The association commissioned Lancaster University Management School to conduct analysis of FTSE 100 companies’ annual reports to find out what companies say about the people who work for them.

The research found that nearly all companies talk about the importance of their workforce but only 43% report how employees added value to company strategy. In contrast, 91% discussed the workforce in relation to risk management.

Just under half (49%) provided forward-looking commentary on their workforce such as commitments to enhanced engagement or training while 51% focus solely on past performance, and under a quarter (21%) provide concrete data in relation to investment in training and development of their workforce or the number of employees trained.

Less than one in ten (9%) shared details of internal hire rates – the number of jobs that are filled by internal candidates.

The PLSA says with the ‘gig’ economy in the headlines and an increasing reliance on temporary or self-employed workers it is surprising that just 4% of companies provide a breakdown of workforce by full-time and part-time workers. In addition, only 7% provide data or policies on their use of agency employees.

Just 18% of companies provided any figures on staff turnover – a clear indication of a company’s stability – and only 3% provided figures disaggregated by group. In advance of government plans to introduce this as a legal requirement, currently only 7% provide the pay ratio between the CEO and the average employee.

Most companies provided information on gender diversity at board level (100%), management level (99%) and for their overall workforce (99%). However, only 15% provided details of the ethnic diversity of their workforce.

As regards employee engagement, only 34% of companies provided a meaningful narrative discussion on the ways in which they foster and measure employee engagement in their annual report. Two thirds provided figures on sickness absence rates and on the mechanisms for dialogue between the workforce and senior management but only 9% reference trade union coverage.

Luke Hildyard, PLSA policy lead for stewardship and corporate governance, said: ‘A company’s workforce is a key part of its strategy and business model, but meaningful information about employees in annual reports is still too rare.

‘Training and staff development are critical to future productivity and investment in people forms a significant component of companies’ costs. However, it appears that most companies are not explaining how they are equipping their workforce with the skills necessary to deliver their long-term strategy.

‘Given the public interest in issues like precarious working and economic productivity, and the government’s proposed corporate governance reforms giving workers and other stakeholders more say in reporting, our findings suggest an urgent need for better disclosure about employment models and working practices in these areas.’

Hidden Talent: What do companies’ annual reports tell us about their workers? is here.

Report by Pat Sweet