ANNUAL REPORT AND FINANCIAL STATEMENTS 2009

Business review

Employees

Benefits and lifestyle

United Utilities recognises the importance of work-life balance and the group provides a range of benefits in support of that balance. Policies on maternity, paternity, adoption, personal and special leave go beyond its requisite legal obligations as an employer. Pension provision is a particularly valued core benefit and more than 92 per cent of employees are members of pension schemes. A flexible benefits scheme is also open to all employees.

Dignity and equality

United Utilities’ business principles make it clear that in everything it does, the group seeks to act with integrity and fairness and observe legal requirements. Any employee with serious concerns that the group may not be adhering to these principles is encouraged to speak up via their line manager or by using a contact number that can be called in confidence. A copy of United Utilities’ business principles document is available at unitedutilities.com

Disabilities

United Utilities is committed to fulfiling its obligations in accordance with the Disability Discrimination Act 1995 and best practice. As an equal opportunities employer, it gives equal consideration to applicants with disabilities in the employment criteria and will modify equipment and working practices wherever it is safe and practical to do so. The group has retained the ‘double tick’ positive disabled people award.

Employee relations

United Utilities and its trade unions continue to strive towards developing an approach of working together under an employee relations framework. This looks not just at what needs to be done but how to enable the development of positive working relationships. Both parties share a commitment to the success of United Utilities and are committed to developing positive working relationships.

Engagement

The continued engagement of employees is a key factor to the success of United Utilities. Through independently verified annual employee surveys and ‘pulse’ surveys, progress with engagement and employee feedback upon management’s response to it are measured. The factors assessed include: how employees think about the group; how they fit in; how they feel in terms of pride and attachment to the group; and are they motivated to go beyond the requirements of their day job.

A record number of employees had their say in the 2008/09 survey, with a response rate of 93 per cent. The group achieved an employee engagement score of 76 per cent, exceeding the target of 70 per cent, building towards a target of 85 per cent engagement by 2010.

Health and safety

In 2008/09, United Utilities enhanced its approach to health and safety, integrating a new management framework into its business operations, allowing a focus on measuring and reducing risks proactively and improving corporate governance.

The reported accident incident rate per 100,000 employees (injuries causing more than one day’s absence) decreased significantly from 1,101 to 778. In recognising that this can be improved, a 10 per cent reduction has been targeted by 2010.

There have also been two major successes through working in partnership with two key clients. In our contract with Northern Gas Networks, United Utilities achieved a 40 per cent reduction in lost time injuries. It also won the IGEM/SBGI 2008 gas industry safety award. The 4D consortium, of which United Utilities is a part, in its contract with Southern Water, worked for more than a year without a single accident; equivalent to more than 4.2 million man hours without incident.

Recruitment and development

In 2008, 40 people joined the graduate development programme. They undertake four placements of six months, working across diverse areas to support the group’s objective of providing a world class graduate scheme, which will provide a talent pool for future leaders. In addition, 90 apprentices joined the business following accredited training frameworks.

United Utilities has identified and developed strong partnerships with selected universities that support the graduate pipeline. Particularly successful is the work with Liverpool John Moores University and their World of Work programme, supporting students’ preparation for the move from study to the working environment.

Investment in skills development, together with the introduction of a performance scorecard across the business, seeks to ensure that there is the capability and focus necessary to continue to drive high performance through people. To this end, a new leadership competence framework has been launched together with the ‘learning zone’, an online portal which supports employees in driving their own personal development.

More detail on the subjects covered on this page is available on our online corporate responsibility report at unitedutilities.com/crreport2009