Human Capital Disclosures; Good for Business?

The demand for greater transparency around Human Capital Management (HCM) practices is a hot topic right now, being driven by information economics and evolving market dynamics.?

Regulatory bodies across the world, including the SEC in the U.S., are turning the spotlight on transparency with calls to increase reporting.?

The reason??

There is a growing recognition among investors and corporations alike that human capital is not just an operational necessity but a critical driver of corporate performance and, ultimately, investment value.

We explore disclosures, transparency, and measurements, expanding on the correlation between behavior and economics and why both should be incorporated into your HCM strategy. Click here to read more.?

How is your organization responding to this call for more transparency? Hit reply and let us know. We’d like to make room for the discussion!?

CONVERSATION STARTERS

From Performance to Impact: Pitchbook’s latest report on Data Analytics demonstrates that the world of Human Resources is shifting; instead of relying on anecdotes and best practices, organizations are leaning towards a more evidence-based approach—like human capital analytics. This ties in with Principle #10 from Humanizing Human Capital , “Shift Focus from Performance to Impact.” Moving away from the “Big Brother” approach of the watchful eye, companies should focus on the results or impact generated by workers rather than when and how hard they are working.?

Investing in the Worker Long-Term: It’s time to rethink retirement ! There’s a growing retirement crisis, and we’re witnessing disparities in financial security across gender and race. Investing more in workers throughout their careers—through financial planning, profit sharing, training, and family benefits—is becoming a key aspect of corporate leadership, as evidenced by the outperformance of a worker-focused investment index. Initiatives like providing investment accounts at birth for employees' children further demonstrate a shift towards prioritizing the financial well-being of American workers at all stages of life.

NEWSWORTHY?

Employees are learning that they must advocate for themselves in the workplace. As part of the Fast Company Executive Board, Stela shared some key insights about how to own your value and lean into support networks that can support your decisions and ideas.

Solange is speaking at a private ADP event to large hospitals on human capital materiality. The goal is to help these organizations better articulate how their human capital management contributes to their overall business objectives and financial outcomes!?

AI is changing the dynamics of the workforce in both subtle and major ways, which means organizations need to adopt human-centric practices now more than ever. In this episode of Inertia Creeps , Stela discusses the impact of AI and why finding balance between technology and people is important.?

FROM THE BOOK

Human capital is a major focus today, from SEC disclosure requirements for public companies to the gig economy to skills gaps to hybrid work challenges. These topics share the common goals of accommodating the workforce to improve engagement, retention, and performance while optimizing the return on human capital investment.

While HR professionals are familiar with the first goal, the second - budget optimization and financial rationalization - is a new focus. Historically, HR programs were not held accountable for return on investment. However, the SEC now requires reporting human capital spend as an investment in an intangible asset, not just an expense.

Human capital practitioners must now prioritize budget optimization and financial justification as the "new normal.”?

If you’re seeking a resource to learn more about understanding and practicing human capital strategies, pick up a copy of Humanizing Human Capital , where we share 20 principles that will help teach you the impact of HR on an organization's financial sustainability.