Being a Responsible Employer.
"We have seen a consistent commitment to the core principles we adopt in our working practices at Legal & General"
Elaine MacLeanGroup HR Director
We are an office-based company with around 7.6% of our employees working from home or a client's premises. Our business relies upon having the right people, with the right skills to support the business.
| Year |
UK Employees |
| As at 31st December 08 |
8,385 |
| As at 31st December 09 |
7,257 |
During 2009 we reduced the number of people we employ in the UK by 12%. This has been a difficult time but the headcount reduction was needed to reduce our cost base to adjust to extreme market conditions. This has meant a careful balance between maintaining the quality of our service to our customers and keeping our employees motivated and engaged during this period. Looking forward to 2010 we understand that the employees we have retained expect more from their employer as part of the new psychological contract. Elsewhere on this site is additional information on this process.
As we continue to expand our overseas operations we must continue to balance group wide standards with the need to accommodate local custom and practice.
Strategy
There are 4 key areas we need to be focused upon to make sure that we manage our business correctly and that our people are engaged and perform to required standards in this environment.
| Key Issue |
Our Response |
Following organisational change, Employee engagement scores have reduced. |
The level of employee engagement has been determined by analysis of the employee survey although voluntary attrition rates remain unchanged. To improve engagement levels, we will be introducing an improved well-being offering for employees
We also have an action plan to ensure reasonable adjustments are made for all employees with a disability or other medical condition and that the organisation becomes more disability-aware.
The Working hours policy has been revised which makes it clearer to employees the standards expected whilst continuing our commitment to flexible working.
|
Break out of present performance levels and take appropriate advantage of new business opportunities as the economy picks up. |
Analysis of the employee survey has consistently shown that our employees do not believe we manage poor performers.
In the first quarter of 2010 we introduced a new performance improvement plan. Performance will be approached under a different policy and procedure from conduct issues to send the right message that the aim of the procedure is to meet required standards rather than to sanction.
|
Succession-planning and understand the talent required for the organisation to meet the changing external market. |
Business areas are progressively engaging in the talent agenda. High-level recommendations are to be action following the Group Strategic Review. |
Differentiate and reward good and poor performance. |
A strategy is being developed by the Head of Reward and is being tested with HR and the business. Performance ratings have been rolled out to managers and cascade down the organisation by end of 2010. |
Governance Structure
Our people agenda is governed by a committee structure.
Our Resources Board reports into our Group Board and monitors key employee trends and governs policy. We have specialist committees such as the Health and Safety Committee and the Equalities Committee (Formerly the Equality and Diversity Committee) which monitor and make progress on key issues across the business.
The Key HR Processes that take place in a typical year are outlined here.
| Process |
Outputs |
Timing |
Annual Performance Reviews |
Annual Performance Reviews for both management and staff
Introduction of Performance Ratings covering both the 'What' & the 'How'
Salary and bonus reviews explicitly linked to performance for managers
|
Jan-March |
Annual Talent Reviews |
Performance & potential 'nine box' grids at Group and business unit level
Succession management reviews at Group level
High-potential career & development planning reviews at Group and senior business unit level.
|
Yearly |
Annual Development Reviews |
Annual development reviews for all staff
Review and agreement on personal development plans
|
July-September |
Annual Human Capital Reviews |
Annual human capital review for Nominations Committee of board
|
Annually |
Read more in our sections on reducing headcount during 2009, and on our ongoing commitments to our people.