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LettersHR strategyHuman capital

People still matter – just ask the top companies

by Personnel Today 13 Dec 2005
by Personnel Today 13 Dec 2005

With the demise of the OFR (Personnel Today, 6 December) there is now even less compulsion for companies to engage their shareholders about their strategy and performance in managing their people.

While this is true, the main reason for reporting externally on people management remains the same: enhanced corporate reputation.

Companies that understand this opportunity will continue to improve their non-financial reporting, regardless of regulatory requirements. And those companies that would have reported only as a matter of compliance would in any case have gained few benefits from
this approach.

Human capital management reporting still provides a great strategic opportunity for HR. The numbers in the accounts and similar reports do not provide the strategic information that smart investors need. Companies that manage their people well and include information about this in their reports will find that their reputation and share price increase and their cost of capital goes down. HR needs to work with the chief executive, finance director and company secretary to make sure that this takes place.

John Ingham
Head of HCM consulting,
Penna

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Personnel Today

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