The UK's Human Capital Index - lessons to be learned?
If we are going to engage investors in Human Capital Reporting, perhaps we should look at our Human Capital not just in reporting terms but in terms of RISK ANALYSIS, in understanding the profile of who we have and how we invest to money to retain, develop, unlock their capability and potential.
This WEF report (in which the UK is 19 out of 124) has some interesting headings which could be used as focus areas for Human Capital Reporting or at least Analysis.
- Education and workforce distribution
- Spread of roles (distribution by occupation)
- Vulnerability (poor performers)
- Investment in development (and ROI)
- Skill levels (low, medium and high)
There are of course others to add to the list including :
stability, engagement, pay and reward %'s, number of vacant positions etc.
The question becomes what questions do we want the data to answer?
How can we compare when there is no agreed standard yet?
How do we avoid subjective vs objective data usage?
Still a long way to go on these issues before the fog clears. However we could focus our attention to how we measure people's contribution to results and how we keep it that way...is that the only question investors want answering? Capitalise and protect - that would be my goal.
JOHN | THINKING HR