While 87% of managing directors and HR directors agree that companies should report externally on their human capital management (HCM), 71% are strongly against the Government introducing legislation or regulation requiring companies to report on defined people management issues, claims new research.
This research, conducted in 200 UK companies, by The Penna Board Partnership, comes ahead of the forthcoming Accounting for People Report, due early November.
Penna predicts that while Accounting for People will encourage companies to report on HCM, it is unlikely to recommend that this should be required by legislation.
The research found that 86% of those surveyed believe that HCM reporting helps the Board manage key people issues and 70% use HCM measures to improve business performance.
“That organisations are in full agreement with the principles of HCM reporting is a tremendous leap forward,” said Richard Finn, Managing Director, Penna Board Partnership.
“Reporting on key people issues like motivation, competence, the quality of the leadership team and staff turnover are critical measures of the health of an organisation and its ability to achieve its strategy, and so are of critical importance to the Board and to investors,” he continued.
Penna’s Unleashing the Chain Reaction Report sets out a route map for embedding HCM in an organisation.
