A recent study by LawDeb, a UK-based professional services firm, found that only 51 percent of UK employees understand the role of their company board, with this number falling to 45 percent among employees aged 16 to 24.
This lack of understanding has obvious consequences on the levels of trust employees place in their boards. Just 54 percent of UK workers believe their company board consistently follows through on its commitments. Trust levels for decision-making are slightly higher, with 58 percent of employees expressing confidence that their company will honour its promises, 54 percent agreeing that their board’s decisions serve the best interests of all stakeholders.
These findings underscore the need for clear communication about board actions, which is essential for establishing strong employee trust and support.
This lack of transparency may be limiting opportunities for employee engagement and feedback on company decisions, as only 54 percent of workers say they know how to raise their concerns or perspectives on the organisation’s operations. For employees aged 24 to 30, however, this figure rises to 60 percent, suggesting younger professionals may be more proactive in seeking to express their views.
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Demand for Diversity and Environmental Accountability
Diversity remains a priority for employees, who view board representation as essential to an equitable workplace. According to the report, two-thirds of UK workers support diversity on company boards, with 57 percent of employees believing that a diverse board positively impacts the work environment.
The emphasis on diversity is particularly strong among female employees, with 71 percent stating that board diversity should reflect the diversity within the company, compared to 62 percent of male respondents. Further, 60 percent of women believe a diverse board improves the work environment, a view shared by 55 percent of male employees. These perspectives underscore the importance of diversity in driving employee satisfaction and underscore expectations that boards reflect the demographics of their wider workforce.
Environmental practices remain a top priority for many employees, who expect their companies to contribute actively to environmental protection. However, LawDeb’s research reveals that only 54 percent of employees believe their company is adequately fulfilling its environmental responsibilities. This sentiment comes at a time when boardrooms are facing increasing environmental scrutiny from new regulations like the Sustainability Disclosure Requirements (SDRs) and the upcoming COP29 conference.
The survey data points to a growing need for boards to better communicate their environmental initiatives and performance to employees, as well as demonstrate how they are responding to industry pressures around sustainability.
A Mutually Beneficial Relationship
Patrick Davis, Director of Corporate Secretarial Services (CSS) at LawDeb, comments, “Boards understandably focus on tangible strategic objectives which should include engagement with stakeholder groups – mechanisms such as the designated non-executive director for employee engagement within the listed environment, allied with other feedback loops, provide an effective way to develop an ongoing dialogue with this stakeholder group. The board’s response to this input can improve engagement and demonstrate the board’s role to employees which can be transformative.
“Though all stakeholder groups need to of course be considered, it’s hugely important that business leaders find ways to drive engagement with employees across the business and maintain an open two-way dialogue with colleagues to ensure opinions and needs are being heard. This will generate trust, make employees feel more valued and motivated, and could lead to better productivity – ultimately improving the bottom line.
“Doing so will require thorough governance, robust corporate health checks, appropriate director training and additional elements such as records maintenance. It’s critical that businesses are equipped with all the required tools to ensure boards and their employees have a mutually beneficial relationship.”
