Employee welfare and workplace conduct rose up the corporate agenda last year, due to legislative changes, and concerns about health and wellbeing.
These were the key findings of research by governance firm Law Debenture.
It found that eight out of 10 business directors (79 per cent) said employee benefits were a high priority — with a third (34 per cent) saying this had taken greater precedence over the past 12 months.
The research also found that pensions ranked as a high priority for three out of four directors, with a quarter saying they had risen in importance over the past year.
Law Debenture said these findings suggest companies are prioritising the health and financial futures of their staff, as a means of attracting and retaining talent.
There was also a focus on strengthening workplace conduct. Law Debenture said this is particularly in light of the 2024 Worker Protection Act, stipulating that employers are legally obliged to take ‘reasonable steps’ to protect workers and proactively prevent sexual harassment.
Law Debenture adds that Employment Rights Bill also dictates that greater protection should be given to whistleblowers who make a sexual harassment disclosure. It points out that this has led to companies focusing more closely on governance policies addressing misconduct and fairness.
Sexual misconduct policies have the second-highest rising trend (26 per cent), closely followed by DE&I policies (rising in priority for 24 per cent) and harassment policies (rising for 23 per cent). This signals a renewed corporate commitment to creating safe and equitable working environments.
Law Debenture says that while it is positive there is more focus on people-focused policies, other important areas, such as whistleblowing, are dropping down the agenda, with 34 per cent of business directors listing this as a low priority.
It says this could raise concerns in light of the new Economic Corporate Crime and Transparency Act (ECCTA), which dictates that businesses must implement reasonable procedures to prevent fraud and place greater emphasis on transparency and accountability, or risk facing serious penalties such as criminal convictions and unlimited fines. It says this means companies must recognise the importance of having a robust whistleblowing procedure in place.
The research also showed that these governance issues are causing additional work for business directors. Almost one in two (45 per cent) agreed that that increased governance requirements will be hard to handle, while 28 per cent of directors believe that it acts as a significant impediment to their day job.
Law Debenture managing director of corporate secretarial services Ben Turner says:“Though it’s encouraging to see that businesses are planning to adopt a more people and conduct-centric approach, it’s vital that firms don’t lose sight of governance requirements and leave themselves exposed in the process.
“The deprioritisation of important areas, such as whistleblowing, can not afford to be overlooked.
“ECCTA legislation, which is centred heavily on financial fraud and having robust whiteblowing procedures in place to combat it, need to be high on the agenda of any business. ECCTA penalties, especially those specific to directors such as unlimited personal fines and criminal convictions, cannot be underestimated.
“While it’s clear that increasing governance requirements are taking a toll on directors, working with a third party governance partner could ease the strain on business leaders and enable them to address their areas of priority.”