BITC Workwell has updated its guidelines on reporting employee engagement. The guidelines, originally launched in May 2011, will now attempt to improve the relevance of reporting to the investor community.

To produce the updated guidelines, the BITC sought the views of the Principles for Responsible Investment-coordinated Steering Committee together with the UK Sustainable Investment and Finance Association (UKSIF).

Amanda Young of Newton Investment Management is on the PRI-coordinated Steering Committee and is a board director of UKSIF. She says, “Companies have found it challenging to report consistently on employee issues, but BITC’s Workwell guidelines provide a much-needed structure. The essential principle is that as a company sets targets and measures an issue, it will start managing this issue better. Enhancing approaches to employee management is good for business. It improves employee wellbeing, helps attract the best talent and provides investors with increased confidence in a company’s management."

She adds that engagement can help increase productivity, “Many investors believe that there is a direct link between good employee practices and strong business performance – motivating staff can help to ensure productivity, minimise employee action, improve margins and enhance reputations. A company reporting on employment issues can be a more attractive investment than a company with poor disclosure on how it values its employees.”

Equally involved in the drive to encourage companies to incorporate staff engagement in its annual reporting is the International Integrated Reporting Council (IIRC), who closed the invitation to respond to their consultation draft of the International Framework yesterday (July 15). The Framework is expected to be published in December.