Being a responsible employer.


“We believe that by helping our customers enhance their financial well-being we can bring wider benefits to society. Key to our strategy has been defining the type of business we want and developing our brand around an organising thought – Every Day Matters – that embodies what we believe in and drives the business forward. As a services business, our people are essential to how we make every day matter for our customers.”

Elaine Maclean
Group HR Director

Our mission is to build a company, which, every single day, becomes even better at serving customers and rewarding shareholders. A company where our employees help our customers to make important financial decisions that define the future quality of their lives.

Our mission statement defines our beliefs and embodies Every Day Matters, which represents what we stand for, care about and believe in. This is what differentiates us from our competitors.

Our success relies on our employees understanding what really matters for customers when they make decisions to understand their financial needs and raise the quality of their lives and society as a whole.

By putting customers at the heart of our business, helping them to protect themselves against unforeseen circumstances, save for retirement or invest money wisely; through this, we are helping to create social and financial benefits for society, in all our chosen markets. This is our social purpose.

RESPONDING TO 2010 EMPLOYEE ISSUES

In 2010 we set out a number of employee issues as key area of focus for our UK business. This is our progress so far.

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The issue

What we’re doing

Continuing to maintain and build employee engagement scores

Our employee engagement score rose in 2011 from 74% (in 2010) to 76% in 2011

Continuing to differentiate rewards for good and poor performance, to deliver a culture of high expectations and our performance improvement process where appropriate

In 2011 we made a clear connection between objectives, performance and the pay and bonus structure for our employees.

Succession planning.

Continuing to understand the talent we need to meet the changing external market

We carry out talent reviews to make sure succession plans are in place for critical roles, and that we proactively manage the careers of our key people.

The reviews are completed at divisional level, then fed into a group-wide talent review of the leadership group.

Making sure strategy and delivery are aligned in the organisation

The objectives of the Leadership Group are reviewed to ensure they align to the strategy of the organisation and their reward is linked to achievement of the objectives.

Seventy-two per cent of UK employees understand the Group Strategy.

Communicating the strategy of the organisation ahead of the objective-setting process

Objectives are set and agreed between the employee and the line manager at the start of the year. They are then tracked through regular one-to-one meetings throughout the year.

Continuing to embed the culture we want

We have developed a set of employee behaviours’ that articulate the culture we aspire to. These behaviours have been integrated into the performance management process for managers.

In 2012 they will be integrated into the performance management process for all of our employees. We’ll also give more detailed guidance on how to measure behaviours and how they are weighted within the performance management process.

Our priorities for 2012

Our key areas of focus for 2012 are:

  • Carrying out reviews to ensure that we have the most effective organisational design to deliver business results.
  • Adding to the strength and depth of the leadership group, including improved succession options for executive and leadership roles.
  • Taking action to improve the gender balance in management. In response to the recommendations of the Lord Davies report, we’ll deliver an increase in the number of senior roles held by women in 2012 as well as increasing ethnic diversity.
  • Completing implementation of people projects; grading, leadership academy, talent management, performance management, and behaviours.
  • Reviewing attendance and wellness policies and practices to reduce the cost to the business and provide effective support to employees to help them recover and return to work.
  • Making sure we have the right people with the right skills to deliver our business goals.

GOVERNANCE STRUCTURE

Our Resources Board reports into our Group Board and monitors key employee trends and governance policy. We have specialist committees, such as the Health and Safety Committee and the Equalities Committee, which monitor and make progress on key people issues across the business.

Key HR Processes that take place in a typical year, both in the UK and in our overseas subsidiaries are shown in the table.

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Process

Outputs

Timing

Annual performance reviews

Salary and bonus reviews explicitly linked to performance for all employees.

January-March

Annual talent reviews

Succession management reviews at Group level

Annually

Annual development reviews

Annual development reviews for employees: review and agreement on personal development plans

July-September

Annual leadership capability review

Annual review for Nominations Committee of Board

Annually

SHAPING OUR PEOPLE STRATEGY

We use various mechanisms to monitor people issues in the business.

  • We carry out an annual employee satisfaction survey, the results of which identify employee risks and drive local and corporate action plans. In particular, we analyse the responses that make up the overall engagement index. We also analyse responses to questions around bullying and harassment, equality and diversity, training and development and engagement with Unite and the Management Consultative Forum (MCF).
  • We meet with our Union on a monthly basis and the Management Consultative Forum every two months. There’s also a separate consultation framework to consult with Unite and the MCF on business restructures.
  • We discuss leadership capabilities and identify risks at an annual Strategic Planning Day.

BENCHMARKING OUR PERFORMANCE

Our relationship with these organisations allows us to benchmark ourselves against others and informs our decision making on employee-related issues:

  • Opportunity Now (Gender) and Race for Opportunity
  • Employers’ Forum on Disability
  • Employee Relations Networking Forum (Banks and Building Societies).
  • Top Employers for Working Families
  • The Financial Skills Partnership
  • CII Life and Pensions Faculty
  • Sunday Times Top 25 best big Companies to work for list

In 2011 we were pleased to introduce new checks and balances on how we employ people and ways to monitor how we employ people to get the best from them.

We set up a new partnership with Stonewall to help our Equalities and Diversity committee. We’ve also joined Stonewall’s Diversity Champions Programme following discussions with the Equalities and Diversity Committee and a request by the Unite Equalities Officer.

Stonewall is the lesbian, gay and bisexual (LGB) charity. It can help us make sure our workplace is free from discrimination on the grounds of a person’s sexual orientation. It will also help us make sure that LGB employees, who wish to, feel that they can be open about their sexual orientation – bringing their whole selves to work and therefore performing at their best.

EMPLOYEE VIEWS

In 2011, there was a slight improvement in our employee engagement score to 76%, as measured by the “What matters employee survey” for our UK employees. This is the highest score since we started measuring engagement. We’re using this approach to understand the similarities and differences between our UK business and our overseas subsidiaries. Legal & General America participated fully for the first time in 2011.

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2009

2010

2011

2010
versus
2011

UK Employee Engagement Index Scores

65%

74%

76%

+3%

LGA (US) Employee Engagement Index Scores

N/A

81%

86%

+5%

UK participation in the employee survey

79%

85%

87%

+2%

Legal & General America participation in the employee survey

N/A

N/A

92%

First year of survey

UK percentage of employees that understand the Group strategy

50%

71%

72%

+1%

Legal & General America percentage of employees that understand the Group strategy

N/A

N/A

93%

First year of survey

UK percentage of employees who think they work for an ethical company

73%

79%

86%

+6%

Legal & General America percentage of employees who think they work for an ethical company

N/A

N/A

91%

First year of survey

We’re pleased that nearly nine-in-ten of our employees give their views on their working environment at least once a year. We’re also pleased to see that nearly three quarters of our employees understand the direction of the business, and eight out of ten think we are an ethical business – something that’s key when we deliver service to our customers.

We’re in the ‘Top 25 Best Big Companies to Work For’ and a ‘One to Watch’

We’ve been given a position in the Sunday Times 25 Best Big Companies to Work For list for the first time. Over 2,100 of our employees were invited by the Sunday Times to participate. Our place in the listing gives Legal & General a position amongst a “pool” of big companies like ours.

We showed improvement across all eight question themes. Our two highest-ranking themes were Giving Something Back (14th out of 32) and Well-being (16th out of 32)

Our two lowest ranking factors were Personal Growth (30th) and Fair Deal (28th).

Sunday Times Best Companies Results

Sunday Times Best Companies Results (bar chart)

We were also highlighted as a ‘One to Watch’ company.

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