According to a recent study conducted by lawDeb, a UK-based firm that provides professional services, only 51 percent (or fewer) of UK employees are aware of the role played by their company’s board. This number drops to just 45 percent for employees between 16 and 24 years old.
The lack of understanding of the board has obvious implications on employee trust. Only 54 percent of UK employees believe that their company’s board follows through with its commitments. The trust levels in decision-making is slightly higher. 58 percent of UK workers believe their company board will honor its promises. 54 percent also agree that the board’s decisions are in all stakeholder’s best interest.
These findings highlight the importance of clear communication regarding board actions. This is crucial for building employee trust and support.
Only 54 percent of employees say that they are aware of how to voice their concerns and opinions about the organization’s operation. This figure increases to 60% for employees aged between 24 and 30, suggesting that younger professionals are more likely to seek to voice their opinions.
Demand for diversity and environmental accountability
Employees continue to prioritize diversity, believing that board representation is essential for an equitable workplace. According to the report two-thirds (67%) of UK employees support diversity in company boards. 57 % of employees believe that a diverse board has a positive impact on the workplace.
Women employees place a greater emphasis on diversity than men. 71 percent said that the board should reflect diversity in the company. A diverse board is also viewed positively by 60 percent of female employees, and 55 percent of their male counterparts. These perspectives highlight the importance of diversity for driving employee satisfaction, and reinforce expectations that boards should reflect the demographics in their larger workforce.
Many employees expect their employers to actively contribute to the protection of the environment. LawDeb research shows that only 54 per cent of employees feel their company is fulfilling its environmental obligations. This is a sentiment that comes as boardrooms face increasing scrutiny on the environment from new regulations such as the Sustainability Disclosure requirements (SDRs) or the upcoming COP29.
The survey results show that boards need to communicate better their environmental initiatives to employees and demonstrate how they respond to the industry’s pressures on sustainability.
Relationships that are mutually beneficial
Patrick Davis, Director Corporate Secretarial Services at LawDeb comments: “Boards focus on tangible, strategic objectives that should include engagement with stakeholders groups. Mechanisms such as the non-executive directors for employee engagement in the listed environment, coupled with other feedback loops provide an effective method to develop a dialogue with this group. The board’s reaction to these inputs can improve employee engagement and show the board’s role.
“While all stakeholders must be taken into account, it is vital that leaders of businesses find ways to engage employees in the company and to maintain a two-way dialog with their colleagues to make sure opinions and needs are heard. This will increase trust and motivate employees, which could ultimately improve the bottom line.
This will require thorough governance and robust corporate health checks. It will also require appropriate director training, as well as additional elements like records maintenance. Businesses must have all the tools they need to maintain a positive relationship between their boards and employees.
