New draft regulations on company law not only fully endorse the
recommendations of the Accounting for People Taskforce led by Denise Kingsmill,
but also go further than she had hoped.
From 2005, it will be compulsory for all plcs to provide information on
people management in annual reports and accounts.
Speaking exclusively to Personnel Today, Kingsmill, chair of the original
taskforce, said draft regulations had gone further than she had expected –
insisting that all listed companies, not just large ones, should provide people
"I am delighted with this endorsement, and I hope HR will develop its
skills to rise to this major challenge," she said.
Kingsmill believes companies should use these human capital measures to
enhance their communication to shareholders as ethical businesses and employers
of choice. HR will need to work with finance directors, marketing and the board
to provide the right information, including data about human capital
management, for all future operating financial reviews.
She urged HR to embrace the change as it should transform the profession’s
status from support service to a direct contributor to company profit.
There will now be a consultation period on the draft regulations, with
implementation likely at the end of this year. Companies will be expected to
include people metrics in their 2005 financial reporting.