g4s employment support services - merlin …merlinstandard.co.uk/downloads/attachments/4c130a... ·...

TMX – Report Template V2 – 02.04.12

G4S EMPLOYMENT SUPPORT SERVICES

Assessment Dates: 06/06/2016 to 09/06/2016

Contents

1. About the Organisations .......................................................................... 1

2. Assessment Methodology ........................................................................ 2

3. Assessment Outcome ............................................................................... 3

4. Areas of Significant Strength .................................................................... 4

5. Areas for Improvement ............................................................................. 5

6. Findings Against the Merlin Standard ........................................................ 6

7. Conclusion ............................................................................................. 24

1 TMX – Merlin Report Template V7 – 01.01.2016

1. About the Organisations G4S plc is one of the world’s leading supply chain managers, and is the largest integrated security and outsourcing company in the UK and Ireland, with a turnover of more than £1.7 billion and over 55,000 employees managed from over 100 offices. G4S Employment Support Services (G4S ESS) was formed in August 2010 and currently operates as Prime Contractor for three Work Programme (WP) contracts and six Community Work Placement (CWP) contracts on behalf of the Department for Work and Pensions (DWP). WP contracts are held within the following three Contract Package Areas (CPAs):

• CPA07 – Greater Manchester, Cheshire and Warrington • CPA10 – Surrey, Sussex and Kent • CPA18 – North East Yorkshire and the Humber

CWP contracts are held within the following six CPAs:

• CPA02 – East Midlands • CPA03 – West London • CPA04 – East London • CPA06 – Merseyside, Halton, Cumbria and Lancashire • CPA09 – Thames Valley, Hampshire and Isle of Wight • CPA18 – North East Yorkshire and the Humber

It has previously delivered the ESF Family Support Programme in Greater Manchester, Cheshire and Warrington, and Supervised Jobsearch Pilot in West Yorkshire. G4S ESS has supported over 40,000 people into employment through these programmes. Until March 2016, G4S ESS operated a 100% subcontracted delivery model, with services provided by around 50 tier 2 Broker organisations, representing private, public and third sectors. However, within CWP CPA02, G4S ESS has recently stepped in and taken over delivery for the final seven months of the contract (3% from March 2016). This action was taken to support a quicker exit for a Supply Chain Partner (Broker) who had given notice on their contract. G4S ESS has placed itself as a subcontractor and monitors and manages performance in the same way as the rest of its supply chain.


2. Assessment Methodology Initial planning conversations commenced in February 2016 during which the scope of the Merlin Standard was discussed and agreed in accordance with the guidelines. All past, present and potential Supply Chain Partners (Brokers) received an invitation to take part in the Assessment Services’ online Merlin survey with some 20 responses being received. The assessment team (lead Assessor Ruth Regan and team Assessors Christine James and Janette Russon) interviewed a representative sample of organisations (Brokers) at various stages of their working relationship with G4S ESS. Also, both team Assessors had the opportunity to attend a scheduled meeting of Brokers in both Manchester and York to observe interactions between the parties. As part of the assessment, staff from across G4S ESS were interviewed, including those involved in the strategic and day-to-day development and management of all supply chains. To support the assessment team’s understanding of communications, quality, audit, compliance, development and performance management strategies and processes, a number of documents were made available for review. G4S ESS was first accredited with the Merlin Standard in June 2012 and re-accredited with an increased overall outcome score in June 2014. The following report shows how the the Standard is currently being met, with a further increase in scores being achieved across the 10 elements and four principles. Quotes have been used throughout the report to demonstrate the strength of evidence found. Unless stated, all quotes are from current members of the supply chain.


3. Assessment Outcome

Overall % Overall Outcome 91% Excellent Supply Chain Design 93% Excellent Commitment 97% Excellent Conduct 90% Excellent Review 83% Good


4. Areas of Significant Strength A high number of significant strengths and areas of excellence in practice were identified during this Merlin assessment. Those worthy of particular note are summarised below. The numbers in brackets refer to the elements of the Standard to which the areas relate.

• Due to the effective strategies, processes and activities involved in supply chain design, organisations making up the current and potential supply chains are those with the knowledge, localism, culture and capabilities to meet the commissioner’s objectives and the contractual requirements. (1a 4a)

• The development of Supply Chain Partners is acknowledged by Brokers as exceptional.

Guidance and support have been provided which has enabled small, third-sector partners to ‘raise their business game’ enabling them to deliver outcome-based contracts efficiently - in some cases, for the first time. Staff members across the supply chain have also been provided with learning and development support enabling them to reduce errors, manage caseloads and improve their advisory skills. (2b)

• The procurement process from initial engagement through to the onboarding process has

been highlighted by past, present and potential Supply Chain Partners as a particular strength. “Open”, “honest”, “transparent”, “engaging” and “partnership approach” were all words used by partners in describing the G4S ESS process. (2c)

• The approach taken to pre- and post-contract negotiations reflects the style of engagement

taken during the initial appointment of partners to the supply chain, with G4S ESS giving the organisations concerned information, support and time to understand the requirements of the contracts including delivery volumes, and particularly the fees and timelines associated with performance-related contracts. Any changes post-contract are fully explained and negotiated. Robust yet tailored and personalized communications ensure that expectations have been discussed, agreed and understood by all member of the supply chain – during and after contract award. (3c)

• The collaboration and open working relationships between members of the supply chain

network have enabled performance levels to remain high. The culture is one of partnership and reliance on individual member of the network to do the best they can to ensure contract performance and quality requirements are met overall. (3d)


5. Areas for Improvement The following areas could be considered for review and improvement. The numbers in brackets cross-reference the findings to the relevant element and criteria of the Merlin Standard.

• Supply Chain Partners have developed active and fruitful relationships with a variety of support organisations that add value to the customer and the contracts. Consideration should be given to how best to map these support organisations and ensure they are being quality assured and utilised appropriately. (1a.3 & 4a.1)

• As the supply chain management structure continues to evolve, additional efforts may need to be made to ensure that the range of processes used to consult with the supply chain remains fit for purpose, and that all understand the outcomes of the consultation activities. (2a.2)

• There is no doubt that health and safety, safeguarding, and data security are important to G4S ESS and the members of the supply chain network. While policies are checked and audits carried out, consideration should be given to what else might be done to ensure that policies are being proactively implemented across the supply chain – for example what, in addition to workbooks, could or should be done to ensure knowledge and compliance. (3b)

• Establishing environmental suitability policies, practices and improvement measures

remain an improvement area for this supply chain. Consideration should be given to developing a robust approach to ensuring targets are set and embedded across the supply chain. (3b & 4a)

• Work needs to be done to develop a more robust analysis of the equality and diversity data

collected. Members of the supply chain are making their own efforts to analyse and use the data to inform delivery, but G4S ESS needs to be doing more to support this at a strategic, CPA and contract level. (3e)

• While a level of anecdotal evaluation takes place regarding the impact on the wider social objectives and policy intent of the commissioner, consideration should be made to developing a more robust, formalised approach to measuring the impact that the activities of the supply chain are having on external stakeholders, customer well-being and environmental sustainability. (4a)


6. Findings Against the Merlin Standard

1) Supply Chain Design 1a) Supply Chain Design The research strategies deployed by G4S ESS to identify the scope required for the supply chain network to meet the objectives of the commissioner and contractual requirements continue to be robust and fit for purpose. Data from numerous sources, such as local authorities and Local Enterprise Partnerships (LEPs) together with ‘grass roots’ intelligence about local provision is used to match the commissioner’s requirements with the scope and variety required of the supply chain. Once the scope has been determined, opportunities are advertised through organisations such as Carly Consult, Indus Delta and the Employment Related Services Association. Activities are also undertaken within the locality in which the proposed supply chain will operate. For example, during the recent supply chain design for DWP European Social Fund (ESF) opportunities in the North East, adverts were placed on voluntary and community group forums such as Durham Voice and Northumberland CVA. Following desk-based research, third-sector and small local organisations in the North East LEP area were sought out and asked to consider completing the Expression of Interest (EOI) to enable them to join the supply chain.

“We responded to an advertisement through the LEP that G4S were looking for partners.” Potential Broker “There was an advert in Linkedin – that’s how we got to find out about the ESF bids.” Potential Broker

Since the original WP supply chain was developed in 2012, the approach taken by G4S ESS to ensure the scope and variety within its supply chain design supports the achievement of the contracts has been reviewed and refined. However, at the heart of the strategy remains the desire to find a relevant mix of locally based organisations which, as a network, will provide the identified customer groups and demographics the range of holistic support they need to succeed. Potential members of the DWP ESF supply chain described how they had been encouraged to input into the G4S ESS tender enabling them to share their knowledge and expertise about delivery models, local infrastructure and demographics for example.

“We have put in bids with other Primes but G4S had face-to-face meetings to share their vision and give us input into developing the bid.” Potential Broker

Element 2c carries more detail of the procurement and selection process itself. The scope and variety of the supply chains were found to be of a high standard with organisations from a wide assortment of sizes and sectors making up the delivery networks.


Some Welfare to Work prime contractors, housing associations and local authority teams are part of the network. However, the majority of Brokers are smaller, private or third-sector organisations servicing their local communities. Members of the supply chain commented that: “There is the variety and scope and knowledge within the supply chain to fulfil the contract. There aren’t any gaps in provision.” Following the disappointment of the limited take up of tier 3 and 4 Knowledge Bank provision, all Brokers now bring their established networks/partnerships with them as part of the procurement process, and there is an expectation that these wider networks will be utilised. Consequently, the delivery of tier 3 and 4 provision outside of the Broker network is quite limited and informal. It consists of, for example, signposting to organisations such as: Leeds Real Employment which can support customers who are difficult to place; mental health support such as Mental Health First Aid delivered by Remploy; and financial advice and debt management support through the Money Advice Services. While established local networks/partnerships are in place, G4S ESS further encourages relationship development through the delivery of a range of pilots aimed at enhancing specialist requirements and addressing identified gaps across contract and CPA provision. For example, in April 2016 a six-month occupational health telephony pilot commenced (with an existing Broker). Accessible to all members of the WP supply chain, the pilot will deliver health assessments and produce action plans and recommendations for up to 300 Employment & Support Allowance customers. While the use of wider networks is working effectively, G4s ESS may wish to consider its role in the quality assurance and development of these partnerships and how they are utilised across contracts and CPAs.

“G4S appreciate our partnership working which is why they wanted to work with us.” “G4S have brought in providers that have good extensive networks of their own and can offer support which meets the needs of clients.” “Utilisation of expertise from outside of the supply chain is encouraged.”


2) Commitment 2a) Collaboration, Cooperation and Communication A written communication strategy is in place and this is implemented effectively, consistently and in a manner which leads to all Brokers confirming that communication at all stages of procurement activity and through the lifetime of the contract is effective, relevant to their individual needs, robust and consistent. Potential members of the DWP ESF supply chain were especially complimentary about the approach taken to communications by G4S ESS during the recent procurement process. Opportunities to meet members of the procurement team face-to-face were valued, as was the open sharing of information with all potential members of the supply chain. Oral and written feedback is provided to organisations who are not chosen as potential Brokers. Comments from past, present and potential members of the G4S ESS supply chain include:

“New to the process with G4S but have received regular information.” “Kept in the loop of processing at every stage.” “They gave us a lot of feedback on what was required and lots of feedback and discussion once we’d been selected.” “Kept us up to date on where they were with the bid.” “Communication was really good. Email, telephone discussions. Approach has been honest.” “We bid with lots of people and see different approaches, but face-to-face discussion with G4S was really helpful at establishing the partnership.” “A day before the bid was submitted we all had a telekit so everyone could see the bid – who the partners were, how the delivery would work etc., – very impressed with this openness.”

Brokers confirmed that G4S ESS has a consultative approach to supply chain engagement, ranging from day-to-day consultation about best practice ideas through to strategic consultations regarding contractual and programme developments.

“Good range of discussions to ensure that, as a potential partner, our voice has been heard.”

Supply chain meetings, performance reviews, service improvement sessions, senior leader/strategic meetings and ad-hoc consultations were all cited. Specific examples shared by Brokers around how consultation has been instrumental in influencing decisions made include: • Brokers were consulted on what was required to reduce or streamline the administration

burden of CWP, resulting in standardised letters being provided; • Members attending the Employment and Support Allowance (ESA) Forum were consulted on

a current occupational health telephony pilot suggesting that more local provision should be highlighted in the reports; and

• To support reduced extrapolation rates and improve performance, Brokers have been consulted on what the minimum standards should be for providing In Work Support.


G4S ESS is proactive at encouraging collaboration and it, and the members of its supply chains, acknowledge that collaboration is critical to the success of the contracts and describe a culture of partnership and collaboration within and across the supply chains. Supply Chain Meetings and Service Improvement Forums are facilitated by G4S ESS to enable the sharing of information, ideas, delivery tools and methodologies. In addition, the introduction of the Regional Contract Manager (RCM) role has resulted in greater collaboration across the CPAs and contracts. The RCMs and members of the Senior Management Team (SMT) work hard to ensure they work collaboratively for the overarching benefit of the contracts. For example, one Broker was identified as delivering a certain aspect of the CWP customer journey very effectively. This was shared by the relevant RCM, and the Broker was asked to visit another Broker in a different CPA to share its delivery model. Brokers confirmed that in February and May 2016 CPAs came together to facilitate the sharing of best practice and that ESA Forums are used to gain ideas on how to support clients using a ‘case conference’/‘learning set’ type approach to solution seeking.

“I have worked with a number of Primes and G4S are very open and professional. They shared the details of other partners and roles – already fostering partnerships and collaboration.” “Team approach carried through – met monthly as a group.” Past Broker “We have shared placement opportunities to ensure they are not lost.” “xxx shared their tracking tool – very helpful.”

All those involved in this assessment were very clear about the business relationships underpinning the supply chain arrangements they have with G4S ESS, and there was no ambiguity evident. Brokers described that although there is a dedicated supply chain management team supporting each CPA, all communications are consistent in content and delivery style and tone, although methods may be different – for example telephone calls, email or face-to-face meetings. Each Broker has a dedicated Supply Chain Manager (SCM) and an assigned Monitoring Officer, and both are available to answer queries on performance, quality and contractual compliance. Should any member of the supply chain have queries relating to finance, claims or systems there are dedicated email addresses in place for them to use. Daily emails and weekly bulletins are forwarded to Brokers to update them on issues such as performance, legislation and changes in policy and monthly and quarterly review meetings also take place. To ensure clarity, communication channels for the delivery of the contracts are detailed in the contract appendices distributed to the supply chain before contracts go ‘live’. Words used consistently by the supply chain to describe the business relationship were “partnership”, ‘honesty” and “transparency”.

“G4S have had a culture change for the better over the last three years’ relationship, now viewed as a partnership.” “Relationship is a Partnership – equals – honesty and transparency.” “Weekly communication is very useful – particularly like the RAG rating.”

Brokers confirmed that regardless of whom they engage with within the G4S ESS business, the individuals are all very approachable, and demonstrate a culture of partnership working. Some gave examples of how ‘difficult conversations’ relating to, for example, performance issues or finance claims were carried out without unreasonable constraint and how the relationship had not weakened as a result.

“Sometimes we do have uncomfortable discussions – then we move on.”


“If we did make mistakes we were not made to feel like naughty children.” Past Broker “They have been the most professional Prime – communication is open and two way.” “Whatever you ask of anyone within G4S they help you or help you resolve it – never felt you couldn’t ask for help.” Past Broker

2b) Developing Supply Chain Partners Gaining a contract to work as part of the G4S ESS supply chain has, for some Brokers, had a positive impact on their business knowledge and understanding. Some Brokers described how, even before contracts were won, G4S ESS had worked with them to understand cash flow forecasting when delivering an outcome-based contract. Others described being coached on the requirements of health and safety and other legalities with SCMs spending time within the business helping to develop processes, practices and systems to aid delivery and performance. The quarterly meetings between the Broker and members of the regional team, focus on how to improve the business or and contract performance.

“Support they have provided to our business has been phenomenal – taught us a lot of lessons on how to manage a contract and run our business.” “The G4S team were knowledgeable and able and shared their expertise – not just performance management.” “Once the contract started they put a member of staff on our premises to ensure we had the support required.” Past Broker “They have been quite instrumental in our development over the last few years.”

Brokers described how G4S ESS provided them with “a genuine opportunity to capacity build.” For example, Partnership Managers had met with Brokers to talk about individual tenders that they believed the Broker would be interested in. Where Supply Chain Managers become aware of local delivery opportunities, they share these with the network. In addition, Service Improvement Managers support all Brokers to identify additional funding and opportunities, and then give support with bids where necessary. They are also proactive in helping Brokers to maximise funding within current contracts through such activities as datamining and developing techniques to conduct system checks and placement reviews.

“They have helped us develop as a business – sharing ideas – letting us meet with other people within G4S to discuss business opportunities and ideas.” “We have had the opportunity to capacity build – contract areas expanded and market share doubled all due to great performance.” “Very keen to talk to us about capacity building etc. – first time this has happened.” Potential Broker

Workshops and seminars are actively promoted for staff members covering topics such as compliance, referrals, use of the IT system iSET, employer engagement and action planning, with these events being delivered for a cohort of Brokers or for a specific team within one organisation. Needs are identified by Supply Chain Managers and Service Improvement Managers together with outcomes of audit and compliance visits. Two recent learning events highlighted by Brokers were related to self-employment and supporting ESA – both of which were cited as supporting an increase in performance levels.


Numerous examples were shared where Broker staff had been coached to for example, facilitate their understanding of the processes required to fulfill the CWP contractual paperwork. Utilising the guidance manuals and workbooks provided by G4S ESS was also acknowledged as having a positive impact on the performance of Broker staff. Comments made by members of the supply chain included:

“We attended a seminar on understanding data – so we are 100% confident now that we get it right before sending it in.” “Nothing seemed to be to be too much trouble – they came on site to support staff as well as delivering specific training.” “We now have more information about VAT, what it’s like to be self-employed. Clients wanting to become self-employment have gone up.” “Workshops are invaluable - would struggle without them.” “Events are regular and very helpful/useful.”

2c) Contracting and Funding G4S ESS takes a consistent, fair and transparent approach to all procurement. This includes how they select, and communicate with, potential Brokers throughout the process. Underpinning the procurement strategy is a desire to keep the EOI and related processes as streamlined as possible so as not to overburden potential partner organisations. During the procurement stage of defining the supply chain, a competitive tendering and selection exercise is completed to identify suitable partners. This is completed via a three-stage approach with effective methods of communication underpinning the whole process. To support decision making, a costing model has been created by G4S ESS which enables organisations to input relevant data such as salary and overhead costs which helps them identify what the payments associated with the potential contract will mean and if becoming part of the potential supply chain is a viable option for them. The Partnership Managers oversee the procurement process and once a potential partner has been shortlisted, present their recommendations to the Chief Operating Officer who challenges their analysis and decision-making to ensure the mix, skills, capability and spread of provision will meet the requirements of the commissioner. Partnership Managers provide feedback to organisations that completed EOI but are not selected for supply chain inclusion. This feedback is provided via telephone or email, and gives the reason for the lack of success, whilst acknowledging their expertise.

“EOI – was simpler than other Primes.” Potential Broker “EOI process is very positive – particular strength of G4S – a unique approach.” “We have been in regular communications with a named person from G4S throughout the procurement process.” Potential Broker

Time and effort is taken to ensure that the financial and funding arrangements for each potential and actual Broker mean they can deliver the contract without incurring any undue financial burden – especially when organisations are new to ‘payment by results’ contracts. This starts at pre-procurement using the costing model spreadsheet, and continues through to reviewing payment arrangements throughout the lifetime of the contract. Brokers commented:

“We spent a long time looking at the figures with G4S and then through their support and understanding made the decision that we could make it (CWP) work.” “They are the most thorough of the Primes we have worked with, professional and very helpful in helping us with the financials.”


“Pre contract they shared their finances – what they would pay us and what we would get. Went back to them with a concern and they changed the funding plan.” “We were sent a spreadsheet through to fill in costings regarding delivery based on the limited information we had at the time. G4S went through the spreadsheet and questioned us about the costings we had put in. Negotiated it with them to get to a figure we were both happy with.”

Contract documentation is in place for all members of the supply chain and is seen to be clear and understandable. G4S ESS cascades the contractual terms it has with the commissioner down to the Broker, with appropriate amendments, to detail the obligations of both parties. For instance, clause 1.5 stipulates G4S ESS’s obligations under the contract and section 3 details the payment and fees, while section 2 of the contract stipulates the obligations of the subcontractor in the supply of services.

“Very clear and know fully what our expectations are.” “Contract is clear and sets out our obligations.” “Most black and white contract I’ve ever seen.”

Current and potential Brokers confirm that market share was negotiated along with all financials at the bidding stage and included an analysis of, for example, location, previous experience, capacity to deliver and the activity footprint in the area. This information is shared with all potential partners prior to the bid submission. Examples were shared of how original market share allocations have shifted during the lifetimes of contracts following negotiations and consultations with the relevant Brokers.

“Very happy with the share that we’ve got – it’s doable.” “Webinar – everyone online together – who they are working with – what % of the business is going where. Very transparent.” Potential Broker

Extensive and transparent negotiations take place throughout the tendering process and, when necessary, during post-tender contractive activities and mobilisation. During the lifetime of the contract, every Broker attends a Quarterly Review Meeting with members of the G4S ESS supply chain team at which performance, volumes, funding and other matters are all discussed. Any changes in performance required are negotiated and an agreement reached.

“Lots of negotiations around volume and the Jobcentres that were included in the areas that we would be working in.” “A performance issue was raised at our QRM, we talked through a number of options at the meeting and then I sent a proposal on what I wanted to do to rectify it and it was accepted.” “On the preferred providers list for ESF and we are involved in negotiations regarding funding.” Potential Broker “I’ve been able to push back and challenge re costing – all very positive so far.” Potential Broker

Partnership Managers discuss processes and payment structures with potential Brokers as part of pre-contract negotiations. This includes financial modelling advice to organisations, especially those that have not previously operated payment by results contracts.


Payment structures are agreed and included in contracts. Brokers described ‘an open book’ approach when negotiating payment terms which have been honoured post contract award. For example, negotiations about payment terms for some members of the supply chain are either seven or 14 days as opposed to the 30-day payment terms detailed in the majority of contracts.

“They are the most thorough of the Primes we have worked with, professional and very helpful in helping us with the financials.” “Dozen or so telephone calls to sort the numbers so that we were both happy.” “Financial proofing tool provided by G4S and then had telephone calls with their finance team to help work it out due to our sector and look at different payment terms.”

A robust system has been established where Brokers are paid after receiving funds from DWP who operate on a self-billing arrangement with G4S ESS. Payments are made via BACS on a weekly basis, in line with the individual contractual payment terms of each Broker. There were numerous examples shared by Brokers across the supply chain networks of where payment terms have been ‘flexed’ to meet individual needs.

“We get a weekly ‘payment pending’ report which identifies what we can claim for. Get a remittance advice on a Wednesday that says what will be in the bank on Friday. It’s been right 99% of the time.” “Paid regularly, on time and accurately.” “Get paid what we should and when.”

The individual contracts with each partner clearly state the volumes, fees and performance levels as agreed before contract commencement. The management fee, and what is provided by G4S for the fee, is fully explained as part of the negotiations and contracting. Brokers consistently confirmed the percentage fee and described the range of support received including the IT system iSET, access to a named Supply Chain Manager and regional team, and contract management including quality and compliance checks. A number of Brokers also described how, through their relationship with G4S ESS they had a route-way to DWP and other strategic partners such as ERSA.

“We take the pain away and let them focus on what their advisers need to do to change the lives of the customers.” G4S ESS “Value for money from management fee – no question – it was over and above what they would have received as part of the contract.” “G4S were very honourable regarding management fee – clear upfront understanding of their payments and costs.” “Very clear about what we get for it – have had a tremendous amount of support from G4S, particularly the IT team.”


3) Conduct 3a) Demonstrating Commercial and Business Integrity G4S ESS is guided by a set of eight Core Values that are embedded and used to drive all elements of employee conduct and the approach to supply chain management. As part of the procurement shortlisting processes, when seeking a new organisation to join the supply chains, G4S ESS shares its values and explains how, through agreed Service Level Agreements, the values manifest themselves in practice. Brokers confirmed that the G4S ESS core values are displayed in their delivery locations to confirm to customers and staff alike the alignment between the two organisations.

“Prior to the bid we had face-to-face meetings so that we could share our visions and culture.” “We’ve got the same ethos about getting people to where they need to be.” “I wasn’t sure in the early days if our principles would match but actually they do.” “We’ve worked with them a long time and had four or five SCMs who have all been consistent in their approach.” “They wanted to build a relationship with us. They stressed their values and how they work and manage the supply chain.”

Across the business, G4S ESS has transferred a significant number of staff via TUPE and uses this vast experience to understand and fully comply with all relevant TUPE legislation, including Regulation 13. G4S ESS contractually obliges all members of their supply chains to comply with all legal requirements, including Regulation 13, of the TUPE regulations and supports them in doing so. All Brokers reported supportive and positive relationships and interactions with staff at all levels within G4S ESS, describing them as open, honest, positive and supportive. Long standing members of the network described how the relationship had evolved over time and was now more of a “partnership or equals”.

“Relationship with G4S is strong, comfortable.” “Lots of changes for the better over the last three years - G4S have had a culture change for the better – it’s now a partnership.” “We have room to work how we want to work providing performance is coming in - if support is required, G4S are more than happy to provide it.” “Can have an honest and open conversation with them at all levels without fear of comeback.” “G4S have made me feel part of a team – we all work together with respect and openness.”

G4S ESS continually reviews and revises all policies and procedures. These are updated as and when required to reflect any legislative or business changes. The operational system, compliance, and iSET guides are updated to reflect the latest changes on WP and CWP programmes. For example, changes were recently made to the Sustainment Process to support DWP’s sustainment outcome payment requirements. Updated compliance and process maps were communicated to Brokers via email, highlighting changes made.


All communications are sent out by email and at the end of each week an update email is issued confirming all changes within the week. If a DWP memo requires breaking down, a summary is also sent out highlighting actions required. Additionally, weekly reviews and monthly meetings are used to check that communications have been cascaded appropriately throughout the Broker’s organisation.

“Get updates on, for instance, DWP requirements with a copy of the document.” “Sometimes xxx will ring to make sure I’ve understood it (update) and see if there’s any queries.” ”Roles and responsibilities within G4S are very clearly understood. I know who to go to.”

3b) Quality Assurance and Compliance G4S ESS has a well-established Business Improvement Group (BIG), made up of experienced practitioners from differing roles across the organisation. Led by a Regional Contract Manager, BIG meets monthly and is responsible for developing, reviewing and monitoring core documentation such as policy, performance and quality management material, processes, training material, and system changes in respect of the Welfare to Work contracts. It also ensures that changes to DWP Guidance and Contract Variations are risk assessed and that any resulting changes are planned and implemented effectively. The monitoring of the quality of delivery is carried out by the supply chain management team. Brokers explained how quality checks and observations and weekly, monthly and quarterly performance reviews all included an element of monitoring the quality of provision. During 2015, all Brokers received a full site audit by members of the Audit and Compliance Team where processes, policies and contractual compliance was tested at site level. Due to the current status of the contracts, the team has moved to a risk-based approach for 2016. Brokers who achieved an outcome of 95% or below in their 2015 audit will be given priority. To ensure that Brokers take ownership for the quality of delivery - they complete their internal audits and quality checks so they can evaluate provision, identify best practice and key areas for development. Brokers update G4S ESS regarding their internal audits and findings, including action plans via the monthly and quarterly review meeting process.

“There was a quality assurance plan in place from day one.” “Support from the A&C team has been really good and beneficial.” “Observed practice and gave feedback. Never felt overburdensome or over interfering.” “They were very interested in the delivery model – how people were made to feel and how they were treated – this was part of their monthly visits – they would talk to customer as well as our staff.” Past Broker “We wanted to know what their QA and audit processes were should they be successful and they passed on details of Supply Chain Partners so we could check.” Potential Broker

It is clear that there are effective processes in place to utilise the findings of the quality assurance processes to inform and improve service delivery. For example, on completion of the site audits, verbal feedback is provided and a written report issued within five days. This includes a summary of findings for each element tested, identified best practice, and recommendations. Where clear risks are identified, actions to resolve are put in place. These are followed up and documented by the Supply Chain Manager via the performance review process. BIG members regularly discuss quality activities undertaken.


This supports the sharing of best practice across CPAs and provides clear themes for future best practice workshops. Service Improvement Managers (SIMs) provide additional support with the identification of additional tools, desk aids and adviser guides to increase knowledge and awareness.

“Audit findings and feedback shared with other providers to share best practice and improve quality across the delivery.”

Brokers are aware of the importance of ensuring any Information, Advice and Guidance (IAG) they provide is accurate, up-to-date and impartial. Many organisations interviewed as part of this assessment confirmed that they are accredited to the matrix Standard. Examples of G4S ESS supporting Brokers with the quality of their IAG provision include: providing feedback on the IAG aspect of any adviser/customer sessions observed as part of the QA process; taking part in a Broker’s matrix assessment by being interviewed as one of their partner organisations; and the remote checking of the quality of information within customer records. To ensure their own IAG is effective, G4S ESS has changed their communication model through the introduction of the regional role which has led to greater consistency of communication to Brokers across the different CPAs. All written bulletins are quality assured before they go out from G4S ESS and SCMs check out that these have been received, read and understood.

“I will ask Broker staff to tell me what they think a certain piece of information means.” Supply Chain Manager “We will filter information from DWP and explain to the Brokers what this means for them.” Supply Chain Manager “They will check if we have read things and if we have any questions.”

Members of the supply chains confirmed that policies pertaining to the security of data, a healthy and safe work environment and the safeguarding of people at risk were all submitted to, and scrutinised by, G4S ESS as part of the initial due diligence process, and are re-submitted on an annual basis.

“Rigorous and extensive – checked all the basic policies and more.” “How we would meet legal requirements – Prevent, DBS check, insurance details etc. They followed this through rigorously.” “Annual check of policies and procedures by Supply Chain Manager.”

As part of the procurement process, G4S ESS provides detailed information to potential partners on the various system requirements, including data security, which is designed to meet ISO 27001. This is closely implemented during the due diligence process at the outset of the contract, and at frequent intervals thereafter as part of the QA and compliance audits. Brokers confirmed that actions taken ensure information security is robust. They described how all sites are required to display posters promoting data security, regular informal reviews are completed by Supply Chain Managers using an ‘eyes and ears’ approach while onsite, and the compliance and audit teams undertake security checks as part of their audits. Expert guidance and support is available to Brokers from the Data Security Lead, and staff across the network can raise any queries they have relating to data security through a dedicated email address.

“During the six months prior to this Merlin assessment, G4S has raised fewer than 10 data security issues with DWP.”


“Aspects such as clear desk policies, screen and file locks, overnight data clearance, all discussed as the practical aspects of data security.” “Data security workbook has to be completed yearly.” “Checked during visits - getting a name badge, is there any confidential waste in the bin, are cabinets locked are there any other files in our folders (contamination), is the G4S poster up?”

Health and safety policies and risk assessments are viewed during the due diligence process and once contracts are in place, full site visits are carried out by relevant G4S ESS staff. Health and Safety requirements and responsibilities form part of all contracts agreed with Brokers. Again, Supply Chain Managers complete an informal observation of health and safety during monthly visit to Brokers and/or when visiting their premises. Brokers have their own Health and Safety Leads that manage any day–to-day issues, maintain the delivery centres by eliminating risks, and report any incidents to their senior management team and G4S ESS. CWP work placement risk assessment checks are completed monthly both remotely and by visits to the placement premises to ensure that every Placement Host has a completed and compliant Risk Assessment which provides assurances that Placement Host premises meet the minimum health and safety standards.

“They will make spot checks at placements to make sure health and safety is clear.” All potential Brokers are required to submit safeguarding policies and procedures to G4S ESS for review prior to contract commencement and these are then reviewed on an annual basis by the audit team remotely or when conducting site audits during the lifetime of the contract. A safeguarding poster has been shared with Brokers and there is a requirement for this to be displayed at all delivery sites. G4S ESS has also produced and distributed a Safeguarding Workbook to support the ongoing awareness and responsibilities of safeguarding vulnerable adults and also to support the ‘Prevent’ agenda. All G4S ESS and Broker staff are required to complete this. Many Brokers confirmed that they deliver safeguarding training to their staff and have implemented their own processes to support employee and customer safety.

“We appointed someone but hadn’t got their DBS checks back and G4S made it clear that the person couldn’t be on the front line until the check was through.” “They have raised the Prevent agenda with us at meetings and during audits.”

Contracts issued by G4S ESS clearly specify the responsibilities of Brokers in minimising their impact on the environment. This includes, but is not limited to, reducing their energy usage, promoting recycling and minimising waste. To remind Brokers of their obligations outlined in their contract regarding sustainable development, a Subcontractor Declaration Form is completed annually and monitored by the regional team. Additionally, there is a section included in the annual Self-Assessment Report (SAR) where Brokers are required to assess contract compliance for sustainable development. The majority of Brokers are smaller, private or third sector organisations servicing their local communities and this approach to procurement supports the business and sustainable development ethics of G4S ESS; staff living and working in the locality cuts down on travelling, encourages co-location thereby cutting premises costs and reduces energy usage.


Brokers believe that, while not undermining the ‘Black Box’ approach to delivery, G4S ESS is very good at identifying and sharing good practice with the aim of supporting performance improvement. Performance reviews, quality checks and observations, supply chain meetings and forums were all cited as opportunities. Across the networks, there is a culture of Brokers sharing ideas and adopting ideas from each other to support the overall delivery of the contract.

“We go away after each session (ESA forum) with something we can use.” “Active examples of SCMs signposting Brokers to each other to share knowledge – actively encouraged.” “Frequent sessions with other partners.” “Lots of best practice - get together within the CPA and across the contracts.” “We were asked to share our approach to self-employment which we were happy to do.”

3c) Honouring Commitments Pre-contract communication with potential partners continues to take place in a variety of ways, for example, in meetings with individual potential partners and via emails and telephone calls. These discussions include negotiation around quality, value for money and delivery. All finance, referral volumes, costs, delivery areas and contracting arrangements are agreed with each potential partner prior to subcontracts being signed. Post contract award, subcontracts replicate the agreements that were made throughout pre-contract negotiations. Throughout the life of the contract delivery, any amendments to contracts are agreed through contract variations and signed by both parties. Any re-profiling that has taken place appears to have been in consultation and negotiated in an environment of openness, honesty and trust.

“With the exception of the contract variations from DWP we are delivering what was agreed with G4S before the contract award.”

Whilst there is a dispute resolution process outlined in G4S ESS contracts, Brokers felt the relationship with G4S ESS would mean that informal methods would be their preferred initial option. G4S ESS staff are proactive in supporting the supply chain to resolve any potential disputes prior to escalation stages. Supply Chain Managers act as the initial point of contact in addressing any queries and concerns from Brokers, and Regional Contract Managers regularly engage with senior management within the supply chain to receive feedback and address concerns at an early stage.

“Never have to escalate anything because we can raise anything with the SCM at any time.”

G4S ESS senior staff confirmed that they would abide by any decision made by the Merlin Mediation Service, and Brokers who were aware of the Merlin Mediation Service/Independent Case Examiner confirmed that they believed that, whilst unlikely to be tested, G4S ESS would abide by any decision made by either body. The consistency of information provided before, during and after contract award ensures that within the different supply chains, there is a robust understanding of what each party is and should be doing. Post-contract award, regular and ongoing communications with Brokers take place through a variety of methods including weekly performance meetings, monthly performance meetings and supply chain forums during which delivery plans are openly discussed and shared.


“Expectations pre, during and post contracting have remained the same.” “It’s a partnership – G4S and us – us and the other Brokers.”

3d) Performance From the initial procurement and tendering process, organisations joining the G4S ESS supply chains are encouraged to work collaboratively through, for example, working together on the development of the initial tender document. Once established, the sharing of best practice, vacancies and employers, performance management measures, documents and templates becomes the norm. The sharing of performance against target data across the supply chain has promoted a culture of openness and transparency between members of the delivery network.

“Had two or three intensive days with other partners so G4S facilitated group work from day one across the providers.” “From the set up, meetings through to present day – all collaborative.” “Get a lot of information from G4S and can also see what other Brokers are doing and it spurs you on in a positive way. This is always presented in a positive, developmental way by G4S.”

Brokers described how quarterly meetings, including operational and leadership staff from both their organisation and G4S ESS, are the ‘formal’ opportunity for both parties to raise and share best practice actions, concerns and issues. Brokers were very positive about the openness and content of these meetings and confirmed that they give a platform for open debate without unreasonable constraint, whilst providing clear performance guidance and direction.

“They are more supportive than just contract and performance review – they identify strengths – let us pilot ideas.” “They always ask if there is anything else they can help with.”

The performance management framework included as an appendix to each Brokers subcontract, together with communication and actions of G4S ensures that all members of the supply chain network understand the performance required of them and each other. Performance is monitored daily, and reported on weekly, covering the whole of the supply chain. Performance reviews are undertaken on a weekly, monthly and quarterly basis. If performance targets are not being met and there is minimal or no improvement over time, this can ultimately lead to a reduction of flows or, in extreme circumstances, the removal of the contract from the Broker.

“After every quarterly meeting we have a plan of action to take us through the next three months.” “We are very clear about what we are expected to achieve.” “The PIP process itself is a very good way of managing performance.” “Lost some key staff last year so been on a PIP – delivered with passion and understanding.”

iSET is used as the basis for the management information (MI) shared across the supply chains. It enables a suite of data and reports to be shared on a daily and weekly basis covering for example actual and potential performance, the customer journey, contact reports, benefit reports, last day in work report and compliance reports. MI training has been provided and most Brokers confirmed they are able to interrogate the data provided so they can review the data at a level they require.


However, a small number Brokers believe they do not have the in-house capabilities to do more that review the data in the format it is provided. However, G4S has consulted with the network about the information used such as what would they find useful. Those Brokers who are proactively using the data provided by iSET believe that if they had the facility for live reporting supported by a performance dashboard, performance across the contracts would be improved.

“MI supports accurate forecasting for cash flow.” “G4S have worked extremely hard to improve their MI system which has been totally replaced and does now produce very robust reporting.” “iSET isn’t brilliant but we do get lots of reports from G4S. We can’t create our own but the daily reports mean it’s almost live.” “The data we receive includes information we don’t want so we manipulate it ourselves.”

Outcomes achieved through the delivery of a quality service to customers are the key driver in supporting value for money. G4S ESS benchmark against the Commissioner’s Targets, as well as against other Prime Contractor outcomes and achievements. Overheads and management costs are kept to a minimum to allow the majority of funds to be invested in the frontline Broker services. Where Brokers have not demonstrated ‘value for money’ in terms of not performing or meeting targets, flows have been removed, suspended or transferred on a temporary basis to a high performing Broker. Minimum Service Level Agreements are in place for each contract which reinforce what Brokers and G4S ESS should be providing to ensure the Commission and customer receive value. Brokers described how, through the observations by G4s ESS staff, the value the customer is gaining from the programme is considered and the adviser graded accordingly. This refocuses the Broker’s need to ensure ‘value for money’ is provided across all delivery.

“Work with other organisations to offer holistic – wrap around support for the customer which gives real value.” “CWP has got a lot of people into jobs which, when you work out what that is saving the DWP budget, it is certainly value for money.” “We get value for money from G4S by their management fee – integrity and knowledgeable people who support us throughout.” “Value for money – it worked in terms of the long-term support for the people on the programme.”

Brokers were very clear about the importance of measuring progress made by customers and cited a number of methods that were used. These include obtaining feedback from the customer about their personal journey towards employment using individual customer actions plans to track and monitor, for example, the customer’s progress. The sharing by one Broker of their ‘Jobs First Delivery Model’ and its adoption in full or in part by Brokers across the supply chain network, was cited as having a positive impact on the customer journey.

“Monthly action plans demonstrate how the customer is progressing in their journey to employment.” “The caseload tracker is brilliant.” “Everyone I’ve spoken to has had the same ethos of doing a good job and that the customer journey is a good one.”


3e) Promoting Diversity and Equality As part of the partner due diligence and validation process, organisations are asked to provide details and copies of their own policies relating to diversity and equality (D&E). G4S ESS has clear processes to ensure the alignment and commitment to D&E across the networks. Brokers confirmed that G4S ESS are committed to D&E and processes are in place ensure all partners demonstrate the same level of commitment. Policies are reviewed annually and Brokers are required to retain records documenting that policies have been read, and understood, by staff. G4S ESS assurance is gained via site visits and audits. G4S has produced a poster promoting D&E and there is a requirement for these to be displayed in all delivery locations.

“Very strong alignment of polices.” D&E is discussed during Broker reviews with action plans collected and reviewed by specialists and support is offered if partners need to make improvements. G4S ESS has a Diversity and Equality Delivery Plan within each of its Work Programme and Community Work Placement contract areas, which clearly sets out what is planned around D&E as well as a national plan covering the whole of its provision. The aim of this plan is to outline activities and SMART actions to support the G4S ESS regional teams and Broker networks to deliver the aims and objectives of the national plan and drive D&E across the network. Brokers are encouraged to use raw data as an aid to reviewing provision. For example, one Broker explained how they have used the data to ensure that placements available by postcode reflect the demographics with whom they were engaged. Other examples include reviewing the needs of the migrant populations in particular wards, providing appropriate interpreters at job clubs, and running a crèche in the school holidays to enable lone parents to continue to attend job clubs. However, these examples were limited and localised.


4. Review 4a) Supply Chain Review Receiving and acting upon feedback from all stakeholder groups is an integral part of the approach taken to supply chain management by G4S ESS. They work collaboratively with stakeholders – DWP, JobCentre Plus, Local Enterprise Partnerships, local authorities including members of the delivery network - to ensure the service provision meets local needs and provides value for money. The BIG focuses on all feedback received from stakeholders such as Provider Assurance Testing (PAT) audits, Merlin assessments, KPMG, ERSA sector surveys, customer and supply chain surveys to inform and improve practices such as the recent development of a performance balanced score card, the introduction of an occupation health telephony service pilot and the introduction of impartial G4S ESS pre-payment validation calls. Feedback from key stakeholders has been used to excellent effect in identifying the mix of provision available in specific localities which will meet the most recent commissioning requirements. Each Broker completes its own SAR and accompanying Quality Improvement Plan (QIP) annually. The QIP is monitored and reviewed on a regular basis with members of the supply chain team. Each contract produces a regional SAR and QIP, which takes into consideration the key areas from the Broker SAR and QIP; this is then fed into the national SAR and QIP. Responsibility for the progression of the G4S ESS QIP is held with BIG. The importance of continuous improvement is embedded across the delivery network with the outcomes of all quality-based observations and audits feeding through into the SAR and QIP process.

“Process ensures actions are taken”. “We complete our improvement plan around a balanced scorecard which reviews people, quality stakeholders and performance.” “SAR goes back to G4S with QIP.”

Through their extensive networking activities, G4S ESS is best placed to fully understand the wider policy and strategy of the commissioner and what needs to shared with the supply chain network. Strong relationships have been forged with key stakeholders such as DWP at both a strategic and operational level to enable G4S ESS to gain updates on changes to policy and strategy in a timely manner. Brokers are updated on the wider policy of the commissioner and strategy information through a range of methods including a weekly communications bulletin, newsletters, emails, meetings and training events. For example, to support the roll out of Universal Credit (UC), G4S ESS delivered a number of workshops with the supply chain to increase the understanding of the change in policy and process.

“They arranged a meeting between ourselves, G4S and the Jobcentre so that we could talk about referrals and explain what we do – we were one team.”

There is a view across the network that, due to the supply chain strategy of working with Brokers who are able to provide customers with holistic and wrap around support, the contract delivery impacts on the wider social objectives of the commissioner. Consequently, G4s ESS and its Brokers were able to share numerous examples of how they believe the work they are delivering is having an impact on the commissioner’s wider social objectives.


These include helping customers to achieve financial independence through supporting them into employment and making improvements to their health and wellbeing, and through the mechanisms introduced to support customers with mental health issues. However, in the main this ‘evidence’ tended towards the anecdotal.

“We have an anti-poverty focus in all we deliver.” The outcomes of the various processes and mechanisms to review and develop the supply chain network have resulted in numerous developments. These include the loss of a number of organisations from the supply chain, the introduction of new organisations with different delivery methodologies to support the changing needs of customers presenting with, for example, health related issues. Other examples include G4 ESS employing a cognitive behavioural therapist and the engagement of G4S ESS in delivery to help overcome a market failure in one CPA. Activities of the G4S ESS supply chain network are positively impacting on external stakeholders, such as the way in which customers have been encouraged to develop themselves and their wellbeing. Examples include customers recognising that through the ‘discipline’ required to fulfil a work placement they are more able to cope with the demands of work and, through interactions with others, are more socially confident.

“We do arts and crafts session to raise confidence levels.” “We have taken customers to the museum to get them out and about and interacting.” “We run a social cinema where we show films in our centre – customers come once a month – they watch the film then they socialise for half an hour discussing their view of the film – it all builds communication and social skills.”

G4S ESS also supports its own employee wellbeing via absence management and support, access to services such as a confidential counselling, and occupational health support.


7. Conclusion This assessment provided the opportunity to assess G4S ESS’s current supply chain management practices against the Merlin Standard. It was evident to the assessment team that since their last assessment G4S ESS has further enhanced and embedded its approach and culture to the management of its Brokers. The following are just a few of the quotes provided by Brokers which highlight the current strength of relationship.

“As a Prime Contractor they are the best, due to them being professional, doing what they say, are understanding of our situation, are supportive, not totally driven by the bottom line – quality counts, set clear KPIs and targets. We were chosen because of our expertise therefore they trust and respect us and they apply the right level of support and involvement – the right level required at the time.” “G4S treat people with respect – they do what they do well and treat us as part of a team so we all work together – my failure is their failure – my success is their success.” “We have seen an integrity and professional side to a Prime Contractor through our working relationship with G4S”. “Support is the best we’ve ever had from a Prime.”

In June 2018 G4S ESS will be required to undertake a further assessment against the Merlin Standard in order to retain the accreditation. However, due to the commitment to continuous improvement consideration could be made to a continuous improvement review being undertaken in June 2017. The purpose of the review would be to establish progress made against the areas recommended for further improvement following this assessment.

Assessment Type REVIEW

Assessor’s Decision STANDARD MET

Lead Assessor’s Name RUTH REGAN

Visit Date 6TH TO 9TH JUNE 2016

Client ID C16286

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