Nationwide
Measure the impact
Addressing age issues = improved commitment = better performance
Nationwide believes that treating employees well makes good business sense. Whilst most employers would agree with this, Nationwide has measured business performance with employee and customer commitment over a number of years and is convinced there's a strong link between the three. The business has calculated that a 3% increase in employee commitment means a 1% upturn in customer commitment and therefore an £8m rise in business performance. Nationwide has also found a clear link between employee commitment and length of service and has taken crucial steps to improve employee retention.
In 2005, 76% of Nationwide employees voted their organisation the Sunday Times Best Big Company to Work For. According to Jeremy del Strother, director of personnel & development, 'it makes real business sense to do things that result in a more committed workforce'. Nationwide's annual employee satisfaction survey suggests that commitment to the organisation increases with age so Nationwide is keen to respond by focusing on identifying and meeting the needs of employees at both ends of the age spectrum.
A recent initiative has been to pre-empt forthcoming age legislation and raise Nationwide's retirement age to 75 with employees remaining on the same terms and conditions throughout the course of their employment, irrespective of age. This follows the success of the organisation's flexible retirement policy, introduced in 2001, which enabled employees to request to continue working, on amended terms and conditions, beyond the normal retirement age of 60 up to age 70, provided they met certain criteria. This led to an increase in the percentage of employees aged 50 or over from 10.9% to 12.33% over the last two years. Nationwide's experience suggests that any increased costs commonly associated with employing older workers are more than outweighed by significantly lower turnover rates and greater commitment.
At the other end of the age spectrum, improved recruitment techniques to support a more age-neutral approach have resulted in a reduction in turnover and greater age diversity. Turnover in the under-20 age band has nearly halved in the last four years, a significant achievement since Nationwide calculates that each 1% reduction in turnover is worth £3m per year.
Nationwide's approach is underpinned by its Employee Proposition. Endorsed by the Chief Executive, Philip Williamson, the Proposition outlines what each employee can expect from Nationwide, irrespective of age and job level, as well as what Nationwide expects from each employee. The PRIDE values which are the key to the Employee Proposition reflect Nationwide's Diversity and Equality of Opportunity Policy. It is the responsibility of the Diversity and Equality of Opportunity Committee (DEOC), chaired by Bernard Simpson deputy chief executive and chief operating officer, to ensure that this policy lives throughout the business. Nationwide is conscious that there is always more to be done but they have the results to show that their approach is working.
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Measure the impact
Addressing age issues = improved commitment = better performance
Nationwide believes that treating employees well makes good business sense. Whilst most employers would agree with this, Nationwide has measured business performance with employee and customer commitment over a number of years and is convinced there's a strong link between the three. The business has calculated that a 3% increase in employee commitment means a 1% upturn in customer commitment and therefore an £8m rise in business performance. Nationwide has also found a clear link between employee commitment and length of service and has taken crucial steps to improve employee retention.
In 2005, 76% of Nationwide employees voted their organisation the Sunday Times Best Big Company to Work For. According to Jeremy del Strother, director of personnel & development, 'it makes real business sense to do things that result in a more committed workforce'. Nationwide's annual employee satisfaction survey suggests that commitment to the organisation increases with age so Nationwide is keen to respond by focusing on identifying and meeting the needs of employees at both ends of the age spectrum.
A recent initiative has been to pre-empt forthcoming age legislation and raise Nationwide's retirement age to 75 with employees remaining on the same terms and conditions throughout the course of their employment, irrespective of age. This follows the success of the organisation's flexible retirement policy, introduced in 2001, which enabled employees to request to continue working, on amended terms and conditions, beyond the normal retirement age of 60 up to age 70, provided they met certain criteria. This led to an increase in the percentage of employees aged 50 or over from 10.9% to 12.33% over the last two years. Nationwide's experience suggests that any increased costs commonly associated with employing older workers are more than outweighed by significantly lower turnover rates and greater commitment.
At the other end of the age spectrum, improved recruitment techniques to support a more age-neutral approach have resulted in a reduction in turnover and greater age diversity. Turnover in the under-20 age band has nearly halved in the last four years, a significant achievement since Nationwide calculates that each 1% reduction in turnover is worth £3m per year.
Nationwide's approach is underpinned by its Employee Proposition. Endorsed by the Chief Executive, Philip Williamson, the Proposition outlines what each employee can expect from Nationwide, irrespective of age and job level, as well as what Nationwide expects from each employee. The PRIDE values which are the key to the Employee Proposition reflect Nationwide's Diversity and Equality of Opportunity Policy. It is the responsibility of the Diversity and Equality of Opportunity Committee (DEOC), chaired by Bernard Simpson deputy chief executive and chief operating officer, to ensure that this policy lives throughout the business. Nationwide is conscious that there is always more to be done but they have the results to show that their approach is working.
Click icon to download a printable version of the case study
download pdf
