Human Capital Management
Human Capital Management (HCM) involves finding and hiring the right people while managing an evolving set of workforce challenges and opportunities so as to “optimize” productivity. Human capital is the largest expenditure category for the majority of companies and the newly introduced SEC disclosure requirements around this topic are fraught with both opportunity and risk. Talking about HCM is easy (and common these days) but unearthing actionable areas of HCM improvement includes a discussion of: financial security for employees, workforce retention strategies during the “great resignation”, tax goals as related to ESG strategies, and more. SVDX recently held a webinar to discuss what boards need to know about HCM including the opportunities around new disclosure requirements, DE&I trends, training and retention innovations, a more holistic view of employee well-being, employee financial security, and the new normal of engagement with flexibility. To view the webinar, click here.
Additionally, here are some relevant links:
From Pearl Meyer:
Quick Poll: Human Capital Management Disclosure
Has the new SEC requirement to disclose material information related to HCM spurred additional disclosure beyond the Annual Report/10-K?
Human Capital Management Disclosure: Emerging Best Practices
Two clear trends companies can incorporate into their HCM disclosure strategy for 2022 that can have meaningful impact.
From Stanford Graduate School of Business Corporate Governance Research Initiative, by David Larcker and Brian Tayan:
Human Capital Disclosure: What Do Companies Say about Their “Most Important Asset”?
From buildcommonwealth.org:
Financial Security: A Foundation for Emotional Wellbeing
A website page summary of Commonwealth research, publications and data points on financial security.
How benefits professionals can leverage payroll tools to advance worker financial security
Recordkeepers’ Role in Solving the U.S. Emergency Savings Crisis
Employers and recordkeepers can play a key role in improving the financial security of U.S. workers
The $400 Problem: Improving Employee Financial Wellness
Tips on building a successful financial security program for employees (and why it's so important to do so).