Jeff Higgins, HCMI CEO, discusses the reasons why human capital disclosure is important and how it can be accomplished in a recent article on CFO.com.
It’s really quite simple: Because human capital is material to a company’s success, much information about people should be disclosed.
In addition to the reasons for disclosing human capital, Jeff outlines some questions that institutional investors are starting to ask and so every CFO should be ready to answer.
What is your workforce productivity level? How does it rank? Is it improving?
Are leaders effectively managing human capital? What metrics in use measure this?
Is the organization building, buying, or renting critical and core talent?
What percentage of open positions are filled internally? What about management roles?
What is the marginal return of one dollar invested in the workforce?
What is the “total cost” of workforce? Is it growing faster than revenue?
If talent is critical, is the training budget adequate to support the business strategy?
What is the regrettable turnover rate? Why is talent leaving?
Is the workforce highly engaged? Is engagement increasing?
If you state “we have the best talent in the industry,” how do you know?
Read the full article, Material World: Human Capital Disclosure Matters, at CFO.com.
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Additional resource: Webinar - Incorporating HR & ESG In Corporate Strategy