Workforce reporting

Why workforce reporting is important

Evidence shows that a motivated, engaged, fulfilled and well-trained workforce is necessary for sustainable financial returns, as well as being desirable in itself. Consistent, clear and comparable reporting standards that show investors how portfolio companies are supporting, training and motivating their workforces is therefore key.

However, information varies in scope and often lacks relevant data, meaningful context, connection to company strategy, and improvements plans.

What is workforce reporting? Businesses must report on their activities, especially financial performance and governance, to meet regulations and stakeholder interests. Workforce reporting specifically covers a company’s employment practices and the value of its workforce.

Our collaboration for better reporting

So, in 2023, Railpen collaborated with the Chartered Institute of Personnel and Development (CIPD), the Pensions and Lifetime Savings Association (PLSA) and High Pay Centre to produce the December 2022 report Worthwhile Workforce Reporting: Good practice examples from the UK’s biggest companies. 
This guidance gave portfolio companies concrete examples of what good practice looks like (and why investors deemed this good practice). We shared this with companies where we considered there to be additional scope for improvement, and held follow-up discussions with them to incorporate their learnings into future reporting.

Engagement and advocacy 

In 2024, and with a new UK government considering further policy work on workforce disclosure and treatment, we sent a formal letter to FTSE 350 companies – together with the PLSA and CIPD – enclosing our guidance.

The letter asked for improvements in the quality of workforce reporting and suggested practical suggestions for how this should be done. We received many positive responses which led to deeper levels of engagement with these FTSE 350 companies as well as engagement with policymakers on reform measures and the UK Employment Rights Bill. 

By combining investor advocacy with practical guidance, we’re working to enhance corporate disclosure and practice in a way that benefits companies, workers, and investors alike.

The future of workforce reporting

In collaboration with Railpen, CPID has published a new report called the Future of Workforce Reporting. Drawing on our analysis of 2024 annual reports of FTSE 100 companies, the report explores how the UK’s largest firms disclose information about their workforce. 

Using a framework CIPD has developed with the High Pay Centre and Railpen, the report assesses reporting across the themes of workforce cost and composition, employee relations and wellbeing, employee voice, reward and skills and capabilities.

Future of Workforce Reporting explains why workforce reporting matters, outlines the UK policy landscape, offers practical insights and steps to improve the transparency, consistency and strategic value of reporting, and makes five recommendations to policymakers, companies and investors.

[download of Future of Workforce Reporting at foot of page]