Engaging with Stakeholders

Relevant material issues

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

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. Engaging with the workforce significantly contributes to the success and wellbeing of both the business and our employees. Engaged employees are more likely to be motivated and committed to their work, leading to higher levels of productivity and increased innovation and creativity. Engagement leads to stronger team collaboration, better communication and creates a positive culture enhancing customer satisfaction. Engaging with our employees also helps ensure they understand and align with the Group’s strategy, vision and values and helps us to understand the changing needs of our workforce, to better attract, develop and retain employees.

How do we engage?

• Through our Employee Engagement Panel, which meets regularly throughout the year. Each meeting is usually attended by a Director and is chaired by the Chief Human Resources Officer. The Chairman, Remuneration Committee Chair and two Non-Executive Directors attended meetings in 2023.
• Through annual employee engagement surveys and the resulting actions and plans.
• 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.
• Through our Women’s Network and Persimmon Pride. 
• Through role-specific conferences. 

What did they tell us?

• Our 2023 engagement survey had an 81% employee engagement score, with 90% committed to the Group and what we are trying to achieve.
• Recognition is important and employees want to feel valued and appreciated. 
• Many of our colleagues have been 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 IT improvement and 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 and absence rates. 
• Through our customer satisfaction surveys and quality measures.

Outcomes and effects on Board decisions

• We have continued to develop our Talent and our Diversity and Inclusion strategies. 
• We implemented a 5% base pay increase made in two stages, with a 3% increase in July 2023 and a further 2% in January 2024. 
• We continue to be an accredited Living Wage Foundation employer. 
• We have further improved our Learning Management System to better record employees’ training and enable further development of our e-learning courses. 
• We continued to improve our internal communications strategy. 
• We continued our communications 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. These assist 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 continued implementation of framework agreements inclusive of policies, KPIs and expected service levels. 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 and 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 Whole Life Carbon Oversight Group. 

What did they tell us?

• The Group works in partnership with its suppliers, providing material demand forecasting, with periodic updates detailing any variations. This ensures continuity of supply, providing continuity and visibility of future workflows. 
• Timely payment of invoices is important – we pay invoices within agreed timescales. 
• They continue to monitor the impact of global supply chain and price-sensitive impacts to enable continued service delivery. 
• Material delivery monitoring and reporting is important, to support compliance and identify opportunity for reduction of excess stock to develop a robust supply chain. 
• They want to work collaboratively to identify innovative solutions and alternative products to support changes to statutory requirements and Building Regulations (such as transition to Future Homes Standard) and delivery of our objectives.

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 standardisation of our procurement process, greater central oversight and an expanded use of framework agreements. 
• 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 councillors and 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 and Homes for Scotland. 
• 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 Homes England and with the Health and Safety Executive. 
• Engaging with local councillors and local planning authorities.

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, Safety and Environment Department. 
• To better reflect the views of local authorities and communities in the plans we develop.

How do we measure the effectiveness of our engagement?

• The Board receives updates from the Group Chief Executive and Group Director of Strategic Partnerships and External Affairs regarding direct engagement with Government, Homes England and the Home Builders Federation. 
• Our engagement has led to an enhanced planning approach, with c.11,000 plots achieving detailed consent.

Outcomes and effects on Board decisions

• To protect leaseholders, we signed self remediation contracts with both the English and Welsh Governments to protect leaseholders from having to pay towards cladding removal or fire-related safety issues on buildings that the Group constructed. We continue to work positively with the Scottish Government on a similar agreement. 
• We were awarded Building a Safer Future Chartered Champion status in March 2023. We were applauded for the work we have done to act as a spearhead for the industry to step up and take responsibility