Pensions - Articles - PLSA asks FTSE 350 chairs to improve reporting on workforce


The Pensions and Lifetime Savings Association (PLSA) has written to the Chair of every FTSE350 company asking them to share fuller information with investors about the culture and working practices of their workforce.

 In a letter, supported by the Pensions Minister, Richard Harrington MP, Newton Investment Management and USS Investment Management Limited, the PLSA highlights how the management and engagement of the workforce can have a material effect on a company's performance over the long-term.

 Joanne Segars, Chief Executive, PLSA, said: "It’s essential that pension funds know more about how the companies, in which they invest, manage and engage their employees. We know that engaged workers make for stronger companies and stronger companies make for better investment returns – creating an economy that works for everyone.

 “So that’s why we’re calling on companies to make more information about their workforces available to pension funds and other investors. After all, many companies tell us that their workforce is their strongest asset."

 Previous research cited by the PLSA has highlighted the limited detail that UK companies currently provide about their workforce. Fewer than half of FTSE 100 companies detail their level of staff turnover in their annual report, while only 11 per cent break down their total staff by full-time, part-time or temporary employment status[1].

 Pensions Minister, Richard Harrington MP, commented: “The status of a firm’s workforce can be a key issue for investors. So a toolkit that helps businesses give important investors such as pension schemes the data they need about their workforce is a good thing and I welcome this positive step by the PLSA.”

 Ian Burger, Head of Corporate Governance, Newton Investment Management, added: "As active global investors, we believe constructive and positive labour relations are critical to a company’s long-term success. We welcome the PLSA’s guide to help improve engagement on these issues, and are confident it can help develop an effective dialogue and actions that benefit all stakeholders.”

 Elizabeth Fernando, Head of Equities, USS Investment Management, said: "A company’s workforce is a key driver of its long-term performance and productivity, so good information on corporate culture and working practices is valuable to us as long-term investors. We hope the PLSA’s toolkit will enable pension funds to engage on these issues in a way that benefits investors, companies and workers alike.”

 The PLSA toolkit, ‘Understanding the worth of the workforce’, was published in July and outlines the type of information about workforce-related issues that pension fund investors should request from the companies in which they invest, and how this information could be most helpfully presented to investors. The toolkit:
 • identifies the key performance metrics for assessing potential risks and opportunities facing companies as a result of the composition, stability, capacity and engagement levels of its workforce; and,
 • recommends ways in which investors can encourage better reporting through private engagement and voting at company AGMs.
  

Back to Index


Similar News to this Story

Wish list for the occupational pensions industry in 2025
As one year closes and another begins, it's an opportune moment to set our sights on the future. The UK occupational pensions industry faces nume
PSIG announces outcome of Consultation
The Pensions Scams Industry Group (PSIG), which was established in 2014 to help protect pension scheme members from scams, today announced the feedbac
Transfer values fell to a 12 month low during November
XPS Group’s Transfer Value Index reached a 12-month low, dropping to £151,000 during November 2024 before then recovering to its previous month-end po

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.