Social

Gamma has established processes to consider the welfare of all of its stakeholders systematically

In 2022, Gamma will be focusing on Equality, Diversity and Inclusion. The Company has partnered with ENEI (Employers Network for Equality and Inclusion) to complete a benchmarking exercise to understand the gaps and strengths in its current approach.

Customers

Gamma produces products which allow end users to communicate easily and reliably.

Gamma’s ethos is to provide a robust product at a fair price. Where Gamma sells via channel partners the Company wants the partner to make a fair margin for the value that they are adding to the end user.

The Company has a strong reputation for service and support, and it invests time engaging with customers across a range of topics to ensure the Company remains straightforward to deal with. Regular satisfaction surveys are run across the UK businesses in order to understand overall customer satisfaction levels and the ‘Likert Scale’ continues to be used as the method to measure customer satisfaction. Gamma is pleased to report a 68% CSAT rating in 2021 (2020: 69%) with improved engagement from its partners. Gamma tracks an annual Net Promoter Score (NPS) and recorded a positive score of 48 for 2021, which remains well above the industry sector average.

Gamma continues to provide an online digital learning management system called the ‘Gamma Academy’ to support channel partners with their product knowledge and during 2021 a series of independent knowledge bases have been launched to end users with the aim of improving knowledge about how they consume Gamma products and reduce the need for additional support from channel partners.

Data protection and privacy

Gamma recognises its duty to ensure that any personal data that is collected is properly protected and that the Company is transparent and responsible in the way data is handled. Details regarding Gamma’s privacy policy can be found on the website.

Suppliers

Gamma works with carefully chosen suppliers. The main suppliers are those who provide equipment (both for the Gamma network and for onward sale to customers) and other telecoms businesses.

The process of improving and standardising the management of suppliers is key to Gamma and is constant as the Company strives for continuous business improvement. Preferred and strategic suppliers have their performance managed, monitored and reviewed to ensure the supply relationship always represents best value to Gamma and to underpin constructive discussion and resolution of any issues that might arise.

Employees are asked to ensure that any issues relating to the supplier’s service provision, quality of goods or any other indicator of performance (positive or negative) are reported to the appropriate category procurement representative, so accurate performance records can be maintained and supplier performance managed.

Regular performance reviews take place with key suppliers and there is also a fortnightly ‘Supplier Management Meeting’ chaired by Gamma’s procurement team, with inputs from key internal representatives on behalf of its Commercial, Customer, Network, Product and Regulatory functional areas. This forum is used to discuss supplier performance and risks.

To ensure that Gamma’s business is conducted ethically, sustainably and within the local law, Gamma has implemented an Ethical Procurement Policy and expects its suppliers to meet the principles outlined in the Policy.

This policy is designed to support the procurement of goods and services from all its suppliers that minimise negative and enhance positive impacts on the environment and society whilst meeting business needs and maintaining alignment with its values. Gamma encourages suppliers to require the same of their supply chains.

Gamma requires suppliers to complete an Ethical Procurement Policy Questionnaire and assesses supplier responses as the mechanism to assess these risks. The Company audits its supply chain continuously to identify compliance risks. Failure to complete the questionnaire or unsatisfactory responses may result in suppliers being excluded from the Gamma supply chain.

Gamma people

Employee engagement

Employee engagement is fundamental to Gamma’s success at retaining highly motivated employees and contributes to the achievement of its strategic objectives.

By engaging with employees, the Company gives employees a voice to create a culture in which everyone can thrive. Gamma wants its people to bring their best selves to the working environment which should be a place where they feel safe, they belong, and they matter.

The majority of Gamma’s employees continued to work remotely during 2021, and as seen in the previous year, engaging with staff, understanding how they are feeling and giving them a voice remained a high priority.

Gamma’s engagement tool, The Gamma Pulse, is a resource tool for managers and employees that ensures Gamma not only engages with its people in real time, but quickly gives insights to enable actions to be implemented and to communicate results efficiently.

Gamma Pulse surveys became biannual in 2021. The tool was introduced to the European subsidiaries during 2021 and the survey will extend out to the recent UK acquisition, Mission Labs, in 2022.

In September 2021 the Company surveyed 1,539 people, with an 81% participation rate and received 6,800 comments. The survey results were communicated directly to the CEO, Senior Leadership Team and the Gamma People Business Partners, and via a webcast and email communication to all employees. In addition, the results were explained to the Board.

2021 also saw the launch of an Employee Forum pilot in the UK. Comprised of nominated employees with a range of diverse roles, the forum aims to further strengthen the connection between employees and management through sharing ideas and feedback in a safe environment. It is the ambition to extend this forum more widely in 2022

Employee experience

Gamma is committed to lead with a culture that enables employees to be their best, to feel connected to the Company, and contribute to its long-term success. Gamma’s culture is underpinned by four values – Aim High, Consider Others, Think Differently, and Stronger Together.

The Company recruits people from a wide variety of backgrounds which supports one of its values making the Company ‘Stronger Together’. The experience Gamma employees have within the Company remains a key focus of Gamma’s People Function agenda and across the business in general.

Gamma has 12 qualified Mental Health First Aiders working on a rota system across all UK office locations, sign posting to external organisations where applicable and offering ‘in-house’ and ‘bite-sized’ training on topics such as managing remotely, dealing with stress, and work-life balance. The Employee Assistance Programme has provided employees with access to online information and advice.

Financial wellbeing is also important to Gamma’s employees and the Company offers a salary sacrifice pension scheme, life assurance and income protection. Gamma offers a reward package which includes: the government cycle to work scheme, childcare vouchers, as well as access to a health cashback plan. The flexible holiday trading package offers employees the opportunity to purchase additional holidays or sell back holidays, with additional trading windows open during the pandemic. Gamma has also partnered with Reward Gateway to offer staff a variety of discounts from retail outlets and access to health and fitness discounts including gym memberships, saving employees over £38k in 2021. Gamma offers enhanced adoption, maternity and paternity pay and shared parental leave.

Wellbeing will continue to be a key focus in 2022 to help support employees with advice, training and assistance where needed.

Sharing in the success of Gamma’s business growth

As well as providing long-term incentive schemes which offer options to key employees, Gamma is keen to ensure that all employees who would like to be shareholders can do so in a tax-efficient way. In the UK Gamma has an optional Save As You Earn (‘SAYE’) scheme which allows eligible employees to acquire shares and a Share Incentive Plan (‘SIP’) to allow employees to buy shares on a monthly basis. In 2021 34% (2020: 43%, 2019: 47%) of eligible employees chose to participate in the SAYE scheme, with options being granted over 155,514 (2020: 345,953, 2019: 377,800) shares. The Gamma share schemes have been extended to Mission Labs and there remains a desire to extend the plan out to the European subsidiaries.

Chris Bradford, Chief People Officer

We are dedicated to giving our people, both current and future, the tools and the environment to thrive and grow.

Chris Bradford, Chief People Officer

Health and safety

Gamma’s health and safety initiatives evolved in 2021, ensuring employees had safe offices to return to. The Company’s return plan focused on a steady increase, stopping at 50% capacity to ensure social distancing could be supported to at least the end of 2021. This has allowed employees the flexibility to use an office in which to collaborate with colleagues safely as well as the ability to continue to work remotely where possible.

As a service business, Gamma experiences few workplace injuries, however during the return to the office Gamma experienced an anticipated increase in very minor accidents and absenteeism related to COVID-19 infections. Gamma had no fatalities or major injuries related to work during 2021.

A quarterly report is provided to the Board that outlines accidents, updates regarding health and safety initiatives, and relevant metrics such as contact made to the Mental Health First Aiders.

Gamma’s health and safety policy has developed alongside the new working environment and the Company continues to work with third-party specialists to ensure its employees are supported and environments are safe.

Skills and talent

Gamma is focused on attracting, retaining and developing the critical skills required to support its strategic ambitions.

During 2021 a new induction and onboarding platform was launched in the UK businesses. This provides a blended learning approach to equip all new starters in the Company with a foundational understanding of the Gamma Group, its products, markets and customers, as well as its way of working, culture and values. The platform supports the additional role-specific onboarding activity that already takes place across the business, including interactive technical product training.

Gamma has extended its learning and development offering during 2021, recognising that the skills and capabilities of its existing employees need to change with evolving modern technologies. The Company’s learning and development team has delivered 2,700 hours of technical product training across 186 different courses to its customer services teams. This is supported by the Gamma Academy, also available to internal users, on which 2,000 courses have been completed by 760 distinct internal users.

Gamma has also introduced LinkedIn Learning within its Technology areas, providing employees with access to over 16,000 expert-led courses, enabling continuous growth and development.

Apprenticeships and Technology Graduate Programme

The Gamma apprenticeship programme has continued during 2021 with 20 apprentices in various functions (2019: 24, 2020: 15). Most of Gamma’s apprentices are continuing studies from previous years, in some cases up to degree level, or existing employees continuing their professional development through the apprenticeship model.

Alongside a newly launched Technology Careers Site, Gamma has been working closely with the Graduate Recruitment Bureau to onboard 10 graduates by September 2022. The aim of the programme is to offer graduates experience of four different areas of technology across a two-year period. Gamma guarantees the graduate a permanent position at the end of successfully completing the programme.

Gender pay gap

In 2022 Gamma will continue to assess its gender pay gap and look at ways to continually support closing the gap between male and female employees and working to ensure that all employees are treated fairly.

The gender pay gap report for the snapshot date of 5 April 2021 shows 1,123 employees within the Gamma Telecoms Holdings Ltd UK workforce, excluding Mission Labs: 783 men and 340 women.

Gender% of Workforce 2021
vs (2020)
Male69.72 (69.60)
Female30.28 (30.40)

Below is the data from the UK Gender Pay Gap analysis.

The median pay gap is the difference between the midpoints in the ranges of hourly earnings of men and women. The mean gender pay gap is the difference between the average hourly earnings of men and women.

Pay and bonus gap

 Mean % of 2021
vs (2020)
Median % of 2021
vs (2020)
Pay Gap19.60 (25.45)19.80 (23.19)
Bonus Gap59.41 (63.27)20.07 (26.47)

Proportion of Males and Females receiving bonus

Gender% receiving a bonus 2021
vs (2020)
Male92.66 (94.57)
Female94.00 (93.56)

Pay Quartiles

QuartileMale %
2021 vs (2020)
Female %
2021 vs (2020)
Upper77.94 (80.53)22.06 (19.47)
Upper middle75.00 (72.41)25.00 (27.59)
Lower middle62.99 (61.83)37.01 (38.17)
Lower62.99 (63.60)37.01 (36.40)

Gamma operates in a sector where there is a shortage of technically skilled females who choose to pursue a career in telecommunications and technology. As seen across the sector, male employees continue to make up much of the workforce, however, we are seeing improvements in the mean figures.

Group employee numbers at 31 December 2021

 MaleFemaleTotal
Directors of Gamma Communications plc7 (78%)2 (22%)9
Senior Managers of the Company (including subsidiary Directors)26 (96%)1 (4%)27
Employees1,192 (68%)553 (32%)1,745

Group employee numbers at 31 December 2020

 MaleFemaleTotal
Directors of Gamma Communications plc8 (80%)2 (20%)10
Senior Managers of the Company (including subsidiary Directors)28 (97%)1 (3%)29
Employees1,057 (69%)473 (31%)1,530

Whistleblowing Scheme

Gamma has a Whistleblowing Policy and reporting system via an independent third party available to all employees, workers, suppliers, customers and other relevant third parties.

The approach provides employees with a confidential channel in which to raise any wrongdoing anonymously. The system is available 24/7 either online or via the telephone with multi-language functionality.

To ensure concerns are treated objectively, wrongdoing reports initially are sent directly from a third-party provider to Gamma’s Whistleblowing Officers who are Independent Non-Executives on the Board. After an initial assessment, the report will either be delegated to a panel which is made up of representatives of Gamma’s Senior Leadership Team or the Whistleblowing Officers may choose to deal with it independently, including obtaining external advice. Gamma has trained appropriate level employees to manage the investigation process. Reports of wrongdoing concerns are reported to the Board on a regular basis.

The Gamma induction programme explains the Whistleblowing approach to all new starters and Gamma remains committed to providing awareness and training to existing staff.

2022 Activity

In 2022, Gamma will be focusing on Equality, Diversity and Inclusion. The Company has partnered with ENEI (Employers Network for Equality and Inclusion) to complete a benchmarking exercise to understand the gaps and strengths in its current approach. The exercise will focus on key areas such as Gamma’s workforce, strategy, leadership and accountability, recruitment and attraction, training and development and other employment practices. The outcomes will be used to set the ED&I strategy moving forwards. Gamma will also collect demographics data to better understand its workforce and align its future plans to support and strengthen its approach to attracting, developing and retaining underrepresented groups.

As part of Gamma’s goal to impact and inspire young people the Company has formally partnered with Speakers for Schools and is designing a nationwide programme to support young people with understanding the technology industry, raising their confidence levels, mentoring and providing opportunities for work experience.

Gamma is also targeting talent communities internally and externally. Internally, the Company will be creating employee communities, to strengthen inclusion and belonging.

Externally, its Recruitment team has started to build networks to broaden the Company’s connections with specific groups, focusing on Women in Technology, apprenticeships, and other underrepresented groups. This will include participation in hosted events and the creation of targeted recruitment campaigns to attract a more diverse talent pool. Gamma’s Senior Leadership Team has committed that, starting this year, all senior roles at Gamma must have a diverse shortlist and Gamma will ensure its partners in executive search are working to deliver this.

Giving something back

As part of the 2021 social plan within Gamma’s ESG strategy, the Company is committed to supporting the communities in which it is based and enhancing its charitable giving plan.

Supporting the UN Sustainable Development Goal 8: Decent work and economic growth, Gamma’s technology teams have continued to provide remote Hi-Tech Horizons sessions through an initiative run by the Education Business Partnership. The initiative aims to engage and inspire the future workforce, raising awareness of the hi-tech sector and the opportunities available.

Additionally, Gamma has partnered with Speakers for Schools to deliver STEM insight to pupils in the North-West of England during Virtual Work Experience week in April, and Digital Careers in September. Gamma has a broad range of colleagues that volunteer to support these events to help inspire students and provide them with a wider perspective on what their options are for their future careers and opportunities.

Working in the communities in which the Company operate, Gammas ‘Direct’ customer business unit has worked with local authorities in the Manchester and Portsmouth areas to support their efforts in tackling digital poverty, address emerging skills gaps and prepare young people for the world of work in addition to providing employment in the area.

Gamma is committed to maintaining these relationships as well as building new ones during 2022 and the Company will endeavour to contribute to the UN Sustainable Development Goal 10: Reduced Inequalities through the extension of initiatives.

Gamma has always encouraged charitable initiatives, and often a worthy cause will find people’s time just as valuable as any financial donation. Employees can contribute one day a year to help support their chosen charity or community support project and Gamma has continued to provide match funding across a range of charitable events that its staff has completed during 2021. A Charity Forum exists to support its employees to raise funds as well as use their charity day.

‘Giving something back’ is important to Gamma and its employees and is aligned to its “Consider Others” value. Driven by the Gamma Charity Forum, the Company will continue to build on its community and charity plan in 2022 to help make a difference to good causes and local communities.

Also in this section

Key to strategy

  1. Cloud Telephony and UCaaS Evolve our strong Cloud telephony position into the UCaaS market
  2. Fixed and Mobile Telecom Build on our fixed and mobile telecom strength to differentiate our proposition from pure OTTs
  3. Company Expansion Expand into Europe to gain continued growth and scale
  4. Digital progression Continue to build on our digital capabilities to assure agility and sustain competitiveness

Key to KPIs

  1. Revenue
  2. Gross profit
  3. Gross margin
  4. Adjusted EBITDA
  5. Cash
  6. Cash generated by operations
  7. EPS
  8. Fully diluted adjusted EPS

Key to risks

  1. Unplanned service disruption
  2. Data loss and cyber attacks
  3. Over-reliance on suppliers
  4. Inability to attract and retain top talent
  5. Uncertain competitive landscape
  6. Price erosion
  7. Legal and regulatory non-compliance
  8. Unsuccessful M&A strategies

The opportunity for UX and CX to win in the Experience economy

Hybrid here to stay

Fundamentals are more important than ever

The ESG Committee oversees the development and activity of Gamma's ESG agenda.