Barratt Developments PLC – Annual report – 30 June 2023
Industry: real estate
STRATEGIC REPORT (extract)
Investing in our people (extract)
Diversity and inclusion
We aim to create a working environment that provides equal opportunities for all and we are a signatory to the Business in the Community Race at Work Charter.
Selection for employment and promotion within Barratt is based on merit, following an objective assessment of ability and experience, and after giving full and fair consideration to all applicants. We are also committed to ensuring that our workplaces are free from discrimination and that everyone is treated with dignity and respect. We strive to ensure that our policies and practices provide equal opportunities in respect of training, career development and promotion for existing and potential employees, at all levels throughout the business, irrespective of age, disability, gender, gender reassignment, marriage and civil partnership, pregnancy and maternity, race and ethnicity, nationality, religion or belief, sex, and sexual orientation. We also remain signatories to the Social Mobility Pledge, committing us to providing opportunities to people from all different backgrounds.
A detailed review of our employee representation across all protected characteristics, by both function and level within the organisation, was completed during the year. This identified both our strengths and where there are clear opportunities to improve and a new three-year strategy has been put in place to drive measurable improvement through to FY25 and ensure everyone who works within the Group feels they belong and are comfortable to be themselves.
Gender diversity
Improving our gender diversity has been recognised as an initial priority with a support programme, a particular focus on graduate recruitment and early career intake and through carefully considered succession planning.
To drive improvement the Group:
- Is now measuring gender representation in each function and level within the Group on a quarterly tracking basis;
- Has refreshed our recruitment processes, to ensure have balanced and diverse shortlists; and
- Has increased the female cohort on our Accelerated Leadership Programme, which is designed to identify our future Managing Directors.
Catalyst, our existing development and support programme, designed to help high-potential female employees develop their careers within the Group, is a key part of our gender diversity strategy. This programme is showing positive results with 48% of participants being either promoted or having their roles extended.
As well as Catalyst, we also worked with the Home Builders Federation and Women in Construction during the year to launch a nationwide employment programme for women, helping to address the gender imbalance in the construction workforce, which currently sees just 16% female representation.
As at 30 June 2023, women held 18% (FY22: 17%) of senior manager roles within the Group.
The gender diversity statistics for our employees as a whole, our senior managers, the direct reports to the Executive Committee, Executive Committee and PLC Directors are shown on page 35. Further information regarding the diversity (including ethnicity of our PLC directors and Executive Committee members can be found in the Nomination report on page 120.
Ethnic diversity
Increasing the ethnic diversity of our organisation is also a clear target over the coming years. In October 2022 we launched our ethnic minority community support programme, “Spotlight”. This is an eight-month externally facilitated programme, which includes feedback from the participants on actions needed, as well as a Group-wide EMC employee network. We were also delighted to have been part of the 30% Club’s “Leaders for Race Equity” inaugural programme, alongside nine other organisations seeking to share best practice and establish tangible actions for change.
As at 30 June 2023, 7% (FY22: 7%) of employees were from ethnic minority backgrounds and 3.0% (FY22: 2.1%) of senior leadership positions were held by ethnic minority employees.
Disability
Every effort is also being made to retain and support employees who become disabled during their time working within the Group and we continue to remove physical barriers for disabled colleagues or applicants. Our “Scaffold” network, detailed earlier, is an important forum to ensure we understand the issues faced and are supporting our disabled employees.
Nomination Committee Report (extract 1 – page 117)
Diversity and inclusion
The Nomination Committee fully understands the importance of having diversity on the Board, not only in terms of skills and experience but also female and ethnic representation. The Nomination Committee and the Board were therefore disappointed when more than 20% percent of votes were cast against the re-election of John Allan at the 2022 AGM. Having engaged with those shareholders who voted against, it was evident that this was due to the fall in the level of female representation on the Board following Nina Bibby’s departure. They did however acknowledge that had they been aware of the recruitment process ongoing at the time, the shortlist for which consisted entirely of female candidates, they would have voted in favour of the resolution.
As set out earlier in my statement, since the October 2022 AGM, various changes have been made to the composition of the Board. With my appointment as Chair and of Jasi Halai as a Non-Executive Director, we meet the recommendations to have a woman in a senior Board position (Chair, CEO, CFO or SID) and to have at least one member on the Board from a minority ethnic background (as defined by the FTSE Women Leaders Review and the Parker Review). Our female representation reached 40% on 1 June 2023, when I joined the Board. As a result of the early departures of Sharon White and John Allan, our female representation on the Board is currently at 37.5%. At the point of making an offer to Nigel Webb to join as a Non- Executive Director, the Nomination Committee was conscious that female representation on the Board would fall to 33.33%. The Nomination Committee, and subsequently the Board, decided that Nigel was the best candidate for the role given that he possesses the skills, knowledge and experience in property, construction and land which complement those of the existing Board members. We are however fully committed to meeting the recommendation to have at least 40% female representation on the Board by the end of 2025. This is a key priority for the Nomination Committee and the Board.
Information on the Board’s diversity targets as required by the UK Listing Rules, together with accompanying numerical data, is set out on page 120. In addition, the Nomination Committee has reviewed its Board diversity policy, which applies to the Board and its committees, to ensure it remains fit for purpose.
The Nomination Committee also ensured that the Board considered whether diversity and inclusion across the wider business was being progressed satisfactorily. This review included talent succession and attraction, and the business’ credentials as a diverse and inclusive employer. Further information on the Company’s progress on diversity and inclusion initiatives can be found on pages 120 and 121 and in the Strategic Report on pages 35 and 36.
FY24 priorities
Our key priorities for FY24 are the continued focus on succession planning and training, particularly given the recent changes to the Board. From FY24 onwards, it has been agreed that diversity and inclusion at all levels across the business will be a matter for the Board to monitor directly rather than through the Nomination Committee. The respective Terms of Reference have been updated accordingly.
Nomination Committee Report (extract 2)
Diversity and inclusion
Board diversity
During the year, the Board reviewed its policy on diversity and inclusion. The objective of the policy is to ensure that diversity is reflected within the composition of the Board and throughout the business in its broadest sense, including gender, ethnicity, age, disability, religious belief, sexuality, social class, education experience and ways of thinking. The policy aims for continuous improvement at Board and Senior Management level on all these elements of diversity and to identify the most suitable candidate to join the Board having regard to the individual’s skills, experience and knowledge. It also seeks to ensure that, in managing any senior appointment and in succession planning more broadly, the Nomination Committee has regard to the recommendations of the Parker and the McGregor-Smith reviews on ethnicity and race and the benefits of diversity, including gender, ethnicity, social background and cognitive and personal strengths. A copy of our Board diversity policy can be found at: www.barrattdevelopments.co.uk/sustainability/our-policies.
A full explanation of the diversity on the Board and the steps being taken to improve our position are set out in the Nomination Committee Chair’s report on page 117. In accordance with the Listing Rules, the following tables detail the diversity profile of the Board and the Executive Committee as at 30 June 2023. This data was collated from our HR database which has been populated using information provided by each individual employee, including Non-Executive Directors. Individuals are asked to select from a series of options on both sex/gender and ethnicity including the below options. Diversity information for employees below the Executive Committee can be found on pages 35 to 39.
Diversity and inclusion throughout the business
The Nomination Committee and the Board recognise the importance of a diverse workforce, at all levels of seniority. Promoting diversity at Senior Management level, and more generally across the workforce, remains an objective for David Thomas, our Chief Executive. David, together with the new Group HR Director, will continue to support the Group Head of Diversity and Inclusion, to drive the agenda forward in this area and undertake a full review of the overall strategy for 2025. The Group’s aim is for its employee profile to mirror that of the communities in which it operates and provide an inclusive culture, where everyone can thrive. Further information on the Group’s progress on diversity and inclusion can be found on pages 35 to 39. The main objectives, how they are implemented and progress towards them are set out below.
Accounts examples 