Next is a UK - based multi-channel retailer offering exciting, beautifully designed, excellent quality clothing, footwear, accessories
Question:
Next is a UK - based multi-channel retailer offering exciting, beautifully designed, excellent quality clothing, footwear, accessories and home products Management team The success of NEXT relies on the continued service of its senior management and technical personnel and on its ability to continue to attract, motivate and retain highly qualified employees. The retail sector is very competitive and NEXT staff are frequently targeted by other companies. The Remuneration Committee identifies senior personnel, reviews remuneration at least annually and formulates packages to retain and motivate these employees. In addition, the Board considers the development of senior managers to ensure adequate career development opportunities for key personnel, with orderly succession and promotion to important management positions.
Employees NEXT’s employees are key to achieving business objectives. NEXT has established policies for recruitment, training and development of personnel and is committed to achieving excellence in the areas of health, safety, welfare and protection of employees and their working environment.
Equal opportunities and diversity NEXT is an equal opportunities employer and will continue to ensure it offers career opportunities without discrimination. Full consideration is given to applications for employment from disabled persons, having regard to their particular aptitudes and abilities. The Group has continued the employment wherever possible of any person who becomes disabled during their employment.
Opportunities for training, career development and promotion do not operate to the detriment of disabled employees. The following table shows the gender mix of the Group’s employees at the end of the financial year:
Training and development NEXT aims to realise the potential of its employees by supporting their career progression and promotion wherever possible. It makes significant investment in the training and development of staff and in training and education programmes which contribute to the promotion prospects of employees.
Employee communication NEXT has a policy of providing employees with financial and other information about the business and ensures that the suggestions and views of employees are taken into account. NEXT has an employee forum made up of elected representatives from throughout the business who attend meetings at least twice a year with directors and senior managers. This forum enables and encourages open discussion on key business issues, policies and the working environment.
Employee share ownership Approximately 9,800 employees held options over 7.4 million shares in NEXT at January 2014, being 4.8% of the total shares in issue. Its employee share ownership trust (‘ESOT’) purchases shares for issue to employees when their options are exercised. At the year end the ESOT held 6.2 million shares, the voting rights of which are exercisable by the Trustee.
Pension provision NEXT offers valuable pension benefits to participating employees, details of which are set out in the Remuneration Report and in Note 21 to the financial statements. At January 2014, there were 1,169 (2013: 1,242) active members in the Defined Benefit Section of the Next Group Pension Plan and 2,775 (2013: 2,375) UK employees with Defined Contribution arrangements.
Discussion points 1 The ‘people’ asset does not appear in the balance sheet of a company. What are the costs to the company of maintaining the ‘people’ asset?
2 What are the risks to a service business of strong reliance on the ‘people’ asset?
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