Utility giant SSE has unveiled a new report putting the “economic value” of its workforce at £3.4 billion, and claiming the business has contributed £27bn to the UK economy over the past three years.
Scottish Hydro-owning SSE said it ommissioned the “human capital” report from management consultancy PwC to measure the skills and capabilities of its workers.
The group said it had invested £60m in apprentice training since 2007, and the report found that for every £1 invested in apprentices there was “an economic return on that investment of £4.29 and for technical trainees it is £7.65”.
SSE’s total human capital was estimated at £3.4bn at 1 April 2014, made up of £1.82bn in England (10,685 employees), £1.12bn in Scotland (6,241), and £270m in Wales (1,798).
This comes out at an average human capital per head of £173,000. Alan McGill, partner at PwC, said: “Human capital is recognised as a crucial input for every business, and the reporting that we do around this capital needs to be radically changed to give us the insight into how to manage this most critical resource.”
John Stewart, human resources head at SSE, said the report would help the company improve its employees’ skills. “Human capital should not be thought of as an asset a company owns, rather it’s the people SSE ‘borrows’ from society which allows our business to operate and grow.”
He said the “groundbreaking” report showed how investment in workers benefited both a company and society via increased earnings for individuals and a resulting increase in tax payments. Stewart said the report, a first for SSE, would also help the group improve the productivity of its workforce.