Pension schemes have called on FTSE 350 companies to improve the quality of their workforce reporting.
Railpen, which manages £34 billion for UK railway pension schemes, made the call alongside the Pensions and Lifetime Savings Association (PLSA) and The Chartered Institute of Personnel and Development (CIPD).
The group sent letters to CEOs, offering practical suggestions for more transparent and consistent disclosures on workforce management.
The letter highlights four key areas for improvement: workforce composition, employee relations and wellbeing, reward and recognition, and skills and capabilities. It builds on the 2022 Workforce Reporting Framework, developed by Railpen, CIPD, PLSA, the High Pay Centre, and Board Intelligence. The framework offers detailed guidelines on what companies should disclose, including linking workforce practices to company strategy, providing a mix of data and narrative, and ensuring reports receive independent assurance.
Caroline Escott, senior investment manager at Railpen, emphasised the growing importance of workforce reporting for investors. “While we often see companies stating that their workforce ‘is their greatest asset’, this is not always accompanied by concrete evidence of how employment practices relate to the firm’s wider strategy. Investors want to support companies that effectively manage their people,” Escott stated.
Peter Cheese, CEO of the CIPD, added: “Raising the quality and consistency of workforce reporting can help provide more transparency over how companies recruit, train, and manage their employees. This, in turn, can inform investment decisions and improve job quality.”
Justin Wray, head of defined benefit, LGPS, and investment at the PLSA, also backed the initiative, noting that better workforce reporting benefits asset owners, employees, and the companies themselves. “Focus on this area will only increase,” Wray said.
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