Rewards and Recognition
Appropriate rewards and remuneration are important in securing good employee retention. Our Group Pension Director is responsible for the development and implementation of our Total Rewards Programme in the UK.
We seek to provide pay equivalent to that awarded by similar businesses in the geographical areas in which we operate, but support this with a broader benefits package developed in consultation with our employees.
Share Schemes
A key part of our benefits package is our highly successful employee share scheme offering savings and investment opportunities for our employees through buying shares in First.
Our Save As You Earn (SAYE) scheme enables employees to make regular risk-free savings to a 'sharesave' account. After three years a guaranteed, tax-free bonus is added and there is the option to use the savings to buy discounted FirstGroup plc shares. Our 2003 SAYE offer matured in February 2007, resulting in windfalls of more than £2,500 for those saving an average of £50 each month.
Our Buy As You Earn (BAYE) scheme offers employees the opportunity to buy FirstGroup plc shares from their gross pay, saving income tax and National Insurance. The Company also contributes the equivalent number of shares without charge.
We keep our employees abreast of monthly BAYE purchases and movements in our share price via workplace posters and our intranet.
Other Rewards Schemes
This year the UK Rail division has extended the total rewards package to include flexible benefit packages. These allow our employees to contribute tax-free towards the purchase of goods ranging from bicycles to child car vouchers. We have also created a Family and Friends travel scheme offering discounted fares for our rail employees friends and relations on FirstGroup trains and buses.
Pensions
UK Rail employees can participate in the salary-related Railways Pension Scheme. In addition they can make additional savings into BRASS in order to boost their pension.
Recognition
We also recognise our employees in less formal ways, especially where they demonstrate support for our core business values. Such recognition is becoming embedded across the UK Rail division. Examples include the First TransPennine Express Rewards and Recognition Scheme, First Great Western Colleagues of Excellence Awards, First ScotRail Excellence First Awards and First Capital Connect Gold Excellence Awards.