Hidden figures

LEGAL & GENERAL’S COMMITMENTS

Following the results of the report and via consultation with its supply chain partners and a review of its existing arrangements, Legal & General has committed to the following changes:

• Introduction of sick pay policies, without waiting days (currently three days until Statutory Sick Pay starts) and at same level as standard pay
• All workers to have access to virtual healthcare services (including GP appointments), using appropriate IT equipment to conduct the appointment in a quiet, private space
• Death in service benefit as standard

L&G has also committed that by the end of 2023, more than 90 per cent (by value) of its supply chain, that’s over 500 directly managed real estate assets will be compliant with the new policies, and by 2024 it will have achieved 100 per cent compliance.

Tyson appreciates that in practice such initiatives require some fresh thinking.

He said “It’s up to the people setting these contracts to change the rules. It leads to difficult conversations where you’ve one rule for one customer, so ultimately the more customers agree to do this the better. Ten years ago, people didn’t want to procure on Real Living Wage and now it’s embedded, which is what we’ve got to move onto with benefits.

“It’s quite challenging for the industry as it’s all very well wanting to offer sick pay but it’s a real challenge in shift work to get cover, which is why a lot of this is not about the money, it’s about how we structurally support a shift worker in going to the doctor and how we help companies plan for these things.

“In the FM sector, the customers have to do more. Yes, they’re buying a service and the terms and conditions are within the law, but a lot of these organisations don’t realise that their operatives don’t get sick pay. And from a cleaning supplier viewpoint, they don’t want to lose the work so it’s a two-way street.

“But there is a point when you appreciate, ‘these are key people to my organisation’ which is why it’s incumbent to the customer to say, ‘this is a minimum standard for me now, so I want you all at the same bar which includes, death in service benefits, sick pay and access to some kind of 24/7 healthcare’. When that becomes the minimum, the bigger employers are then starting to change the market, so it becomes best practice.”

There are also clear benefits to organisations, as despite the cost of living crisis, compared to the last recession, vacancies are much harder to fill and service suppliers are less confident they can replace a role.

Says Tyson: “We’ve got to ensure sustainable employment, as otherwise there is a risk of losing people, which is why the Real Living Wage leaders have seen such an uplift in the last few years. What this has done though is make for a lot more competition across sectors in filling entry level roles and that is where the benefit package really comes into it as people are much more aware of the wrap around aspects of employment, not just pay.”

HOPES AND DREAMS

One of the most poignant parts of the report were answers to the question on hopes and dreams. Many wanted to access opportunities to study but didn’t feel confident about requesting study days. Others were worried about moving into other roles in case they were less secure.

Says Tyson: “We see people coming into a job and getting stuck in the same role for 10 years. While companies will bring up EAP programmes and opportunities for training, many operatives won’t use them as they don’t want to upset their contract managers.

“We need to have more conversations about basic level of training, including improving language skills for those for whom English is a second language. Another issue for many was insomnia, partly to do with shifts, as they may work as many hours as they can and combine this with caring responsibilities. It almost becomes a badge of honour this lack of sleep but it’s a mental health issue, as sleep is so important to your long-term health.”

All the data says to us it’s a tough life and health outcomes are not optimal, but Tyson explains: “There is also an education gap as there is a worry that if we give people access to 24/7 healthcare, they’re worried they’ll get taxed in their pay packet. These guys have been off the radar for so many years there is a distrust brewing and we need to reassure them there is no hidden agenda.”

L&G is now in working through details of the implementation process, and as Tyson explains while the vast majority of the supply chain appreciates what is being done, it isn’t easy for them as the staff concerned might be working for different customers who aren’t implementing these changes.

He says: “What I’m pleased about is that it’s not stopping us but making us think harder about becoming more inclusive,
and some of these companies are using it
as ammunition to go back to their customers and say ‘this is what L&G are doing, would you like to offer the same thing to your staff?’ which I think is the natural evolution.

“The big part of this is in lobbying procurement professionals to help create a fair playing field. We’ve done a lot of ours through negotiation – so everyone prices in the same way but I’m aware that these are individual companies with their own policies and procedures and we’re impinging on that by saying that we want to enhance that, which is not comfortable for everyone.”

Across the UK L&G estate, they will have impacted approximately 2,000 families by the end of 2023, but the next step is to convince the real estate industry to help drive this change, engage with supply chains and implement similar standards across its workforce.

Says Tyson: “Businesses can be part of the solution and improve the social conditions that affect health and health equity; in conditions of work and employment; in goods and services; and in the impact they can have on wider society and the environment. While the impact on contract prices is relatively minimal at two per cent, the new policies will significantly improve the quality of hidden workers lives.”