Attracting & retaining the right people Using employee ownership to win the race for talent

1. Attracting & retaining the right people Using employee ownership to win the race for talent Strand 1/morning

2. Attracting and Retaining Talent in an Employee Trusteeship Owned Company Tracy Newton-Blows Group HR Director Scott Bader Unique, Inspirational, Values Driven

3. Scott Bader Approach to Attraction and Retention

4. Attraction - Recruitment • Raising awareness – building understanding with candidates and recruiters – special briefings • Openly marketing differentiated employee experience – brand ‘Unique, Inspirational, Values Driven– Scott Bader’ • Use of psychometric tools and ability tests for all employees – defining strengths, development needs and motivation example drivers for sales – non-commission oriented • Assessment upfront ofCommonwealth membership and organisation fit with Scott Bader principles – using competency based interview questions to assess candidates • Move away from pay as primary attraction tool– value of whole employment package -

5. Recruiter Briefing - Excerpt Please ensure that all prospective candidates are made aware that Scott Bader is a common ownership company and as such has a unique governance structure. At interview all candidates, at all levels, will be assessed on their cultural fit to this environment, therefore it is essential that they have researched this. For further information please direct them to our website, www.scottbader.com. • “What is different about Scott Bader? • Scott Bader is a common ownership company, which means that Scott Bader Commonwealth Limited (a registered charity) holds the shares of Scott Bader Company Limited in trust on behalf of the employees. The employees do not have any financial gain from this arrangement, but they have a democratic right to become involved, influence and decide important issue regarding the major changes to the environment and conditions under which they work. • Originating from its foundation, Scott Bader has a responsibility to safe guard its long term sustainability (financially and environmentally), to conduct business in an ethical manner, to encourage involvement in democratic culture, provide work conditions that set an example to others and to contribute to the communities in which it operates. • What this means in today’s Scott Bader? • Ernest Bader’s inspirational vision has left a unique company that is independent and partially governed by its employees in a democratic environment. The company has evolved over time to emerge into an open culture, which is principle-driven. As such Scott Bader has high expectations of its employees in terms of their engagement with the governance structure, their work ethics with respect to customers whether internal or external and general conscientiousness. • What are the benefits for working for Scott Bader? • Scott Bader commit to paying a market competitive rate of pay, encouraging employee involvement, investing in education and development, and helping others via charitable giving and other community based activities.”

6. Values/Competency Based Recruitment ApproachExample- Scott Bader Principle: Involvement

7. Retention Initiatives • Active encouragement of employee representation opportunities – Employee elected Group Board members, Commonwealth Board, Members Assembly – global works council, Local work councils • Sabbaticals £7k net for travel & 4 weeks additional leave and other long service recognition at set service intervals • Educational support – Founder’s vision for personal development, funding for professional and management qualifications • Career development: project secondments, expatriate assignments/appointments, global career opportunities • Freedom to think & act – creativity & innovation in R&D, independent structure, lower risk of takeover, mandated charitable giving – agreed % profits annually • Induction programme – tailored individually – common element of Commonwealth membership, Quarterly management briefings • Competitive reward initiatives – market based pay, variable pay scheme, dividend bonus, above median HR policies & employee benefits – even an indoor swimming pool!

8. Retention: Measuring Employee Satisfaction

9. Positive Results of the Scott Bader Approach A number of key indicators from the recent employee survey – confirm the benefits of this approach: The Survey • 75% employee survey completion levels (488 employees from 611 total globally) – exceptional for a first time survey conducted in five languages! • 71% overall employee satisfaction globally across all areas Trustee ownership and the Commonwealth • 62% ‘The Commonwealth as a trusteeship owned company makes Scott Bader a better company to work for’ • 76% ‘Being involved in charitable giving is important to me’ • 76% ‘Being a trusteeship owned business I know the aims of the business’ • 83% ‘I am aware of the Scott Bader Principles & values’ • 79% ‘I understand what Commonwealth membership is all about’ Employee Motivation and Job satisfaction • 81% ‘How would you rate your current level of motivation?’ • 76% ‘I would recommend Scott Bader as a good place to work’ • 78% ‘Overall my job satisfies me’ Source: Scott Bader People Survey AF Associates July 2007

10. Harnessing co-ownership to improve business performance 2 October 2007

11. www.quintessa.org Starting up an employee-owned scientific consultancy David Hodgkinson Long-term environmental thinking…

12. Outline • Challenge • Key recruitment & retention factors • Sharing in success • Share option scheme

13. Challenge • How to attract & retain the brightest & best with: • combined scientific & consultancy skills • trusted relationships with clients • ‘getonability’ to help create and build a sustainable company ????

14. Key recruitment / retention factors • Treating people fairly & with respect • Interesting / challenging work • Influence & empowerment  Employee ownership • Participation in strategy & management • Sharing in success

15. Sharing in success Bonus Retained Earnings Dividends

16. Share option scheme • Administered by accountants • Dilution of up to 50% • Options granted on basis of impact on company creation • Employees encouraged to exercise options • Dividend paid from 3rd year • Scheme closed after 8 years • Future: Share Incentive Plan

17. Quintessence (kwîn-tès´ens) noun 1. The pure, highly concentrated essence of a thing. 2. The purest or most typical instance. 3. In ancient and medieval philosophy, the fifth and highest essence after the four elements of earth, air, fire, and water, thought to be the substance of the heavenly bodies and latent in all things. Quintessa - the quintessential consultancy … the quintessential consultancy

18. Harnessing co-ownership to improve business performance 2 October 2007