Engaging with Stakeholders

Relevant material issues

• Supporting sustainable communities 
• Build quality and safety 
• Talent attraction, development and diversity

Why do we engage?

We aim to attract and grow a talented and diverse workforce, believing this to be fundamental to the long-term success of the business.

We recognised that post-pandemic, the employment market would become more challenging as people re-evaluated their careers and work-life balance.

Engaging with our employees helps ensure they understand and align with the Group’s strategy and desired culture and helps us to understand the changing needs of our workforce, to better attract and retain employees.

How do we engage?

• Through our Employee Engagement Panel, which meets regularly throughout the year. Each meeting is attended by the Group’s designated Workforce Non-Executive Director and is chaired by the Group’s HR Director. In addition the Group Chief Executive and Remuneration Committee Chair attended meetings in 2022.
• Through annual employee engagement surveys. 
• Through our Health, Safety and Environment department and increased online training procedures. 
• Through improved internal communications to all employees on matters such as our business activities and priorities, the achievements of our business and our employees and our work in local communities. 

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What did they tell us? 

• Our 2022 engagement survey had an 83% employee engagement score, with 92% committed to the Group and what we are trying to achieve. 
• Recognition is important and employees want to feel valued and appreciated. 
• 2022 was a difficult year for many of our colleagues who were affected by the rising cost of living. 
• Our employees are supportive of the improvements to customer care and quality. 
• They would like continued focus on training and development.

How do we measure the effectiveness of our engagement? 

• Feedback from the Employee Engagement Panel. 
• Through the results of our annual employee engagement survey. 
• Changes to our employee turnover.

Outcomes and effects on Board decisions

• Feedback from the Panel led to improvements to the quality of PPE and a range of garments for female employees, enhancements to paternity pay and the involvement of Panel members in the selection of IT hardware for use on our developments. 
• We formulated a Talent Acquisition Strategy and introduced a streamlined recruitment process. 
• We implemented a tiered salary increase, that awarded the lowest paid employees the highest increase, with a 7% increase on their basic pay. 
• Continued to be an accredited Real Living Wage Employer. 
• Launched our Learning Management System to better record employees training and enable further development of our e-learning courses. 
• Continued to improved our internal communications strategy. 
• Undertook a communication exercise to promote the support available through our Employee Assistance Programme.

Relevant material issues

• Climate change action and resilience
• Build quality and safety 
• Supporting sustainable communities

Why do we engage?

The Group benefits from long standing relationships with many of its suppliers and subcontractors. This assists in securing the quality and supply of materials to deliver the Group’s build programmes effectively.

We engage with suppliers and subcontractors to ensure adherence to our stringent health and safety standards and required standards of ethical behaviour and integrity, supported by the introduction of Framework Agreements inclusive of Group Policies.

Engagement with our suppliers and subcontractors assists us in continuing to improve the long-term sustainability of our supply chain.

How do we engage?

• Quarterly business reviews, regular, informal discussions with our key suppliers through our Group Procurement team, who are responsible for arranging and negotiating Group Framework Agreements and Service Level Agreements to ensure our suppliers are compliant to standard terms.
• Our local operating businesses’ buying and technical teams regularly engage with local suppliers and subcontractors.
• Our ‘Toolbox Talks’ ensure our subcontractors understand and adhere to the health and safety standards required on our sites.
• All Group suppliers sign up to the Group’s supplier principles, equivalent Group Policies and key performance indicators, which describe our requirements and expectations.
• We are partners to the Supply Chain Sustainability School which encourages engagement across the supply chain. 
• We are part of the Future Homes Hub Embodied Carbon Task Force. 

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What did they tell us? 

• The Group works in partnership with its suppliers, to provide material requirement forecasts. This ensures continuity of supply, providing continuity and visibility of future work flows. 
• Timely payment of invoices is important. 
• They continue to monitor the impact of global supply chain and price sensitive impacts to enable continued service delivery.

How do we measure the effectiveness of our engagement? 

The Group Procurement department provides routine monitoring of trends and supplier performance.

Outcomes and effects on Board decisions

• Our tendering processes have been strengthened through greater central oversight and an expanded use of framework agreements. 
• We remain a signatory to The Prompt Payment Code (PPC). 
• The department seeks to secure Group wide deals covering all major elements of our construction process. These relationships and agreements will allow the Group to establish consistent standards of quality, security of cost and supply of materials whilst providing our suppliers with certainty over volumes, revenues and cash flows. 
• Developed trials to evaluate the most effective method of transitioning to the Future Homes Standard and beyond to net zero carbon. 
• We have also been engaging with our suppliers to assess the embodied carbon of our house types in order to identify materials with the most impact.

Relevant material issues

• Supporting sustainable communities 
• Build quality and safety 
• Reinforcing trust: customers at the heart of our business

Why do we engage?

We engage with national government regarding government policy that could affect the Group.

We meet with local authority planning departments to ensure we are able to create sustainable communities with high amenity value in places where people wish to live and work.

We engage with the Health and Safety Executive in relation to industry-wide initiatives to reduce health and safety risks to both our workforce and local communities.

How do we engage?

• We are a member of the Home Builders Federation. 
• We engage with government departments directly, and working with the Home Builders Federation and Homes for Scotland, to explain industry opportunities and challenges. 
• By participating in industry meetings with Ministers. 
• Regular dialogue with the Health and Safety Executive. 
• Engaging with local planning authorities. 
• Engaged with Home Building Skills Partnership.
• Dean Finch, Group Chief Executive, is a member of the government’s Net Zero Buildings Council, a partnership between the government, industry and third sector which focuses on the delivery and implementation of key objectives within the Heat and Buildings and Net Zero Strategies.

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What did they tell us? 

• As part of the UK achieving its target of net zero by 2050, the government is consulting on the Future Homes Standard which aims to significantly reduce the carbon emissions of a home built to current regulations.
• It is essential to maintain a skilled and well resourced Health and Safety Department.
• In December 2022, the government launched a consultation into the Levelling Up and Regeneration Bill which seeks views on the proposed approach to updating to the National Planning Policy Framework.

How do we measure the effectiveness of our engagement? 

The Board receives updates from the Group Chief Executive regarding direct engagement with government, Homes England and the Home Builders Federation.

Outcomes and effects on Board decisions

• To protect leaseholders, we signed the Developer Pledge and have worked positively with the Department for Levelling Up, Housing and Communities to agree a final developer remediation contract.
• Introduced a Placemaking Framework which considers social value and the well-being of our communities within our site design, for example providing public open spaces, walkways, play areas and enhancing bio-diversity. 
• We become one of only 10 companies to be awarded a Certificate of Commitment and Progress – Building Safety Stage 1, as part of the Building a Safer Future Charter Champion application process.