Stakeholder engagement

Strategic Report
Governance
Financial Statements

Section 172 statement
In accordance with the requirements of Section 172 of theCompanies Act 2006 (the Act), the Directors confirm that during
the financial year ended 30 November 2023 they have acted in a
way that they consider, in good faith, would most likely promote
the success of the Company for the benefit of its shareholders
as a whole, having regard to the likely consequences of any
decision in the long term and the broader interests of otherstakeholders as required by the Act.
Supported by a well-established corporate governanceframework, the Board’s decisions take the long-term interestsof key stakeholders into account, including its employees,
clients and candidates, shareholders and local communities,
along with the impact of our business upon them and thelikely consequences of any planned actions required to deliver
sustainable growth.

The Board maintains close business relationships andpartnerships with these groups, to keep itself informed of thematerial issues relevant to stakeholders. In addition to the regularfeedback that it receives from customers and employees, theBoard maintains an open two-way dialogue with investors
to effectively engage with and communicate our actions tothem. This is integral to the Board’s strategic decision-making
framework focused on those business priorities which will
position SThree to deliver shared and sustainable value for all
stakeholders.
The information set out below, together with the information
on pages 94 to 99 of our Governance Report, explains how
the Board considers and engages with key stakeholder groups
identified as critical to our future success: our people, ourclients and candidates (which we referred to as customers), ourshareholders and our local communities.

The examples of the Board’s principal decisions made over the past year, and how wecreated value for our stakeholders, are provided on pages 50 to 51

Our clients and candidates
Why we engage

Regular engagement with all our clients and candidates(customers) helps us to adapt our business and strategy
by investing in the right vertical niches and improving anddeveloping a service proposition that is more relevant to evolving
customer needs. Ultimately, it helps us remain the STEM talent
provider of choice in our markets and a sustainable value creator.

How we engage•

Key Client Directors appointed among our senior recruiting
consultants to engage with clients at a strategic level.

•

Customer satisfaction surveys.

•

Net promoter score surveys.

•

Digital customer interfaces, videos, webinars, social media
channels and other virtual events.

•

Thought Leadership articles.

•

Elevate Careers – a community programme delivered incollaboration with clients, candidates and industry bodies
to help diversify the STEM talent pipeline. The programme
provides an opportunity to collaborate on hosting events andactions that empower people from diverse backgrounds toaccess career paths into STEM roles.

Our people
Why we engage

Our people’s hard work and commitment to deliver standout
customer experiences are at the heart of SThree’s ongoing
success.
Engaging with our employees and understanding what is
important to them, what challenges and risks they face, aretherefore essential to the Board’s decision making. It helps toinform Group-wide people strategies, develop better policy
interventions, reward schemes, local training plans and share
best practice in finding, developing and retaining talent.

How we engage•

Regular employee surveys.

•

Employee resource groups provide moments of belonging,awareness and allyship whilst influencing policy and people
experience.

•

Our internal community of ambassadors deliver internal
events, volunteering and moments of connection that aligncolleagues to our purpose.

•

Employee focus groups led by Denise Collis, the Senior
Independent Non-Executive Director, a dedicated Board
advocate for employee engagement.

•

Meetings between the CEO, Chief People Officer andmembers of the ExCo on people strategy and initiatives.

•

Other ongoing interactions via Group intranet, leadershipand employee-led forums, CEO Town Halls, webinars, social
media channels and global newsletters on client- and salesrelated matters.

Key interests and concerns in FY23
and our response

As part of Our People pillar we continued to keep investing timeand resources into our people.
In light of the ongoing Group-wide Technology Improvement
Programme (TIP), we were very selective about what initiatives
to focus on, ensuring we spread them over the year and acrossthe Group so that people can still have the opportunity to get
involved but without any impact on their day job or work-lifebalance. We have made several improvements to Group-widecommunication processes, training programmes, remunerationand infrastructure to support employees.

•#STEMSeries virtual events to share industry experts’ advice
and tips on multiple topics relevant to the current work andmarket environment.

Key interests and concerns in FY23
and our response

Through the engagement activities undertaken, we identified
that acceleration of digital transformation and increased
stakeholder pressure to reduce business carbon footprint are
our clients’ key areas of focus. This contributed to the ongoing
demand for STEM professionals with expertise in data analytics,
AI, developing cutting-edge technologies and green systems
architecture, creating new digital products and processoptimisation. This in turn resulted in a significant rise in average
rates for most sought-after IT contractors.
In parallel, our candidates requested to work on innovative
projects and with the latest tech to help maintain their value inthe labour market. Flexible and remote working also continued
to be an ask of our candidates, putting additional pressure on ourclients to meet these needs to attract the best talent.
In response, we continued to innovate our systems andprocesses to maximise service delivery for all our clientsand candidates.
After an intense period of testing, we rolled out the first cohortsof the new integrated platform in the US, to drive greater
operational excellence, productivity and customer experience.
For clients who experience regional talent shortages we utilised
our global talent hotspots and regional specialisms to identify
suitable candidates.
We formed a global core team to work on a new Global Client
Strategy focused on creating a consistent and standardised
approach of growing our key strategic accounts and the way wepartner with them. We aim to enhance our market reputation forthe best client experience.

We have rolled out a ‘Leading with Purpose’ training and‘Strategic Narrative’ (a six-chapter story), to help our global
workforce gain clarity on SThree’s strategy and values, andthus gain their commitment towards the accomplishment of theGroup’s 2027 ambitions.
Our Group-wide TIP, an essential enabler to increase efficiency
and resilience in the way we work internally and with ourcustomers, made significant progress this year. We successfully
delivered the first cohorts of the programme in our key location,
US, which contributed to step-changes to processes that ouremployees follow in their day-to-day jobs.
Within L&D, we developed and rolled out the professional study
policy and worked with the professional bodies to achieve
accreditation for finance team members. We also developedchange management plans and a related training offer to drive
successful adoption of outputs built and delivered under the TIP.

The employee engagement section on pages 96 to 99 in the Governance Reportprovides more detail on Group-wide actions taken in response to employee feedback

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SThree plc

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Strategic Report
Governance
Financial Statements

Our shareholders
Why we engage

We aim to instil confidence in our investors and win their longterm support of our business by providing them with complete,accurate and transparent information about our strategy
including sustainability commitments and the key drivers behind
our operational and financial performance.

How we engage•

Annual General Meetings.

•

Quarterly results presentations and trading statements.

•

Investor roadshows with one-to-one consultations and groupmeetings with large international institutions, sections of the
UK private wealth and retail investor community.

•

Virtual investor briefings and capital markets days.

•

Shareholder perception studies received via the Company’s
stockbrokers and financial advisers.

•

Investor community engagement with the Chair and NonExecutive Directors, to address environmental, social andgovernance issues and our performance.

Key interests and concerns in FY23
and our response

This year when engaging with our investors we focusedon demonstrating our robust financial performance whiletransforming our ways of working, resilience of our businessmodel further supported by favourable megatrends driving
ongoing demand for STEM skills, governance and remuneration,
strategy, capital allocation, and progress on our strategic
priorities including our transition plan towards net zero.
In June 2023, we received an extension of our main £50 million
credit facility, that was due to mature in May 2023. The Group’s
new credit maturity profile which now extends to FY26, with one
remaining extension option to FY27, has reinforced our ongoingstrong financial position.
The Board recommended a final FY23 dividend of 11.6 pence
per share. This final dividend, together with the interim dividendof 5.0 pence per share, amounts to a total dividend for theyear of 16.6 pence per share, an increase of 4% over the FY22
total dividend.
In January 2023, our CEO and CFO held SThree’s Technology
Briefing with the investor community. Our investors were
given an update on the Group-wide TIP, highlighting how thisdifferentiated solution unique to SThree will bring operational
efficiency and enable SThree’s long-term growth.

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SThree plc

Our local communities
and environment
Why we engage

Local communities are the source of the
STEM talent our clients need to solve
complex world challenges and drive
economic growth. We provide decent
work opportunities within our local
communities and access to sustainable
livelihoods.
We also address the increasing risk ofclimate change through providing the
STEM talent at the forefront of climate
innovation whilst also actively reducing
our own carbon emissions.

How we engage

Community outreach programmes togrow and diversify the STEM talentpipeline:•

Career support initiatives where
we utilise our intellectual capital inrecruitment to provide employability
support to people facing barriers to
employment.

•

Elevate Careers in partnerships
with education, non-profit
organisations, candidates and clients
to empower community members
underrepresented in STEM to accesscareer pathways, helping to diversify
the STEM talent pipeline and provide
access to sustainable income.

•Partnerships with our clientsproviding the skills needed to deliver
projects that contribute towards theUnited Nations SDGs.

Key interests and concerns
in FY23 and our response

In FY23, we evolved our work in building
diverse STEM talent communities andlaunched Elevate Careers, designed tomake STEM industries more diverse
and inclusive.
Elevate Careers replaced all our previous
regional community programmes andshares one global vision and purpose.
Thanks to a standardised approach andshare of resources, it enables us to work
more efficiently, making it easier to scale
and translate across the business tomaximise our impact.

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Strategic Report
Governance
Financial Statements

Illustration of key decisions made by the Board in FY23
The table below shows some of the key decisions of the Board in FY23. The Directors confirm that the deliberations of
the Board incorporated appropriate consideration of the matters detailed in Section 172 of the Companies Act 2006. As
stewards of the Company, the Board recognises that having regard to the needs and expectations of stakeholders is crucial,
as it ensures that SThree is well positioned to deliver long-term sustainable growth for the benefit of all its stakeholders.

Launch of the Leading with Purpose
Launch of the Strategic Narrative (a ‘Six-Chapter’ narrative)
Enhance the employee experience and knowledge of SThree strategy (service proposition) to help them become more successful,
more quickly in their day-to-day jobs.
Background and considerations made by the Board in its
decision making

The likely consequences of the decision in the long term andstakeholder groups affected

The Board approved the development and launch of astrategic narrative – ‘A Six-Chapter story’ which articulates
SThree’s strategy internally, including our destination, current
reality, unique opportunity, and the journey we need to taketo reach our goals. The Board recognises that Group-widecommunication of SThree’s purpose, vision and strategic
ambitions is key to our ongoing success. In later months of
FY22, multiple interviews took place with the ExCo and focus
groups with representation from across the business to reflect
on who we are and where we want to get; it culminated at
the leadership event in Barcelona in October FY22 when thestrategic ‘Six-Chapter’ narrative was unveiled.

Besides enhancing our employees’ understanding of the Groupvision, the strategic narrative builds on skills of our leadershipteam who, by giving the right strategic direction, helps tounleash our people’s potential to deliver SThree’s vision of
becoming the number one STEM talent provider. The launchof the Strategic Narrative was accompanied by the creationof a new SharePoint site giving access to many resources andinformation about SThree’s four strategic pillars.
This initiative is expected to help our employees to better
execute our strategy and, in the longer term, generate more
lifetime value to our business and other stakeholders.

In FY23, a team of SThree’s senior leaders issued the narrativeacross all business units, describing key initiatives and strategic
drivers and how they shape the purpose of each and every
function within the SThree Group.

Build a reputation in the market for best customer experience.
Background and considerations made by the Board in its
decision making

The likely consequences of the decision in the long term andstakeholder groups affected

The Board understands that SThree’s clients value consistency
and dependability in their partnerships. Our current processes
and standards of growing key strategic accounts were viewed
as good but not ideal, with large potential for improvement
at both global and regional level. The Board approved theinitiative to develop a global client strategy, a much needed
coordinated approach to target, grow and partner with SThree’s
strategic customers.

Our new client strategy will define the distinctive value andexperiences that SThree provides to its targeted clients; it willcomprise well-defined processes, tactics and tools to support
the selection and development of our long-term partnerships
with key clients. A standardised approach across all regions
will facilitate more global cooperation on key accounts and willbring alignment with the new CRM system developed as part of
the TIP. In the long term, the global client strategy is expected
to increase SThree’s credibility, reputation, competitiveness andlead to significant repeat high-value business from our clients;
ultimately increasing our market share within STEM sectors.

SThree plc

Strengthening our environmental ambitions with a new science-based target of net zero.
Background and considerations made by the Board in its
decision making

The likely consequences of the decision in the long term andstakeholder groups affected

After a number of Board discussions with the Executive
Team that began in December 2022, the Board approved
the strategic update announced externally on 12 April 2023.
We have updated the market about our Science Based
Targets initiative (SBTi)-verified target of reaching net zero
GHG emissions across the value chain by FY50, and how we
expect to achieve our near-term pathway to deliver on thisambitious commitment. We target a 77% reduction in scope 1
and 2 carbon emissions and a 50% reduction in scope 3 GHG
emissions by FY30 from a FY19 baseline.

SThree’s Board remains committed to tackling SThree’s
environmental impact, aligned to stakeholder expectations. The
Board also considered that SThree’s roadmap towards net zerowould encompass the Group’s targeted action on behaviouralchange, operational adaptions and influencing its end-to-end
value chain. This will also coincide with our growing investmentin the clean energy business and strengthening supply-chain
management through our TIP.

See net zero transition plan on page 71

We want to be an attractive employer for our existing andpotential employees, who want to work for companies whichhave clear plans and commitments to help shape the future andtackle climate change.
Expected outcome for shareholders: we understand theinvestment communities need to decarbonise their investment
portfolio and, as such, our net zero target and roadmap will
ensure our investors have the data and efficiencies needed tomeet their reporting and targets.

Executive appointments
Changes to SThree’s organisational structure and leadership.

Launch of the Global Client Strategy

50Committed to net zero target by 2050

Background and considerations made by the Board in its
decision making

The likely consequences of the decision in the long term andstakeholder groups affected

In April 2023, following close consultations with the People
Leadership Team, the Board approved the appointment of Sarah
Mason as a new Executive Committee member and Chief
People Officer. Sarah brings with her highly relevant experience,
having spent time within sales and staffing organisations,
including SThree for ten years, between 1998 and 2008.

The above leadership changes are expected to put us in thebest possible position to capitalise on the opportunities in frontof us.

In addition, in August 2023 we announced the appointment ofJelte Hacquebord as Chief Commercial Officer (CCO), who has
been pivotal to the success of one of our biggest sales regions
and brings an enormous amount of experience in building
excellent client relationships and overall sales businesses.
In his role, Jelte will be responsible for all revenue channels,
sales function and marketing across all regions, while steering
the direction of business growth and overseeing the market
investment strategy.
Effective from 1 September 2023, Nicholas Folkes, previously
Chief Technology & Information Officer, became Chief
Operating Officer (COO) to ensure consistent leadershipand strategy delivery in technology, transformation andbusiness operations.

The appointment of Sarah Mason, who takes a practical,
outcome focused, collaborative approach to change, will further
support the Board’s efforts to create high-performing, inclusive,
learning culture within SThree. We want our people to be able
to see how we aim at developing their potential, accelerating
their careers and helping them to perform at their best.
With the appointment of Jelte Hacquebord as CCO we aim tobring all key commercial activities (sales, marketing, blueprint
and other sales projects) under one global function, to improve
our focus on driving and accelerating growth through a clear,consistent and measurable customer strategy, as well as an
optimal go-to-market and customer delivery approach.
The appointment of Nicholas Folkes as COO will maximise ouropportunities to become more efficient and effective in how we
operate, as we navigate our transformation journey.

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