The quality of Human Capital Management (HCM) disclosure was the subject of a recently completed research project, reported in The Australian Financial Review today. The project looked specifically at how Australia's 50 largest ASX-listed corporations reported on how they managed their people in 2007.
The results show great discrepancy between the top performers and those companies that are yet to see value in reporting on measures succh as staff satisfaction, culture, personal development and leadership competencies/attributes.
Form companies that managed to get a handle on what has traditionally been referred to as a 'soft' and 'feel-good' exercise, the pay-offs are very real. Employess look to HCM disclosures for assurance about the type of workplace a potential employer provides and investors have begun factoring HCM disclosures into their decision making.
There is much evidence to support the impact of nurturing the 'soft' skills has on the financial performance, i.e.
- "Happy staff equals happy customers equals happy shareholders. Staff turnover at Westpac has fallen from 17 to 14 percent in the past five years, which translates to $50 million cut in recruitment costs and is reflected in fewer sick days and better productivity. Seven years averaging 11 percent compound earnings-per-share growth and returns on equity averaging 20 percent, tell you that CEO Dr David Morgan has performed." The AFR, 13 April 2006
- "Fortune 100 'Best companies to work for' have provided a higher than the S&P over seven years, showing a positive relationship between a strong, affirming culture and performance." Great Place to Work Institute & Frank Russell Company, 2005 - The Fortune '100 Best Companies to Work For'
- Other evidence can be found at: http://www.mettle.com.au/our_approach/default.aspx
How does your company manage its Human Capital and do your report on your HCM?
0 comments:
Post a Comment