There is evidence to demonstrate the materiality to financial performance of human capital, however, presently there is very limited quantitative or qualitative reporting by companies on their approach to managing their workforce. In turn this means it is impossible to see a full picture of a company’s operations and therefore to make comparisons and form a view as to how companies are maximising the productivity of their workforce.
This discussion paper suggests four areas where better reporting is required and suggests that data points in relation to each of these can and should be provided.
- the composition of the workforce;
- the stability of the workforce;
- the skills and capabilities of the workforce; and
- the motivation and engagement of the workforce.
Whilst we encourage companies to seize the initiative we intend to host a series of roundtables during the second half of 2015 to discuss with relevant parties how more progress can be made. Ultimately conclusions will be incorporated into the NAPF’s Corporate Governance Policy & Voting Guidelines.