Boards, Investors & HR
Many HR leaders are finding that dealing with the board has become an important part of their job. Since this is new terrain, it can be hard to determine the best practices, especially with the new demands for integrated reporting from SASB and the IIRC. HR worries about being caught behind the curve, but knows they need to tread carefully.
How we can help
There is a substantial body of “good practices” on reporting to boards and investors. The first step is to review your current reporting against those practices and generate a list of potential improvements, which can range from easy fixes to more ambitious changes.
A bigger step is to articulate the integrated story of how human capital drives the company’s value. The trick is to get past the usual generic statements about engagement or culture to specific linkages that can drive business decisions. The easiest way to frame this is as a human capital risk assessment, and that assessment is built mainly on a probing discussion with HR and business leaders. The goal is to get sufficient clarity that specific action steps naturally flow from the risk assessment.
ColleaguesAndrew Lambert, Dr. Laurie Bassi, Mike McInerney
Where to learn more
Our award-winning study Boards & HR: How board oversight of human capital works sheds light on how HR needs to work with the board.
Our extensive study Smarter Annual Reports: How companies are integrating financial and human capital reporting vividly illustrates the state of the art in communicating human capital information to investors.
Take the first step
Take a look at the current state of affairs in reporting on human capital to boards and investors in your company, then get in touch and set up an initial meeting. You can download those reports at Creelman Lambert Library.
“Without measurement, HR is full of false hope. And, instead of measuring what is easy, we have to learn how to measure what is right, no matter how difficult. Dave Creelman has done groundbreaking work on reporting human capital and organization capabilities issues. His work will influence and shape a profession.”