Industrial Strategy: Engagement

Debate between Lord Prior of Brampton and Baroness Prosser

Monday 27th February 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Prior of Brampton) (Con)]

My Lords, we have published a Green Paper that invites people and organisations across the country to contribute to our industrial strategy. The Government are also committed to strengthening the worker voice in the boardroom. The Green Paper on corporate governance reform explores a range of options, and the Government will publish their response in due course after analysing responses they have received.

[Baroness Prosser (Lab)]

I thank the Minister for that response. The 10 pillars of the industrial strategy cover the processes required to establish the structure against which the strategy’s progress will be measured. There is, however, no mention of the human interaction needed to successfully implement those processes. There is a well-established link between employee engagement and productivity, which in this country lags behind that of France, Germany and the United States. What is the Government’s plan to ensure that companies have in place appropriate training for all levels of management, so that inclusion and employee voice are present, and the effective delivery of the industrial strategy can be measured? I note that the noble Lord mentioned workers on boards—a policy that we support, but which does not deal with employee voice at all levels of a company.

[Lord Prior of Brampton]

My Lords, the noble Baroness is absolutely right. The link between employee engagement and performance, however you measure it, whether in productivity or quality, is proven, so engagement is extremely important. However, I do not believe that just having someone on the board of a company is necessarily the right way of getting that engagement, as the noble Baroness mentioned. Engagement is much deeper than that. It is predominantly the responsibility of individual companies to tackle this. You can see the resulting performance when they get it right.