Workforce engagement key to good corporate governance

Engaging the workforce lies at the heart of good corporate governance, says the Financial Reporting Council.

It points out that the UK Corporate Governance Code wants companies to report their engagement with the workforce. However, new research shows that many FTSE 350 annual reports appear to downplay the importance of their workforce engagement.

The work by the University of London and the Involvement and Participation Association found changes in workforce engagement have been more evolutionary than revolutionary, with many companies merely amending existing practices to fall into line with the code. The research authors stressed that the actual mechanism of engagement is less important than companies’ desire to genuinely engage with employee views and recognise the benefits that such engagement can bring.