Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Business performanceEconomics, government & businessHR practiceLetters

HR needs to take initiative on human capital reporting

by Personnel Today 26 Apr 2005
by Personnel Today 26 Apr 2005

 “Human capital is the 21st century equivalent of the 19th century dependence on natural resources. Modern enterprise and wealth creation depend upon the development of people, not their exploitation”.

Tony Blair’s government may have got cold feet on the issue of human capital reporting, and this immediate pre-election period may not see our politicians generally at their most honest. Yet even the most hard-bitten HR manager should be starting to see positive signs of the realisation, even revolution, that the prime minister referred to in his first keynote speech of the election campaign earlier this month.

At about the same time as Blair was speaking, I was listening to Tracy Robbins, of the food services giant Compass Group, at the Chartered Institute of Personnel and Development’s 2005 HRD conference.

She described her company’s three-pronged strategy: to have great people by being a preferred employer, to deliver great service to clients and customers, and to deliver great financial results. The board routinely looks at labour turnover and employee satisfaction data, just as it does the operating margin and return on capital employed figures.

It’s the same at expanding retailer Asda, where the formula is to make it a great place to work, which makes it a great place to shop, which makes for its superlative financial returns. Its employee-oriented approach has helped create a workforce in which more than 90% of staff are proud to work there. Tough for a competitor to copy or poach.

The public services have been at the centre of the election debate, as the main parties attempt to outbid each other on the size of staff cutbacks. Yet, the CIPD’s current action research, with the Cabinet Office and Employers Organisation, examining HR’s role in public service reform shows that the attention needs to shift from efficiencies and economies to staff engagement and empowerment, if the service’s objectives are to be achieved.

A recent study of top performing local authorities found that their staff felt better managed, more involved in decision-making and given the scope to use their own initiative.

At Torfaen Council – winner of the Institute of Customer Services’ annual award – there are weekly team meetings in the call centre, and a variety of recognition awards on offer. According to Gloria Evans, “all staff have input into the customer service plan, allowing them to take ownership of it”. Lost calls and staff turnover figures have plummeted as a result.

Linda Holbeche’s excellent new book, The High Performance Organisation, demonstrates unequivocally that the human factor lies at the heart of the UK’s productivity deficit. She provides numerous similar examples demonstrating that it is the employee and customer-focused organisations that achieve long-term sustainability. As the founders of Google put it in their financial prospectus last year, “our employees are everything”.

Seventy years ago, Elton Mayo, professor of industrial research at Harvard, wrote that, “the need for recognition, security and a sense of belonging are most important in determining workers’ morale and productivity”. After successive tides of scientific management, strategic planning, business process re-engineering and so on, our government and business leaders at long last seem to be recognising this self-evident social and economic truth.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The HR community should be going on the offensive to help reassert the importance of people in management and human capital in the economy.

Duncan Brown is assistant director general, Chartered Institute of Personnel and Development




Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Banker fails to make former employer pay up for legal costs
next post
Pro-US stunt brings a tear to the eye

You may also like

Minister defends Employment Rights Bill at Acas conference

16 May 2025

CBI chair Soames accuses ministers of not listening...

16 May 2025

Immigration white paper: 10 key points and reaction

12 May 2025

Downturn in hiring activity eased in April

12 May 2025

UK-US trade deal threatens bioethanol jobs

12 May 2025

Immigration white paper: strict limits on overseas recruitment

12 May 2025

CIPD links Employment Rights Bill with low business...

12 May 2025

Zero-hours workers’ rights to be extended from beyond...

8 May 2025

Government defends NIC relief in UK-India trade deal

7 May 2025

Connect to Work: how businesses can play their...

2 May 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+