More than 40 per cent of senior HR professionals don't see measuring human capital as a priority for their business, and a fifth never expect to report on it in their annual report.
Exclusive research by Personnel Today and global consultancy Deloitte shows that, 12 months after Denise Kingsmill published her taskforce's Accounting for People report, many companies still have a long way to go in implementing its recommendations on human capital management (HCM).
The survey finds that despite an increasing familiarity with the term 'human capital', a quarter (27 per cent) of all organisations do not use any measurements. More than 10 per cent of HR professionals admit to never using the term at all.
The latest findings are the second joint survey by Personnel Today and Deloitte on human capital. The first, carried out in September 2002, showed that, despite measuring human capital being regarded as useful by many organisations, only half appeared to be doing it successfully.
This year's survey examines whether the approach to human capital has changed, and whether organisations are becoming more successful at measuring people.
Results indicate there have been some changes in the past two years, with a greater use of measurement. However, the report still predicts that many organisations will be storing up "significant trouble for themselves" over the next 18 months.
Brett Walsh, European head of human capital consulting at Deloitte, said: "While the Government has not yet provided specific guidance on the level of reporting, the Accounting for People taskforce recommends that operating and financial reviews (OFRs) should include information on employment practices and policies."
It will become a statutory requirement for listed companies to report on people policies in their OFRs early next year.
"From the results of this survey, it is clear that many organisations will have a long way to go in a very short period of time," said Walsh.
However, despite the current sluggish pace of change, Walsh predicted a much more dynamic future, with organisations seeking market differentiation through innovative people strategies.
"As public reporting draws nearer, we expect human capital measurement to become more prolific," he said.
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Feedback from the profession
Lynne Griffin, director (person