It should have been HR’s defining moment. At last there was a chance to demonstrate the link between people policies and the bottom line. A chance to put HR at the heart of the business.
Now we find out it won’t happen – unless the HR community acts now.
The draft regulations for Operating and Financial Reviews (OFRs), which are due to become law in April, have disregarded the requirement to include any meaningful data on people policies.
As it stands, company directors will be left to supply what information they choose on people policies. This is a major climb-down by the Government, which had invested considerable time and resources to determine how organisations should report on their people.
It all looked so hopeful when the Accounting for People taskforce was set up to investigate how to link people policies to financial performance.
At the time, Denise Kingsmill, who headed the taskforce, said: “This is the moment when human capital management takes its place in the boardroom.” And even Patricia Hewitt, secretary of state for trade and industry, said the taskforce recommendations would “form useful guidance to help companies ensure that their OFRs reflect how the management and development of their people impacts on the performance of their business”.
But it’s not too late to make a difference.
The draft regulations for OFRs are out for consultation until the end of this month, so there is still time to act.
Have your say and help to define the future role of HR. Join Personnel Today to petition the Government and demonstrate that HR means business.