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The Company is focused on improving the support to its people, including through cultural development, engagement, and review of rewards and benefits. During 2021, investment was made in internal communications, training and workshops. ‘Values and Behaviours’ and ‘Leading through Change’ workshops were rolled out across the group, as well as conferences and training held on projects forming part of the Strategy. These workshops and new performance management training will continue throughout 2022, with a target of all line managers having received training by end of Q1 2022.

Importance was placed on utilising and promoting the ‘MyHub’ engagement portal that was launched in 2021, and considering all the feedback available to the Company including from the established Employee Forum which acts as the formal workforce advisory panel to the Board and met five times in 2021 (as detailed on page 68 of the 2021 Annual Report).

Throughout 2022, several changes and improvements to rewards and benefits for the Company’s people will be implemented, including:

  • Moving to one pension for all employees (Master Trust Pension, effective 1 April 2022), providing a more generous and flexible contribution structure, and creating consistency and fairness across the group;
  • Introduced a common approach to bonus provisions4 for senior management and sales leadership roles, driving a more collaborative and ‘group success’ approach;
  • Enhanced and harmonised holiday entitlement;
  • Equal sick pay for all colleagues; and
  • Cost of living pay increase for all employees (effective 1 January 2022).

Alongside the rewards and benefits above, the Company continues to provide death in service benefits through the Headlam Group Life Assurance scheme, a HM Revenue & Customs approved Save-AsYou-Earn Sharesave scheme (‘SAYE’) and an Employee Assistance Programme which includes mental health support. The Company will also review National Living Wage (‘NLW’) in line with the 2022 rise, and anticipates it will only be necessary to increase a very small number of its peoples’ base pay.

A key focus for 2022 is developing a Diversity, Equity and Inclusion Strategy. As detailed in the Nomination Committee Report on page 79 of the 2021 Annual Report, in order to increase diversity the Committee has appointed a third-party expert to conduct a comprehensive baseline review across the Company during the first half of 2022. Outcomes of this review will be discussed by the Board, and a strategy put in place to address areas where improvement is needed. The below table shows the gender diversity of the Company as at 31 December 2021:

Table showing gender diversity:

Gender Pay Gap Report

In line with the UK Government’s regulations which introduced gender pay gap reporting, the Company has published its most recent report dated 5 April 2021 on the gov.uk website and its own website. The report fully complies with the legislation and an abridged summary is given below which includes the Company’s two legal entities required to report (‘HFD’ and ‘MCD’) and additionally the ultimate holding company (‘PLC’) not required to report.

  • The Company’s overall median pay gap was lower than the UK national average at 1.8% (national average: 15.4%)
  • The proportion of men and women receiving bonuses:
    • HFD – men 88.9%, women 81.2%
    • MCD – men 97.2%, women 93.6%
    • PLC – men 0.0%, women 0.0%


None of the 19 RIDDORs in 2021 resulted in serious or ongoing life-changing injury. The below table details the type of incidents in 2021, and the prior year.

As an indicator of the Company’s performance against an industry standard, below is the Company’s RIDDORs incidence rate and frequency rate compared against an HSE benchmark:

  • Headlam’s RIDDOR incidence rate – 950 RIDDORs per 100,000 employees (compared against an HSE benchmark (from 2020/21) of 1,104 RIDDORs per 100,000 employees for ‘Warehousing and support activities for transportation’)
  • Headlam’s RIDDOR frequency rate – 4.86 RIDDORs for every 1,000,000 hours worked (compared against a HSE benchmark of 3.77 RIDDORs per 1,000,000 hours worked in ‘Transportation and storage’)

Source: www.hse.gov.uk

Local Communities

It is proposed that each site across the group will be allocated a certain monetary amount per employee on site by the Company, with the total to be donated to a local cause from a voted-upon shortlist, and that this will be replicated annually. In addition to monetary donations, charitable giving will also continue to be undertaken through donations of floorcovering products to identified local good causes.