PLC

• Travis Perkins PLC

• TUI Travel PLC

• Tullow Oil PLC

• Unilever PLC

• United Utilities Group PLC

• Vodafone Group PLC

• Weir Group PLC

• Whitbread PLC

• Wolseley PLC

• WPP PLC

Appendix B FTSE 100 companies

FTSE 100 PUBLIC REPORTING Employee engagement and wellbeing 0300 BITC.ORG.UK

Business in the Community 137 Shepherdess Walk London N1 7RQ

T +44 (0)20 7566 8650 F +44 (0)20 7253 1877 E [email protected]

www.bitc.org.uk

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