Measuring the contribution that employees make to a business significantly improves management decision-making, according to a new guide by the Chartered Institute of Personnel and Development (CIPD) and Mercer Human Resource Consulting.
The guide to human capital reporting, An Internal Perspective, prepared by a working party of HR directors and experts in the field, is designed to provide practical support for organisations to help measure and increase the value of their human capital.
It argues that HR professionals need to work in partnership with other senior managers and line managers to build robust systems for internal reporting on human capital (a pre-requisite to external reporting).
Recommendations from the Department of Trade and Industry and the new rules governing operating and financial reviews (OFRs) stress the importance of meaningful external reporting on people.
For details of how to obtain a detailed One Stop Guide to Human Capital Management, published by Personnel Today, see www.personneltoday.com/resources