Human Resources and Governance Manager

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1 ITEM 7 Report to Resources Committee 7 September 2017 Title: The Best Companies Survey 2016/17 Report of: Human Resources and Governance Manager Purpose of Report 1. To provide the committee with details of The Best Companies survey carried out in October 2016 and results received in February Background 2. We know that employees are our most valuable asset to deliver excellent services to our customers and we know that to have an effective and efficient workforce, employees need to be engaged. 3. Since 2011 we have used The Best Companies survey to measure the engagement levels of our employees and have used their definition of engagement which is doing it because you want to, not because you have to. 4. Measuring engagement takes the concept of employee satisfaction to a higher level. 5. The survey covers 8 broad headings which are referred to as factors. The 8 factors are: leadership, my company, my manager, personal growth, my team, wellbeing, fair deal and giving something back. 6. Explanations of each factor can be found in appendix1. 7. Each organisation is given a score, known as the Best Companies Index score (BCI). The BCI is a score between 0 and 1000 and is directly comparable between annual surveys. Organisations with a BCI between 900 and 1000 appear in the top 100 Companies. Results 8. Our BCI is 564, slightly down on last year s figure of During the period of the 2016 survey the company was going through significant change and the following points are to be noted: 40

2 The survey results are not a like for like comparison on previous years nor are they a baseline assessment. In March 2016 there was 320 employees and in April 2016 one hundred employees from Gateshead Council Housing Services TUPE transferred to the company. As mentioned earlier in this report the Best Companies survey was carried out in October The TUPE transfer presented challenges across the organisation in terms of embedding cross service working, streamlining policies and procedures and joining of two different organisational cultures, in addition there was no agreed harmonisation of employee handbook policies and procedures. A number of teams based in the Civic Centre were located at Shearlegs Road to begin joint working on the repairs and maintenance contract by Gateshead Council Construction Services. This service subsequently became the responsibility of TGHC in November Plans were being developed to make 1m efficiency savings across the company Consultation was progressing with employees, unions and stakeholders on proposals to review services, structures and job roles and introduce new ways of working across the company We were managing voluntary redundancy in an effort to avoid compulsory redundancy 10. The above has led to some employees feeling uncertain about the future of the company. Despite the above we have improved in 1 of the 8 categories, stayed the same in 3 and reduced in 4 categories. Overall the differences are marginal and not significant. 11. A graph comparison of results can be found in the appendix 2. Performance Indicator HR2 Employee Satisfaction 12. The company annually reports % of employees satisfied with TGHC as an employer. 13. The definition states that an employee satisfaction survey should be carried out at least once every two years and preferably annually. 14. The indicator is to measure the percentage of employees who say they are: very satisfied or fairly satisfied with their employer. 15. The definition includes all full and part time employees and any contract or agency people who have worked for TGHC for longer than two years. 16. The definition question askes Taking everything into account, how satisfied or dissatisfied are you with your employer. Respondents have a choice of five responses: Very satisfied Fairly satisfied Very dissatisfied Fairly dissatisfied Neither satisfied nor dissatisfied 17. We have historically used the Investors in People (IiP) survey and Best Companies survey to provide our results for the performance indicator. 41

3 18. Whilst themes between surveys tend to be very similar the specific engagement questions are as follows: IiP: taking everything into account, how satisfied or dissatisfied are you with your employer Best Companies: I love working for this organisation. 19. There are also differences in the survey choices presented, as mentioned above IiP provides 5 choices whereas Best Companies provides 7 choices. The results for Best Companies 2017 are as follows: Strongly Agree 7% Slightly agree 21% Agree 15% Neither agree nor disagree 30% Slightly Disagree 11% Disagree 6% Strongly Disagree 10% 20. We are pleased that survey results have provided confirmation that our priorities for human resources and organisational development are the right ones and they have influenced our strategic planning process and service priorities. 21. In March 2017 the Board approved to suspend the employee engagement performance indicator (HR2) for 2017/18 and to use the Best Companies survey results to develop targets for 2018/19 when the indicator will be re-introduced. 22. This activity will fall within the scope of a new strategy to be developed for Human Resources and Organisational Development. Moving Forward 23. To increase employee satisfaction we will review our approach to engagement. This will mean focussing on the basics as well as stretching ourselves and developing new and innovative solutions that make the difference to all employees. We want employees to feel work is a positive experience and something they want to do rather than have to do as this, in turn, will promote good health and wellbeing. 24. This will mean we focus on developing our leaders and managers, working with unions and employees on harmonisation, streamlining processes and ways of working, empowering people and manging performance so our reputation as a high performing organisation enables us to win business in the future. 25. We also know that we must maximise our people resources and tackle sickness absence. We will recruit health and wellbeing advocates and explore the HSE stress management standards and toolkit. We will continue to support our employees to manage their health through initiatives and occupational health. 26. We will review our organisation culture and approach to employee surveys and national accreditations and provide the Board and Resources Committee with a progress report. 42

4 Link to values 27. This report links to the following Company values: - Customer focussed Open and honest Accountable Impact on tenants 28. With an engaged workforce, customers will experience an enhanced service. Risk Management Implications 29. Failure to have an engaged workforce could increase turnover and impact on service provision. Financial Implications 30. There are no financial implications as all costs have been met from existing budgets. Equality and Diversity Implications 31. The survey is sent to all employees so everyone has the opportunity to contribute. Value for Money Implications 32. The survey represents a cost effective way of surveying all employees and measuring engagement across the workforce. Health Implications 33. Engagement, health and well-being are intrinsically linked. The Best Companies survey is a measure of engagement which informs health and wellbeing activity. Environmental Implications 34. There are no environmental implications directly arising from this report. Consultation carried out 35. There was no specific consultation for this report. Recommendation 36. That the committee note the Best Companies results and receive an update on our approach to employee surveys and national accreditations. Contact: Rachel Harker, OD Advisor Tel No: (0191)

5 Appendix 1 Best Companies 8 Workplace Factors The Best Companies methodology is based around eight key factors which combine to measure workplace engagement. These factors are particularly significant as they are defined through the results from the survey process, and therefore by employees themselves, as critical factors in workplace engagement. Each of the scoring questions in the Best Companies Employee Survey contribute to one of these eight factors. For each workplace factor the answers from the contributing questions are combined to produce an overall factor score. While the questions which contribute to a factor may change over time the concept being measured remains the same. The eight workplace factors are: My Manager - Seven out of ten who quit their employer are leaving their manager, not the company. So it's a fair bet that the working relationship with your manager is the most crucial of all. Leadership - Proof that "Leadership" has an impact way beyond the boardroom. If the leadership's good, so's the management and good management makes for a happy team. So it's hardly a surprise that Leadership is a prime influence on employee engagement. My Company - This factor measures how much people value the company they work for, how proud they are to work there, and whether they feel they're making a difference. Personal Growth - Do employees feel challenged by their jobs? Are skills being used to the full? Is there an opportunity to advance? Because you should never stop learning, these are major factors. My Team - Friendship and support from your workmates can make all the difference to your day. And as any good employer knows, team spirit fosters productivity. Fair Deal - How much do you think the company will value you? Will your pay and benefits compare well with those of your counterparts in similar organisations? Giving Something Back - Employers increasingly acknowledge the value of investing in people, the local community and wider society. Think of it as enlightened self-interest; a kind of "company karma". Wellbeing - The balance between work and home life - the famous "work/life ratio" - is vitally important. The factor measures stress and pressure and their impact on your health and performance. 44

6 Appendix 2 This chart shows as a % how far above or below we have scored compared to last year. The scale is based on the Best Companies scale from is strongly negative, 7 is strongly positive and 4 is a neutral response Overall by Factor 5.4 (-2%) (-1%) (0%) (-5%) 4.5 (+1%) (0%) (-4%) (0%) Leadership My Company My Manager Personal Growth My Team Wellbeing Fair Deal Giving Something Back - (Not For Profit BCI Survey 2017) - (Not For Profit BCI Survey 2016) This chart shows as a % how far above or below we have scored compared over the last 4 years. The scale is based on the Best Companies scale from is strongly negative, 7 is strongly positive and 4 is a neutral response (Not For Profit BCI Survey 2017) (Not For Profit BCI Survey 2016) (Not For Profit Sectors Accreditation 2015) (Not For Profit Sectors Accreditation 2014) 45