The Government-sponsored Accounting for People taskforce report promised so much.
Under it companies would be required to measure and report on their people strategies, thereby recognising the value of HR and increasing the profession’s worth.
But the taskforce’s recommendations have been all but ignored by the Government in its draft legislation, which is under consultation until 28 February.
How HCM guidance came to be ignored
- Directors of companies producing OFRs should include within them information on HCM within the organisation, or explain why it is not material.
- The Government should 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.
The Accounting 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.
Source: Accounting for People recommendations, October 2003
- No reference at all to the Accounting for People taskforce’s terminology of HCM.
- Staff information may be included "depending on the nature of the business".
- It is up to the directors to decide if they include information about employees on the basis of whether it is a principle risk or uncertainty facing the company.
- Employees are seen almost exclusively as a risk rather than an asset - health and safety and morale are the only areas highlighted as key performance areas.
Source: OFR draft legislation and the Accounting Standards Board regulations, which give legal effect to the OFRs, January 2005
To see in more depth how the recommendations in the Accounting for People Taskforce differ from those in this summary of the draft regulations, click here.