Only 51 per cent of UK workers understand their company’s board role, with this figure dropping to 45 per cent among those aged 16 to 24, according to LawDeb’s research.
However, according to the findings, there is greater trust in decision-making, with 58 per cent of employees believing that their firm will fulfil its commitments and 54 per cent thinking that board choices are advantageous to all parties involved. Furthermore, of those aged 24 to 30, 54 per cent feel comfortable voicing concerns, a percentage that increases to 60 per cent among 24 – 30 year olds
The research also suggests that employees care about social issues with two-thirds of them supporting boards that represent a diverse range of employees. Around 57 per cent of respondents think that diverse boards improve workplaces while 60 per cent of women believe diverse boards improve work conditions, compared to 55 per cent of men, and 71 per cent of women support representative boards, indicating that women value diversity more than men do.
Additionally, new Sustainability Disclosure Requirements (SDRs), COP29, and continuous ESG reporting have put environmental issues back on the board table. But there is potential for improvement as only 54 per cent of workers think their organisation adequately safeguards the environment.
LawDeb director of corporate secretarial services (CSS) Patrick Davis says: “Boards understandably focus on tangible strategic objectives which should include engagement with stakeholder groups – mechanisms such as the designated non-executive director for employee engagement within the listed environment, allied with other feedback loops, provide an effective way to develop an ongoing dialogue with this stakeholder group.
“The board’s response to this input can improve engagement and demonstrate the board’s role to employees which can be transformative.
“Though all stakeholder groups need to of course be considered, it’s hugely important that business leaders find ways to drive engagement with employees across the business and maintain an open two-way dialogue with colleagues to ensure opinions and needs are being heard. This will generate trust, make employees feel more valued and motivated, and could lead to better productivity – ultimately improving the bottom line.
“Doing so will require thorough governance, robust corporate health checks, appropriate director training and additional elements such as records maintenance. It’s critical that businesses are equipped with all the required tools to ensure boards and their employees have a mutually beneficial relationship.”
