(Recommend for Board HR&R Committee Members, Company Secretaries, CHROs)
The knowledge, skills and abilities of an organization’s human capital have a strong impact on sustainable organization performance and competitive advantage. Research shows that organizations who have effective human capital disclosure framework, have better opportunity to create long-term sustainable value for the shareholder and other stakeholders. Worldwide, there is a swell of interest by the boards and investors in human capital investment and its impact on the organization bottom line. Shareholders are keen to know strategic HR metrics which can help in determining connections between HR investment and organization success. Strategic HR metrics diagnose the long-term viability of a business from people management perspective, thus mitigating the risk for the shareholder. Global bodies including "Sustainability Accounting Standards Board USA" and the "International Integrated Reporting Council UK" also push reporting on human capital for better risk management strategy.
- Discuss emerging best practices on human capital strategic data capture, measurement analysis and reporting for internal and external stakeholders.
- Identify vital HR metrics that are in consonance with the organization’s leadership direction, proportionate, practicable, industry relevant, material to an organization’s business and operating model, regulatory, political and social context.
- Enhance credibility and transparency of disclosure in terms of HR opportunities and risks for stakeholders.
- Stakeholders can derive better understanding of human capital investments’ impact on present and future performance of company.
- Diagnose HR financial and non-financial measures, understand the messages in data, with a view to become competitive, cost effective and yet responsive to business needs.