PRI launches guide on engaging retailers on employee relations

guide on engaging retailers on employee relations

December 07, 2015

The PRI has launched An investor guide to engaging retailers on employee relations, laying out why and how investors should engage with companies on this financially material issue.

From 2013-2015, the PRI coordinated a collaborative investor engagement aimed at improving reporting and practices at 27 global retail companies. The engagement brought together 24 investors with US$1.5 trillion of assets under management. After 16 months, 22 of the companies improved their reporting and three improved their performance, against a set of KPIs identified as financially material. The largest improvements were seen in the areas of employee training and employee engagement.

The engagement guide that resulted lays out the case for engaging, including noting that global companies with highly engaged employees grow earnings per share more than 2.5 times faster than those whose employees show below-average engagement.

The guide provides clear tips on how to get started, describing: red flags to look for in company reporting, tried-and-tested questions to ask companies, how to evaluate company responses and how to respond to common company concerns. It then examines in detail how to engage on key aspects of employee relations, including employee turnover and training, before providing a set of recommendations for future engagement.

The two-page Quick reference guide: Engaging retailers on employee relations provides an at-a-glance overview of the lessons learnt, red flags, and tested questions.

Share