You may or may not be aware that many UK businesses are now subject to statutory reporting requirements under the Companies Regulations 2018. Effective this reporting period, businesses need to demonstrate how they have considered the interests of their employees to inform company decisions. Non compliance can have implications leaving directors open to criminal offence!
I am writing about this because important regulations like this are often missed by business owners. Speaking from experience, without the benefit of HR departments many of my clients operate medium size businesses and this is not at the forefront of their minds.
What I wish to emphasis is, this is an OPPORTUNITY! Whether it legally applies to your business or not, its worth considering putting steps in place. There are only POSITIVES to be gained by being more transparent and accountable to employees (your most valuable assets) and shareholders.
New Regulation requirements and who are they applicable to ? Any UK businesses that fulfil 2/3 of the following:
turnover of more than £36m;
balance sheet total of more than £18m;
more than 250 employees
How to Comply ? Creation of an employee engagement statement that must appear in the directors’ report and detail the following information:
How directors engaged with employees;
How directors regarded employee interests when making business decisions;
What impact has this had on company decisions/ direction / policies.
The Mental Health Positive Opportunity :
Employee Feedback boosts workplace mental health. Undiscussed frustrations often manifest into larger issues that can be detrimental to mental wellbeing. Implementing feedback sessions e.g town halls and / or open team initiatives to provide for insight and action plans to combat concerns, build on successes and create healthy working environments. We all need to feel involved in our future, especially in the workplace where we spend majority of the day. From my own experience, decision on direction, new products or services always had higher success and adaption when influenced by group input dynamic. It's a win / win as a business owner, director or manager. After all you can’t expect to have all the answers - I certainly didn’t!
Success Strategy Tips
communicate the importance of what your trying to achieve and create a safe and empowered environment for exchange;
when it comes to sensitive matters, surveys can be used to ask questions around mental health, stress and workplace happiness. They are easy to set up these days and with the results you can determine focus for mental wellbeing initiatives and action plans;
Focus groups are another great way to get different employees involved and empowered. Playing to interests and strengths will result in greater interaction and assist business cases to put mental health and wellbeing on the agenda;
Communication is the cornerstone of a healthy and thriving business. By understanding the sentiment of your people and bringing that insight forward you will create a happier and higher-performing workplace.
As I said, no matter your business or team size this an opportunity to create a employee-led business that understands and facilitates the use of feedback and reporting to improve mental health and wellness.
If you would like any further information about this regulation change and / or would like some help in getting Mental Health Wellbeing strategies in place, please do not hesitate to reach out.
Further Reference :
The Happiness Index compiled a global report into workplace happiness and wellbeing in 2018. The key driver we found was “Feeling valued as an individual.”
Thanks to @MAD (Make a difference) who recently highlighted regulation change to me!