Accounting for People Taskforce:
We recommend that reports on HCM should:
- have a strategic focus;
communicate clearly, fairly and unambiguously the Board’s current understanding of the links between the HCM policies and practices, its business strategy and its performance; and
including information on: the composition of the workforce; retention and motivation of employees; the skills and competencies necessary for business success, and training to achieve these; remuneration and fair employment practices; leadership and succession planning
be balanced and objective, following a process that is susceptible to review by auditors.
provide information in a form that enables comparison over time and uses commonly accepted definitions where available and appropriate.
We recommend that directors of companies producing OFRs, and all public and other bodies that produce OFRs or reports with similar aims, should include within them information on HCM within the organisation, or explain why it is not material.
We recommend that the Standards Board invite leading employers, co-operating as appropriate with investors, professional organizations and other relevant stakeholders, to develop guidelines on key indicators and definitions. This might best be done through the creation of a standing subgroup on HCM reporting whose membership would be appropriate to discharge the responsibilities outlined above.
We recommend that the Government consult with leading employers, investors, professional organisations and other relevant stakeholders on the introduction of a programme to aid the dissemination of best practice on HCM and HCM reporting.
We recommend that the Standards Board be charged with monitoring the extent and depth of HCM reporting in OFRs, reporting to the Industry Secretary within two years of its formation.
What the Draft Recommendations say as regards the measurement of people:
Draft Statutory Instrument 2005
Companies Act 1985 (Operating and Financial Review and Director’s Report etc.) Regulations 2005-02-03
Part 3 Operating and Financial Reviews, Schedule 7ZA, Operating and financial review: Review objective