ELEmployerLens

Methodology

How the Score Works

The EmployerLens Employer Health Score ranges from 0 to 100. It is calculated deterministically from publicly available data — given the same input data, the same score will always result. No randomness, no AI in the scoring loop.

The score is composed of five weighted dimensions, each scored 0-100 internally and then combined using the following weights:

Dimension Weights

Financial Health35%

Company status, accounts type, insolvency, charges, and when available: profitability trend, cash adequacy, debt burden, working capital, and revenue trajectory.

Stability & Governance25%

Director tenure, resignation velocity, filing compliance, company age, PSC transparency.

Growth Trajectory15%

Revenue growth, employee count trends, investment signals from charge registrations.

Culture Indicators15%

Gender pay gap level and trend, Living Wage Foundation accreditation. Accreditation bonuses: B Corp (+15), Disability Confident Leader (+10), Great Place to Work (+10), Investors in People (+8), others (+3 to +5).

Transparency10%

Accounts detail level, filing timeliness, confirmation statement compliance.

Score Ranges

80-100Strong
60-79Solid
40-59Mixed
20-39Caution
0-19High Risk

Red Flag Detection

Red flags are binary signals that trigger independently of the overall score. They highlight specific concerns:

  • Active insolvency — Any active insolvency case
  • Late filings — Overdue accounts or confirmation statement
  • Mass director exodus — 3+ director resignations in last 12 months
  • CFO/FD resignation — Finance director resigned in last 6 months
  • New charge + director change — Within 3 months of each other
  • Accounts overdue — Accounts past their filing deadline
  • Company in distress — Status is liquidation, administration, or voluntary arrangement
  • HSE prosecution — Health and Safety Executive prosecution on record
  • CQC Inadequate — Care Quality Commission rated provider as Inadequate
  • FCA disciplinary action — Financial Conduct Authority has taken disciplinary action
  • Multiple ET decisions — 3+ Employment Tribunal decisions involving the employer
  • Missing Modern Slavery statement — Company above £36m turnover threshold with no statement on record

Positive Signal Detection

Positive signals highlight strengths identified from the data:

  • No late filings — Clean filing history with no penalties
  • Stable leadership — All directors 3+ years, no recent resignations
  • Living Wage accredited — Pays the real Living Wage
  • GPG improving — Gender pay gap narrowed year-on-year
  • Long-established — Active company incorporated 20+ years ago
  • Full accounts filed — Voluntarily files full accounts
  • B Corp certified — Meets verified social and environmental standards
  • Disability Confident Leader — Highest level (Level 3) of the government scheme
  • CQC Outstanding — Rated Outstanding by the Care Quality Commission
  • Great Place to Work — Certified through employee surveys
  • Multiple accreditations — Holds 3+ employer accreditations

Enrichment & Enforcement Scoring

When enrichment data is available, the overall score is adjusted:

  • Accreditation bonuses — Applied to the Culture dimension. B Corp (+15), DC Leader (+10), GPTW (+10), IiP (+8), Stonewall (+5), Modern Slavery compliance (+3), Armed Forces Covenant (+3).
  • Enforcement penalties — Applied to the overall score. Critical severity (-20), Serious (-10), Moderate (-5), Minor (-3). Maximum total penalty is capped at -30.
  • CQC ratings — Inadequate (-15), Requires improvement (-5), Outstanding (+5).
  • FCA disciplinary history — Applies a -10 penalty to the overall score.

Data Sources

  • Companies House REST API — Company profiles, officers, filing history, charges, insolvency proceedings, PSC register. Updated in real-time as filings are processed.
  • GOV.UK Gender Pay Gap Service — Annual reports from employers with 250+ employees.
  • Living Wage Foundation — Accredited employers who pay the real Living Wage.
  • Convert-IXBRL — Structured financial data parsed from iXBRL-format filed accounts.
  • GOV.UK Disability Confident — Employer list with scheme level (Committed, Employer, Leader).
  • B Corp Directory — Certified B Corporations with verified impact scores.
  • Modern Slavery Statement Registry — GOV.UK registry of published Modern Slavery Act statements.
  • Health and Safety Executive — Public prosecution convictions and enforcement notices.
  • Employment Tribunal Decisions — GOV.UK published tribunal decisions.
  • Environment Agency — Enforcement actions and pollution incidents.
  • FCA Register (financial sector) — Authorisation status and disciplinary history for firms regulated by the Financial Conduct Authority.
  • Care Quality Commission (health/social care) — Provider ratings and inspection reports.
  • Charity Commission — Registration details, income, and filing status for registered charities.

Limitations

  • Micro-entity and dormant company accounts contain very limited financial data. Scores for these companies will rely more heavily on non-financial signals.
  • Companies House data is only as current as the most recently filed documents. Accounts may be up to 9 months behind the actual financial position.
  • The gender pay gap threshold of 250+ employees means smaller employers are not assessed on this dimension.
  • The score is not a credit rating, investment recommendation, or legal assessment. It is a transparency tool designed to surface publicly available information in an accessible format.