VaLUENTiS Human Capital Reporting model template 310106

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  • This is an example template of a Human Capital Report incorporating the Human Capital Operating, PeopleFlow (TM) and Human Capital Productivity statements from VaLUENTiS 2005-6 Human Capital Reporting Standards. The HCR reference papers are available from VaLUENTiS website.
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VaLUENTiS Human Capital Reporting model template 310106

  1. 1. Client Organisation: Barclays A Client PLC Human Capital Management Report AAAAAAAAA p 2005 BBBBBB Review BBBBBB CCCC BB AA BBBBBB AA CCCCCC Please note: This report is designed for ill t ti l f idi Human Capital Report 2005 Human Capital Management Client Report [period 01.01.04 – 31.112.04]Draft 01.02.06 illustration only as a means of providing a template with example content and layout. All references within reflect common elements but do not refer to any specific organisation or person.
  2. 2. Client Organisation: Barclays The purpose of this document is to provide an illustrative guide to a human capital report. We advise reading our accompanying HC Reporting white paper to Purpose of this document… p p g p y g p g p p gain further context and understanding regarding the actual reporting construct. It is not meant to be prescriptive or comprehensive, merely an indication of likely headings and content . Guidance notes are included where you see the following format: Guidance notes Should you wish to obtain further information or assistance with regard to producing a document or should you wish to receive specific Human Capital Reporting related training*, then please contact our international HCR Corporate Solutions Team on: + 44 20 7 887 6108 or e-mail: hcr@valuentis.com . *VaLUENTiS International School of Human Capital Management Human Capital Measurement VBVB--HRHR™™ RatingRating HC ReportingHC Reporting PerformancePerformance TalentTalent EmployeeEmployee engagementengagement Employer brandEmployer brand ‘Every so often comes a new market leader’ Measurement Human Capital Management HR Function Effectiveness HC ScorecardHC Scorecard TalentTalent RewardReward RetentionRetention HCHC BenchmarkingBenchmarking HR StrategyHR Strategy HR Value propositionHR Value proposition HR Delivery modelHR Delivery model Organisation Measurement & Effectiveness Diagnosis ? Design ? Implementation HR CapabilityHR Capability OrganisationalOrganisational--HRHR ‘work‘work--out’out’ programmesprogrammes ScorecardsScorecards ValueValue--basedbased enterprise managemententerprise management M&A integrationM&A integration RestructuresRestructures HR AuditsHR Audits Sales team effectivenessSales team effectiveness Client managementClient management Human Capital Report 2005 2 Global Headquarters: 2nd Floor, Berkeley Square House, Berkeley Square, London, W1J 6BD Tel: +44 20 7 887 6108 Fax: +44 20 7 887 6100 ? www.valuentis.com ? www.vbhr.com Next…….
  3. 3. Client Organisation: Barclays Different levels of reporting… VaLUENTiS white paper ‘Human Capital Reporting: A summary of draft proposals’ provides the rationale for organisations to aspire to three different levels of reporting, ‘Standard’, ‘Intermediate’ and ‘Advanced’. Each level contains a number of expected (mandatory) components with certain options/variations as shown in the table below. This takes account of where organisations are today and where they can progress to, over time. Naturally we would expect readers of the information to push for everybody to the advanced level as soon as possible. There are plans for a fourth and fifth level as and when organisations have reached the ‘Advanced’ ceilingreached the Advanced ceiling. Levels of HC Reporting g ated ice t lysis ng or ment Level of HC reporting Partofexisting document Separatededica HCReport HCPolicies HCInitiatives Companypracti specifics HCOStatement PeopleFlow statement Productivity statement KPIs Segmentalanal Enhancedratio reporting AdditionalHC domainreportin VB-HR™Rating equivalent VB-HR™Rating narrative HCValuestatem Standard - - - Intermediate - - Advanced - Optional Mandatory - Not applicable The three levels are designed to provide organisations with flexible options given their intent to publish human capital related information. Human Capital Report 2005 3Read on…….
  4. 4. Client Organisation: Barclays Content 1. Review of 2005 2. Driving organisational performance through HCM policies T l t t We propose that the HC report for the period 01.01.05 – 31.12.05] Talent management Employee wellness Diversity & employee opportunities Flexible employment & reward 3. Human Capital initiatives Employee engagement R it t & t ti the HC report should be a standalone document or contained as a section within the annual accounts. Recruitment & retention Learning 4. Company practice insight 5. Human Capital - Report of Directors 6. Human Capital Reporting statements Human Capital Operating statement P l Fl t t tPeopleFlow statement HC Productivity statement 7. Business segment review 8. Our VB-HR™ Rating ‘People’ ‘Purpose’ ‘Profit’ Human Capital Report 2005
  5. 5. Client Organisation: Barclays Review of 2005 As a leading company in our field, we recognise the huge part people play in the delivery of our products and services to the market-place Ourproducts and services to the market place. Our financial performance is a testament to this contribution. As part of our global strategy, we place significant importance in reporting aspects of our people, the essence of which is contained within this report. Our strategy is based on continually gaining competitive advantage which can only be maintained through the dedication, development d f land management of our people assets. Our performance based culture is designed to get the best from our people and we feel that it is necessary to place just as much emphasis on measuring the people aspects of the business as the traditional measures. This document provides a window through which our various investors and stakeholders can see with more transparency and as such understand and acknowledge our commitment to continued excellence. Human Capital Report 2005 5 J. W. Smithers Chief Executive Officer
  6. 6. Client Organisation: Barclays Driving Organisational Performance through HCM policies Talent management This sectionTalent management Selecting our future managers and leaders helps us to ensure that we continue to be a high-performing organisation that can exceed the expectations of our customers, staff and other stakeholders. We make sure that we can spot potential and high performance, through use of our annual appraisal system. The ‘Enhancing our Performance’ tool is now available on the company intranet, and allows us to provide all managers in the Group effective feedback on how they are performing. The 360-degree assessment incorporates feedback from people who work for them as well as their peers and their own manager, combining different viewpoints to help them identify their strengths, as well as the area of their performance or outcomes that they might wish to improve with targeted support. This section should provide readers with an outline of specific policies that the organisation wishes to make known. y g p g pp Similarly, we ensure that all our employees receive effective formal and informal feedback on how they are performing. We are currently rolling out a series of workshops to ensure that all our staff with people management have a similar approach towards giving feedback. Employee wellness We have a ‘zero-tolerance’ view of accidents in the workplace. As we regard Health & Safety as a core aspect of how we do business, employees receive Health & Safety briefings as part of their induction programmes, with additional annual training updates provided in the case of specialist roles. We provide all colleagues the opportunity to receive free eye tests, and offer subsidised gym membership as part of our overall ‘Healthy Mind in a Healthy Body’ programme. We have received positive feedback from colleagues since launching the programme, with reduced levels of stress. I t ff t th t f l f t l di ti Diversity and employee opportunities We aspire to creating a diverse workforce that reflects the communities we work in. We recognise diversity as a way that can add value to the business through incorporating different experiences and viewpoints. This helps us enhance the way we deal with our clients and ultimately we believe it helps our competitive position . In our staff canteens, we ensure that a range of low-fat, low-sodium options are available daily, and provide nutritional information so that our colleagues can make their own informed choices. To support the way we put this into practice, we ensure that all decisions around hiring, developing and promoting are based on work-related criteria as laid down in detailed policies. All our recruiters are trained to avoid discrimination in their questions and assessments and we supplement our interviewing with competency- based assessments. We are committed to providing all employees with equal opportunities based on merit, irrespective of their race, gender, sexuality or beliefs. Our policy, ‘Respect for everyone’ is intended to support this and prohibits discrimination on any grounds. We communicate our equality and diversity policy at induction and provide guidance to managers on equal opportunities, including recruitment of disabled employees and ethnic i iti E l t di i i ti h t th h C l i t d L t Human Capital Report 2005 6 minorities. Employees can report discrimination or harassment through our Complaints procedure. Last year we received 15 discrimination-related complaints, down from 18 in the previous year. All 15 were resolved following dialogue between the individuals concerned.
  7. 7. Client Organisation: Barclays Driving Organisational Performance through HCM policies (continued) Flexible employment and rewardFlexible employment and reward Our flexible working policy applies across all parts of our business (subject to local legislative requirements). Our employment practices give employees the flexibility to manage their work-life balance. These include: – part-time working – from 12 to 36 hours per week; employees can choose a variety of hours per day and days per week – job share – within appropriate roles, two colleagues can share a full-time job – two weeks’ paid paternity leave (following the birth of a baby) – parental leave (for childcare) career break schemes of up to one year (e g for personal development or caring responsibilities)– career break schemes of up to one year (e.g. for personal development or caring responsibilities) – paid time away from work for jury service, bereavement and emergency incidents. Our pay and benefits package rewards employees for their contribution to the business, and allows each person to tailor his or her package to suit their needs. Core benefits include a competitive salary, which takes account of the markets in which our businesses operate, bonus opportunity and Group profit sharing – a means for all our employees to share in the broader success of the Group. Human Capital Report 2005 7
  8. 8. Client Organisation: Barclays Human capital initiatives Employee engagement This section providesEmployee engagement We recognise that engaging our workforce is a key contributor to company performance. Our ‘Have your say’ engagement survey is now in its third year. The survey provides us with a means of assessing employee opinions, commitment and engagement, as well as an index for comparison year-on-year. In our survey carried out in May 2005, we achieved an overall 78% response. This demonstrated that colleagues are clear about what is expected of them, but that we need to improve day-to-day communications and act to prevent a perception of increased work pressures and deterioration in work-life balance. Our employee engagement score across the Group rose from 68 9 to 69 2 with the majority of operating units This section provides more granular details of specific initiatives either undertaken during the reported year or otherwise planned for the coming year. Our employee engagement score across the Group rose from 68.9 to 69.2, with the majority of operating units reporting increases, representing a trend that has continually increased. This would suggest that we are paying attention to the things that matter to our workforce but recognising that we still have room for improvement. Recruitment & retention Our ‘Employer of Choice’ programme, designed to portray a consistent image of the organisation across Europe, formally concluded early in the period and has been well received amongst potential recruits and new starters.been well received amongst potential recruits and new starters. All internal job opportunities are advertised internally on the intranet, as well as through appropriate external means, such as agencies or newspaper advertisements. Our practice of awarding ‘sign-on’ and referral packages continues to be well received in the marketplace and amongst our employees. The success of the referral package has contributed to a reduction in overall recruitment costs by Learning We want everyone who works for us to have the opportunity to develop their skills and knowledge, so that they can perform their jobs to the best of their ability and develop their careers with us. We provide a range of different types of training, including courses, workshops, on-the-job support, mentoring, support in achieving related external qualifications and subsidised access to professional subscriptions. referral package has contributed to a reduction in overall recruitment costs by some £600,000 against 2004 figures. Feedback from staff suggests that the increased focus on individual development, through the rollout of the ‘My Career’ programme of workshops and intranet tools, with the review of our development suite, has been received positively. The effectiveness of this programme is being evaluated through multiple approaches, including a series of questions in the engagement survey, with initial findings suggesting that this programme has both increased staff engagement (by up to 1.2 points) and customer satisfaction. As part of the development process, the web-based ‘Enhancing our Performance’ tool gives all managers in Human Capital Report 2005 8 the Group effective feedback on how they are performing. The 360-degree assessment focuses on the results they create and how they achieve them through incorporating multiple viewpoints.
  9. 9. Client Organisation: Barclays Company practice insight Flexible working This section may want to provide t l i i Flexible working We recognise that engaging our workforce is a key contributor to company performance. To ensure that all our employees are able to contribute to the maximum, we aim wherever possible to give them the flexibility they need to balance their various commitments and manage their work/life balance appropriately. Edwin, who joined us as a graduate in 2001, has opted to take advantage of our unpaid leave of absence policy that all employees qualify for after four years’ service, to teach English in Australia for six months before actual mini case studies to ground statements made under the policies and/or initiatives sections. y , g going travelling. “My friends are all impressed with the flexibility I have, and how supportive my colleagues have been” he confided. Anja has recently transitioned from a full-time role to a four-day week, to spend more time as a volunteer with her local hospice. “I’m really pleased to be able to give something back to the community, and the company has been fantastic at letting me re-evaluate how I worked in support of that”, she said. All over Europe, we now offer employees the options that give them the flexibility they ask for, whilst ensuring that they still play an active and effective role in the workplace. Graduate recruitment All our staff are vital to our effective operations and success, and we place high emphasis in identifying ‘high-flyers’ from all walks of life to add to our talent pool. We hire a selected number of graduates each year from top University campuses across Europe, and our dedicated graduate recruitment team is kept busy year-round in handling the many requests we receive, for full-time work and our sought-after internships. Martin, our European Graduate Recruitment Manager, tells us how thep g milk-round at top Universities seems to get more competitive each year. “Of course our competitors are at the same events,” he smiles, “but graduates always get excited when they start to learn about what working for us is really like. There’s just something about the way our people respond to their questions that they find so engaging, and that really helps us differentiate ourselves on campus.” As part of our annual review of our employer brand on campus, we discovered that, for the third year running, we have been recognised as ‘th I ld t lik t k f ’ i t Human Capital Report 2005 9 ‘the company I would most like to work for’ in our sector.
  10. 10. Client Organisation: Barclays Human Capital Reporting statements Report of the Directors The following statements are set out in accordance with human capital reporting standards 2006 (HCRC) and as such provide a breakdown of the performance, composition and productivity of our human capital. The development of employees, to ensure that we possess the necessary skills and behaviours to achieve our strategic business objectives is given a high priority We place emphasis on ensuring effectiveour strategic business objectives, is given a high priority. We place emphasis on ensuring effective management succession, and have developed well-established approaches for recruiting and developing graduates and other young people into the Group. Our Code of Conduct outlines our commitment to respect for individuals, no matter what their background and culture. We have a policy of recruiting from the widest possible labour market and determining the careers of our employees solely on their own merit. Accordingly, we consider suitably qualified disabled people for employment and assist them in overcoming handicaps at work. In the unfortunate case where an employee develops a disability during employment, we seek to provide them with assistance in retrainingwe seek to provide them with assistance in retraining. Internal communication is a priority for us, as our colleagues carry forward our reputation, brand and knowledge. We share information through a variety of approaches, utilising our intranet as well as internal publications and briefing sessions. Our senior managers review staff feedback and suggestions every month, and every year we hold a formal management review of themes and issues that emerge throughout the year. By order of the board. C J Burns Human Capital Report 2005 10 C.J. Burns Secretary.
  11. 11. Client Organisation: Barclays Human Capital Operating Statement ye 31st Dec 2005 ye 31st Dec 2004 Information regarding this statement can be found in our white paper or through our training events. There are different ways in which to report the actual data, i.e. whether to report accompanying percentages, more ye 31st Dec 2005 ye 31st Dec 2004 OPERATING INCOME % Revenue (£000s) 1,057,016 1,015,020 FTEs 16,352 16,047 Revenue per FTE 64,641 63,253 OPERATING COSTS Total operating costs (£000s) 904,371 815,094 People costs (£000s) 532,181 464,317 Human Capital Intensity (HCI) 58 85 56 962 p y g p g , comment etc, though this will to a great degree depend on the type of organisation. Human Capital Intensity (HCI) 58.85 56.96 OPERATING INCOME ATTRIBUTABLE TO HC (HCIR per FTE) 38,041 36,029 £ % £ % ANCILLARY PEOPLE COSTS (APC) Training & Development costs (£000s) 8,176 7,342 Recruitment costs (£000s) 2,314 2,954 1 Health & Safety costs (£000s) 740 691 HR functional and related costs (£000s) 6,254 6,879 Outplacement costs (£000s) 256 53 Total 17,740 17,919 HC LEVERAGE (HCIR/APC per FTE) 35.06 32.26 34 5 Results 1. HCI*R (Revenue contributed by HC) per FTE increased from 36,029 to 38,041, including an increase in staff of 305 (+1.9%) to 16,352 – see the PeopleFlow statement. 2. Human Capital intensity (people costs/total costs) has increased from 56.96% to 58.85%, further underlining the importance of people to our business. 3. HC Leverage has increased from 32.26 to 35.06 representing an improvement of 8.7%. 4. Average HC leverage (using VaLUENTiS HC performance index) has a cross sector index score of 49.56. Our performance ranks in the 45th percentile. 5. Overall ancillary people costs have declined by £179,000 (1%) due mainly in the reduction of recruitment and HR functional related costs over 2004, partially offset by the increase in training & development spend. Human Capital Report 2005 11 p y y g p p
  12. 12. Client Organisation: Barclays Notes to Human Capital Operating Statement 1.1 Revenue. This relates to figures for the overall Group as stated in the accompanying Accompanying notes form the backbone of the reporting information, providing depth of understanding and transparency for the intended reader. A comprehensive understanding is Profit & Loss Statement. 1.2 FTEs. See PeopleFlow Statement for detailed analysis of headcount figures. PTACS approach has been adopted to account for the use of agency staff and contract workers. 1.3 Revenue per FTE. Derived through calculation in line with related Operating Principle. 1.4 Total Operating Costs. Reported figures exclude depreciation and amortisation in line with related Operating Principle. Figures do not exclude Ancillary People Costs (see Note 1.8) 1.5 People costs. £532.1 million is comprised of Directors Remuneration of £1.9 million, a p g required of the HCR operating principles which can be gained through VaLUENTiS white paper or specific training provision. p p , contribution to pension schemes of £7.8 million (reducing the FRS17 deficit to £27.4 million) and Payroll costs of £522.5 million. 1.6 Human Capital Intensity. Derived through calculation in line with related Operating Principle. 1.7 HCI*R per FTE. Derived through calculation in line with related Operating Principle. 1.8 Ancillary People Costs. Costs as stated have not been excluded from the Total Operating Costs as set out in Note 1.4. We have adopted this approach as APC is not deemed to impact materially on Total Operating Cost figures.p y p g g 1.9 Training & Development. Costs of £8.2 million are disaggregated as follows. Pre- threshold training costs do not apply, as the cost of induction is captured in ‘Recruitment costs’, see Note 1.10. Threshold training costs equal £7.6 million in the period, of which £5.8 million relates to HR delivery and procurement of external provision, and £1.8 million relates to line delivery and direct procurement of external provision. As the organisation does not possess a dedicated Training Department, costs have been derived through pro-rata allocation of HR personnel costs and associated procurement spend. Post-threshold development costs equal £0.6 million, all of which relates to t l i iexternal course provision. 1.10Recruitment. Costs of £2.3 million include fees paid to agencies totalling £1.6 million, Induction costs of £0.3 million (which are excluded from Training Costs as set out in Note 1.9) and an allocation of HR departmental resource time and associated budget of £0.4 million. 1.11Health & Safety. Costs of £0.7m relate to related training provision of £0.1 million, related insurance payments of £0.4m, £0.1m of pre-recruitment health screening and £0.1m of employee health assessments. No court awards relating to Health & Safety, or associated liabilities have been incurred within the periodassociated liabilities have been incurred within the period. 1.12HR functional and related. Costs of £6.3 million include HR budgeted resource and expense items not otherwise included in reported cost categories of £5.6m, £0.2 million spent on employee surveys and the use of Agency staff totalling £0.5 million. No employment tribunals have taken place within the period. 1.13Outplacement costs. £0.3 million relates entirely to redundancy costs within the period caused by the reduction in the scale of French operations. 1.14Contractor/Agent. Costs of £0.5 million relate to the use of Agency staff within the period and have been included within the HR functional costs (see Note 1 12) Human Capital Report 2005 12 and have been included within the HR functional costs (see Note 1.12). 1.15Total APC. Derived through calculation in line with related Operating Principle. 1.16HC Leverage. Derived through calculation in line with related Operating Principle.
  13. 13. Client Organisation: Barclays PeopleFlow® Statement STAFFING ye 31st Dec 2005 ye 31st Dec 2004 % Information regarding this statement can be found in our white paper or through our training events. There are different ways in which to report the actual data, i.e. whether to report accompanying percentages, more comment etc, though this will to a% No of full-time staff at start of year 14,011 13,865 Number of part-time staff at start of year (FTE eqv) 1,932 1,491 Number of other at start of year (FTE eqv) 104 175 Full time equivalents (FTEs) at start of year 16,047 15,531 STAFFING MOVEMENT % £ % Number of FTEs recruited in period (+) 1,427 1,874 comment etc, though this will to a great degree depend on the type of organisation. Number of acquisitioned FTEs during period (+) - - 1,427 1,874 Number of voluntary leavers (FTE) in period (-) 996 1,065 Number of FTEs made redundant or outplaced in period (-) 35 217 Number of FTE retirements in period (-) 91 76 Number of FTEs outsourced in period (-) - Full time equivalents (FTEs) at end of year 16,352 16,047q ( ) y , , STAFFING MISCELLANEOUS Mean tenure (years) 5.2 5.3 Mean age of workforce 34 34 Retirement population 5,391 5,304 Human Capital Report 2005 13
  14. 14. Client Organisation: Barclays Notes to the Peopleflow Statement 2.1 FTEs at start of year. Consistent with figures at year end 2004. Part-time staff is comprised of staff who work less than the contracted weekly 40 hours. Other staff relates to 97 agency staff utilised to provide short-term cover and 7 staff on contracts that expired within the period under review. Figures at start of period include 375 x full- time staff on maternity/paternity leave and 223 x part-time staff on maternity/paternity leave. 2.2 FTEs recruited in period. This includes 1,318 full-time permanent staff and 194 part-time permanent staff. Group operations do not rely on seasonal staff and therefore these are not included within stated figures. 2 3 N b f i iti d FTE d i i d N i iti h b d ithi th2.3 Number of acquisitioned FTEs during period. No acquisitions have been made within the period. 2.4 Number of voluntary leavers in period. This is comprised of 720 full-time permanent staff and 332 part-time permanent staff. 2.5 Number of FTEs made redundant or outplaced. Redundancies relate to the reduction of the French operations within the period, following an appropriate period of consultation, resulting in 33 full-time employees opting for redundancy packages rather than relocation options offered. In addition, 2 employees have been dismissed within the period for (unrelated) disciplinary reasonsperiod for (unrelated) disciplinary reasons. 2.6 Number of FTE retirements. Our retiree population has increased by 91 full-time staff, of whom 12 have chosen to take early retirement. 2.7 Number of FTEs outsourced. No FTEs have been subject to outsourcing arrangements within the period. 2.8 Full-time equivalents at end of year. This accordingly totals 16,352 at year-end, derived in calculation with related Operating Principle. 2.9 Mean tenure. This has been calculated from the anniversary of start dates of full-time t t ff l d fl t th fi t dpermanent staff only and reflects the figure at year-end. 2.10Mean age. This has been calculated for all full-time and part-time permanent staff only and reflects the figure at year-end. Further detail is provided in the Regional analysis section. 2.11Retirement population. This reflects current numbers of staff receiving a pension from the Group (including Directors). Human Capital Report 2005 14
  15. 15. Client Organisation: Barclays HC Productivity Statement CONTRACTED RESOURCE ye 31st Dec 2005 ye 31st Dec 2004 Total number of FTE days contracted in year 3 530 340 3 401 289 Information regarding this statement can be found in our white paper or through our training events. There are different ways in which to report the actual data, i.e. whether to report accompanying percentages, more comment etc, though this will to a great degree depend on the type ofTotal number of FTE days contracted in year 3,530,340 3,401,289 Total number of FTE vacation days taken in year 336,987 333,144 TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE 3,193,353 3,068,145 WORK RESOURCE ADJUSTMENT FTE days gained through recorded overtime work (+) 61,932 65,371 FTE days lost to illness (-) 18,431 19,016 FTE days lost to work-related illness/injury (-) 2,773 2,816 FTE days lost to industrial action (-) 249 167 1 2 great degree depend on the type of organisation. FTE days lost to industrial action ( ) 249 167 FTE days recorded as lost under miscellaneous (-) 763 1,075 ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED 3,233,069 3,110,442 PRODUCTIVITY HCI*Revenue per FTE day (optimal) £192.96 £185.42 HCI*Revenue per FTE day (actual) £190.59 £182.90 HCI*Revenue per FTE day differential £2.37 £2.52 5 3 4 EMPLOYER-EMPLOYEE RELATED INDICES Employee engagement index 69.2 68.5 Employer brand index 71.3 71.0 HUMAN CAPITAL MANAGEMENT INDEX VB-HR Rating BB-BB-R BB-B-R HC Performance Sustaining + Sustaining + 6 7 8 Results 1. For ease of reference, numbers under this heading are actual and not in (000s). 2. Over time recorded does not obviously include unrecorded over time nor any discretionary efforts of employees. 3. HCI*Revenue per FTE day (optimal) is the revenue generated per people contribution based on the contracted days (i.e. before any overtime and lost work days). 4. HCI*Revenue per FTE day (actual) is the revenue generated per people contribution based on the actual number of days worked (i.e. including any overtime and lost work days). Since revenue recorded is a post-adjustment (actual) number it does not record the actual gain/loss from the contracted days. 5. HCI*Revenue per FTE day differential is the resulting gain/loss. A positive number shows the attributable loss (inefficiency) of the operation. 6. Overall employee engagement index score increased from 68.5 to 69.2 (75th percentile) with improvements seen across all five domains, line-of-sight, work environment, reward, development and organisational architecture. However there was considerable variation across the group – see business segment review on page 18. 7. Similarly, we recorded an overall improvement in our employer brand index score and have now broken through the 70th percentile (VaLUENTiS global index) – see also business segment review section on page 18. Human Capital Report 2005 15 8. Our overall VB-HR™ Rating has improved to BB-BB-R (see page 20 of this report for further information)
  16. 16. Client Organisation: Barclays Notes to the HC Productivity Statement 3.1 Total number of contracted FTE days available. Derived through calculation in line with related Operating Principle. 3.2 Total number of FTE days contracted in year. No additional information required. 3.3 Total number of FTE vacation days taken. No additional information required. 3.4 Actual number of contracted FTE days worked. Derived through calculation in line with related Operating Principle. 3.5 FTE days gained through recorded overtime work. 14% of the workforce is eligible for overtime work. 3 6 FTE days lost to illness This figure includes 1 645 days lost that are categorised as3.6 FTE days lost to illness. This figure includes 1,645 days lost that are categorised as long-tem sickness and 16,786 categorised as short-term sickness. 3.7 FTE days lost to work-related illness or injury. Work-related illness or injury has resulted in 2,773 days lost, of which 622 days are categorised as long-term sickness and 2,151 categorised as short-term sickness. We are pleased to report that our workforce has been free from fatality or death-in-service within the period. 3.8 FTE days lost to industrial action. Three separate episodes in the French operations resulted in 189 days being lost. A further 60 days have been recorded as lost through associated negotiation and conflict resolution by HR professionals and other staff.g y p 3.9 FTE days lost under miscellaneous. We apply the definition as set out in the related Operating Principle. Human Capital Report 2005 16
  17. 17. Client Organisation: Barclays Business-HC segment review (geography) Organisations have a variety of ways to present this data though this should follow the format used in the main accounts This Human Capital Operating Statement Year ending December 31 2005 UK Germany Spain France Italy Portugal OPERATING INCOME £ % £ % £ % £ % £ % £ % Revenue (£000s) 701,919 236,282 72,317 23,346 15,134 8,018 FTEs 10,294 3,893 1,412 354 278 121 used in the main accounts. This example follows geographical split. Knowledge regarding preparing segmental data can be gained through attending our specific training events. Revenue per FTE 68,187 60,694 51,216 65,949 54,439 66,264 OPERATING COSTS Total operating costs (£000s) 587,126 214,333 60,187 22,496 13,390 6,839 People costs (£000s) 352,551 121,313 34,422 13,543 7,158 3,194 Human Capital Intensity (HCI) 59.88 56.60 57.19 60.20 53.46 46.70 OPERATING INCOME ATTRIBUTABLE TO HC (HCIR per FTE) 40,830 34,353 29,290 39,701 29,103 30,945 ANCILLARY PEOPLE COSTS (APC) 1 Training & Development costs (£000s) 5,148 2,017 616 202 125 68 Recruitment costs (£000s) 1,457 362 310 112 52 21 Health & Safety costs (£000s) 476 189 56 9 7 3 HR functional and related costs (£000s) 4,010 1,366 417 274 125 62 Outplacement costs (£000s) 59 23 6 168 - - Total 11,150 3,957 1,405 765 309 154 HC LEVERAGE (HCIR/APC per FTE) 37.70 33.80 29.44 18.37 26.18 24.31 2 3 Notes to segment information 1. Human capital intensity ratios reflect different human capital operating models, with Italy and Spain operations recently set up. It is expected that these will increase over the next two years. 2. Contains 678,549 group costs. If stripped from UK ancillary costs, HC leverage increases to 40.14. We have not reallocated Group HR spend across the various geographies. 3. For comparative purposes, average HC leverage (using VaLUENTiS HC performance index) has a t i d f 49 56cross sector index score of 49.56. 4. …. Human Capital Report 2005 17
  18. 18. Client Organisation: Barclays Business-HC segment review (geography) PeopleFlow® Statement Year ending December 31 2005 UK Germany Spain France Italy Portugal STAFFING No of full-time staff at start of year 9,046 3,403 1,157 320 177 84 Number of part-time staff at start of year (FTE eqv) 1,232 491 123 55 31 - Number of other at start of year (FTE eqv) 78 26 - - - - Full time equivalents (FTEs) at start of year 10,356 3,920 1,280 375 208 84 STAFFING MOVEMENT Number of FTEs recruited in period (+) 788 222 265 14 91 47 Number of acquisitioned FTEs during period (+) - - - - - - 788 222 265 14 91 47 Number of voluntary leavers (FTE) in period (-) 533 167 130 2 21 10 Number of FTEs made redundant or outplaced in period (-) 26 6 3 33 - - Number of FTE retirements in period (-) 91 76 - - - - 1 2 3 Number of FTEs outsourced in period (-) - - - - - - Full time equivalents (FTEs) at end of year 10,294 3,893 1,412 354 278 121 STAFFING MISCELLANEOUS Mean tenure (years) 5.2 6.3 5.8 3.7 1.4 1.3 Mean age of workforce 34 38 29 32 27 26 Retirement population 5,039 352 5 - - - 4 Notes to segment information 1. Included here are interim positions and other directly employed contractors. 2. UK accounted for just over 55% of total new employees in 2005, as against 62% of total of voluntary leavers. 3. Details of the redundancies in our French operation can be found under the main Human Capital Operating statement. 4. UK operations account for 64.5% of total employees. 5. …. Human Capital Report 2005 18
  19. 19. Client Organisation: Barclays Business-HC segment review (geography) CONTRACTED RESOURCE UK Germany Spain France Italy Portugal Total number of FTE days contracted in year (000s) 2212 836 304 84 67 28 Total number of FTE vacation days taken in year (000s) 205 87 29 8 6 2 TOTAL NUMBER OF CONTRACTED FTE DAYS AVAILABLE (000s) 2,007 749 275 76 61 26 WORK RESOURCE ADJUSTMENT FTE days gained through recorded overtime work (+) 51,188 5,762 2,462 498 1,130 892 1 2(+) FTE days lost to illness (-) 13,539 3,161 1,345 199 147 40 FTE days lost to work-related illness/injury (-) 1,812 544 239 85 61 32 FTE days lost to industrial action (-) 82 104 6 54 3 - FTE days recorded as lost under miscellaneous (-) 549 126 65 13 8 2 ACTUAL NUMBER OF CONTRACTED FTE DAYS WORKED (000s) 2,042 751 276 76 62 27 PRODUCTIVITY £/FTE day £/FTE day £/FTE day £/FTE day £/FTE day £/FTE day HCI*Revenue per FTE day (optimal) 209.42 178.55 150.39 184.92 132.63 144.01 HCI*Revenue per FTE day (actual) 205.83 178.08 149.85 184.92 130.49 138.68 3 4 2 HCI Revenue per FTE day (actual) 205.83 178.08 149.85 184.92 130.49 138.68 HCI*Revenue per FTE day differential +3.59 +0.47 +0.54 0.00 +2.14 +5.33 Notes to segment information • For ease of reference, numbers under this heading are actual and not in (000s). • Over time recorded does not obviously include unrecorded over time nor any discretionary efforts of employees • HCI*Revenue per FTE day (optimal) is the revenue generated per people contribution based on the contracted days (i.e. before any overtime and lost work days). • HCI*Revenue per FTE day (actual) is the revenue generated per people contribution based on the actual number of days worked (i.e. including any overtime and lost work days). Since revenue recorded is a post-adjustment (actual) number it does not record the actual gain/loss from the contracted days. 5 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 2005 2004 EMPLOYER-EMPLOYEE RELATED INDICES Employee engagement index 69.2 68.5 66.3 66.1 70.4 70.3 65.1 69.3 73.5 70.8 72.6 71.4 not record the actual gain/loss from the contracted days. • HCI*Revenue per FTE day differential is the resulting gain/loss. A positive number shows the attributable loss (inefficiency) of the operation. 6 Response rate (%) 81 79 68 70 78 78 67 75 91 95 84 85 Employer brand index 71.3 71.0 70.2 69.9 73.1 71.4 62.3 62.3 na na HUMAN CAPITAL MANAGEMENT INDEX VB-HR™ Rating [Current-Future-Risk] [BB-BB-R] [BB-B-R] [BB-BB-R] [B-B-R] na na HC Performance Sustaining + Sustaining Sustaining + OPQ - - Notes to segment information 6. We measure our Employee engagement through VaLUENTiS global engagement ‘5-domain’ index. 7. We measure our Employer brand through VaLUENTiS E-Bglobal framework which is a composite index, including internal and 7 Human Capital Report 2005 19 external evaluation.
  20. 20. Client Organisation: Barclays Business-HC segment review Further information on specific human The following charts provide additional information regarding employees across the Group. Further information on specific human capital issues can be reported here to supplement baseline numbers on previous pages. For example, further ratio analysis can be found here though care must be taken to report meaningful numbers rather than a host of benchmark data. FTEs by country Spain, 1,412 France, 354 Italy, 278 Portugal, 121 UK 10 294 Germany, 3,893 The Group operates across six European countries, with the UK representing the majority of the workforce. The following chart shows FTE numbers by country at year-end. This figure includes both full-time and part- time workers, in line with our approaches towards flexible working. These figures are broken down further in theUK, 10,294 FTE age distribution 46% 25% 3% 49% 23% 3% 31 40 21-30 20 and under These figures are broken down further in the PeopleFlow® statement. The chart on the left displays the distribution of employees by age group. We are able to benefit from the wide range of life and career experience displayed by our colleagues. The average length of service is just over 5 4% 7% 15% 46% 5% 6% 14% 0% 10% 20% 30% 40% 50% 60% Over 60 51-60 41-50 31-40 % of full-time workforce 2004 2005 F l ti i ti i th kf The average length of service is just over 5 years, but in many cases colleagues choose to stay with us significantly longer than that. We recognise employee with awards on the anniversary of their service at five-year periods, and our Chairman was the Guest of Honour at the 2005 annual Retirees Dinner. W h t t b 2010 t i thFemale participation in the workforce 10% 20% 30% 40% 50% 60% Target We have a target by 2010 to raise the participation of women in our workforce to 50.5% across the Group. The following chart shows that we have already achieved this target in Germany and the UK, but still have work to do to encourage participating in other European countries. Local HR teams are working with the Group and operating units to see how this can be most appropriately Human Capital Report 2005 20 0% UK Germany Spain France Italy Portugal pp p y achieved.
  21. 21. Client Organisation: Barclays VB-HR™ Rating VB-HR™ Rating The VB-HR™ Rating is shown here as we believe it is the only instrument globally that can be reported in Human Capital reviews. If you are unfamiliar with this tool then www.vbhr.com will be a useful resource. The Rating provides management with a means of evaluating current human capital management practice including a future oriented perspective which has becomeg HR Strategy BB BB R HR Functional Capital Human Capital Management Overall ranking AAA AA A BBB BB B CCC CC C R rmin r RR RRR BB RBB future oriented perspective which has become an important market need Workforce Intelligence OrganisationalHCM Capital BB RBBBB BB RBBBBB HCM Architecture BB RBBBBB Management Employees BB RBB BB RBBBBBB HR Customer- agency BB RBBBB HR Capability BB RBBBB Human Capital HR Procurement BB BB BB R EFFECTIVENESS MAINTENANCE RISK BB BB R EFFECTIVENESS MAINTENANCE RISK The VB-HR™ Rating is a cross-sector Rating system that assesses the performance of human capital management practice across the organisation from current (Effectiveness), future (Maintenance) and risk perspectives. A VB-HR™ Rating Level 3 exercise (audit) was undertaken by VaLUENTiS in November 2005. The overall RISKRISK A VB HR Rating Level 3 exercise (audit) was undertaken by VaLUENTiS in November 2005. The overall ranking is formed from aggregated data provided on each company operation. Investors can download the VB-HR™ Rating report from www.aclientplc.com/investor-relations. Forward outlook ‘BB-BB-R’ (positive to the mean) represents an acceptable rating Certain future indicators ranked ‘BBB’BB-BB-R (positive to the mean) represents an acceptable rating. Certain future indicators ranked BBB including Management, HCM architecture and HR procurement reflecting the investments we have been making in these areas over the past two years. We believe that these will start to impact in other areas and we are expecting to achieve ‘BBB-BBB-R’ award in 2006 with a corresponding uplift in overall productivity and organisational performance. We are currently constructing specific HC value measures to report in 2006 review which will supplement the VB-HR™ Rating. Human Capital Report 2005 21

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