Engaging with Stakeholders
Culture and engaging with our stakeholders
To implement our five key priorities and to promote the success of the Company, we aim to build strong relationships with all of our stakeholders. We regularly engage with our key stakeholders to understand what matters most to them, how we can meet their interests and the likely impact of Board and management decisions
The Board receives regular updates on stakeholder engagement at Board meetings. There are a number of standing agenda items so that the Board can review progress against our five key priorities and their impact on our key stakeholders. The Board also engages directly with key stakeholders, particularly shareholders and employees. Our key stakeholders, how we engaged with them and the results of that engagement are set out below.
Customers
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Why do we engage?
Engaging with our customers helps us to be aware of their changing needs and ensure our homes are well-positioned in the market.
It also enables us to measure how we are achieving our aim of delivering high-quality, sustainable homes and excellent customer service. Engaging with our social housing partners ensures that we provide the appropriate range of affordable homes to meet the needs of local communities. In addition, we engage with the growing institutional investor and Private Rental Sector (‘PRS’) market. Maintaining positive relationships with all of our customers minimises reputational risk for the Group and will help to increase long-term demand for our homes.
How do we engage?
Our sales staff are in regular contact with our customers from the point of reserving their new home to moving in day.
We have a comprehensive communication approach for each customer, including both before and after their moving-in date.
Our site teams attend various touchpoints with our customers in the lead up to and immediately after legal completion.
We participate in two national new homes surveys run by the Home Builders Federation (HBF) to obtain independent feedback from our customers.
Our customer care teams support our customers once they have moved into their new home.
We engage with our social housing and PRS partners through regular contact and meetings.
We have a dedicated team of social media community managers who engage with our customers online, 365 days a year.
What did they tell us?
Our customers want attractively priced, sustainable and energy-efficient homes.
Customers want to be able to communicate with our teams quickly and easily, at times and in ways convenient to them. Customers value a blend of digital and interpersonal customer experiences.
Our customers expect high-quality homes.
How do we measure the effectiveness of our engagement?
The following metrics are regularly reviewed by the Board when considering progress against our five key priorities:
- Persimmon Homes Trustpilot score
- Number of homes sold
- NHBC Reportable Items
- HBF customer satisfaction survey scores
- Monitoring site visitors and website traffic levels
- Speed of resolution of customer issues
Outcomes and effects on Board decisions
Our private average selling price is c.20% lower than the UK national average for new build homes, widening the opportunity for home ownership to thousands of families and first-time buyers. Our three strong brands (Persimmon Homes, Charles Church and Westbury Partnerships) offer our customers a range of choice and value in their respective markets.
We have increased our investment in our customer experience function, including in digital technology and training.
We have continued to invest in and progress ‘The Persimmon Way’, our Group-wide consolidated approach to new home construction, which is considered to be a key driver to deliver consistent quality across our business.
Employees
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Why do we engage?
We aim to attract and grow a talented and diverse workforce, believing this to be fundamental to the long-term success of the business.
Engaging with the workforce significantly contributes to the success and wellbeing of both the business and our employees. Engaged employees are more likely to be motivated and committed to their work, leading to higher levels of productivity and increased innovation and creativity. Engagement leads to stronger team collaboration and better communication and creates a positive culture, enhancing customer satisfaction. Engaging with our employees also helps ensure they understand and align with the Group’s strategy, vision and values and helps us to understand the changing needs of our workforce, to better attract, develop and retain employees.
How do we engage?
Through our Employee Engagement Panel, which meets regularly throughout the year. Each meeting is usually attended by a Board Director and is chaired by our Chief HR Officer. The Chairman, Workforce Non-Executive Director, Chair of the Remuneration Committee and Chief Financial Officer attended meetings in 2024.
Through our intranet and improved internal communications to all employees on matters such as our business activities and priorities, the achievements of our business and our employees, and our work in local communities.
Through Employee Engagement Surveys and the resulting actions and plans.
Through our two network groups (Women’s Network and Persimmon Pride) and our ethnic minority discussion group.
Through our Health, Safety and Environment department and increased online training procedures.
Through role-specific conferences.
Through Board member attendance at the Group’s Leadership Development Programme
What did they tell us?
Our overall 2024 Employee Engagement Survey had an 81% employee engagement score, with 90% committed to the Group and what we are trying to achieve, while 91% understand how their work contributes to Persimmon’s goals.
Recognition is important, and employees want to feel valued and appreciated. We are committed to fairly rewarding our employees and celebrating excellence through recognition at our annual Persimmon Excellence Awards ceremony. Our site teams, supported by colleagues across all departments, are actively encouraged to work towards recognition, such as our NHBC Pride in the Job and Premier Guarantee’s Quality Recognition Award. We also have our internal ‘Persimmon Praise’ tool, which provides the opportunity to acknowledge and celebrate colleagues.
Our IT transformation has made great progress, and 59% of our employees have seen improvements with IT.
How do we measure the effectiveness of our engagement?
Feedback from the Employee Engagement Panel.
Through the results of our annual employee engagement survey.
Changes to our employee turnover and absence rates.
Through our customer satisfaction surveys and quality measures.
Outcomes and effects on Board decisions
We have continued to develop our Talent and our Diversity and Inclusion strategies , resulting in an increased rating on an externally assessed diversity & inclusion audit, moving from Bronze to Silver.
We formulated bespoke development programmes, designed to provide support and guidance from early careers through to executive development.
We continue to be an accredited Living Wage Foundation employer.
We improved communications to promote employee wellbeing, including our Employee Assistance Programme.
We continued to improve our internal communications strategy, utilising a range of channels, including our intranet.
Communities
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Why do we engage?
Engaging with our local communities, throughout all phases of a development, more accurately identifies their needs and helps us to meet those needs.
During this collaboration, we aim to address any planning and technical issues so that the impact of our activities on local communities is minimised, including using planning and environmental risk assessments.
How do we engage?
Being actively involved in the communities in which we operate, through employing local people and supporting local charities and community groups through our Community Champions initiative and the Persimmon Charitable Foundation.
Through our External Affairs team.
Feedback from our local pre-launch marketing campaigns.
Proactive engagement and consultation throughout the planning and development process of each of our developments.
Regular engagement with planning authorities.
What did they tell us?
They want affordable homes with lower running costs and better energy efficiency.
Local infrastructure investment is important in improving community environments.
They want us to be an active part of the community through supporting local charities, sports clubs and community groups.
They want us to be positive and responsive to the views of local people.
Leaseholders and occupants of high-rise buildings have been concerned with fire safety issues.
How do we measure the effectiveness of our engagement?
Speed of achieving planning consents and ability to unlock blocked consents.
Through the impact of our Community Champions initiative.
Through the quality of our developments and our ability to demonstrate how local priorities have been met.
Reports from the Group Director of Strategic Partnerships and External Affairs.
Delivering targets for Health and Safety and Sustainability.
Outcomes and effects on Board decisions
We focus on sustainability by trialling low-carbon building methods to meet regulatory and environmental objectives. In line with the Future Homes Standard and New Build Heat Standard in Scotland, we have developed energy transition plans for all our developments. We have started installing low-carbon designs and heating solutions, such as air source heat pumps, ahead of regulatory requirements to help us achieve our carbon reduction targets.
Our Placemaking Framework has improved the guidance and tools for our Planning and Design teams. Our new developments feature enhanced green spaces, such as allotments and orchards, to promote wellbeing. We are proud to create spaces that bring communities together.
We help to support our communities by making donations to local charities, sports clubs and community groups in the areas where we operate. During 2024, the Company donated c.£905,000 to charities, sports clubs and local community groups across the country. Our partnership with Team GB allowed us to welcome athletes to a number of our events, from show home openings to inspiring meet and greets in the communities we created.
We engage with our local communities and local planning authorities through the development process of our sites to ensure that they will meet local needs.
During 2024 the Government introduced a joint plan to accelerate building safety remediation, which we have joined. The Group is already effectively delivering the accelerated requirements. While the obligations under the self-remediation contracts with the English and Welsh Governments remain unchanged, our commitment to the joint plan reinforces our ongoing efforts to resolve building safety issues. We continue to ensure that leaseholders are not financially impacted by the costs associated with necessary cladding removal or fire safety remediation in buildings constructed by the Group. Understanding the importance of building safety, we are pleased to report that over 73% of affected developments are either being remediated or have been completed, with most works expected to be finished over the next two years.
Suppliers and subcontractors
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Why do we engage?
Engagement with our suppliers and subcontractors assists us in continuing to improve the long-term sustainability of our supply chain.
The Group benefits from long-standing relationships with many of its suppliers and subcontractors. These assist in securing the quality and supply of materials to deliver the Group’s build programmes effectively. We engage with suppliers and subcontractors to ensure adherence to our stringent health and safety standards and required standards of ethical behaviour and integrity, supported by the continued implementation of framework agreements inclusive of policies, KPIs and expected service levels.
How do we engage?
Quarterly business reviews and regular informal discussions with our key suppliers through our Group Procurement team, which is responsible for arranging and negotiating Group framework agreements and service-level agreements to ensure our suppliers understand and comply with our standard terms.
Our ‘Toolbox Talks’ help to ensure that our subcontractors understand and adhere to the health and safety standards required on our sites.
We are partners to the Supply Chain Sustainability School, which encourages and enables engagement across the supply chain.
Our local operating businesses’ Buying and Technical teams regularly engage with local suppliers and subcontractors.
All Group suppliers sign up to the Group’s Supplier Principles and equivalent Group policies, which describe our requirements and expectations.
We are part of the Future Homes Hub Whole Life Carbon Oversight Group.
What did they tell us?
Our suppliers and subcontractors want to work collaboratively to identify innovative solutions and alternative products to support changes to statutory requirements and building regulations (such as the transition to the Future Homes Standard) and delivery of our objectives.
Material delivery monitoring and reporting is important to support compliance and identify opportunities for the reduction of excess stock to develop a robust supply chain while remaining diligent in preventing modern slavery and protecting human rights.
They continue to monitor the impact of global supply chains and price-sensitive impacts to enable continued service delivery, collaborating with manufacturers to implement risk mitigation measures and prioritising responsible sourcing and human rights protection.
The Group works in partnership with its suppliers, providing material demand forecasting, with periodic updates detailing any variations. This ensures continuity of supply, providing continuity and visibility of future workflows.
Timely payment of invoices is important – we pay invoices within agreed timescales.
How do we measure the effectiveness of our engagement?
The Group Procurement department provides routine monitoring of trends and supplier performance.
Through partnership longevity: the Group’s Procurement team is responsible for managing the strong, long-standing relationships we hold with our main suppliers.
Outcomes and effects on Board decisions
Our tendering processes have been strengthened through the standardisation of our procurement process, greater central oversight and an expanded use of framework agreements.
We seek to secure Group-wide deals covering all major elements of our construction process. These relationships and agreements enable the Group to have consistent standards of quality, security of cost and supply of materials whilst providing our suppliers with certainty over volumes, revenues and cash flows.
We have signed up to the Future Homes Hub ‘Homes for Nature’ commitment.
We have also been engaging with our suppliers to assess the embodied carbon of our house types to identify materials with the most impact.
Shareholders
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Why do we engage?
Access to capital is important for the long-term success of the business. Through our engagement, we aim to create investor buy-in of our core focus areas and how we execute them. We create value for our investors by generating surplus capital beyond the reinvestment needs of the business as the market cycle develops.
How do we engage?
The Executive Directors and IR Director hold regular meetings with analysts and investors as part of the Group’s reporting cycle.
We hold shareholder roadshows. In addition, throughout the year, the Executive Directors and IR Director participate in calls, investor conferences and site visits to meet prospective and existing investors.
There is a regular update from the IR Director to the Board reporting on changes to the shareholder register and share price movement and summarising feedback from shareholders and analysts.
All Board members attend the Company’s Annual General Meeting, where the Chairman and Group Chief Executive update shareholders, and we conduct the vote on resolutions by poll.
We obtain feedback from the Company’s brokers, market analysts and shareholder groups, which is regularly shared with the Board.
The Chairman and Committee Chairs are also available to attend meetings with major shareholders to gain an understanding of any issues and concerns.
What did they tell us?
Our shareholders would like an environmental metric incorporated into our incentive awards.
Requirement of a diverse Board and pipeline of talent for succession to executive positions.
Our shareholders have a preference for a sustainable dividend.
Our shareholders are committed to fair pay for the whole workforce.
How do we measure the effectiveness of our engagement?
Feedback from analysts and investors.
Movements on the share register.
Share price relevant to the sector.
Outcomes and effects on Board decisions
The inclusion of an environmental metric in the performance condition was first introduced for the 2023 PSP awards. For 2024, the carbon reduction measure focused on the Group’s absolute Scope 1 and 2 carbon emissions.
The Group has maintained a rigorous process for each Board appointment, led by the Nomination Committee. The Group engages with external search firms specialising in executive recruitment to intentionally target diverse candidates. Throughout the year, the Nomination Committee continued to focus on succession planning to further strengthen and diversify the Board.
We recognise the importance of returns for our shareholders, reinforced through our Capital Allocation Policy. For 2024, the Board approved an interim dividend of 20p per share and has recommended a final dividend of 40p per share.
The Group is committed to providing all employees with opportunities to reach their full earning potential. As an accredited Living Wage Foundation employer, we continue to pay the Real Living Wage. Wider workforce remuneration remains a key focus for the Remuneration Committee.
Government, regulators and industry bodies
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Why do we engage?
We engage with national and local government and public bodies regarding policy that could affect the Group.
We meet with local councillors and local authority planning departments to understand their priorities to ensure we are able to create sustainable communities where people wish to live and work. We engage with the Health and Safety Executive in relation to industry-wide initiatives to reduce health and safety risks to both our workforce and local communities.
How do we engage?
Extensive engagement with local councillors and local planning authorities led by our External Affairs team.
We are a member of the Home Builders Federation and Homes for Scotland.
We engage with government departments directly and, as members, work with the Home Builders Federation and Homes for Scotland to explain industry opportunities and challenges.
By participating in industry meetings with Ministers.
Regular dialogue with Homes England and with the Health and Safety Executive.
What did they tell us?
The Government is determined to increase new housing supply and deliver 1.5m new homes across this parliament.
The Government has introduced the Remediation Acceleration Plan to target an increase in the pace of remediation across the sector.
It is essential to maintain a skilled and well-resourced Health, Safety and Environment Department.
To reflect the views of local authorities and communities in the plans we develop.
How do we measure the effectiveness of our engagement?
The Board receives updates from the Group Chief Executive and Group Director of Strategic Partnerships and External Affairs regarding direct engagement with Government, Homes England and the Home Builders Federation.
Our engagement has led to an enhanced planning approach, with over 20% increases year on year in plots receiving detailed consent.
Outcomes and effects on Board decisions
We have increased new land investment in recent years and improved our approach to planning to grow our active outlets year on year. During 2024, we achieved planning on 13,064 plots.
The Group has committed to the Government’s Remediation Acceleration Plan aimed at accelerating progress on building safety remediation. As part of this joint initiative, the Group has agreed to meet targets on eligible buildings’ assessment and works starting. The Group is already well-advanced and aims to have completed works on the majority of buildings by the end of next year, ahead of the Government’s targets. This commitment builds on the Group’s self-remediation contracts with both the English and Welsh Governments to protect leaseholders from the financial burden of necessary cladding removal and other life-critical safety issues on buildings constructed by the Group. We continue to work positively with the Scottish Government on a similar agreement.
Training is key to mitigating health and safety risks, with all workers and subcontractors receiving extensive training. HS&E modules and Toolbox Talks are regularly delivered using Group-wide materials, with topics tailored based on ongoing performance monitoring. During 2024, we launched the Target Zero campaign, aimed at raising safety awareness and accountability to minimise incidents and protect colleagues. We were awarded Building a Safer Future Chartered Champion status in March 2023 and successfully retained this status when audited this year. A Health and Safety performance metric has been introduced to the Executive Director’s annual bonus.
We work with landowners, local communities, and planning authorities to address housing needs and foster positive relationships. By delivering new housing in areas of greatest need, we support local employment and make valuable contributions to local infrastructure.
UN SDGs
Addressing global challenges in a meaningful way that is relevant and aligned to our business strategy.
UN Sustainable Development Goals