Tullett Prebon plc Annual Report 2010
The productivity and welfare of employees in a business so dependent on people, such as Tullett Prebon, continued to attract considerable senior management attention, and management at all levels are aware of the importance of active engagement with employees. To this end, the Company maintains effective internal communications channels at both group and regional levels to ensure staff are informed in a timely way about major developments in the business, such as the launch of new products, key hires, and ﬁnancial announcements. Information is provided to employees regularly through integrated and complimentary channels such as internal emails, the Company’s intranet site, print collateral and town hall meetings, as appropriate. The use made of posters for internal communications across all the Company’s ofﬁces was reviewed in 2010 and will provide for an enhanced communications channel going forward. Staff welfare remains a serious matter for the Company especially given the demanding nature of the broking environment. Day to day responsibility for staff welfare and the management of stress rests with line management and the Human Resources department, and this is supplemented by an Employee Assistance programme which provides counselling and advice to staff and their families and the further use of an occupational health specialist if required. The Company’s policies on health and safety provide a formal framework for line management responsibilities in this area to be discharged. Records on employment and pastoral care matters are maintained as required in each legal and regulatory jurisdiction. These help to provide senior management with a metric to measure both the performance and welfare of staff: – In 2010 the average revenue generated by each broker was £540,000 (2009: £565,000); – The Company employed 2,461 full time equivalent employees and directors worldwide in 2010 (48% in Europe, 30% in North America and 22% in Asia Paciﬁc) compared to 2,479 staff in 2009 (45% in Europe, 33% in North America and 22% in Asia Paciﬁc). Total remuneration for all staff in 2010 was £555m (2009: £566m); – Claims for compensation for work-related accidents and illnesses remained minimal in 2010 with two claims for Worker’s Compensation in the US which resulted in 221 workdays total absence. There were no such claims in the UK or Asia Paciﬁc. (In 2009 there was only one claim in the US with none in the UK or Asia Paciﬁc);
– In 2010 there was a further reduction in absence due to short term employee sickness in the UK and in Asia Paciﬁc, in terms of both total days taken and average time off work. In the UK the Company lost 1,679 sick days (2009: 2,080 sick days) and the average time off work due to short term sickness was 1.70 days per employee (2009: 2.18 days). In Asia Paciﬁc 1,175 days were lost due to short term sickness (2009: 1,200 days), an average of 2.13 days per employee (2009: 2.23 days). The US do not report short term sickness in the same way as in Asia Paciﬁc or the UK, but in terms of longer term ‘disability’ sickness the average rate was 1.77 workdays per employee compared to 1.50 days per employee in 2009; and – 2010 saw 2 minor reported staff accidents in the UK, compared to 11 in 2009. Again, no visitors suffered injury on Company premises during 2010. As the Company is highly dependent on its employees the retention of key personnel remains one of management’s core tasks. 2010 has continued to present challenges in this regard, but management believe that, in the ordinary course of its business, retention policies in general have proved successful in retaining staff at all levels. To better track the health of the Company in respect of staff retention beyond the simple end-of-year headcount numbers, which whilst useful as a general guide does not help with developing an understanding of retention in a qualitative way, the Company monitors length of service of all staff. This provides a more qualitative measure as it implicitly reﬂects staff attitudes to employment with the Company, as a dissatisﬁed workforce would be expected to be highly ﬂuid with few long serving members of staff. This approach has the added merit of being able to be delivered within existing resource constraints. Accordingly, the Company records percentages of staff, by region, that have ﬁve and ten years or more service. In the US 55.4% (2009: 55.5%) of employees have ﬁve plus years service, and 38.6% (2009: 34.7%) have ten plus years service. In the UK the percentages are 55.9% (2009: 54.9%) and 32.9% (2009: 31.6%), and in Asia Paciﬁc the percentages are 41.0% (2009: 31.5%) and 15.8% (2009: 18.7%) respectively.
US 2010 2009 2010
Asia Paciﬁc 2010 2009
5 years + service 10 years + service