Engagement

We want our managers and leaders to engage closely with employees, helping them to perform to the highest standards.

Our Business Principles and values set the standards of behaviour that everyone in O2 is encouraged to live by at work. We provide mandatory e-learning for all employees and operate a confidential helpline for our employees who may have concerns about inappropriate business practices.

O2 is working to develop and nurture its leaders and managers to motivate and manage their teams towards performance excellence.

To this end, the Reflect O2 programme continues to be a channel for employee feedback and the assessment of employee engagement levels throughout the Company. The programme consists of a survey on how O2 employees view their leaders, the way they are being managed, the O2 spirit and O2's focus on its customers. Each department devises action plans in response to the survey results. The survey is useful in making sure our employees know that they are valued and to engage with them on the direction and strategy of the Company.

81 per cent of our employees are 'proud to work' for O2.

In 2004/05, 79 per cent (more than 13,000) of our employees took part in the Reflect O2 survey. In the survey, 81 per cent said they felt proud working for O2. This result had improved by two per cent from the previous survey, and was similar to an upper-quartile benchmark reported by Maritz Research. Although the questions set from 2003/04 were redesigned for greater clarity and usefulness, eight of the nine questions retained from the previous survey showed an improvement in scores. The Reflect scores highlighted, among other things, to O2 UK's management team, that it could be more effective at motivating employees to achieve excellence. The score of 56 per cent encouraged senior managers to put in place a series of events focused on engaging their employees.

Following the communication of the 2004 results, team briefings and action planning have been taking place throughout the business. Discussions take place to share further understanding of the reasons behind the scores, so that appropriate actions can be taken to address the feedback. Some teams have experienced higher levels of enthusiasm in Reflect action planning because they can see that their leaders and managers take their feedback seriously.

During 2004/05, a new performance management system and an online annual performance review system led to a reduction of 95 per cent in performance review grievances and to 100 per cent completion of managers' annual performance reviews in the UK.

O2 in the UK recognises two unions - Connect and the Communications Workers Union (CWU). CWU negotiates on behalf of all non-managers in the UK. The Employee Relations Team works closely with the recognised unions on relevant matters such as consultation on key business events, and negotiations on changes to terms and conditions such as the annual pay reviews. 100 per cent of O2's employees are represented in the European Works Council.

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