Eight investors, led by UK pension manager Railpen, have released practical guidance for companies on how to take a meaningful approach to including the worker voice at board level. This includes the potential use of workforce directors, an exploration of worker voice mechanisms, as well as insights into ‘what good looks like’ regarding the role, recruitment, and retention of workforce directors. The other signatories of the Workforce Directors Investment Statement are Border to Coast, Brunel Pension Partnership, the Church of England Pension Board, Merseyside Pension Fund, Rathbone Greenbank Investments, Royal London Asset Management, and the Universities Superannuation Scheme. The guidance said there are two key benefits for companies and investors in appointing one or more workforce directors, including the potential improvements to the cognitive diversity of a board, and assisting workers in feeling their voice is heard and acted upon. It also discusses the ‘Four Rs’ of good practice on workplace directors: role, recruitment, retention, and reporting. Caroline Escott, Senior Investment Manager at Railpen, said: “We hope our guidance provides some helpful considerations and insights into what we think is an underexplored workforce engagement mechanism, and welcome the opportunity for open and collaborative conversations with all those keen to ensure the worker voice is effectively heard.” The eight investors managed approximately £400 billion (US$496 billion) in AuM.
Investors Launch Workforce Directors Guidance
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