Investing in our people - btplc.com

1 49BT Group plcDelivering our Purpose update on our progress 2017/18 Investing in our peopleWe want people to love working for us. We aim to create a healthy, inclusive and supportive environment so everyone at BT can develop and s how we recruit and retain brilliant people who can help us achieve our ambitions. Because happy, healthy and engaged employees are more likely to do great work, take fewer sick days and stay with us for also want to work for companies that make a positive difference in society. Six in ten millennials consider purpose as a major factor when choosing an employer. Our employees come to work every day with a clear sense of purpose our the end of this year we employed just under 105,800 people in 59 countries.

2 Around 82,200 of them are based in the UK, making us one of the country s largest re all working together to use the power of communications to make a better world. We use our values to do this:Personal, Simple, talentAttracting new talentIn a competitive jobs market, we need to stay one step ahead to attract the most talented people . We ve got to make a strong case for why they should choose BT. Our purpose and values are an important selling point. As is our passion for technology and innovation. We now take virtual reality headsets to graduate recruitment fairs to inspire people who are interested in technology to consider a career with year, we recruited 463 graduates globally and we were one of only three companies in the ICT sector to appear on The Times list of Britain s top 100 graduate employers.

3 We also hired more than 2,100 apprentices, supporting the UK Government s aim to fund three million apprentices by apprentices work towards completing their apprenticeship and a permanent job with BT. Many take the opportunity to study for a professional qualification at the same time. We were graded excellent in all areas of our apprenticeship programme in an Education Scotland audit and we were voted leading large employer of apprentices at the Scottish Training Federation our peopleEmployees meet with their managers at least once a year to discuss their performance and review their development needs. We help our people grow through learning on the job or through formal training. Overall, we provided an average of 40 hours of training per employee this year, primarily through the BT offer a wide menu of training options to all our employees through the BT Academy, our online learning platform.

4 This year, we added more courses and gave it a makeover so it s simpler to use. It attracts around 55,000 visits a than 18,000 people have enrolled in our new Business Essentials programme to build a range of core skills from using IT confidently to being resilient and managing change. Other BT Academy courses cover hot topics like artificial intelligence, cyber security, digital marketing and the Internet of encourage people to learn from each other too. More than 1,400 mentors have added a personal profile to our new mentoring hub and they ve established 650 mentoring relationships across the business. We also run mentoring programmes for senior aim to spot the people with most potential even in the early stages of their careers and help them become brilliant leaders.

5 Around 300 young people joined this year s Future Leaders programme and over 45% of last year s participants have already secured promotions. More than 39,000 people have accessed our new Connected Leaders training, making it our most successful leadership programme to our business evolves to meet the changing needs of our customers, we adapt our organisation by redeploying our people . Our Transition Centre helps us to retain experienced people with the skills we need for the future, and to offer development opportunities, while also helping to avoid redundancies. We redeployed 1,127 people in the UK this Group plcDelivering our Purpose update on our progress 2017/18 Responses to driver categories:Engagement outcome:%January2017 June2017 June2016 January2018 January2017 June2017 June2016 January20185055606575807085 Managing our peopleEmpowering and equipping our peopleLeading our peopleWorking togetherPersonal growthEnabling outstanding customer experience72%71%72%74%We aim to help our people understand and share our ambitions.

6 One way we do this is through weekly newsletters updating employees on company news. Team briefings, round tables, town hall debates, site visits and webchats also offer regular opportunities for employees to meet and talk to our executive the same time, we want to make sure we re giving our people what they need. We ask for feedback on how we re doing twice a year through our employee survey, Your Say. The results give us a picture of how people feel about working for us and help us see where we can in our people continuedListening to our peopleThis year, 83% of our people responded to our first survey in June 2017 and 86% to the second in January 2018 equalling our highest ever recorded response rate last overall engagement outcome has gone up from 71% to 74% this year and scores have improved across all our key driver categories (see chart, right).

7 Nine out of ten people responding to the survey say they know what s expected of them at work and 82% take personal ownership for their customers results show encouraging indications that people are beginning to feel a shift in our culture, with better conversations taking place and management taking more accountability for embedding culture change we can always improve. For example, more than half our people told us we need to simplify the way we operate, as 42% believe we re too complex. This is a key focus as we put our values into share the survey results with managers and their teams to help them improve employee engagement and customer experience. We re delighted that more people feel we re listening to them, with 61% agreeing that their team had made positive changes based on the last survey (compared with 59% last time).

8 We also listen to employee concerns through formal channels such as our European Consultative Council and consultation with the Communication Workers Union and Prospect in the Say survey resultsBy 2020, inspire at least 66% (two-thirds) of BT people to volunteer their time and skills2017/18 performance39%of employees volunteered in 2017/18 Maintain or improve our relationship with our employees year on year2017/18 performance74 %favourable in 2017/18 (up from 71% in 2016/17)AmbitionFoundation measureEngaging our people51BT Group plcDelivering our Purpose update on our progress 2017/18 Engaging people through our purposeTo deliver our purpose, we need our people to get behind it. In our latest Your Say survey, 91% of respondents said they understand how their work contributes to BT s continue to explore how we can do more to bring our purpose to life.

9 Last year we asked our employees to pitch ideas to tackle social issues, and now we ve begun to reap rewards as some of their ideas are put into practice. One example is our work with Swansea City Community Trust (see page 27).Celebrating our purpose among BT Americas employeesOur Americas team is made up of around 3,600 people working across 30 countries. This year, we ran a campaign to unite them behind our shared One Team, One Purpose campaign asked employees across the region to share their personal stories about what they ve been doing to bring our purpose to life. Employees in 11 countries shared over 680 stories and more than 5,000 people voted to select the best. The winners were recognised by the leadership team and we celebrated their stories through posters around our offices.

10 We donated US$5 to UNICEF for every story and recognitionChallenge CupWe recognise our people s contribution to delivering our purpose through our Challenge Cup. More than 6,700 employees from 37 countries entered this year s competition. Almost one in five of the entries and four of the finalists were in the delivering our purpose category. The winning team s project is supporting efforts to tackle social exclusion by improving 4G connectivity in remote areas of the s AwardsIn May 2017, we announced the winners of outgoing chairman Sir Michael Rake s final awards for outstanding contributions to communities or the environment. The overall winner of the Chairman s Awards helped to refurbish and donate a generator to provide clean drinking water to people in Haiti after Hurricane recognitionSome of our employees have also been recognised externally for their efforts to support charities and communities.