On 4 November 2025 the CIPD, in partnership with Railpen, published its first report on workforce reporting since 2022 which analyses the latest data on working practices in the UK. It shows a significant shift in the percentage of companies disclosing certain metrics – the largest of these include:
- 39% disclosing ethnic pay data (up from 9%).
- 84% disclosing gender pay data (up from 26%).
- 10% disclosing reasons for disciplinary, grievance, and whistleblowing cases (down from 17%).
- 57% disclosing living wage accreditation (up from 41%).
They also summarise several key findings, such as how improvements on workplace reporting have been incremental (while disclosure has increased in certain areas, reporting patterns remain predominantly unchanged). This has resulted in notable omissions, which includes data on the indirectly employed workforce, which forms a large part of the UK’s workforce, and data on whistleblowing, training, recruitment, and retention, which are vital indicators of employee treatment.
Furthermore, they draw attention to how, in company reports, there is often an imbalance between narrative (which is often anecdotal and materially irrelevant) and comparable data, and how workplace reporting is still viewed as a tedious compliance exercise rather than a genuinely useful strategic practice.
Concerns are also raised about the lack of value placed on workforce investment, evidenced by key statistics:
- Corporate investment in training is approximately half the EU average.
- Employer spending on training has fallen by 28% in real terms since 2005.
- Business investment as a share of GDP is the lowest in the G7 for 24 of the past 30 years.
- Only 10% of workers feel engaged in their jobs.
- 40% of workers report experiencing stress at work.
Despite the workforce being the backbone of the economy and one of the biggest costs for companies, the quality of workforce reporting can be considered sub-par, and the lack of transparency has subsequently restricted recognition of the importance of employees.
To improve upon this, the report makes five principal recommendations for policymakers, companies and investors:
- Minimum standards for workforce reporting, suggesting the International Sustainability Standards Board’s work on baseline disclosures as a future standard supported by frameworks and stakeholder input.
- Dedicated workforce sections in annual reports which are machine readable, enabling stakeholders to navigate complex data and disclosures.
- The Financial Reporting Council should consider enhanced guidance on workforce reporting, which could assist in understanding factors related to long-term business success.
- Encourage engagement and transparency, such as by encouraging chief people officers to attend annual general meetings to allow direct dialogue with investors on workforce issues.
- Recognise the role of governance in supporting good practice by using accreditation and verification mechanisms, and a disclosure and assurance framework applicable to the social dimensions of business practice.
These recommendations cover a broad range of topics and potential actions; each one undoubtedly has merit, and their implementation could be a landmark step in promoting the value of workplace reporting, which could in turn assist employers in fully understanding the value of the workforce and promoting the necessary investment to bolster morale and individual prospects, and improve the health of the economy.
However, these recommendations can be met with some degree of optimism, as positive results have been achieved in respect of recommendations made by the CIPD in their 2022 report. The Government is currently considering introducing mandatory ethnic pay gap reporting for companies with over 250 employees (which is currently a voluntary exercise), as laid out in the draft Equality (Race and Disability) Bill – its consultation ran from March to June 2025, with its findings yet to be released.
However, other recommendations have been met with inaction, such as the lack of establishment of a framework for workforce reporting, and Section 172 of the Companies Act 2006 still referring to ‘employees’ rather than using a broader term such as ‘workforce’, meaning companies are not legally required to report on non-direct employees.
What should employers do now?
Legally-speaking, there are no strict, immediate concerns for employers (other than the mountain of other employment law changes coming in via the new Employment Rights Bill!). Organisations with over 250 people should keep an eye on Government updates to remain in-the-loop regarding the status of the draft bill introducing mandatory ethnic pay gap reporting, but as previously mentioned, it’s still at a consultation stage and we’re likely some time away from seeing actual changes to the law (it is subject to change, and the consultation report/public reception may significantly shape future amendments). And, of course, smaller organisations who are upscaling and increasing the size of their workforce should remain mindful of their workforce reporting obligations which change once they reach this figure!
However, there are numerous discretionary changes they can make by acknowledging and adopting the CIPD’s recommendations and taking their data into account to improve their working practices. This could also have the effect of raising the bar for workplace reporting and setting a new standard for companies. The report does conclude by noting that whilst the FTSE 100 can lead by example and set such a benchmark, smaller companies may have to take a more constrained and pragmatic approach due to their lesser resources and capabilities.
Nonetheless, fostering an engaged, skilled workforce capable of creating and maintaining long-term growth is an understated necessity for all businesses, and it will be extremely interesting to observe if and/or how the Government and other institutions respond to the CIPD’s recommendations.
You can reach out to our Employment team for more information.
