News CORPORATE GOVERNANCE
Workforce engagement lies at the heart of good corporate governance An effective feedback loop between boards and the workforce is needed to achieve meaningful dialogue. Those who act as an interface between the board and the workforce, whether sitting on a panel or as worker directors, should receive appropriate support. Energies should be focused principally on the substance of the engagement, not the process. The UK Corporate Governance Code asks companies to report on their engagement with the workforce. The Financial Reporting Council (FRC) has published research by Royal Holloway, University of London and the Involvement and Participation Association which found that many FTSE 350 annual reports appear to downplay the importance of their workforce engagement. Changes in workforce engagement have been more an evolution than a revolution, with many companies amending existing practices that have been in place for several years. The case studies included in the report set
out innovative approaches and fresh thinking that could potentially be applied more widely. Good practice identified in the research shows how the exact mechanism of engagement is less important than companies’ desire to genuinely engage with employee views and recognise the benefits that such engagement can bring. Sir Jon Thompson, FRC CEO said: “The report highlights some good examples of productive workforce engagement. It takes time to put in place, and develop, workforce engagement mechanisms, create a feedback loop and see the consequent results. Ultimately, the main goal is a better performing company. I hope companies and boards will consider this research and engage with the good practice examples.” Chris Rees, Professor of Employment Relations, Royal Holloway, University of London and Patrick Brione, Head of Policy and Research, IPA, said: “Our review has highlighted some interesting areas of innovation and good
Sir Jon Thompson
practice in how to bring an effective workforce voice into the boardroom. At the same time, we found that there remains much room for improvement for many firms, in both their practice and reporting. We hope to see continued progress in this area, as part of a broader move towards building more purposedriven companies that reflect the interests of all their stakeholders.”
FLEXIBLE WORKING
PWC announces new flexible work deal for employees Following extensive consultation with employees, PwC has announced to its 22,000 people changes to allow greater flexibility for post-pandemic working. Called the “Deal”, the announcement reflects the firm’s commitment to supporting its people and responding to changing working patterns accelerated by Covid-19. The changes will help to embed a hybrid working model and align with PwC’s Net Zero commitment. The Deal is part of a workforce framework covering everything from learning and development to how PwC’s people can make a positive societal difference. It’s built on twoway flexibility and trust to meet the needs of teams, clients and the firm. AIAWORLDWIDE.COM | ISSUE 117
The full detail will be shared over the coming weeks but the three key elements are: ● an “empowered day”, which gives its workforce more freedom to decide the most effective working pattern on any given day; for example, an earlier start and finish time; ● flexibility to continue working from home as part of blended working, with an expectation that people will spend an average of 40% to 60% of their time co-located with colleagues, either in PwC offices or at client sites; and ● a reduced working day on a Friday during July and August, with the assumption the majority of people will finish at lunchtime having condensed their working week.
Kevin Ellis, chairman and senior partner at PwC, said: “We’ve long promoted flexible working, and we hope today’s announcements make it much more the norm rather than the exception. We want our people to feel trusted and empowered. “These changes are in direct response to soundings from our people, who’ve said they value a mix of working from home and in the office. We want to help enshrine new working patterns so they outlast the pandemic. Without conscious planning now, there’s a risk we lose the best bits of these new ways of working when the economy opens up again. The future of work is changing at such a pace that we have to evolve continually how we do things to meet the needs of our people and our clients.”
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