Workforce engagement: what quoted companies need to do

United KingdomScotland

There has been a great deal of discussion about how quoted companies will comply with the new requirement in the 2018 version of the UK Corporate Governance Code (Code) to engage with their workforce in order to understand their views and concerns. However, most companies have still not decided what to do.

In particular, companies that report against the Code are expected to put in place appropriate mechanisms to:

  • gauge the views of the workforce on a regular basis;
  • identify any areas of concern;
  • escalate such concerns to senior management via appropriate channels;
  • address such concerns;
  • ensure that the views and concerns of the workforce are taken into account by the directors, particularly when they are making decisions that could affect the workforce; and
  • feed back to the workforce on what steps have been taken to address their concerns or to explain why particular steps have or have not been taken.

For companies that are used to engaging with their workforce only occasionally, or on an ad hoc basis, the new requirements will represent a significant change.

Click here for a note designed to help companies engage with their workforce and to highlight issues that should be addressed where the company chooses to appoint a director from the workforce and/or designate a non-executive director to represent the views of the workforce in the boardroom.