Recruitment firm Cordant has announced today that it will undergo a radical overhaul to become a social enterprise, complete with a pay cap.
Cordant said it will reinvest the majority of its profits into social programmes across education, employment and healthcare, framed around a five-year plan.
At a company level the firm, which has revenues of £840m, has capped shareholder dividends at a total of £3m, and also agreed to be independently audited against social impact measurements.
Cordant said the changes will mean it can reinvest profits into initiatives, including IT platforms offered at “zero cost” for the healthcare sector, and ongoing investment into technology to better connect pupils to apprenticeships, and workers to jobs.
The business, which has revenues of £840m, employs 125,000 workers annually in schools, hospitals, care homes, security and specialist roles such as engineering.
Chris Kenneally, chief executive of Cordant Group, said:
It is business as usual at Cordant but with one key difference – profits will now be used to deliver a broader prosperity, benefiting society as a whole and not just our shareholders.
Whilst we believe this is an important moral position given the overwhelming response, we also know it will be positive for our businesses and drive efficiency, productivity and profitability. Our key customers are keen to work and partner with us on a journey that will create deeper relationships and returns.