In this current debate about the draft Operating and Financial Review (OFR) Regulations, aren’t we missing some major points (Personnel Today, 8 February)?
They are primarily for the benefit of investors who need to make good investments with our money. Surely it is our role to make the case about the contribution people make to the enterprise? If we do, the directors will see the importance of people’s contributions and communicate this to the investors. But only if they are convinced. And it is our job to help.
The OFR gives plenty of scope for us to report the genuine links between people and business performance. However, to do this, we need to know our company’s business and what drives it. Then we need to identify relevant performance, and measure it and report it over time.
The Accounting Standards Board has no remit for this; the government has no place in this. It is something that is in our space, and if we don’t get a grip of it, our accounting colleagues will be the people who prepare the human capital report in the OFR while we stand around wringing our hands.
Institute for Employment Studies