The Pensions and Lifetime Savings Association (PLSA) has written to the chair of every FTSE350 company, asking them to share information with investors about their workforce.

The letter asks the companies to provide fuller information with investors about their culture and working practices.

Supported by the Pensions Minister Richard Harrington, Newton Investment Management, and USS Investment Management Limited. The letter highlights how the management and engagement of the workforce can have a material effect on a company's long-term performance.

PLSA says it is "essential" that pension funds know more about how the companies in which they invest, manage and engage their employees.

Joanne Segars, PLSA chief executive, said: "We know that engaged workers make for stronger companies, and stronger companies make for better investment returns – creating an economy that works for everyone."

"So that is why we are calling on companies to make more information about their workforces available to pension funds and other investors."

Previous research cited by the PLSA has highlighted the limited detail that UK companies currently provide about their workforce.

Fewer than half of FTSE 100 companies detail their level of staff turnover in their annual report, while only 11 per cent break down their total staff by full-time, part-time or temporary employment status.

Pensions Minister Richard Harrington welcomed the move: "The status of a firm's workforce can be a key issue for investors such as pension schemes, so a toolkit that helps businesses give them the data they need is a good thing."

The PLSA toolkit, Understanding the worth of the workforce, was published in July and outlines the type of information about workforce-related issues that pension fund investors should request from the companies in which they invest, and how this information could be most helpfully presented to investors.

The toolkit identifies the key performance metrics for assessing potential risks and opportunities facing companies as a result of the composition, stability, capacity and engagement levels of its workforce.

It also recommends ways in which investors can encourage better reporting through private engagement and voting at company AGMs.

First published 10.11.2016

Lindsay.sharman@wilmingtonplc.com