As we implement our new strategy for growth, we are also aligning the goals we set and the way we measure our progress.
Our reporting is structured around two overarching areas of focus:
- Financial measures
- Non-financial measures
They are used to measure our progress to help us to meet our purpose – to add life to a lifetime of learning.
Financial Measures 2023
We’re maintaining our focus on growth, profitability and cash generation, and as such, our financial KPIs remain largely unchanged, with the addition of ROC.
Non-Financial Measures
Our new non-financial KPIs focus on investing in our talent, building an inclusive culture that improves diverse representation and accelerating our sustainability strategy.
Measuring Our Success – Strategic KPIs
Enabling sustainable growth, driving shareholder value and contributing to a more equitable world
Here’s a snapshot of non-financial measures from FY 2023
Measuring Our Success – Strategic KPIs
| KPI | Objective | KPI Measure | KPI Measure Definition | 2023 Actual | 2022 Actual |
|---|---|---|---|---|---|
| Digital Growth | Drive digital revenue growth | Underlying growth in Group digital and digital-enabled sales | Digital sales are defined as products and services delivered in purely digital form (e.g. Virtual Learning, Mylab, Revel, Mastering). Digitally enabled sales are defined as products and services that combine the digital and physical worlds (e.g. Pearson VUE, School Assessments and Qualifications, PTE). | 8%* | 9% |
| Partner Schools US enrolments** | Number of government-funded student enrolments at partner schools within the US as of 30 September. Excludes district partnerships and Pearson Online Academy. | 100k | 105k | ||
| OnVUE volumes | Number of exams administered via OnVUE. | 2.7m | 3.0m | ||
| Higher Ed US digital subscriptions^ | Paid registrations initiated during the time period for MyLabs, Mastering, Revel, plus the number of eText units bought (including Pearson+) | 9.6m | |||
| PTE volume | PTE tests administered during the time period in question. | 1,231k | 827k | ||
| Consumer Engagement | Create engaging and personalised consumer experiences | NPS for Connections Academy | One NPS survey is distributed to the assigned caretaker of each student in January to March each year (the same parent could fill out multiple surveys if they have multiple students enrolled). | +67 | +67 |
| NPS for PTE | PTE test-takers who achieve their desired score are sent a standard NPS survey after they get their score. | +55 | +52 | ||
| Pearson+ registered users | Pearson+ registered users represent the number of unique user accounts added over an academic year. | 3.03m | 2.83m | ||
| Mondly paid subscriptions | Users who have any current paid subscription, both business to consumer and business to business at point in time of reporting. | 432k | 446k | ||
| Workforce Skills new registered users | Currently only measures Credly registered users. This captures the net new individuals holding a Credly account calculated on a trailing 12- month basis. | 5.3m | 4.7m | ||
| Product Effectiveness | Improve the effectiveness of our products to deliver better outcomes | PTE speed of score return | The time from the end of the test to when the score is sent to the test- taker. The KPI captures the average speed across all tests. | 1.0 days | 1.3 days |
| VUE test volumes | Total exams delivered (including unfinished tests) across VUE test centre, OnVUE, and third-party partners. VUE test volumes include GED test and PTE test volumes. | 20.7m | 19.4m | ||
| VUE Partner retention | This is the value of contracts renewed each year, divided by the value of renewals plus the value of contracts lost. | 93.6% | 99.9% | ||
| Workforce Skills number of enterprise customers | Total enterprise customers for Workforce Skills, calculated as cumulative enterprise customers in Credly, Faethm, GED, Accelerated Pathways and TalentLens | 1,547 | 1,503 | ||
| Credly enterprise customer net retention rate^^ | This metric states Annual Recurring Revenue (ARR) in the current FY as a percentage of the ARR from the previous FY. | 88% | |||
| Higher Education product usage – text units |
The number of text units sold or rented through any US channel in the given time period. Relevant products are Pearson+, standalone print, print rental, and ebooks (through 3rd party channels). |
4.5m | 4.8m | ||
| Culture of Engagement & Inclusion | Build a culture of engagement and inclusion where diverse talent is heard, invested in and valued for their strengths and skills |
Employee engagement Pearson uses the Gallup Q12 survey to measure engagement, annually |
Grand mean score across Employee Engagement Survey, based on a 5-point Likert Scale. | 4.09 GrandMean on a 5 point Likert scale | 3.96 GrandMean on a 5 point Likert scale |
|
Investing in diverse talent The % of responses who agree or strongly agree to Gallup Q12 survey questions. |
Percentage of employees who responded 'agree' and 'strongly agree' on the Employee Engagement Survey to two survey questions 1) having had conversations about their progress, and 2) having had opportunities for learning and growth. | In the last six months, someone at work has talked to me about my progress = 73% | In the last six months, someone at work has talked to me about my progress = 67% | ||
| This last year, I have had opportunities at work to learn and grow = 76% | This last year, I have had opportunities at work to learn and grow = 72% | ||||
|
Culture of Inclusion Index The GrandMean of 3 Gallup Q12 survey questions: - At work, I am treated with respect |
Grand mean score across Inclusion Index questions within Employee Engagement Survey, based on a 5-point Likert Scale. | 4.21 GrandMean on a 5 point Likert scale | 4.12 GrandMean on a 5 point Likert scale | ||
|
Increasing diverse talent*** Objective: Increase BIPOC / BAME representation at all manager levels and maintain overall gender parity |
Representation of BIPOC/BAME employees at Manager level and above = 22.0% | Representation of BIPOC/BAME employees at Manager level and above = 20.7% | |||
| Global % of female employees = 59.1% | Global % of female employees = 59.0% | ||||
| Sustainability Strategy | Achieve net zero carbon by 2030 | Reduction in total tCO2e | Percentage reduction of GHG emissions (Scope 1, 2 and 3) against a 2018 baseline. Emissions are calculated or estimated In line with the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and best practices | 16% reduction vs 2022 | 3% reduction vs 2021 |
* Excluding OPM and Strategic Review businesses.
** Measure definition has changed to number of government-funded student enrolments at partner schools within the US as of 30 September. Excludes private-pay students at Pearson Online Academy and district partnerships. This is more closely aligned to business processes.
*** Previously reported ‘Increasing diverse talent’ metrics retired and new strategic remuneration measures incorporated.
**** The net emissions reduction figures have been assured by an independent third-party, SLR Consulting Ltd. Corporate Citizenship % reduction in total tCO2e above is calculated using a location-based methodology. Within the 2023 number, 4% is due to portfolio changes. These will be removed following the normal rebasing exercise in 2024.
^ KPI update from ‘registrations’ to ‘subscriptions’.
^^ Methodology change to only include Credly customer retention (previously reporting combined Credly and Faethm)
