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2023-06-30-accounts

Growing our reach, growing our impact Equipping our profession to make work work for all

Contents

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||| |---|---| |Trustees’ report| |Foreword|4| |Reflections from our president, board chair and chief executive| |Holding on to our purpose|5| |Growing our profession, growing our impact|6| |Growing responsibly|7| |About us|10| |We’re the CIPD – the voice, the standard and the partner for the| |people profession| |Our purpose, our vision, our priorities|11| |Where we work, the difference we’ve made|12| |Our key results|16| |Building our professional community|18| |We’re the professional body for HR, L&D and OD – strengthening,| |connecting and growing the people profession| |Strengthening our community|19| |Connecting our community|22| |Growing our community|23|

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TRUSTEES’ REPORT | Contents

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||| |---|---| |Expanding our professional partnerships|26| |We’re the business partner for organisations – recognising and| |developing the capability of people professionals and teams| |Recognising more people professionals|27| |Developing more people teams|30| |Building capability and commitment|31| |Raising our voice and impact|34| |We’re the voice of the people profession – sharing our expertise in| |people, work and change with many audiences| |Expanding our reach and influence|35| |Sharing insights on work, skills and technology|36| |Championing employee relations, inclusion and wellbeing|37| |Tackling the barriers to better work|40| |We’re the advocates of better work for all – harnessing the| |knowledge, expertise and talents of the people profession| |Diversifying our profession|41| |Transforming lives|44| |Changing society|45| |Our commitments as a responsible organisation|46| |We’re a business and an employer – growing as a sustainable,| |future-fit organisation| |Growing responsibly|47| |Sustaining our environment|49| |Sustaining our people and culture|52| |Sustaining good governance|58| |Independent auditor’s report|70| |Financial statements|74|

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TRUSTEES’ REPORT | Foreword

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Foreword
Holding on to our purpose 5
Growing our profession, growing our impact 6
Growing responsibly 7
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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Foreword

Will we build more responsible businesses, to sustain positive movement on inclusion and wellbeing, and bring about more fairness at work and in our societies? Or will short-term actions in response to declining profit margins further exacerbate divides and differences?”

Foreword

Reflections from our president, board chair and chief executive

Holding on to our purpose

Championing better work and working lives is as vital as ever.

Our profession remains at the forefront of immense changes that are transforming our workplaces. Our societies are facing complex, global economic and environmental challenges. Rapid developments in technology are reshaping our organisations, as we’re seeing right now with the advancement of artificial intelligence. People’s expectations, as workers and consumers, are shifting all the time.

But we’re also at the forefront in realising huge opportunities. The challenges we’ve faced in recent years have transformed how we think about our organisations, our business models and our people. More than ever, people professionals play a central and vital role in resolving the many conflicts our organisations face. Increasingly, we’re relied upon to come up with solutions and anticipate how work is changing. It’s down to us to understand our contexts, manage the expectations of leaders in our organisations, and balance both with the needs of our workforces.

This year, many across our professional community have faced stark choices. Do we enable short-term actions, in response to immediate financial challenges, that risk the erosion of business sustainability, environmental sustainability, job quality, workforce wellbeing, fairness and inclusion? Or do we push for forward-thinking, evidence-based investment that can sustain our people, our organisations and, ultimately, our societies?

Managing change effectively while retaining the trust of our people has never been more important. That’s why the CIPD continues to champion better work and working lives. We do it because we know organisations thrive when we put people first – and because thriving, responsible organisations lead to stronger economies and societies.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Foreword

Growing our profession, growing our impact

This year we’ve continued to amplify our purpose through our strategy for growth.

We’re equipping more people professionals – around the world – to have a positive impact on individuals and organisations. And we’re working with more employers, partners and policy-makers to change the agenda around people and work.

We’ve launched the CIPD Trust, harnessing the power of our profession to tackle barriers to work and create inclusive workplaces. Members of our community are taking the opportunity to share their expertise, helping people get into work, return to work and develop in the people profession.

Our new Code of Conduct and Ethics meets the changing expectations of all our stakeholders and addresses the complex challenges faced by people professionals today.

Our new website makes our learning, resources, views and insights more accessible and improves the digital experience for our 6 million global visitors. We continue to research and share resources on the topics people professionals call for, keeping our community up to date on trends in work, people and technology. And our Learning Hub now offers over 70 courses, giving members, subscribers, teams and people managers access to the learning they need, whenever they need it.

Our conferences, award ceremonies and networking events continue to strengthen our global community. These connections are forging stronger strategic partnerships with policy-makers, agencies and other professional bodies on our good work agenda and our ongoing call for better work.

We are encouraged that so many organisations – across all sectors and regions – are also determined to invest in the development, progression and impact of their people professionals. This year 11 more organisations have demonstrated their commitment to building the capability of their people functions by becoming People Development Partners. Many more are using our Profession Map, courses, qualifications and assessment tools to raise the capability and professionalism of their people teams.

By extending our reach and influence, we are doing everything we can to strengthen the social, business and economic impact of our profession.

We’ve worked hard to promote the issues that matter. We’ve invested in research, content and learning to better support our whole professional community. Our membership has significantly increased, as have our student numbers, and we’re working with many more organisations.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Foreword

Growing responsibly

Extending our reach and impact means continuously improving what we do and how we do it.

We’re doing more to put our customers first – all our customers: members and non-members, organisations and employers, employees and jobseekers, people managers and leaders, partners and decision-makers. We’re sharpening our insight, seeking feedback and generating engagement and partnership. And we’ve continued to invest in our learning and finance systems to align our infrastructure with their needs.

We are determined to grow responsibly and sustainably. We support the increasing public, investor and regulatory interest in environmental, social and governance (ESG) issues. This year, with the effort and contribution of our people, we’ve achieved the prestigious Investors in the Environment Bronze accreditation. The people profession has led on the ESG agenda for some time, and we continue to share research and resources that help our community fulfil its central role in creating responsible businesses.

When we talk about ESG – when you really look at what’s at the heart of the ‘S’ – it’s about our people being motivated to grow our businesses. It’s all about culture, leadership and behaviours.”

Our people make this happen. We rely on their exceptional talent. We continue to invest in

building a learning culture for all our people – employees and volunteers. This year, we achieved the Investing in Volunteers award for good practice in volunteer management, inclusion and involvement. We want all our people – whatever their role – to learn, thrive and progress.

We’re choosing to grow and invest in our organisation and – most importantly – our people. We’re doing it to deliver the right results for our members, our community and our business. And we’re doing even more to share good practice across our profession, increase our impact, and equip our growing community to champion better work and working lives.

Baroness Ruby McGregor-Smith, CBE President

Valerie Hughes-D’Aeth, Chair of the Board

Peter Cheese, Chief Executive

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Foreword

We are proud of all we’ve achieved together as an organisation and a community. The future will always be uncertain, but our profession is ready to stand up and take its place in shaping that future.”

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CIPD Annual Report and Accounts 2022–23

CIPD Annual Report and Accounts 2022-23

About us Our purpose, our vision, our priorities 11 Where we work, the difference we’ve made 12 Our key results 16

TRUSTEES’ REPORT | About us

About us

We’re the CIPD – the voice, the standard and the partner for the people profession

Our purpose

Championing better work and working lives

We’ve been driven by our purpose for over 100 years. And we fulfil it by helping organisations focus on their people. We do it because when people thrive, so do their organisations, economies and societies. We’re the professional body for HR, L&D, OD and all people professionals – the experts in people, work and change.

With over 160,000 members globally – and a growing community using our research, insights and learning – we give trusted advice and offer independent thought leadership. And we’re a leading voice in the call for good work that creates value for everyone.

Our vision

A world where work creates value for everyone

We foresee a time when the barriers to work are removed. Where workplaces are inclusive and fair. Where people can improve their skills, raise their confidence and reach their potential.

That’s what we’re working towards. The people profession can make this happen. And we’re strengthening and supporting our growing community to bring about this vision. Our members and partners are uniquely placed to improve work and working lives for all of us.

Our priorities

Growing our impact on work and working lives

We call for better work through constant dialogue with governments, partners and our community. We forge relationships with employers and experts to progress our good work agenda. We influence policy and practice. We share research, guidance and thought leadership.

And we do it by:

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

Where we work...

Total worldwide membership

160.3k

35.7k Student Members

41.0k Learners

5.9m Web visitors

Ireland

5,616 members 204k web visitors

United Kingdom

142,568 members 4m web visitors

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

Rest of world members 3,735

1m web visitors

Asia Pacific

Middle East Asia Pacific members members 6,474 1,904 200k web visitors 513k web visitors

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

...the difference we’ve made

CIPD Trust launched

“ As HR professionals, we can have a huge impact on the wider community when we share our skills and knowledge.”

Alicia Wilson, CIPD Trust volunteer and Head of People at DRPG

Investing in Volunteers award achieved

“It is an amazing feeling to be part of something that positively impacts and helps others.”

Samantha Lubanza , Branch Chair

More employers use our standards to develop and recognise their teams

“NHS people and our patients at the heart of our development.”

Thomas Simons , Chief HR & OD Officer, NHS England

Investors in the

Environment award achieved

88% of our members told us it’s important for the CIPD to be sustainable.

HR Awards impact more organisations in Ireland

“Being recognised as a winner is moving us towards becoming an employer of choice.”

Jim Meade , Chief Executive Officer, Iarnród Éireann (Irish Rail)

Good Employment Summit co-hosted with northern metro mayors

“Local work charters are changing cultures and giving employees a say.”

Andy Burnham , Mayor of Greater Manchester

Public policy highlight

Our #Flexfrom1st campaign informs the UK Government’s decision to make requests for flexible working a day one right.

Conferences and roadshows reach more professionals in Scotland, Wales and Northern Ireland

“All sessions and speakers were fantastic and brought new ideas.”

Knowledge exchange connects professionals in Asia and the UK

“The Festival of Work rejuvenated my passion to refresh our HR practices and strategies.”

Khairul Faizi Abd Karim, Learning Specialist (Principal) Leadership Consultancy and Innovation, PETRONAS

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

Trusted guidance on trending topics delivered

“Your future of work article on the impact of ChatGPT and other AI chatbots is excellent!”

Senior solutions engineer, HR software vendor

Investment in learning reaches more professionals

Almost 220,000 learners have accessed over 70 courses on our Learning Hub.

New website creates a better digital experience for all

“I have been able to use the CIPD website and resources in my dayto-day role – setting up the company’s first HR department.”

Richard Pankhurst, Student Member

Brand, tone of voice and visual identity updated

“The CIPD brand gives you a stamp of credibility. And because the resources are user friendly, it makes it very simple to ensure that my knowledge is up to date.”

Sarah Worth, CIPD member

Four new Middle East study centres opened

“The first CIPD-approved study centre in Oman is a major milestone for the country’s HR community.”

Stuart Dunlop, Regional Director, CIPD Middle East & North Africa

Festival of Work free for almost 10k visitors

“I’ve come away with pages of notes and a long list of ideas to take back.”

Jade Martin, Human Resources Manager, Carefree

New Code of Conduct and Ethics launched

“A badge of honour that assures others of the quality of my work.”

Keith Watson FCIPD, Head of Consultancy Services, 360 HR Solutions UK

Foundation Certificate in People Practice launched in Arabic

“It has been so rewarding to witness students being able to learn in their own language.”

Caroline Griffiths, Managing Director at Bradfield Group

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

Our key results

Total members

Chartered Members, Fellows and Companions

Associate Members Student Members

Foundation Members

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Membership
160.3k
160k 160.1k
157.8k
140k
120k
100k
80k
76.5k 76.1k 74.8k
60k
45.4k 44.6k 43.8k
40k
34.4k 33.5k 35.7k
20k
442 2,956
0k
2020–21 2021–22 2022–23
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Over 3,000 Affiliates and Academics are also part of our community.

Web visitors

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10m
Web visitors
8m 8.3m
6m
5.9m 5.9m
4m
2m
0m
2020–21 2021–22 2022–23
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Visitor numbers grew for most of the year but slowed as expected in the last quarter due to site relaunch and changes in user tracking measures.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

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Revenue (£)
50m
44.8m
40m
42.4m
Total revenue 38.6m
30m
20m
Corporate revenue
10m
8.6m
5.9m 6.5m
0m
2020–21 2021–22 2022–23
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For information on our revenue, read the later sections Managing our finances and our Financial statements.

Employer partnerships

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600 64.1k 60k
Organisations 500 50k
419
40.7k
400 40k
330
300 30k
People professionals
22.4k
215
200 20k
100 10k
0 0k
2020–21 2021–22 2022–23
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By partnering with organisations, we continue to grow our impact with people professionals.

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CIPD Annual Report and Accounts 2022–23

Building our professional community Strengthening our community 19 Connecting our community 22 Growing our community 23

TRUSTEES’ REPORT | Building our professional community

Building our professional community

We’re the professional body for HR, L&D and OD – strengthening, connecting and growing the people profession

Strengthening our community

People professionals have a once-in-a-generation opportunity to reimagine work and improve many more working lives. This means taking control of their learning, at every stage of their career path, and keeping up to date and informed. We help them do it by providing current, relevant, evidence-based resources, learning content and thought leadership.

Evidence-based learning

Almost 220,000 learners – members and non-members – have used our Learning Hub to date, with over 25,000 active this year. They’ve accessed over 70 programmes, including introductory courses, accredited programmes and development tools, delivered face-to-face and online.

We also offer free, open-access, online courses through FutureLearn so we can bring vital people insights to the widest possible audience. To date, over 200,000 people have enrolled on our introduction courses on HR Fundamentals, People Management Skills, and Inclusive Management and Leadership Skills.

Discover our qualifications and learning at cipd.org/learning

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Building our professional community

Up-to-the-minute resources

Maintaining the pace we set in response to COVID-19, we continuously review, reference and update our research, guides, tools, factsheets, reports, podcasts and webinars. We respond to the needs of our community, drawing on their insights as well as the expertise of our teams. This year, for example, our new cost-of-living guide outlines the key considerations that help employers support employees in the face of financial concerns. And our new website, launched this year, makes our resources, learning and news content even easier to find.

I have been able to use the CIPD website and resources in my day-to-day role – setting up the company’s first HR department – including writing policies and contracts.”

Richard Pankhurst, Student Member

Explore our knowledge hub at cipd.org/knowledge

Find resources by topic at cipd.org/topics

Award-winning content

Our award-winning professional magazines – People Management and Work . – are highly valued sources of news, opinion and insight from across HR, L&D and OD. This year we’ve reviewed them both in response to our readers’ changing habits and needs, increasing the volume of content available to our members. We’re publishing more online and less in print, improving the sustainability of our publications. And we’re delivering content in ways that enhance its relevance to our audiences, responding to their career stages, specialisms and geographies.

Our new Code of Conduct and Ethics

Professionalism is captured not just in learning and experience, but in the standards we uphold. Our members commit to our Code of Conduct and Ethics and use it to reflect on and strengthen their practice.

In January 2023 our new Code of Conduct and Ethics came into effect, following extensive consultation with our members, the wider profession, employers, legal experts, academics and ethicists. It is now structured around five key virtues:

New clauses, for example on communications including social media, reflect the practical challenges faced by people professionals today.

Read the new code at cipd.org/code

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Building our professional community

A requirement of our Royal Charter, our code protects the interests of the public and the reputation of our profession. A pool of trained volunteers supports the CIPD in considering alleged breaches of our Code of Conduct and Ethics. This year:

The Code of Conduct and Ethics is essential to maintain the standards of the profession. It is a badge of honour that distinguishes me from non-members and assures everyone of the quality of my work.”

Keith Watson Chartered FCIPD, Head of Consultancy Services, 360 HR Solutions UK

Updates to our Profession Map

As our organisations and workplaces change, our Profession Map remains an essential tool for our whole profession. Used by individuals and teams, and the foundation for development and career progression, the Profession Map maintains the international standard for our purpose, values, knowledge and behaviours. Reviewed twice a year, in consultation, the Profession Map is designed to evolve as new roles, specialisms, priorities and opportunities emerge.

In November 2022 we introduced specialist knowledge standards around wellbeing to support people professionals who deliver and lead work in this important

area. We’ve included a new standard around psychological safety, emphasising our profession’s role in creating safe spaces at work. And we’ve refreshed our language around equality, diversity and inclusion to better reflect the outcomes this work aims to achieve. Reviewed again in June 2023, no changes were required.

The CIPD is always my go-to if I need advice or when researching best practice.”

Sheena Cox, CIPD Associate Member

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Building our professional community

Our contribution to the global people profession

We’re strengthening our connections with other bodies that share our values and commitment to professionalism. This year we’ve forged relationships with sister professional bodies the CIPM in Nigeria and the CPHR in Canada. We have also established a reciprocal membership agreement with the South African Board for People Practices and continue to accredit the Chartered Qualification in Human Resource Management with the CIPM in Sri Lanka.

We continue to support the European Association for People Management and the World Federation of People Management Associations. All our strategic partnerships enable collaboration across our profession and strengthen global people management standards.

Connecting our community

Members of our professional community are a vital source of experience and insight, for each other and for us. We continue to listen to the needs of our community and explore new ways to connect people professionals – wherever they work – through events, networks and specialist forums.

Championing our whole community

Our annual events bring our community together, connecting our profession around the world and celebrating its achievements. Through them, and the media interest they generate, we champion the people profession and keep the work of our community in the spotlight.

Our Annual Conference and Exhibition in November 2022 attracted over 3,500 delegates to Manchester and several hundred online. Around 2,500 chose to take part in the main conference programme, and the exhibition included over 800 exhibitors and sponsors. When asked to sum up the event in one word, the top responses were informative, interesting, inspiring and insightful.

We took a new approach to our Festival of Work in June this year, making it a free, in-person event. With seven stages, over 200 speakers and 100 sessions, almost 10,000 people joined us, many for the first time, with an even number of members and non-members.

Regional, national, and specialist communities

Our CIPD teams and volunteers in every region continue to connect people professionals through our UK-wide branch network, our regional networks across Ireland and our regional HR communities globally. Our new Advisory Committees in Malaysia and in the Middle East are connecting HR leaders and practitioners from across industries to ignite innovation and champion people management standards.

Our annual conferences in Scotland and Northern Ireland welcomed more delegates than ever. Our team in Wales ran four roadshows, reaching many people who had never attended a CIPD event before. And our regional and national award events, celebrating the excellent work of people professionals around the world, together attracted over 200 high-class entries this year.

We focused on the CIPD HR Awards as a barometer of our people development. The impact of being recognised as a winner is moving us successfully along the path of becoming an employer of choice.”

Jim Meade, Chief Executive Officer, Iarnród Éireann (Irish Rail)

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Building our professional community

This year we’ve added our online Student Community, senior people professional networks and more specialist communities to our HR Leaders’ Network, public policy forums and other practice-based networks. And, through our Applied Research Conference (ARC), we continued to bring diverse communities and disciplines together to share insights from research and practice.

The CIPD ARC event was inspiring. It reignited my passion for linking research and practice, and helped me make new connections, build knowledge and get energised.”

Dr Helen Timbrell, People and Organisational Development Consultant

Growing our community

The broader and stronger our community gets, the greater our power to make a difference to millions of people around the world. By growing our membership, we’re giving more professionals the knowledge and insight they need to champion better work and working lives. At a landmark 160,297, more people professionals than ever are demonstrating the value they see in CIPD membership. We’ve seen a 7% increase in our student membership, outpacing a drop in Chartered Members and Chartered Fellows, and a 25% increase in members in the Middle East.

A thriving, global membership means that more people professionals are recognised for their knowledge, behaviours and impact. And good retention rates overall confirm our role in supporting members’ careers and enabling their progress to chartered grades. Our analysis of people profession salaries across job postings, captured by Lightcast, demonstrates the earning potential for CIPD members and the value that employers place on CIPD qualifications and membership.

Discover the value of CIPD accreditation at cipd.org/accreditation

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

From nurturing our future professionals…

We’re improving the experience for our Student Members, now 35,670 strong, to ensure that the next generations of people professionals are supported wherever they live and work. To date, around 3,000 people have engaged with our new online Student Community, created to enable greater peer support and launched at this year’s annual student conference.

We continue to work closely with employers and training providers to support and assess apprenticeships from level 3 to level 7. This vocational route avoids the financial barrier that many face when considering studying for a degree, offering the option to undertake a higherlevel qualification while working. This year we’re supporting 418 apprentices, working across 284 employers, who are registered on the level 7 Senior People Professional apprenticeship standard, achievement of which leads directly to Chartered Member status.

…to harnessing the impact of senior professionals

Our community is strengthened by the experiences of the senior leaders within our profession. Our HR Leaders’ Network now has over 250 members. This year we established a number of new specialist communities, with a further 400 leaders sharing their insights in leadership and development, culture and transformation, recruitment and talent acquisition, reward, and equality, diversity and inclusion. And we recognised five new Chartered Companions this year, celebrating the insights they bring from their outstanding contributions to our profession.

Read about our 2022 Chartered Companions at cipd.org/companions

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | About us

CIPD membership has broadened my knowledge base, allowed me to see the value in myself as an employee and redefined my thinking. I hope to use my CIPD designation to develop the human capital of my small developing island state of St. Vincent and the Grenadines.”

Keitsha Gilbert, CIPD Student Member

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CIPD Annual Report and Accounts 2022–23

Expanding our professional partnerships Recognising more people professionals 27 Developing more people teams 30 Building capability and commitment 31

TRUSTEES’ REPORT | Expanding our professional partnerships

Expanding our professional partnerships

We’re the business partner for organisations – recognising and developing the capability of people professionals and teams

Recognising more people professionals

We champion better work and working lives at scale by supporting people professionals in their teams, functions and organisations. We’re expanding our community, around the globe, by working with more organisations that share our vision for a world where work creates value for everyone.

This year we’ve partnered with 419 organisations in professionalising their HR functions, reaching over 64,000 people professionals and enabling many of them to achieve CIPD membership. Some have opted for our non-study Experience Assessment route, using their real-world experience to showcase how they meet the membership criteria that match their role and aspirations.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

I had always wanted to achieve Chartered CIPD professional membership. It was fantastic to have the opportunity to do this through the Experience Assessment route. With support from the MOD’s HR function, I’ve been able to build my knowledge across the HR spectrum as well as reflect on my own experience.”

Jill Eaton, People CivHR Policy, UK Ministry of Defence

Some organisations choose the CIPD qualification that best equips their people professionals in their role and level. This year, with our delivery partner Bradfield Group, we’ve launched our Foundation Certificate in People Practice in Arabic. Through our pilot with the Dubai Police, we’re making this key qualification accessible to new people professionals across the Middle East.

It has been so rewarding to witness students being able to learn in their own language, and we wish them every success in their future careers in the people profession.”

Caroline Griffiths, Managing Director at Bradfield Group

Underpinned by the Profession Map, our qualification and Experience Assessment routes give individuals – and their organisations – the reassurance that they’re working at a globally recognised standard. And using the Profession Map as a solid foundation, we’re able to tailor our standards to reflect our partners’ contexts and complexities.

This year, for example, we’ve begun to embed new standards across NHS England, as we work to raise the profile, capabilities and confidence of its 19,000 HR, OD and L&D professionals. And with Shell Global, we’ve built a standards framework for a multinational HR function of over 4,000.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

Our partnership is challenging us to look longer term, to shape leadingedge thinking, and to create systems for research and evidence-based practice, so we can put NHS people and our patients at the heart of our development.”

Thomas Simons, Chief HR & OD Officer, NHS England

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

Developing more people teams

While many of the organisations we work with are seeking recognition for their people professionals, others come to us with specific challenges to solve. We help by defining what great HR, L&D and people management looks like in an organisation. We diagnose capability and impact. And we boost skills and knowledge through our learning programmes.

Assessing people team capability

This year we’ve worked with a number of United Nations agencies, including the World Health Organization, the World Food Programme, the Development Programme and UNICEF. Using our HR Diagnostic Tool as a starting point, we’ve assessed their people professionals’ know-how and effectiveness, identifying training needs for individuals and teams, and providing appropriate learning and qualifications.

The Financial Services Compensation Scheme (FSCS) and Leeds City Council are among those that have used our People Impact Tool.

Keeping people teams future-fit

Many organisations come to us for our constantly evolving portfolio of learning – designed, facilitated and tailored by experts to address current challenges.

This year our most popular programmes have included: Strategic Workforce Planning, People Analytics, HR Business Partnering, Organisational Design and Development, People Management Development, Data and Analytics for People Professionals, as well as senior leader development.

We’re creating a strong, confident professional community where colleagues support one another to achieve their best in HR.”

Victoria Smith, Civilian HR Director

and Head of the HR Profession in Defence, UK Ministry of Defence

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

Building capability and commitment

Many of the organisations we work with recognise that professionalism is a career-long pursuit, and they invest in their HR teams in a number of ways. Some choose to work towards People Development Partner (PDP) status. In doing so, they demonstrate their commitment to promoting professionalism, providing entry points to the profession, investing in continuing professional development, and collaborating with us to support the people profession.

This year 11 more organisations have become People Development Partners, including our firsts in Asia and the Middle East, with more in the pipeline:

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

----- Start of picture text -----
We are honoured to have
achieved PDP status
from the CIPD, which
recognises our commitment
to developing our people
and building a world-class
human resources function.
This is a significant
achievement for Petroleum
Development Oman, and
we are proud to lead the
way in the Middle East.”
Farid Al Harthy, People Director, Petroleum
Development Oman
----- End of picture text -----

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Expanding our professional partnerships

Achieving this status is fantastic recognition for us as an organisation, and I’m particularly proud that we are the first financial services organisation to do so. Putting our colleagues and culture at the very heart of our strategy will ultimately help us to deliver on our purpose, to champion the potential of the customers, colleagues and communities we serve.” Jen Tippin, Group Chief People & Transformation Officer, NatWest Group

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CIPD Annual Report and Accounts 2022–23

Raising our voice and impact Expanding our reach and influence Sharing insights on work, skills and technology Championing employee relations, inclusion and wellbeing

35 36 37

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TRUSTEES’ REPORT | Raising our voice and impact

Raising our voice and impact

We’re the voice of the people profession – sharing our expertise in people, work and change with many audiences

Expanding our reach and influence

We equip people professionals to create change in their organisations by sharing our expertise on the trends, challenges and opportunities they face. We use our media presence, social media channels and website to do it as widely as possible. This year we appeared in the media over 2,300 times, mostly in the UK and Ireland but with a growing presence in the Middle East and Asia. And 480,000 people are following us across LinkedIn, Twitter, Facebook, Instagram and YouTube, generating 12m views for our posts, 10m for our webpages and 120,000 for our videos.

We share our collective insights with decision-makers and partners, drawing on the experiences of our community. This broadens the expertise and relevance of the insights we share with the people profession. And it amplifies our call for policy change on the issues that impact organisations, business and people’s working lives across the UK and, increasingly, in other regions.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Raising our voice and impact

Sharing insights on work, skills and technology

Labour market insights

We continue to provide our Labour Market Outlook – one of the most authoritative employment indicators in the UK – our quarterly economic analysis of employers’ recruitment, redundancy and pay intentions. It continues to attract strong national media coverage, as do our regular policy announcements and responses on workforce trends. For example, in September 2022 we warned that the UK Government needed a broader plan than tax cuts alone to tackle productivity.

- - Read our latest Labour Market Outlook at cipd.org/labour market outlook

These charters are giving employers a tangible way of demonstrating social value, improving productivity and reducing costs. They are changing long-term culture for the better and giving employees a say in how their workplaces are run.”

Andy Burnham, Mayor of Greater Manchester

Better work and working lives

We joined forces with the TUC, the Institute of Directors and the Employment Lawyers Association this year to urge the UK Government to maintain certainty for business and retain employment protections for working people by withdrawing the Retained EU Law (Revocation and Reform) Bill.

Our annual Good Work Index continues to drive improvement in working lives. With responses from 5,000 workers across sectors and occupations, our survey findings give people professionals insights that inform their policy and practice around protecting job quality and quantity. This year we published a dedicated report for Scotland, as well as Wales and the north of England. And our work continues to inform local good work standards and charters across the UK.

Flexible working

We’ve reached over half a million people with our ongoing campaign on flexible working and our insights on hybrid working. This year we’ve focused the debate – with our community, our partners and across the media – on growing expectations around the four-day week and on employers’ support for extending statutory paternity leave and pay.

Our chief executive, Peter Cheese, continues to co-chair the UK Government’s Flexible Working Taskforce with senior representatives from the Department for Business and Trade. The taskforce helped inform the UK Government’s Flexible Working Bill and the decision that, from April 2024, workers will have the right to request flexible working from day one of a new job.

Read more at cipd.org/fex-from-frst

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Raising our voice and impact

Skills and apprenticeships

This year we collaborated with the Skills Builder Partnership, Edge Foundation and KPMG to quantify the contribution of transferable skills to productivity in the UK. Our joint research revealed that low essential skills cost the economy £22bn in 2022 and hindered the social mobility, employment, earnings, job satisfaction and life satisfaction that people with higher levels of essential skills experience.

We’ve continued to be a vocal critic of the apprenticeship levy to the UK Government, highlighting its negative impact on overall apprenticeship starts, particularly for young people. Our analysis on the failings of the levy has encouraged regular media coverage and parliamentary debate, and informed proposals, announced by the Labour Party, for a more flexible ‘growth and skills’ levy.

HR, automation and artificial intelligence

We continue to support people professionals in becoming tech-savvy as they commission and implement technology in areas such as recruitment, performance management and building community in their organisations.

This year, in partnership with HiBob, we commissioned a survey of over 2,000 managers in HR and other functions to understand their views on technology and gain insight on what’s practised in their organisations. We shared our findings through our five-part research series, diving into the issues

So many of the articles I see are USbased, so it was brilliant to see the feedback from the UK market.”

Nina Metson, Managing Director, Waddington Brown

that people professionals are dealing with, and through regular media commentary.

- - - Learn more at cipd.org/tech at work 23

Championing employee relations, inclusion and wellbeing

This year our work on employee rights and wellbeing has focused on the challenges and benefits of zero-hours contracts, the relationship between poor management and employee mental health, and the ongoing impact of the cost-of-living crisis. Back in July 2022, we forewarned employers of the importance of engaging with employee representatives on these issues, and others, in the face of a more unstable period of employment relations.

Equality, diversity and inclusion

We’ve continued to champion equality, diversity and inclusion (EDI), urging organisations to develop and implement long-term strategies that improve workplace fairness. Our EDI factsheets, reports, guides and podcasts remain our most popular and well-used resources – reaching over 825,000 people via our social media channels and leading to more than 160,000 views and listens.

Explore our EDI resources at cipd.org/EDI

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Raising our voice and impact

The environmental, social and governance agenda

Environmental, social and governance (ESG) issues are steadily climbing the agenda. Growing public, investor and regulatory scrutiny is driving this response, along with more organisations declaring their values and purpose, and high-profile allegations of non-financial misconduct in the workplace. People professionals play a central role in nurturing cultures that support responsible business, and we’ve continued to provide the expertise and breadth of business perspective to codify and facilitate effective purpose, values and behaviours. The final report in our three-year research project sets out the lessons learned from COVID-19 and the responsibilities of leaders as we enter a period perhaps more complex than the pandemic itself.

Explore our ESG resources at cipd.org/ESG

Financial, physical, mental and social wellbeing

We’ve kept the spotlight on how employers can support their employees through cost-of-living challenges, publishing evidence-based insight, resources and guidance for employers to consider.

- - - Explore our cost-of-living guide at cipd.org/cost of living 23

Our report on workplace support for employees experiencing fertility challenges raised awareness of this sensitive topic and explored the effective provision and help that employers can offer. And we’ve remained a leading voice in the campaign for menopause-friendly workplaces, publishing our Manifesto for Menopause at Work in August 2022. We gave evidence to the Women and Equalities Committee’s inquiry, which answered one of our manifesto calls by appointing the UK Government’s first Menopause Employment Champion.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Raising our voice and impact

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CIPD Annual Report and Accounts 2022–23

Tackling the barriers to better work Diversifying our profession 41 Transforming lives 44 Changing society 45

TRUSTEES’ REPORT | Tackling the barriers to better work

Tackling the barriers to

better work

We’re the advocates of better work for all – harnessing the knowledge, expertise and talents of the people profession

Diversif in our rofession y g p

The long-term transformation needed to create better work and working lives starts with all of us – it’s driven by our profession. Having laid the foundations in recent years, in April 2022 we created the CIPD Trust to give a sharper focus to this purpose. We did it to grow our social impact, extend our charitable works and continue to build diversity within our profession.

The CIPD Trust harnesses the expertise of CIPD members and professionals across our wider community. It offers these volunteers the opportunity to make a real difference – to share their talents with those who need them most. It encourages them to broaden their experiences and insights and to develop good practice across their organisations. And it engages them in diversifying and strengthening our profession by delivering programmes that help people from all backgrounds to get in, get on and grow as people professionals.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Tackling the barriers to better work

This year, we’ve started to increase the scale and impact of our coaching and mentoring programmes for people professionals. Our Aspiring HR Director programme celebrated four years of success. Since its launch, 46% of its participants have been promoted to senior-level positions where they can influence change at the top of our profession.

I appreciated having a safe space to share my work experiences and challenges as a black woman in leadership. The workshops and the mentoring conversations were powerful and helped shape my thinking. It allowed me to see my diversity, authenticity and identity as a powerful resource and consider what impact I wanted to make through work.”

Rachel Akili, Group Head of Diversity, Equity and Inclusion, MAG (Airports Group)

We’ve also established the CIPD Trust bursary fund, providing over £70,000 this year to support 47 people to study CIPD qualifications and kickstart their career in the people profession. We are working to grow the bursary fund and increase the number of people we support.

I have been struggling for a long time in jobs with a low income, so this help from the CIPD Trust bursary fund will improve my family’s quality of life. I am delighted.”

MoniQue Knight, CIPD Trust bursary recipient

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Tackling the barriers to better work

I’ve been working in human resources for over three years in Ukraine, until last year, when I was forced to leave my country. I was trying to find a job as a people assistant or manager, but most employers require the CIPD qualification, which I couldn’t get due to financial difficulties at that time. I was really excited and overwhelmed by the support I received from the bursary fund. I feel very grateful for the opportunity.

I want to become a senior specialist in people management, to promote the purpose and values of the people profession, drive innovation and change, and constantly improve, learn and apply new knowledge in my daily practice.”

Roxy Kaminska , CIPD Trust bursary recipient

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Tackling the barriers to better work

Transformin lives g

The talents and insights of our community transform lives by helping people get into work and return to work. This year we’ve been focusing on those facing specific barriers: people with experience of the criminal justice system, refugees and displaced people, and older workers.

Supporting the jobseeker webinar was a fantastic opportunity to support people joining the workforce for the first time or returning after a break. It was great to hear the questions and understand the challenges people faced. It put into perspective the ‘human’ side of HR and why proper onboarding and HR processes are so important.”

Natasha Rubin, CIPD Trust mentor

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Tackling the barriers to better work

Chan in societ g g y

By bringing together people professionals, employers, experts and third sector partners, we’re working to generate long-lasting change for people facing the greatest barriers to better work:

The CIPD Trust builds on the ongoing success of our mentoring programmes, the contributions of people professionals who volunteer with us, and the partners who work with us to bring about change. We are deeply grateful to everyone in the growing CIPD Trust community. With their commitment and expertise, we’re gearing up to deliver change on a bigger scale.

Want to get involved? Discover how you can help at - cipdtrust.org/get involved

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CIPD Annual Report and Accounts 2022–23

Our commitments as a responsible organisation Growing responsibly 47 Sustaining our environment 49 Sustaining our people and culture 52 Sustaining good governance 58

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Our commitments as a responsible organisation

We’re a business and an employer – growing as a sustainable, future-fit organisation

Growin res onsibl g p y

We believe that by increasing our reach and influence, we can have a greater positive impact on individuals, organisations, communities and wider society. This aspiration underpins our growth strategy. However, we are determined to grow responsibly.

We’re guided by the 17 UN Sustainable Development Goals, which provide a shared blueprint for peace and prosperity for people, our societies and our planet. And we’re aligning our strategy and operations to make the most significant contribution to 10 of them.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

These 10 goals form our framework for auditing and tracking our progress on sustainability:

SDG 1: No poverty. We promote quality jobs in businesses and enable access to work through our mentoring programmes.

SDG 3: Good health and well-being. We provide wellbeing support to our staff and members. And we influence the wider business wellbeing agenda.

SDG 4: Quality education. We provide inclusive qualifications for people professionals. And we influence the wider skills agenda in the UK.

SDG 5: Gender equality. We are committed to achieving gender equality in the CIPD and across the people profession. And we provide resources and learning to promote gender equality.

SDG 8: Decent work and economic growth. Our research and resources shape the policy agenda around good work and influence wider business practices.

SDG 9: Industry, innovation and infrastructure. We develop the skills of people professionals to drive change in their organisations through behaviour, culture and capability development.

SDG 10: Reduced inequalities. We ensure the CIPD is a fair place to work. And we support the people profession, across the globe, to enable inclusive, diverse organisations.

SDG 13: Climate action. We adopt environmentally sustainable business practices and support the people profession to influence change.

SDG 16: Peace, justice and strong institutions. We promote high standards of integrity among people professionals. And we contribute to research and the policy agenda on good governance.

SDG 17: Partnership for the goals. We work with the people profession, partners and clients to drive sustainable organisations globally.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Sustainin our environment g

Our commitment to environmental sustainability is shared by our community: 88% of our members have told us it’s important for the CIPD to be sustainable. We pursue this goal through our environmental sustainability strategy, established in 2021 with sponsorship from our director of legal and governance and representation from our senior leaders. Our strategy commits us to improving our sustainability in all the ways we work – as an organisation and employer, as a business partner and customer, and as the leader of our professional community.

Our actions as an organisation

We’ve shared our environmental policy with our people, stating our commitment and engaging their support. With their ideas and enthusiasm, we’ve made great progress this year.

As part of our Zero Waste Week initiatives, led by our employee Green Champions group, we held talks on waste reduction and promoted recycling in the office and at home. We’ve decided to print People Management magazine quarterly, rather than eight times a year, and improve our digital offer to our members, significantly reducing our paper usage.

We’ve continued to improve the sustainability of our head office in London, measuring and reducing our carbon footprint, emissions and resource usage. We’re now measuring factors that we didn’t measure in 2021/22 (including commuting, homeworking and business travel), hence the significant increase in our Scope 3 carbon footprint.

At the suggestion of our people, we trialled the closure of our head office building on Fridays, introducing permanent Friday remote working in May 2023. This has decreased our use of both electricity and gas by 15%. The use of our office by more people this year, despite the Friday closure, has increased our water usage.

----- Start of picture text -----
UK HEAD OFFICE 2020/21 2021/22 2022/23 % change Target change
baseline for 2022/23
Total carbon 279 296 541 83% increase n/a
emissions (tCO2e)
Scope 1 and 2 279 296 240 19% decrease 2% decrease
Scope 1 124 142 121 15% decrease 2% decrease
Scope 2 154 154 119 23% decrease 2% decrease
Scope 3 0.13 0.09 300 333,333% n/a
increase
Electricity (kWh) 662,000 724,000 617,000 15% decrease 2% decrease
Gas (M3) 61,000 70,000 60,000 15% decrease 2% decrease
Water (M3) 375 621 1,024 65% increase 100% inc. max
----- End of picture text -----

Through everyone’s outstanding effort and contribution, we’ve achieved the prestigious Investors in the Environment (iiE) Bronze accreditation. Our goal is to achieve iiE’s Silver accreditation in 2024. We will also be improving our systems to measure our full Scope 3 carbon footprint, including our other offices, business travel, commuting, homeworking and waste.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Our actions as a business partner

We’re working with our partners and suppliers to secure their commitment, alongside our own, to environmentally sustainable practices.

Our actions as a profession

People professionals are in a position to take the lead in building responsible and sustainable organisations. This year, we’ve continued to support our members in the practical steps they can take, whatever the size or sector of their organisations.

Get started on your net zero journey with our guide

cipd.org/net-zero-23

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Our future plans

In support of our iiE accreditation, we’re exploring ways to reduce the impact of our business travel. And we’re planning conservation team-building days to enable our people to volunteer in support of environmental activities.

We are awaiting acceptance of our application to join the UN Global Compact – a call to companies to align their strategies and operations with 10 universally accepted principles in support of achieving the UN Sustainable Development Goals by 2030.

We will continue to use our voice and platforms to highlight environmental sustainability and to develop resources that equip our professional community in their leadership role on this key issue.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Sustainin our eo le and culture g p p

Our mission is to make work better for millions of people across the world. Our people share in our purpose. They are vital to our success and make great things happen. This year, we’ve increased our workforce in the UK and globally to support the growth in our digital offerings and our work with organisations.

Championing better work starts within our own organisation, with our people and their wellbeing, with our culture, and with the capabilities we need to share our expertise and make a wider impact. Our policies and practices are informed by the guidance we share with our professional community, generated by the expertise and insight of our people. And their talents are amplified by our wider community of volunteers, members and partners.

Our people

Number of employees

Number of employees by region

----- Start of picture text -----
400 431 UK 405
386 390 Ireland 9
300 Middle East 10
Asia 7
200
100
0
2021 2022 2023 2023
----- End of picture text -----

Working pattern (%)

Number of volunteers and associates

----- Start of picture text -----
Full-time 85 Volunteers 1,648
Part-time 15 Paid associates 235
Contractors 34
Consultants 7
Temporary 1
workers
2023 2023
----- End of picture text -----

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----- Start of picture text -----
Key
2021 2022 2023
----- End of picture text -----

Employees by gender (%)

Employees by ethnicity (%)

----- Start of picture text -----
2021 2022 2023
Female 68 68 70
Male 32 32 30
----- End of picture text -----

----- Start of picture text -----
2021 2022 2023
White 65 67 66
Asian 17 15 17
Black 10 8 9
Other 8 10 7
----- End of picture text -----

Number of employees by age

Employees who report a disability (%)

----- Start of picture text -----
2021 2022 2023
16–24 0 3 6
25–34 103 102 128
35–49 195 179 189
50–64 79 95 100
65+ 10 10 8
----- End of picture text -----

----- Start of picture text -----
2021 2022 2023
Percentage 3.4 3.6 5.8
of employees
who report a
disability
----- End of picture text -----

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CIPD Annual Report and Accounts 2022–23

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Our culture

Changing business challenges and expectations put our culture to the test. We’re doing even more to listen to our people. Alongside our pulse surveys, our 2021 culture survey, and feedback from our recruitment agencies, we’ve explored our employee value proposition this year by asking a representative group of our people what they value about working for the CIPD.

A compelling purpose that makes a difference

They told us our purpose remains a strong and compelling reason why people join us and stay.

Working to a purpose has always been important to me – it’s why I work for the CIPD and why I’ve volunteered in my spare time as a trustee. Whatever societal problem you’re trying to solve, having a purpose makes work bigger and makes me feel I’m part of something.”

Leah De Silva, Senior Programme Manager, CIPD Trust

Flexibility, trust and autonomy

They told us our hybrid working policy has boosted their wellbeing and satisfaction. And it has enabled us to recruit from an ever-wider talent pool. This year we are running a pilot to understand the impact of a four-day week on our people’s wellbeing, engagement and productivity.

I’m grateful for our flexible working practices. I feel I have real autonomy and control to balance my life and work. I feel trusted to manage my own time. I can work flexibly in terms of location. And I feel my voice is heard and respected when it comes to what I do.

May Leng Kwok, Regional Head of Market Development, CIPD Asia

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Diversity, inclusion, great people

With representation and leadership from diverse groups in our workforce – and clear, visible roles for senior leaders who are committed to our EDI agenda – we’re gathering input from all our people on how we identify and remove barriers to progression.

I’ve never felt more enabled to do my best work. Our culture promotes an understanding and acceptance of difference, which means I can focus on what really matters: recruiting great people for our business.”

Sukhy Carey, Talent Acquisition Manager, CIPD

Wellbeing matters

Our concern for the wellbeing of our people shows in different ways, from our wide range of benefits to the detail of our fertility journey policy, published this year. All our policies are underpinned by supportive people managers and our friendly, caring team culture.

Our skills, capabilities and wider impact

Our success relies on the expertise and commitment of a wide range of staff, volunteers and associates. We’re more than a team – we’re a community. And our combined perspectives and expertise are what make the CIPD a leading voice on the issues that affect people and work.

In my 40-year career in corporate organisations and charities, I have never experienced such an authentic commitment to staff wellbeing as I have here. Wellbeing is an integral part of how we work as an organisation.”

Sue Murkin, Learning Delivery and Associate Lead, CIPD

Investing in our people

We rely on the exceptional talent and skills of our people. And this year we’re continuing to

build a learning culture and mindset by encouraging use of our learning platform, offering free access to LinkedIn Learning, and investing in learning delivered by external suppliers.

This year our training investment has totalled £177,316, with an average spend of £812 per employee. Our leadership development investment has totalled £43,115, with an average spend of £2,874. And we approved 113 requests for personal development allowances, totalling £7,379, to enable people to undertake learning beyond the demands of their role.

In response to feedback from our people, we’ve worked harder this year to improve career progression within the CIPD. We’ve championed internal applications and encouraged our people managers to consider talent from departments across the organisation. And we’ve seen an increase in internal applications, with 15% of our roles filled internally.

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Investing in our volunteers

1,648 volunteers have given their time and expertise to champion better work and working lives this year.

Some are actively supporting the CIPD Trust, sharing their mentoring skills, recruitment expertise or leadership experience to grow our profession or help those facing the biggest barriers to work. Some volunteer with their local CIPD branch, running inspirational learning and networking events. Many contribute in a number of different ways and over many years.

In November 2022, we achieved the Investing in Volunteers (IiV) award for good practice in volunteer management, inclusion and involvement across our network of volunteer-run branches in the UK.

My branch volunteering has provided me with great opportunities to contribute to the shaping of the CIPD agenda, to give back to my profession, and to know that I have a voice.”

Sue Heyes, CIPD branch volunteer

Reward and recognition

We continue to pay above the voluntary ‘real’ London Living Wage and benchmark all salaries externally to ensure our compensation is fair, competitive and reflects our charitable status. We use the same pay benchmarking for our senior leadership team.

Key pay statistics (£)

----- Start of picture text -----
300k
Chief executive salary
260k £274,480
£140,625 Average (median) SLT salary
120k
80k
Average (median) salary
40k
£41,465
Lowest salary
£23,400
0k
2023
----- End of picture text -----

Our chief executive earns £7 for every £1 our average employee earns.

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Chief executive remuneration

The remuneration policy for the chief executive consisted of:

The CIPD does not operate a bonus scheme, or any form of variable pay, for the chief executive.

Our gender and ethnicity pay gaps

Our UK pay gap data collected on 5 April 2023 revealed a median gender pay gap of 12.0% (down from 13.7% in 2022) and a mean gender pay gap of 12.8% (up from 12.4%). Month by month, our median gender pay gap has gone from a high of 12.8% in March 2023 to a low of 7.4% in June 2023.

The same data revealed a 16.8% median ethnicity pay gap (up from 14.5% in 2022) and a 13.1% mean ethnicity pay gap (up from 11.1%). Month by month, our median ethnicity pay gap has gone from a high of 19.9% in October 2022 to a low of 14.1% in June 2023.

This year we achieved no median gender bonus gap (0.0%). Our mean gender bonus gap rose to 52.6% (from 29.4%).

We also achieved no median ethnicity bonus gap (0.0%). Our mean ethnicity bonus gap dropped to 7.5% (from 14.9%).

70% of our workforce is female. For every £1 a man earns, a woman earns 88p (median).

69% of our workforce is white. For every £1 a white person earns, a person from a minority ethnic group earns 83p (median).

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Sustaining good governance

Our structure and governance

The Chartered Institute of Personnel and Development is incorporated under Royal Charter and is a registered charity in England, Wales, Scotland and Ireland.

Our charitable purpose, as prescribed by our Charter and Byelaws, is to promote the art and science of the management and development of people for the public benefit.

As a charity, we use the Large Charity Governance Code to guide our governance practice, and we learn from practice in other sectors as we continue to improve.

Board members are charity trustees, with the associated legal responsibilities. Our Charter and Byelaws give the board the authority to exercise all the powers of the organisation and to govern the CIPD in accordance with these documents and charity law.

Charities have a legal obligation to report on how they have carried out their purpose for the public benefit. Other sections of this report demonstrate how we have done this in 2022/23.

Our board of trustees

The Charter and Byelaws set out the composition of the board, allowing for up to 12 members including the president, the treasurer and the vice president of membership and professional development (the officers). Council elects the chair and up to seven remaining trustees. The officers are elected by the annual general meeting (AGM). All trustees serve in a non-executive capacity, with the exception of the chief executive, who is an ex officio member of the board.

All newly appointed trustees are provided with an induction programme, staggered over their first three months in office, and take part in any ongoing training organised for all board members. As required, we arrange specific training to allow each of our trustees to carry out their role.

In September 2022 Sharon Whitehead resigned from the board due to other commitments, and Noel Tagoe was appointed to fill the casual vacancy created, following an open recruitment process.

At our December 2022 AGM, Caroline Stockmann was appointed treasurer, following the end of Shakil Butt’s two terms of office. Until April 2023 Caroline was CEO of the Association of Corporate Treasurers and has many years of senior financial and commercial experience.

In April 2023, Andrea Cooper completed one term as a trustee and did not seek re-election for a second term due to a change in her personal circumstances. Brian Walters was elected to the board to replace Andrea at the April 2023 Council meeting, following agreement by the Nominations Committee that the board would benefit from a trustee with a marketing background.

At the same meeting, Noel Tagoe was also elected for his first full term and Nicholas Williams was reelected for a second term.

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Baroness Ruby McGregorSmith CBE President

Valerie Hughes-D’Aeth Chair of the Board Nominations Committee chair (to December 2022) People, Culture and Remuneration Committee

Nelarine Cornelius Vice President, Membership and Professional Development

Caroline Stockmann

Treasurer (from December 2022) Audit and Risk Committee chair (from December 2022) Investment Working Party (from December 2022)

Peter Cheese Chief Executive Nominations Committee (to December 2022) Investment Working Party

Jonathan Ferrar Vice Chair/Senior Independent Director Audit and Risk Committee Investment Working Party (to May 2023) Board champion – Asia (to January 2023)

Caroline Nugent Audit and Risk Committee Board champion – CIPD Trust (from April 2023)

Dr Sue Round Board champion – Middle East (to January 2023) People, Culture and Remuneration Committee (from January 2023)

Siobhán Sheridan CBE

Nominations Committee (to December 2022) People, Culture and Remuneration Committee chair (from October 2022)

Brian Walters (from April 2023)

Noel Tagoe (from September 2022, confirmed April 2023)

People, Culture and Remuneration Committee (from January 2023) Board champion – Asia (from January 2023) Board champion – Equality, diversity and inclusion (from January 2023)

Nicholas Williams Audit and Risk Committee Board champion – Middle East and North Africa (from January 2023)

Shakil Butt Treasurer (to December 2022) Audit and Risk Committee chair (to December 2022) People, Culture and Remuneration Committee (to December 2022) Board champion – Race (to December 2022)

Dr Andrea Cooper (to April 2023) Board champion – CIPD Trust (to April 2023)

Sharon Whitehead (to September 2022) Board champion – Ireland (to September 2022) People, Culture and Remuneration Committee chair (to September 2022)

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CIPD Annual Report and Accounts 2022–23

TRUSTEES’ REPORT | Our commitments as a responsible organisation

Trustees’ responsibilities

The trustees are responsible for ensuring that the CIPD fulfils its purpose and charitable objectives. This includes setting our strategic framework, approving the overall budget and major capital projects, and overseeing the management of our affairs. Day-to-day management of the organisation is delegated to the chief executive and the senior leadership team.

Each year, the trustees must prepare a report (the Trustees’ Report) and financial statements in accordance with applicable law and regulations. Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

Under charity law in England and Wales, trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group and of the group’s net income and expenditure for that period. In preparing these financial statements, the trustees must:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s transactions and disclose with reasonable accuracy the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 and with the provisions of the Institute’s Charter and Byelaws. They are also responsible for safeguarding the assets of the group and taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are also responsible for the integrity of the corporate and financial information included on our website.

Board activity

The board meets regularly to review delivery of our objectives against the agreed strategy and budget, and to monitor operational performance and risks. The board applies the CIPD’s risk appetite statement and framework to this approach.

The board receives quarterly operations reports on the business containing a balanced scorecard of key performance indicators. In 2022/23 the board held six formal meetings. A strategy day was held with the senior leadership team in March 2023 to discuss and refine our strategy and priorities.

During the year, the board reviewed the CIPD Trust’s three-year plan, approved our EDI strategy, approved the new Code of Conduct and Ethics, considered matters reserved for the board and the scheme of delegation, and reviewed the serious incident policy. As part of its regular review of our performance, the board received detailed reports on our operations in the Middle East, Asia and Ireland throughout the year.

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The board is committed to ensuring that trustees continue to develop the necessary skills and knowledge to lead and direct the organisation. Between January and May 2023, the board undertook a review of its effectiveness, carried out by the independent governance consultant who conducted the last external review in 2020. The review involved completion of a questionnaire by trustees and senior leadership team members, one-to-one interviews, a review of relevant documents, and observation of meetings of the board and its committees. The review found that there had been good progress in some areas, but it was felt that less progress had been made in other areas, and some had deteriorated. The board has discussed the review’s findings and an action plan is being developed to address the recommendations.

Committee activity

The board has three standing committees to which it delegates some responsibilities while retaining overall accountability. The board approves the terms of reference for itself and all subcommittees at the beginning of each financial year.

During the year, the board agreed to merge the People, Culture and Remuneration Committee with the Nominations Committee, due to them covering similar areas and to reduce the number of committees. It was also agreed that the Investment Working Party should become a standing committee, given the importance of the decisions it was making on behalf of the board.

Audit and Risk Committee

The Audit and Risk Committee is chaired by the treasurer and provides the board with objective oversight of its financial and non-financial risk and control systems. At its quarterly meetings, it reviews how the CIPD manages its strategic and operational risks.

During the year, the committee reviewed all suppliers with a spend of over £50,000 and the CIPD’s internal policies around grants within the authorities and delegations.

The committee approved the CIPD’s internal audit plan for 2023, based on the key areas of risk faced by the organisation. Our internal auditors, Sayer Vincent, carried out four audits over the year on strategic planning, risk management, strategic procurement and our customer services department. The committee routinely reviewed the outcomes of internal audits and monitored the implementation of recommendations made as part of the audit reviews.

At each meeting, the committee considered whether any serious incident report should be made to the Charity Commission. There were no reports made over the year.

Nominations Committee

The Nominations Committee was chaired by the board chair and was responsible for board succession planning and recruitment, supported by the institute secretary. Our aim when filling board appointments is to strengthen its overall capability and continue to improve the diversity of its membership.

This year, the committee considered the output of a board skills audit undertaken in June 2022. The audit provided input to the recruitment process used to appoint new trustees following the resignation of Sharon Whitehead and the end of Andrea Cooper’s first term.

The committee also reviewed the role profiles for the chair, the officers (president, treasurer and vice president membership and professional development) and the process for the appointment of our first vice chair/senior independent director (SID). These were all approved by the full board.

During the year, the Nominations Committee also reviewed the Chartered Companions process and discussed different progression pathways above Chartered Fellowship.

Following a recommendation from the committee, the board approved the merging of the Nominations Committee with the People, Culture and Remuneration Committee. The first meeting of the new, merged People, Culture and Remuneration Committee was held in December 2022.

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People, Culture and Remuneration Committee

The People, Culture and Remuneration Committee (PCRC) is chaired by an independent elected board member and is the only subcommittee that has a CIPD employee as a formal member. Prior to it merging with the Nominations Committee, it reviewed our commission scheme policy and considered how we could support our people during the cost-of-living crisis.

The merged committee has considered our emerging people strategy for the next three years, our approach to reviewing talent and succession planning, our pay philosophy and the link to performance, and agreed a review of our pay structures. The PCRC also received an update on the work we are doing to enhance our employee value proposition and approved a revised whistleblowing policy. At each of its meetings, a report on our people was received, including data on recruitment, attrition, the makeup of our workforce and employee engagement.

The committee also discussed the various ways we recognise people who have made significant contributions to the profession and, as part of this, also approved the 2022 cohort of Chartered Companions for recommendation to the board.

Investment Working Party

During the year, the Investment Working Party (IWP) monitored the performance of the investment portfolio held primarily with two fund managers, CCLA and Tribe, taking into consideration the advice of the CIPD’s investment adviser, Asset Risk Consultants (UK) Limited.

The IWP recommended a revision to the investment policy following a review of investment risk and the role of the portfolio. The new policy also strengthened our environmental, social and governance (ESG) provisions to align with our business principles and to introduce exclusions, including adult entertainment, gambling, indiscriminate weapons, the sovereign debt of oppressive regimes, the manufacture of tobacco products and the distribution of tobacco products where revenues exceed 10% of global earnings. The board approved the new policy at its meeting on 13 July 2023.

For the financial year 2023/24, the IWP has been replaced by the Investment Committee, a subcommittee of the board, chaired by Noel Tagoe.

----- Start of picture text -----
Board and committee meetings attended
People,
Audit and
Name Board Culture and Nominations
Risk
Remuneration
Valerie Hughes-D’Aeth 7 of 7 n/a 4 of 4 1 of 1
Peter Cheese 7 of 7 4 of 4 4 of 4 1 of 1
Nelarine Cornelius 7 of 7 n/a n/a n/a
Jonathan Ferrar 7 of 7 3 of 3 n/a n/a
Ruby McGregor-Smith 2 of 7 n/a n/a n/a
Caroline Nugent 7 of 7 3 of 4 n/a n/a
Sue Round 6 of 7 n/a 2 of 2 n/a
Siobhán Sheridan 6 of 7 n/a 3 of 4 0 of 1
Caroline Stockmann 3 of 3 2 of 2 n/a n/a
Noel Tagoe 5 of 5 n/a n/a n/a
Brian Walters 1 of 1 n/a n/a n/a
Nicholas Williams 6 of 7 2 of 3 n/a n/a
Shakil Butt 4 of 4 2 of 2 2 of 2 n/a
Andrea Cooper 3 of 6 n/a n/a n/a
Sharon Whitehead 2 of 2 n/a 1 of 1 n/a
----- End of picture text -----

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Our leadership team

The leadership team is led by the chief executive. It is responsible for the development of strategy in conjunction with the board, implementation of the strategy and day-to-day operational management of the CIPD.

Peter Cheese Chief Executive

Amanda Arrowsmith Director of People and Transformation (from October 2022)

Angela Attah Director of Legal and Governance (Institute Secretary)

David Cox Director of Digital and Technology

David D’Souza Jenny Gowans Director of Membership Director of Research, Policy and Content

Tony Osude Director of Commercial and Marketing

Victoria Winkler Director of Professional Development

Hugh Andrews Head of Finance (to October 2023) * new Director of Finance joined October 2023

Georgina Powell Head of People (to December 2022)

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Our subsidiaries and related parties

The CIPD has four active group companies:

CIPD Ireland, a company limited by guarantee in Ireland. See note 2b (page 83) of the financial statements for more detail.

The Charities SORP (FRS 102) requires disclosure of transactions between related parties, details of which are given in note 15 (page 96) to the financial statements.

Our auditors

We reappointed Haysmacintyre LLP as our external auditors following a vote at the December 2022 annual general meeting.

Our professional advisers

Auditors

Bankers

Haysmacintyre LLP 10 Queen St Pl London EC4R 1AG

Lloyds Bank plc 3 St George’s Road London SW19 4DR

Legal advisers

Withers LLP 16 Old Bailey London EC4M 7EG

Investment advisers

Asset Risk Consultants (UK) Limited 46 Chancery Lane London WC2A 1JE

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CIPD Annual Report and Accounts 2022–23

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Managing our finances

A strong financial performance allows us to continue investing in our membership, improve our services and capabilities, and increase our voice and impact.

Key financial highlights

£44.8m £24.8m £4.9m £1.7m total revenue membership invested in strategic operating deficit revenue development projects from our designated funds

Income

Our total income was £44.8m in the year, which was 6% up on the previous year.

The largest proportion of our revenue comes from membership subscriptions. During the year, membership numbers increased by 1.6% to 160,297, reflecting the continued attraction of our membership proposition. Fees were increased by a modest 2.3%, significantly below the UK inflation rate, in recognition of the cost-of-living challenges facing members.

We continued to grow our work with employers. Business-to-business (B2B) revenue grew strongly by 29% to £4.9m, with an increase in advisory services, corporate qualifications and assessments. Businessto-consumer (B2C) training delivered increased revenue of £1.7m (up 24%), boosted by growth in sales of our new digital learning products.

Our three offices in Dublin, Dubai and Singapore also had successful trading years, increasing their income over the previous period, with the Middle East region in particular posting strong growth.

Expenditure

Operational costs increased as we expanded activity in line with our growth strategy and were also impacted by inflationary pressures in the economy. This led to a £1.7m operating deficit for the year. Our strong financial position enabled us to absorb these losses as planned. We continued to monitor our financial costs and performance closely, monthly by the senior leadership team and quarterly by the board.

Over the year, we invested £4.9m (compared with £2.9m in 2022) of our designated reserves in strategic projects to improve our websites, digital infrastructure and capabilities. These position us to grow our reach and impact and improve the customer experience for our members and other clients.

Investments

Our investment strategy for our reserves is to achieve growth above market performance without taking undue risks. This has resulted in strong reserves that allow us to plan long term, improving our membership proposition and increasing our reach and impact across the profession.

The market value of investment assets, other than cash held, at the year-end was £22.2m (compared with £24.8m at 30 June 2022). This equates to a gain of £2.1m after taking into account net disposals of £4.7m. Markets remained somewhat volatile, reacting to global inflation, the continued war in Ukraine, and the impact of the UK’s mini budget in September. Through the board’s Investment Working Party and with the advice of our investment advisers, we monitored the portfolio regularly, meeting at least twice a year with the relevant fund managers to discuss performance.

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TRUSTEES’ REPORT | Our commitments as a responsible organisation

Pensions

The CIPD offers all employees in the UK the opportunity to enrol in a group personal pension plan, which is a defined contribution scheme. A similar scheme operates for our employees in Ireland. We also operate a defined benefit pension scheme, which closed to new and existing members in 2012. A professional actuary carried out a triennial valuation of the defined benefit scheme at 1 October 2020. This showed a deficit of £15.4m and that the scheme’s assets were sufficient to cover 76% of the accrued benefits. The funding deficit does not represent a current cash commitment; rather, it reflects the longterm funding required as pensions are paid out to members of the scheme, many of whom have not yet retired. In accordance with the triennial valuation, we are funding the deficit over a recovery period to 2032. More details are given in note 12 to the accounts. The triennial valuation as of 1 October 2023 is currently under way.

The actuary carries out a separate annual valuation in line with Financial Reporting Standard (FRS) 102. This is conducted at a different date using different assumptions and therefore results in a different funding deficit. The FRS102 valuation at 30 June 2023 showed a deficit of £7.5m compared with a deficit of £5.2m as at 30 June 2022. The main reasons for the deterioration in the balance sheet position were the impact of higher inflation and a lower return on assets than the discount rate. The CIPD contributed £1.0m to reduce the scheme’s deficit during the year.

Reserves

Free financial reserves are those that are available to be spent on our charitable purpose. They exclude the pension deficit, as this represents a long-term funding requirement rather than an immediate cash commitment.

These reserves are held to:

The reserves policy in force during the year required that the CIPD maintain free financial reserves equivalent to a fall in income of between 15% and 20%. Based on the year to 30 June 2023, this would equate to between £6.7m and £9.0m. At 30 June 2023 our free financial reserves were £17.6m.

As a charity, it is also important not to accumulate reserves unnecessarily but to ensure they are used to further our charitable purpose. At its meeting on 14 September 2023, trustees approved a revision to the reserves policy to require that the CIPD should not hold more than six months’ expenditure as free financial reserves, as well as maintaining a minimum free reserves level of 15% to 20% of income. Based on the year to 30 June 2023, six months’ expenditure would equate to £23.3m.

Going concern

We have set out above a review of the CIPD’s financial performance during the year and its reserves position at the end of the year. Our planning process, including financial projections, has taken into consideration the current economic climate – in the UK, Ireland, the Middle East and Asia – as well as the market environment in which we operate and its potential impact on our various sources of income and planned expenditure.

We have a reasonable expectation that we have adequate resources to continue in operational existence for the foreseeable future. We believe that there are no material uncertainties that call into doubt the CIPD’s ability to continue in operation. Accordingly, the accounts have been prepared on the basis that the CIPD is a going concern.

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TRUSTEES’ REPORT | Our commitments as a responsible organisation

Managing our risks

The board is responsible for overseeing the effectiveness of risk management throughout the organisation. It also approves our risk appetite, which sets out which areas of risk we are intolerant of and which areas we will accept in pursuit of our charitable purpose. Our risk appetite informs behaviours and decision-making at all levels of the organisation.

The board considers current and potential risks in line with our risk appetite in all its deliberations. The more in-depth review of our corporate risks is delegated to the Audit and Risk Committee. Day-to-day responsibility for risk management sits with members of the senior leadership team. They are responsible for overseeing operational risks in their areas and for collectively identifying and managing our corporate risks.

Risk evaluation and response

We evaluate each risk based on its potential impact on achieving our objectives and the likelihood of it occurring, given any current controls in place. We apply this approach consistently throughout the organisation but use different thresholds for measuring the impact of corporate and team risks.

The following table sets out some of our key risks.

----- Start of picture text -----
RISK AND IMPACT MITIGATION
Insufficient capacity, capability and • Our business transformation team is focused on execution
prioritisation hampers our ability to and change management, and our internal governance
deliver and market new products and processes have clear criteria to support prioritisation.
services that meet the requirements of
• We are developing our ability to manage overall resources
existing and new customers.
and prioritise capability needs across the organisation.
Impact: We don’t achieve growth and
• We are considering future capability needs and our
impact plans, and market expansion is
workforce strategy.
hindered.
• We are building a clearer performance culture,
accountabilities and agile working practices.
• We are testing and gathering customer insights and
broader market intelligence to help us align to customer
requirements.
Challenge to the perceived relevance of • We continue to monitor the competitive landscape to
membership to employers, especially isolate short-term economic impacts and longer-term
Chartered Membership, and of the HR signals about the relevance of the profession.
profession as a whole.
• Our connections to senior leaders in the profession
Challenge to the perceived importance and other membership bodies help us stay attuned
of the Profession Map and CIPD to sentiment regarding the CIPD and broader market
qualifications. change.
Competition from the growth of new • We continue to react to market changes and ensure our
training providers, online communities, evidence, research and key messages are up to date and
local HR institutes, etc. well understood
Impact: Decline in membership and/or • We ensure changes in the profession are reflected in
student numbers. our Profession Map and qualifications, and a full review
of the membership model and assessment process is
progressing to plan.
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RISK AND IMPACT

MITIGATION

----- Start of picture text -----
Inadequate response to current events, • Our established approach to responding to events allows
missing the opportunity to give clear us to produce timely, relevant content across all channels
messaging on ways of working and the and to speak publicly about what needs to change.
criticality of the people profession in
• Our crisis communication plans ensure appropriate and
business decisions, and to demonstrate
timely response to unexpected but relevant external
our relevance, particularly in response
events.
to recent developments in generative AI
and the potential negative impact it could • We continue to refine Our Voice 2025 Framework and
have on the HR profession. ways of working to ensure our mid- to longer-term
work focuses on the areas likely to lead and promote the
Impact: Damage to the profession and/
profession and create change in the world of work.
or exposure to gaps; long-term decline in
membership and an inability to fulfil our • We measure our impact and reach and have seen positive
charitable purpose. results from our Net Promotor Score, press coverage and
analytics support.
• Our external research and information on generative AI
are on our website.
Ongoing information security threats and • We have cybersecurity insurance in place and were
vulnerabilities, user errors, system errors, reaccredited with Cyber Essentials Plus in January 2023.
mismanagement of information, data All our technology partners must meet this standard.
theft and ransomware, with significant
• Our people are provided with GDPR and cybersecurity
increased threat of cyber-attack due to
training and are reminded to be alert to cybercrime and
the Ukraine crisis.
how to minimise cybersecurity risk.
Impact: Reputational, financial, legal,
• We subscribe to global networks which report attacks to
regulatory, or contractual compliance
ensure we proactively block potential breaches, and we
damage, client, and partner loss.
run major incident testing.
• Multi-factor authentication is deployed across all CIPD
accounts to prevent hijacking, and our new IT service
management system monitors our estate.
• We’re rolling out a database to departments to record
access rights and asset ownership, as part of our exit
process.
• We’re investigating interdependencies between
applications, internal and external systems to capture
future risks, and report on key performance indicators
each month to manage cybersecurity risk.
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RISK AND IMPACT

MITIGATION

----- Start of picture text -----
An inability to identify, attract and retain • We continuously review our required skills, resulting in
people with the right skills, especially training and new role creation as appropriate.
in certain fields of employment where
• We are considering flexing of recruitment and retention,
salaries continue to rise.
to expedite filling key roles and retaining key staff.
Impact: Capacity and delivery issues
• We have developed our employer value proposition and
which lead to an inability to drive change
broadened our recruitment pool geographically.
and deliver our strategy.
• Activities for talent review and succession planning are
under way and now form part of our annual cycle.
Loss of organisational cohesion and • Our focused programme of consultation and engagement
integration from the change to a hybrid with our people, delivered by a multidisciplinary project
working model. team and supported by external specialist consultants,
ensures that we are regularly listening to feedback and
Impact: Management and inclusion
remain responsive using a ‘test, learn and adapt’ model.
challenges result in poor productivity.
• Line managers continue to be mindful of the impact of
hybrid working on productivity, output and our people’s
wellbeing.
----- End of picture text -----

By order of the board

Angela Attah LLB FCG

Institute Secretary 9 January 2024

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CIPD Annual Report and Accounts 2022–23

IndEJ)en en auditor's report 701 CIPD Annual Report and Accounts 2022-23

INDEPENDENT AUDITOR’S REPORT

Inde endent auditor’s re ort to the trustees of the Chartered p p Institute of Personnel and Development

Opinion

We have audited the financial statements of the Chartered Institute of Personnel and Development for the year ended 30 June 2023 which comprise the Consolidated Statement of Financial Activities, Group and Charity Balance Sheets, Consolidated Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially

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INDEPENDENT AUDITOR’S REPORT

misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement [set out on page 60], the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to Charities Act 2011, the Charity’s Royal Charter and GDPR, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, the Charity’s Royal Charter, payroll tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

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INDEPENDENT AUDITOR’S REPORT

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP

Statutory Auditors

10 Queen Street Place, London, EC4R 1AG

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

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CIPD Annual Report and Accounts 2022–23

nancia statements 741 CIPD Annual Report and Accounts 2022-23

FINANCIAL STATEMENTS | Consolidated statement of financial activities

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 JUNE 2023

Consolidated statement of fnancial activities Note General Designated Restricted Total Total
fund fund fund 2023 2022
£’000 £’000 £’000 £’000 £’000
Income from:
Charitable activities
To advance the
management and
development of people
through:
Membership services and education 30,287 – – 30,287 29,960
Research 15 15 197 227 150
Branches 206 – – 206 106
Other trading activities
Commercial income 2(b) 14,254 3 – 14,257 12,097
Investments 2(c) 36 – – 36 38
Total income 44,798 18 197 45,013 42,351
Expenditure on:
Raising funds 2(a)
Commercial expenditure (10,434) – – (10,434) (9,195)
Investment management costs (25) – – (25) (35)
Charitable activities 2(a)
Membership services and education (28,358) (3,826) – (32,184) (26,191)
Research (5,557) (834) (158) (6,549) (5,978)
Branches (2,156) (280) – (2,436) (1,921)
Total expenditure (46,530) (4,940) (158) (51,628) (43,320)
Net income/(expenditure) before
gains and losses on investments		 (1,732) (4,922) 39 (6,615) (969)
Net gains/(losses) on investments 7 2,140 – – 2,140 (755)
Net income/(expenditure) 408 (4,922) 39 (4,475) (1,724)
Transfers between funds 11 – – – – –
Net incoming/(outgoing) resources before
other recognised gains and losses		 408 (4,922) 39 (4,475) (1,724)
Other recognised gains/(losses)
Actuarial gains/(losses) on defned 12 (3,136) – – (3,136) 6,804
beneft pension scheme
Gains/(losses) on revaluation of 801 – – 801 414
overseas subsidiaries
Net movement in funds (1,927) (4,922) 39 (6,810) 5,494
Reconciliation of funds
Net fund balances brought forward 22,153 9,470 58 31,681 26,187
Net fund balances carried forward 20,226 4,548 97 24,871 31,681

The statement of financial activities includes all recognised gains and losses for the year.

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FINANCIAL STATEMENTS | Balance sheets

CONSOLIDATED GROUP AND CHARITY BALANCE SHEETS AT 30 JUNE 2023

Note
Group
2023
2022
£’000
£’000
Fixed assets
Tangible assets
5
6,662
6,997
Intangible assets
6
2,321
2,294
Investments
7
22,437
26,517
31,420
35,808
Current assets
Stocks
–
–
Debtors
8
9,112
6,587
Cash at bank and in hand
9
4,460
7,126
13,572
13,713
Creditors
Amounts falling due within one year
10
(12,604)
(12,690)
Net current assets/(liabilities)
968
1,023
Net assets excluding pension liability
32,388
36,831
Provisions
13
(59)
–
Defned beneft pension scheme liability
12
(7,458)
(5,150)
Net assets including pension liability
24,871
31,681
Funds
General fund
11
27,684
27,303
Pension liability
(7,458)
(5,150)
Net general funds
20,226
22,153
Designated funds
11
4,548
9,470
Net unrestricted funds
24,774
31,623
Restricted funds
11
97
58
Total funds
24,871
31,681		 Institute
2023
2022
£’000
£’000
6,517
6,782
2,321
2,294
25,437
29,517
34,275
38,593
–
–
5,121
5,328
2,401
2,807
7,522
8,135
(10,798)
(9,790)
(3,276)
(1,655)
30,999
36,938
–
–
(7,458)
(5,150)
23,541
31,788
26,403
27,410
(7,458)
(5,150)
18,945
22,260
4,548
9,470
23,493
31,730
48
58
23,541
31,788

The financial statements were approved and authorised for issue by the trustees on 9 January 2024 and were signed on their behalf by:

Valerie Hughes-D’Aeth Chair of the Board

Caroline Stockmann Treasurer

The notes on pages 78–98 form part of these financial statements.

76 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Consolidated cashflow statement

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2023

Note 2023
 2022
£’000 £’000
Net cash fows from operating activities (8,374) (1,235)
Cash fows from investing activities
Income from investments 2(c) 15 37
Interest received 2(c) 20 1
Proceeds from the sale of tangible fxed assets 5 – –
Purchase of tangible fxed assets 5 (289) (162)
Development of intangible fxed assets 6 (256) (349)
Proceeds from sale of investments 7 6,262 24,379
Purchase of investments 7 (1,576) (25,827)
(Increase)/decrease in cash deposits (investment asset) 7 1,534 2,619
Net cash provided by/(used in) investing activities 5,710 698
Cash fows from fnancing activities:
Cash removed from/(added to) bank deposits with more than 24 hours’ notice
Change in cash and cash equivalents in the year (2,665) (537)
Cash and cash equivalents at the beginning of the year 7,125 7,663
Cash and cash equivalents at the end of the year 9 4,460 7,126
Notes to the cashfow statement
(a) Reconciliation of net income to net cashfow from operating activities
Net Income (4,475) (1,724)
Depreciation charge – tangible assets 5 575 516
(Gains)/losses on investments 7 (2,140) 755
(Gains)/losses on disposal of tangible fxed assets 7 49 221
(Gains)/losses on disposal of intangible fxed assets 4 –
Dividend, interest and rents from investments 2(c) (35) (38)
Depreciation charge – intangible assets 6 226 110
Foreign exchange reserves movement 801 405
Payment to pension scheme per funding plan 12 (1,000) (1,225)
Non-actuarial increase in pension liability 12 172 239
Decrease/(increase) in debtors 8 (2,525) (1,340)
Increase/(decrease) in creditors 10 (85) 891
Increase/(decrease) in provisions 13 59 (45)
Net cashfows from operating activities (8,374) (1,235)
(b) Analysis of cash and cash equivalents
Cash in hand 9 4,460 7,126
Total cash and cash equivalents 4,460 7,126

| 77

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1 Principal accounting policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost convention modified by the revaluation of investments and in accordance with the Financial Reporting Standard applicable to the UK and the Republic of Ireland (FRS102) and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102 – effective 1 January 2019 – and the requirements of the Charities Act 2011. The functional currency of the CIPD is considered to be GBP because that is the currency of primary economic environment in which the group operates.

There are no material uncertainties that call into doubt the CIPD’s ability to continue in operation. Accordingly, the financial statements have been prepared on a going concern basis, as discussed within the Trustees’ Report.

(b) Consolidation

The group financial statements include the results of the CIPD, its branches and its subsidiaries, which are consolidated on a line- by-line basis. Please refer to note 2(b) to the accounts for the results for the trading subsidiaries. Note 11 sets out the movements in the Institute’s funds, including incoming and outgoing resources.

CIPD Enterprises Ltd entered into a profit-share arrangement with Avado to offer digital qualifications to the market, which ended during the year. As guided by the Charity SORP (FRS 102), the arrangement has been reported as a jointly controlled operation which requires the consolidated accounts of both parties to recognise assets that each party controls and liabilities incurred, with expenses incurred and share of income.

The results of overseas subsidiaries and branches have been translated into sterling using exchange rates prevailing at the balance sheet date. Exchange differences arising from retranslating the opening net investment in overseas subsidiaries at the closing exchange rates are recorded as movements in the general fund.

(c) Income

All income, including investment income, is accrued and included in the Statement of Financial Activities when the group is entitled to the income, receipt is probable, and the amount can be quantified reliably. Income received relating to future accounting periods is deferred and recognised as a creditor within the balance sheet. Income from subscriptions, which is our largest individual source of income, is recognised referring to the period over which the subscription relates.

Volunteers continue to be an integral part of the CIPD, working with us across the organisation in every area of our work. Their wide spectrum of skills, experience and expertise strengthens our organisation by enabling us to better support our members and engage the wider HR community in what we do. On a wider community level, many CIPD members volunteer their experience in our community investment programmes. Our branch volunteers use their skills to promote the CIPD and give back to the profession, with a number of members acting as mentors in our Steps Ahead Mentoring programme and others engaged with our Enterprise Adviser programme run by the Careers and Enterprise Company.

In accordance with the SORP, no monetary value has been attributed to the work of volunteers, though their involvement is considered vital to the activities of the charity.

78 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

(d) Expenditure

Membership and education includes the costs of administering and providing direct services to members, developing professional standards, providing educational services to members, and supporting educational centres which offer the Institute’s qualifications. Commercial activities are disclosed as charitable where they are deemed to give rise to direct membership benefit.

Research includes the cost of commissioning and undertaking research and the dissemination of research and practical information to members and the public.

Branches include the central and local costs of the Institute’s branch network, which offers CPD and networking events for members nationwide.

Commercial activities , through our strategic partnerships, comprise a courses and conferences programme, a publishing facility for books and training materials, and an HR consultancy business for organisations. It also manages the relationship with the publisher of the CIPD’s journal, People Management .

Investment management costs include fees paid to the Institute’s investment advisers and fund managers.

Support costs such as general management, governance, human resources, finance, information systems, strategy, performance and premises costs are allocated across the various categories of our expenditure. The basis of allocation has been explained in note 2(a) to the accounts.

(e) Operating leases

Payments in respect of operating leases are charged to the Statement of Financial Activities over the life of the lease on a straight-line basis.

(f) Fixed assets, depreciation and amortisation

Tangible assets

Tangible assets are stated at cost net of depreciation and any provisions for impairment.

Depreciation is provided on a straight-line basis on the cost of fixed assets to write them down to their estimated residual values over their expected useful lives. No depreciation is provided on freehold land or assets under construction. The depreciation period for other assets is shown below.

----- Start of picture text -----
Office equipment 3–4 years
Freehold buildings (from date of first use) 25 years
Leasehold buildings (from date of first use) Over life of lease
----- End of picture text -----

Assets with a cost below £2,500 are not capitalised.

Intangible assets

Intangible assets are stated at cost net of depreciation and any provisions for impairment.

Depreciation is provided on a straight-line basis on the cost of fixed assets to write them down to their estimated residual values over their expected useful lives.

----- Start of picture text -----
Website development costs 3 years
Developed IT hardware/software 5 years
----- End of picture text -----

Website planning costs are charged to the Statement of Financial Activities as incurred. Other website costs are capitalised as a fixed asset only where they lead to the creation of an enduring asset delivering tangible future benefits whose value is at least as great as the amount capitalised. An impairment review is undertaken of the net asset value of the website at each balance sheet date. Expenditure to maintain or operate the developed website is charged to the Statement of Financial Activities.

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CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

Costs incurred in the development of new web-based commercial products are depreciated on a standard cost of goods sold basis over the shorter of three years or the estimated useful economic life of the products concerned.

Developed IT hardware/software relates to our membership and finance systems.

(g) Investments

Investments are stated in the balance sheet at market value. Realised and unrealised gains and losses in the year based on market value are recognised in the Statement of Financial Activities. Investment properties are shown at trustees’ estimate of their open market valuation using a nationally available house price index calculator. Bank interest is accounted for on a receivable basis; other investment income is accounted for when received.

Investments in subsidiary undertakings are included at cost or fair value at acquisition, subject to any impairment.

Liquid resources are funds held at bank which require more than 24 hours’ notice to access.

(h) Financial instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are initially measured at transaction price (including transaction costs). The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. With the exception of fixed asset investments, basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Trade and other debtors are recognised at the settlement amount due after any discount offered and net of impairment losses. Prepayments are valued at the amount prepaid, net of any trade discounts due. Creditors and provisions are recognised where the group has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(i) Pension schemes

The CIPD Group Personal Pension Plan and the CIPD Money Purchase Pension Plan are UK-based defined contribution schemes. The Institute also makes contributions to defined contribution schemes for its staff in Ireland. The charges to the Statement of Financial Activities for defined contribution schemes are the amounts payable in respect of the accounting year.

The CIPD Staff Retirement Scheme is a defined benefit scheme. It is accounted for in accordance with FRS 102. The notional net interest charge on the FRS 102 deficit, the expected return on assets and the current service cost have been allocated across the resources expended categories based on pensionable payroll. Scheme assets are measured at fair values. Scheme liabilities are measured on an actuarial basis using the projected unit method and are discounted at appropriate high-quality corporate bond rates that have terms to maturity approximating to the terms of the related liability. Appropriate adjustments are made for actuarial gains or losses which are recognised in other recognised gains and losses in the Statement of Financial Activities.

(j) Taxation

The CIPD is a registered charity and its income is applied solely for charitable purposes. As a result, it is entitled to rely upon the taxation exemption granted by the Corporation Tax Act 2010. Where possible, the profits of the CIPD’s trading subsidiaries are donated to the CIPD under Gift Aid.

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CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

(k) Fund accounting

The Institute has various types of funds for which it is responsible, and which require separate disclosure. These are as follows:

General fund

This contains funds that are spent at the discretion of the trustees in furtherance of the objects of the charity and includes reserves in line with our policy to maintain sufficient realisable reserves to cover the estimated cash impact of a pessimistic financial scenario.

Designated funds

The Institute may at its discretion set aside funds for specific purposes that would otherwise form part of the general reserves of the organisation. The Institute sets aside funds, supported by cash and investments, in respect of a variety of activities that are explained in more detail below. As such, they are not available for other purposes. Designated funds are listed in note 11 to the accounts.

Restricted funds

The Institute may, from time to time, receive funds from external sources for specific purposes. These funds are not available for other purposes and are segregated in our accounts. Restricted funds are listed in note 11 to the accounts.

(l) Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies described above, the trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates, judgements and assumptions are made based on a combination of past experience, professional expert advice and other evidence that is relevant to the particular circumstance. The following area is considered to involve the critical judgements and sources of estimation uncertainty when applying the group’s accounting policies.

Pension liability

Estimates of the net pension liability depend on a number of complex judgements relating to the discount rate used, changes in retirement ages and mortality rates. The group engages a firm of actuaries to provide expert advice about the assumptions made and the effect on the pension liability of changes in these assumptions.

(m) Public benefit

The Institute’s charitable objects include the promotion of the art and science of the management and development of people for the public benefit. Details on how the Institute delivers public benefit are included in the Trustees’ Report.

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CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

2a Expenditure
Raising funds
Commercial activities
Investment management
Charitable activities
Membership and education
Research
Branches
Total
Allocation of support costs
Raising funds
Commercial activities
Investment management
Charitable activities
Membership and education
Research
Branches
Total 2022
Basis of apportionment
Directors, Strategy and Secretariat
IT
Finance
HR
Premises
Governance		 Direct Support Total
Total
costs
costs 2023
2022
£’000
£’000
£’000
£’000
6,465
3,969
10,434
9,195
25
–
25
35
25,456
6,728
32,184
26,191
5,239
1,310
6,549
5,978
1,944
492
2,436
1,921
39,129
12,499
51,628
43,320
Directors,
IT
Finance
HR
Premises Governance
Total
Total
Strategy and
Secretariat
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
162
2,840
458
15
476
18
3,969
3,843
–
–
–
–
–
–
–
–
1,146
4,140
669
17
736
20
6,728
6,546
225
813
131
3
134
4
1,310
1,420
88
318
51
1
33
1
492
452
1,621
8,111
1,309
36
1,379
43
12,499
12,261
1,560
6,161
1,336
1,807
1,317
80
12,261
Proportion of unrestricted cost of charitable activity excl commercial activity allocation
Proportion of unrestricted cost of charitable activity excl commercial activity allocation
Proportion of unrestricted cost of charitable activity excl commercial activity allocation
Staf time
Staf time
Staf time

CIPD institute audit fees of £33k (2022: £44k) are included within governance support costs. In addition, audit fees of £38k (2022: £7k) relating to other group entities are included within finance support costs. £23k (2022: £15k) of internal audit fees and £15k (2022: £3k) of branch council costs are included within directors, strategy and secretariat support costs.

Total resources expended includes: 2023 2022
£’000 £’000
Auditor’s remuneration:
Audit fees – current year provision 71 51
Other services 12 29
Operating lease rentals
Plant and machinery – –
Other assets, including land and buildings 194 180
Depreciation 801 626

82 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

2b Subsidiary companies

----- Start of picture text -----
CIPD Enterprises Ltd CIPD Asia Ltd CIPD Middle East FZ LLC [1] CIPD Ireland [2]
Country of registration England and Wales Singapore Dubai Ireland
Immediate holding co. CIPD CIPD CIPD Enterprises Ltd CIPD
3,000,000 £1 shares Limited by guarantee 14,800 AED 1,000 shares Limited by guarantee
Holding
Training, events, Promotion of Promotion of Promotion of
publishing and the membership and the membership and the membership and the
development of people management and management and management and
Activity via organisational development of people development of people development of people
training and consultancy
2023 2022 2023 2022 2023 2022 2023 2022
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Total assets 6,634 7,779 330 1,422 2,689 3,595 336 601
Total liabilities 3,353 4,498 705 1,842 (617) 1,047 220 135
3,281 3,281 (375) (420) 3,306 2,547 116 466
Represented by:
Share capital 3,000 3,000 – – 3,108 3,031 – –
Reserves 281 281 (375) (420) 198 (484) 116 466
Results for the year:
Income [3] 8,579 7,731 1,104 994 3,291 2,047 1,335 1,329
Expenditure 8,083 6,320 1,154 898 2,591 1,482 1,343 1,226
Net profit/(loss) 496 1,411 (51) 96 700 565 (8) 103
Gift Aided to the CIPD (496) (1,411) – – – – – –
Retained in subsidiary – – (51) 96 700 565 (8) 103
----- End of picture text -----

Total Expenditure includes: Transactions Balance
during the outstanding
year at year end
£’000 £’000
Amounts due to the CIPD:
from CIPD Middle East FZ LLC (524) (900)
from CIPD Asia Ltd (275) 549
from CIPD Enterprises Ltd (1,381) (982)
from CIPD Ireland (325) 24

| 83

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

2c Investment income

Bank interest
Income from investment property
Stafng (excluding trustees)
Salaries
Social security costs
Pension costs
Benefts in kind		 2023
£’000
20
16
36
2023
£’000
20,035
1,920
1,697
336
23,988		 2022
£’000
1
37
38
2023
£’000
20,035
1,920
1,697
336		 2022
£’000
17,787
1,563
1,488
295
23,988 21,133

3 Staffing (excluding trustees)

The pension costs shown above include the service cost for the year for the CIPD Staff Retirement Scheme and the actual payments made into defined contribution schemes.

Excluding the chief executive (note 4 below), higher-paid employees were remunerated as follows

2023 2022
number number
£60,000–£69,999 27* 21
£70,000–£79,999 20 16
£80,000–£89,999 14 6
£90,000–£99,999 7 2
£100,000–£109,999 3 3
£110,000–£119,999 5 2
£120,000–£129,999 1* 1
£130,000–£139,999 1 1
£140,000–£149,999 0 3*
£150,000–£159,999 2 1
£160,000–£169,999 1 0
£170,000–£179,999 1 0

Of the higher-paid employees, 8 (2022: 9) were members of the CIPD Staff Retirement Scheme. The Institute contributed. £376,000 into the defined contribution schemes for 74 of the higher-paid employees (2022: £456,000 for 56 employees).

In 2023, the key management personnel of the charity comprised the trustees and senior leadership team (SLT) – the chief executive, the director of membership, the director of commercial and marketing, the director of legal and governance, the director of digital and technology, the director of professional development, the director of research policy and content, and, for part of the year, the director of people and transformation.

SLT represents the key management personnel less the trustees.

The total employee benefits of the senior leadership team (excluding the chief executive) were £1,137,000 (2022: £1,006,000).

84 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

The average monthly number of employees during the year was 412 (2022: 385), representing a full-time equivalent of 393 (2022: 363).

The average monthly number of employees working in charitable activities, including support and management and administration, was 283 (2022: 264), and 129 (2022: 121) employees worked in activities for generating funds.

The cost of general agency support and consultants was £2,224,000 (2022: £1,750,000), mainly in relation to the delivery of strategic projects and IT activities.

Redundancy and termination payments totalled £39,000 (2022: £144,000).

Per charities SORP (page 80, 9.26 Disclosure of staff costs and employee benefits), ‘employee benefits’ includes social security costs.

4 Trustees’ emoluments

Chief executive (only paid trustee)
Salary
Variable performance bonus
Pension contributions
Benefts in kind
Emoluments		 2023
£’000
274
–
–
1
275		 2022
£’000
264
–
–
7
271

Details on how the chief executive’s remuneration is determined are given in the Trustees’ Report on page 57. The figures above represent the emoluments of the chief executive for that role, not as a trustee.

The other members of the Board of Trustees receive no remuneration for their services or for volunteering their time.

During the year, a total of £371 (2022: £1,465) was reimbursed to, or paid on behalf of, one (2022: 3) trustee.

| 85

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

5 Tangible fixed assets

Group
Cost
At 1 July 2022
Additions
Transfers
Disposals
Foreign exchange
At 30 June 2023
Depreciation
At 1 July 2022
Charges for the year
Disposals
Foreign exchange
At 30 June 2023
Net book value
At 1 July 2022
At 30 June 2023
Institute
Cost
At 1 July 2022
Additions
Transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charges for the year
Disposals
At 30 June 2023
Net book value
At 1 July 2022
At 30 June 2023		 Freehold
land
Freehold
property
Leasehold
property
Ofce
equipment
Total
£’000
£’000
£’000
£’000
£’000
3,884
9,172
324
825
14,205
–
–
–
289
289
–
–
(163)
163
(0)
–
–
(48)
(1)
(49)
–
–
–
–
–
3,884
9,172
113
1,276
14,445
–
6,358
118
732
7,208
–
370
(25)
230
575
–
–
–
–
–
–
–
–
–
–
–
6,728
93
962
7,783
3,884
2,814
206
93
6,997
3,884
2,444
20
314
6,662
Freehold
land
Freehold
property
Leasehold
property
Ofce
equipment
Total
£’000
£’000
£’000
£’000
£’000
3,884
9,172
–
741
13,797
–
–
–
155
155
–
–
–
–
–
–
–
–
–
–
3,884
9,172
–
896
13,952
–
6,358
–
657
7,015
–
370
–
50
420
–
–
–
–
–
–
6,728
–
657
7,435
3,884
2,814
–
84
6,782
3,884
2,444
–
189
6,517

The freehold land and property relate to the CIPD offices at 151 The Broadway, Wimbledon.

The trustees believe that the value of this property is higher than its net book value. The leasehold property relates to our offices in Ireland, Singapore and Dubai.

There is a charge granted over the freehold property at 151 The Broadway in favour of the CIPD Staff Retirement Scheme.

86 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

6 Intangible fixed assets

Group
Cost
At 1 July 2022
Additions
Transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charges for the year
Disposals
At 30 June 2023
Net book value
At 1 July 2022
At 30 June 2023
Institute
Cost
At 1 July 2022
Additions
Transfers
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charges for the year
Disposals
At 30 June 2023
Net book value
At 1 July 2022
At 30 June 2023		 Assets under
construction
IT
software
Content
development
Website
development
Total
£’000
£’000
£’000
£’000
£’000
1,161
3,679
349
5,532
10,721
3
–
253
–
256
–
–
–
–
–
(4)
–
–
–
(4)
1,160
3,679
602
5,532
10,973
–
3,013
30
5,384
8,427
–
102
65
59
226
–
–
–
–
–
–
3,115
95
5,443
8,653
1,161
666
319
148
2,294
1,160
564
508
89
2,321
Assets under
construction
IT
software
Content
development
Website
development
Total
£’000
£’000
£’000
£’000
£’000
1,510
3,485
194
5,532
10,721
3
–
253
–
256
–
–
–
–
–
(4)
–
–
–
(4)
1,509
3,485
447
5,532
10,973
–
3,013
30
5,384
8,427
–
102
65
59
226
–
–
–
–
–
–
3,115
95
5,443
8,653
1,510
472
164
148
2,294
1,509
370
353
89
2,321

Intangible assets relate to IT software in respect of our membership and finance systems and costs of product development and developing our website.

| 87

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

7 Investments

Investments at market value
Managed funds:
Unit trusts: direct holdings in listed UK equities and bonds
Overseas unit trusts: direct holdings in listed UK equities and bonds
Overseas unit trusts: direct holdings in listed overseas equities and bonds
Bank deposits
Property unit trust
Investments in subsidiaries (Note 2b)
Total market value at 30 June
Total cost at 30 June		 Group
2023
2022
£’000
£’000
–
–
1,988
2,356
20,194
22,366
195
1,729
60
66
–
–
22,437
26,517
20,897
26,425		 Institute
2023
2022
£’000
£’000
–
–
1,988
2,356
20,194
22,366
195
1,729
60
66
3,000
3,000
25,437
29,517
23,897
29,425

The board arranges for investments or other property to be held in the name of a nominee and has the power to delegate the management of investments to an authorised person within the meaning of the Financial Services Act 1986.

A working group appointed by the board meets quarterly with an investment adviser to review performance and makes recommendations to the board as to investment managers, asset allocation and the outcome of performance reviews.

The Institute follows a strategy which exercises control over asset allocations and uses specialist fund managers for each class of asset. The asset allocation is tracked by the investment adviser on behalf of the Institute, with rebalancing decisions taken quarterly.

Managed funds
Market value at 1 July 2022
Money withdrawn
Money invested
Movement in cash deposits
Reinvested income (net of fees)
Net gains/(losses)
Market value at 30 June 2023		 Group
2023
2022
£’000
£’000
26,517
28,443
(6,262)
(24,379)
1,576
25,825
(1,534)
(2,619)
–
2
2,140
(755)
22,437
26,517		 Institute
2023
2022
£’000
£’000
29,517
31,402
(6,262)
(24,379)
1,576
25,825
(1,534)
(2,578)
–
2
2,140
(755)
25,437
29,517

88 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

8 Debtors

Trade debtors
Amounts due from subsidiaries
Other debtors
Prepayments and accrued income		 Group
2023
2022
£’000
£’000
5,218
3,463
–
–
1,807
738
2,087
2,386
9,112
6,587		 Institute
2023
2022
£’000
£’000
2,262
1,265
–
1,437
1,140
1,278
1,719
1,348
5,121
5,328

Included within the Institute’s debtors are amounts owed from CIPD Enterprises Ltd of £496,000 (2022: £1,411,000) relating to Gift Aid payable for the period.

9 Cash in bank and in hand

9
Cash in bank and in hand
Bank current accounts and cash in hand Group
2023
2022
£’000
£’000
4,460
7,126
4,460
7,126		 Institute
2023
2022
£’000
£’000
2,401
2,807
2,401
2,807

10 Creditors: amounts falling due within one year

Trade creditors
Amounts received in advance
Amounts due to subsidiaries
Taxation and social security costs
Other creditors
Accruals
Deferred income		 Group
2023
2022
£’000
£’000
3,358
2,003
5,210
6,791
–
–
592
520
698
326
2,455
2,190
291
860
12,604
12,690		 Institute
2023
2022
£’000
£’000
2,152
1,121
5,085
6,467
1,309
–
557
516
298
194
1,397
1,492
–
–
10,798
9,790

Amounts received in advance at 30 June 2023 will all be released in the year to 30 June 2024 and mainly relate to member and organisation subscriptions.

Deferred income represents bookings for future commercial events and payments for consultancy work. The movement on deferred income was as follows:

Deferred income at start of year
Amounts released during the year
Amounts deferred during the year
Deferred income at end of year		 Group
2023
2022
£’000
£’000
860
163
(860)
(163)
291
860
291
860

| 89

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

11 Funds

Group
General fund
Pension reserve
Net general funds
Designated funds
Building fund
Trust fund
Strategic initiatives fund
Total designated funds
Total unrestricted funds
Restricted funds
JP Morgan Chase
Timewise Mentor
Careers & Enterprise Company
Innovate UK
Youth Future
SkillNet (CIPD Ireland)
Total restricted funds
Total funds		 Balance at
1 July 2022
Income
Expenditure
Transfers
between funds
Gains and
(losses)
Balance at
30 June 2023
£’000
£’000
£’000
£’000
£’000
£’000
27,303
44,798
(46,358)
(1,000)
2,941
27,684
(5,150)
–
(172)
1,000
(3,136)
(7,458)
22,153
44,798
(46,530)
–
(195)
20,226
1,033
–
–
–
–
1,033
408
–
(103)
–
–
305
8,029
18
(4,837)
–
–
3,210
9,470
18
(4,940)
–
–
4,548
31,623
44,816
(51,470)
–
(195)
24,774
1
–
–
–
–
1
3
–
–
–
–
3
45
140
(155)
–
–
30
(1)
–
–
–
–
(1)
10
5
–
–
–
15
–
52
(3)
–
–
49
58
197
(158)
–
–
97
31,681
45,013
(51,628)
–
(195)
24,871

90 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

Institute
General fund
Pension reserve
Corporation tax
Net general funds
Designated funds
Building fund
Trust fund
New learning fund
Research and development
Strategic initiatives fund
Total designated funds
Total unrestricted funds
Restricted funds
UKCES-VyT
JP Morgan Chase
NESTA/Steps
Team London
Timewise Mentor
Careers & Enterprise Company
FSF
Innovate UK
Parent Returner Programme
Youth Future
Total restricted funds
Total funds		 Balance at
1 July 2022
Income
Expenditure
Transfers
between funds
Gains and
(losses)
Balance at
30 June 2023
£’000
£’000
£’000
£’000
£’000
£’000
27,410
31,013
(33,160)
(1,000)
2,140
26,403
(5,150)
–
(172)
1,000
(3,136)
(7,458)
–
–
–
–
–
–
22,260
31,013
(33,332)
–
(996)
18,945
1,033
–
–
–
–
1,033
408
–
(103)
–
–
305
–
–
–
–
–
–
–
–
–
–
–
–
8,029
18
(4,837)
–
–
3,210
9,470
18
(4,940)
–
–
4,548
31,730
31,031
(38,272)
–
(996)
23,493
–
–
–
–
–
–
1
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
–
–
3
–
–
–
–
3
45
140
(155)
–
–
30
–
–
–
–
–
–
(1)
–
–
–
–
(1)
–
–
–
–
–
–
10
5
–
–
–
15
58
145
(155)
–
–
48
31,788
31,176
(38,427)
–
(996)
23,541

| 91

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

Designated fund descriptions:

The building fund provides for maintenance of CIPD properties and for potential property projects. The trust fund has been established to promote access to the profession. The strategic initiatives fund is to provide for special initiatives identified by the board – which include growing membership, meeting the needs of leading members of the HR profession, growing the CIPD’s offering internationally, and engaging more directly with employers.

The outstanding balance on the building fund is expected to be used over the next 10 to 20 years, though this is dependent on the nature and timing of any potential property projects. The outstanding balance on the trust fund and the strategic initiatives fund is expected to be used over the next five years.

Restricted fund descriptions:

JP Morgan Chase To provide free employment and people management advice to small businesses Timewise Mentor To promote flexible working hours within the workplace Careers & Enterprise Company Funding for the recruitment of suitable people professionals (members and non-members) to volunteer on the Careers & Enterprise Company Enterprise Adviser programme Flexible Support Fund Partnership Department for Work and Pensions funding to test extending Steps Ahead to support jobseekers of over 50 years old with short-term one-to-one mentoring with the aim of improving their employability skills to help them find work Innovate UK Human resources advice and guidance is given to SMEs in the Midlands Parent Returner Programme To identify and support a variety of employers of different size and industry to create 50 new private sector opportunities, and reach local residents to support 150 returners to move into or towards work

At 30 June 2023, cumulative unrealised gains on investment assets of £1,540,000 (2022: £92,000) were included in the general fund.

Each of the designated funds is described in note 1 (k).

During the year, £1,000,000 was transferred from the general fund to the pension reserve (2022: £1,225,000).

Analysis of fund balances held on 30 June 2023

General Pension Designated Restricted Total
£’000 £’000 £’000 £’000 £’000
Tangible fxed assets 6,662 – – – 6,662
Intangible fxed assets 2,321 – – – 2,321
Investments 17,889 – 4,548 – 22,437
Current assets 13,475 – – 97 13,572
Current liabilities (12,604) – – – (12,604)
Long-term liabilities – (7,458) – – (7,458)
Provisions (59) – – – (59)
Fund balances on 30 June 27,684 (7,458) 4,548 97 24,871

12 Pension commitments

The Institute operated two separate occupational pension schemes during the year – the CIPD Group Personal Pension Plan and the CIPD Staff Retirement Scheme.

(a) CIPD Staff Retirement Scheme

The CIPD Staff Retirement Scheme is a defined benefit scheme which was closed to new entrants on 1 January 2010 and closed to accruals of new benefits from 30 September 2012.

The assets of the scheme are held separately from those of the Institute to meet long-term pension liabilities to past and present employees. The trustees of the scheme are required to act in the best interest of the scheme’s beneficiaries and are appointed in accordance with the scheme’s trust deed. Currently one-third of the trustees are member-nominated. During the year, Barnett Waddingham LLP acted as administrators and actuaries to the scheme. SEI Investments (Europe) Limited acted as investment advisers to the trustees during the year; they are also responsible for the management of the scheme’s invested assets.

92 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

The most recent full actuarial valuation of the scheme was carried out as at 1 October 2020 and revealed an actuarial deficit of approximately £15.4 million.

In accordance with the schedule of contributions agreed between the trustees and the Institute as part of the 1 October 2020 valuation, the Institute contributed £1,000,000 to the scheme over the year to 30 June 2023 (2022: £1,225,000) in order to address the past service deficit. Further contributions of £1,000,000 per annum are due to be paid in quarterly instalments of £250,000 until 30 September 2024. This will be followed by contributions of £1,100,000 per annum paid in quarterly instalments of £275,000 from 1 October 2024 to 30 September 2032.

Additionally, the CIPD has an agreement with the trustees under which the scheme is granted a charge over the freehold property at 151 The Broadway to act as a contingent asset for the scheme.

Benefits accrued after 1 October 2006 were on a career average revalued earnings basis and will have limited price indexation of pensions in payment restricted to 2.5%. Prior to 1 October 2006 benefits were accrued on a final salary basis and active members paid contributions to the scheme. On this date the Institute implemented a salary sacrifice scheme and since then has paid all of the contributions – originally at a rate of 19.1% of pensionable salaries, and from 1 October 2009 until 30 September 2012 at a rate of 17.6%. Of this, 6% represented the contributions that active members would have made were the salary sacrifice scheme not in place. Contributions in respect of benefit accrual ceased from 30 September 2012.

2023
£’000
The amounts recognised in the balance sheet were:
Present value of funded liabilities
36,282
Fair value of scheme assets
(28,824)
Net pension liability at 30 June
7,458
The amounts disclosed in the balance sheet were:
Liabilities
7,458
Assets
–
Net pension liability at 30 June
7,458
The amounts recognised in the statement of fnancial activities were:
Interest on liabilities
1,684
Interest on assets
(1,512)
Past service cost
–
Total
172
Changes in the amounts recognised within other recognised gains and losses were:
Actuarial (gain)/loss
3,136
Changes in the present value of the defned beneft liability were:
Opening defned beneft liability
46,108
Past service cost
–
Interest cost
1,684
Actuarial (gain)/loss due to changes in assumptions
(12,050)
Actuarial (gain)/loss due to experience
1,753
Benefts paid
(1,213)
Closing defned beneft liability at 30 June
36,282
Changes in the fair value of the scheme assets were:
Opening fair value of scheme assets
40,958
Interest on assets
1,512
Actuarial gain/(loss)
(13,433)
Employer contributions
1,000
Benefts paid
(1,213)
Administration costs
–
Closing fair value of scheme assets at 30 June
28,824		 2022
£’000
46,108
(40,958)
5,150
5,150
–
5,150
1,224
(984)
–
239
(6,804)
64,983
–
1,224
(19,173)
195
(1,121)
46,108
52,043
985
(12,174)
1,225
(1,121)
–
40,958

All the scheme’s assets are invested in funds managed by SEI Investments (Europe) Limited. These are grouped into two pools – the Risk Management Pool and the Return Enhancement Pool. Each fund has a mandate to invest actively in such a way as is expected to outperform relevant benchmark indices.

| 93

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

The fair value of the scheme assets as a percentage of the total scheme assets was:

30 June 30 June
2023 2022
Equities 4% 22%
Bonds 47% 48%
Alternatives 26% 19%
Annuities 7% 2%
Property 13% 7%
Cash 3% 2%

The returns on the scheme’s assets over the years to 30 June 2021 and 30 June 2023 were £1,717,000 and £(11,189,000) respectively.

The principal actuarial assumptions used by the actuary were:

The principal actuarial assumptions used by the actuary were:
at 30 June 30 June
2023 2022
Rate of increase for pensions in payment 3.00% 2.90%
Discount rate for scheme liabilities 5.30% 3.70%
Rate of infation (RPI) 3.10% 3.00%
Mortality table 103% of S3PMA 103% of S2NMA
table for males and table for males and
98% of S3PFA table 98% of S2NFA table
for females with for females with
CMI_2022 projections CMI_2021 projections
2020 weight parameter 0% 15%
2021 weight parameter 40% 15%
Initial rate addition 0.00% 0.00%
Period smoothing parameter 7.0 7.0
Long-term rate of mortality improvement 1.25% 1.25%
Life expectancy at age 65 (of male aged 65) 21.1 21.2
Life expectancy at age 65 (of male aged 45) 22.3 22.4
Allowance for cash commutation 15% of pension taken 15% of pension taken
as tax-free cash as tax-free cash
Allowance for the cost of GMP equalisation Increase liabilities by Increase liabilities by
0.2% 0.2%

The sensitivities regarding the principal assumptions used to measure the scheme liabilities were:

Assumption Change in assumptions Impact on scheme liabilities
Discount rate Increase/decrease by 0.5% Decrease/increase by 9%
Rate of infation Increase/decrease by 0.5% Increase/decrease by 5%
Life expectancy Increase/decrease by one year Increase/decrease by 3%

(b) The CIPD Group Personal Pension Plan is a defined contribution scheme which is open to all CIPD employees in the UK. The Institute more than matches the amount of employee salary sacrificed into the scheme up to a total combined contribution of 20% of salary. The scheme qualifies for the NAPF pension quality mark, with the 20% total contribution option qualifying for the PQM Plus standard – the highest available industry award for defined contribution schemes.

The pension cost charge for the year for this scheme was £1,329,000 (2022: £1,210,000).

(c) In addition to the above schemes, Personal Retirement Savings Accounts exist for staff working for the CIPD in Ireland.

The pension cost charge for the year for this scheme was £56,000 (2022: £27,000).

The pension costs charged in the Statement of Financial Activities for the defined contribution schemes represent contributions payable into the schemes in relation to the accounting period.

94 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

13 Provisions for liabilities and charges

Group Institute Institute
2023 2022 2023 2022
£’000 £’000 £’000 £’000
Provisions 59 – – –

The provisions amount relating to individual property is released on termination of the lease.

14 Obligations under operating leases

Group
2023
£’000
The future minimum operating lease payments for land and buildings are a
Within one year
194
Between two and fve years
408
Over fve years
–
602		 2022
£’000
s follows:
133
673
–
806

In respect of other operating leases with commitments expiring:

Within one year
Between two and fve years		 –
–
–		 –
–
–
Institute 2023 2022
£’000 £’000

The future minimum operating lease payments for land and buildings are as follows:

Within one year
–
Between two and fve years
–
Over fve years
–
–
In respect of other operating leases with commitments expiring:
Within one year
–
Between two and fve years
–
–		 –
–
–
–
–
–
–

| 95

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

15 Related parties

In accordance with our Charter and Bye-Laws, board members are not able to profit from their position on the board.

There are no relevant related party transactions to report this year.

16 Indemnity insurance

Funds are provided to protect the charity from loss arising from the neglects or defaults of its trustees, employees and agents. The cost of indemnity insurance in the year was £15,548 (2022: £13,000).

17 Capital commitments

At the year end the CIPD was committed to digital capital projects totalling £0.00 (2022: £117,000).

18 Post balance sheet event

There are no post balance sheet events.

19 Incorporation

The Institute is incorporated by Royal Charter and therefore has no company registration number.

The Institute is a charity registered in England and Wales, Scotland and Ireland.

Its charity registration numbers are 1079797, SC045154 and 20100827 respectively.

96 |

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

19 Prior year funds

19 Prior year funds
Group Balance at Income Expenditure Transfers Gains and Balance at
1 July 2021 between funds (losses) 30 June 2022
£’000 £’000 £’000 £’000 £’000 £’000
General fund 26,372 42,232 (39,735) (1,225) (341) 27,303
Pension reserve (12,940) – (239) 1,225 6,804 (5,150)
Net general funds 13,432 42,232 (39,974) 0 6,463 22,153
Designated funds
Building fund 1,250 – (217) – – 1,033
Trust fund 500 – (92) – – 408
Strategic initiatives fund 10,929 – (2,900) – – 8,029
Total designated funds 12,679 – (3,209) – – 9,470
Total unrestricted funds 26,111 42,232 (43,183) – 6,463 31,623
Restricted funds
JP Morgan Chase 16 – (15) – – 1
Timewise Mentor 3 – – – – 3
Careers & Enterprise Company 58 109 (122) – – 45
Innovate UK (1) – – – – (1)
Parent Returner Programme – 10 – – – 10
Total restricted funds 76 119 (137) – – 58
Total funds 26,187 42,351 (43,320) – 6,463 31,681
Institute Balance at Income Expenditure Transfers Gains and Balance at
1 July 2021 between funds (losses) 30 June 2022
£’000 £’000 £’000 £’000 £’000 £’000
General fund 27,654 31,401 (29,667) (1,225) (753) 27,410
Pension reserve (12,940) – (239) 1,225 6,804 (5,150)
Net general funds 14,714 31,401 (29,906) – 6,051 22,260
Designated funds
Building fund 1,250 – (217) – – 1,033
Trust fund 500 – (92) – – 408
Strategic initiatives fund 10,929 – (2,900) – – 8,029
Total designated funds 12,679 – (3,209) – – 9,470
Total unrestricted funds 27,393 31,401 (33,115) – 6,051 31,730
Restricted funds
JP Morgan Chase 16 – (15) – – 1
Timewise Mentor 3 – – – – 3
Careers & Enterprise Company 58 109 (122) – – 45
Innovate UK (1) – – – – (1)
Parent Returner Program – 10 – – – 10
Total restricted funds 76 119 (137) – – 58
Total funds 27,469 31,520 (33,252) – 6,051 31,788
Analysis of fund balances held on 30 June 2022
General Pension Designated Restricted Total
£’000 £’000 £’000 £’000 £’000
Tangible fxed assets 6,997 – – – 6,997
Intangible fxed assets 2,294 – – – 2,294
Investments 17,047 – 9,470 – 26,517
Current assets 13,655 – – 58 13,713
Current liabilities (12,690) – – – (12,690)
Long-term liabilities – (5,150) – – (5,150)
Provisions – – – – –
Fund balances on 30 June 27,303 (5,150) 9,470 58 31,681

| 97

CIPD Annual Report and Accounts 2022–23

FINANCIAL STATEMENTS | Notes to the financial statements

20 Consolidated statement of financial activities for the year ended 30 June 2022

Consolidated statement of fnancial activities Note General Designated Restricted Total Total
fund fund fund 2023 2022
£’000 £’000 £’000 £’000 £’000
Income from:
Charitable activities
To advance the
management and
development of people
through:
Membership services and education 29,960 – – 29,960 29,960
Research 31 – 119 150 112
Branches 106 – – 106 88
Other trading activities
Commercial income 12,097 – – 12,097 9,253
Investments 38 – – 38 50
Total income 42,232 – 119 42,351 38,553
Expenditure on:
Raising funds
Commercial expenditure (9,195) – – (9,195) (8,089)
Investment management costs (35) – – (35) (50)
Charitable activities
Membership services and education (23,653) (2,538) – (26,191) (22,747)
Research (5,328) (513) (137) (5,978) (5,490)
Branches (1,763) (158) – (1,921) (1,387)
Total expenditure (39,974) (3,209) (137) (43,320) (37,763)
Net income/(expenditure) before
gains and losses on investments		 2,258 (3,209) (18) (969) 790
Net gains/(losses) on investments (755) – – (755) 3,910
Net income/(expenditure) 1,503 (3,209) (18) (1,724) 4,700
Transfers between funds – – – – –
Net incoming/(outgoing) resources before
other recognised gains and losses		 1,503 (3,209) (18) (1,724) 4,700
Other recognised gains/(losses)
Actuarial gains/(losses) on defned 6,804 – – 6,804 3,695
beneft pension scheme
Gains/(losses) on revaluation of 414 – – 414 676
overseas subsidiaries
Net movement in funds 8,721 (3,209) (18) 5,494 9,071
Reconciliation of funds
Net fund balances brought forward 13,432 12,679 76 26,187 17,116
Net fund balances carried forward 22,153 9,470 58 31,681 26,187

The statement of financial activities includes all recognised gains and losses for the year.

98 |

CIPD Annual Report and Accounts 2022–23

Chartered Institute of Personnel and Development 151 The Broadway London SW19 1JQ United Kingdom T +44 (0)20 8612 6200 F +44 (0)20 8612 6201 E cipd@cipd.co.uk W cipd.org

Incorporated by Royal Charter (RC000758) Registered as a charity in England and Wales (1079797) Scotland (SC045154) and Ireland (20100827)

Issued: January 2024 Reference: 8400 © CIPD 2024