Almost two thirds of senior HR professionals are unaware of new company reporting regulations requiring greater transparency around employee information, a survey of 15,000 HR managers and directors reveals.
Under the demands of the Operating and Financial Review (OFR), introduced in April, listed firms are required to file a report in their end-of-year accounts on a range of issues that can affect the performance of the business, including employee information..
But according to research by training firm Thomson NETg, 43% of UK HR managers do not have a strategy in place to adhere to the regulations and improve the reporting systems that govern HR.
The lack of enthusiasm for the adopting the regulations can partly be explained by the fact that 73% of respondents regard compliance as an expensive overhead rather than a means to save money.
“This is a curiously short-sighted attitude on behalf of UK companies,” said Mike Summers, director at ThomsonNETg.
“The regulation purely encourages the take-up of best practice HR management, which means that firms will have a better handle on where their teams are weak and may need more training.”
HR managers should view OFR not as a burden, but as an opportunity to create a human capital management strategy that positively enhances the advancement of its employees, while also impacting the bottom line, Summers added.